QUESTION 2 :

The Diaz Coffee Company blends three types of coffee beans (Brazilian, Colombian, and Peruvian) into ground coffee to be sold at retail. Suppose that each kind of bean has a distinctive aroma and strength, and the company has a chief taster who can rate these features on a scale of 1 to 100. The features of the beans are tabulated as follows:

Bean	Aroma Rating	Strength Rating	Cost/lb.	Pounds Available
Brazilian	75	15	$0.50	1,500,000
Colombian	60	20	$0.60	1,200,000
Peruvian	85	18	$0.70	2,000,000

The company would like to create a blend that has an aroma rating of at least 78 and a strength rating of at least 16. Its supplies of the various beans are limited, however. The available quantities are specified above. All beans are delivered under a previously arranged purchase agreement. Diaz wants to make four million pounds of the blend at the lowest possible cost.

• Develop an Excel model of the problem, ensuring that each variable and constraint is clearly indicated.
• What product mix will minimize cost? Write your recommendation directly in the appropriate worksheet.