Explaining the sensitivity information in language


Question: The International Chef, Inc. markets three blends of oriental tea: premium, Duke Grey, and breakfast. The firm uses tea leaves from India, China, and California. Net profit per pound for each blend is $.50 for premium, $.30 for Duke Grey, and $.20 for breakfast. The firm's weekly supplies are 20,000 pounds of Indian tea leaves, 22,000 pounds of Chinese tea leaves, and 16,000 pounds of Californian tea leaves. Develop and solve a linear optimization model to determine the optimal mix to maximize profit, and write a short memo to the president, Kathy Chung, explaining the sensitivity information in language that she can understand.

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Basic Statistics: Explaining the sensitivity information in language
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