Question

Each week, the DeeLite Milk Company gets milk from three dairies and then blends the milk to get the desired amount of butterfat for the company’s premier product. The average price of milk and milk fat percentage varies from year to year. DeeLite is currently planning to produce at least 1500 gallons per week with at least 3.7% butterfat. Dairy A can supply at most 600 gallons of milk averaging 3.9% butterfat and costing $17.0 per gallon. Dairy B can supply milk averaging 3.5% butterfat costing $13.0 per gallon. There is no practical limit on the amount they can provide DeeLite. Dairy C can supply at most 700 gallons of milk averaging 3.75% butterfat costing $15.45 per gallon.

a) 400 gallons from Dairy A, 600 gallons from Dairy B, and 500 gallons from Dairy C
b) 600 gallons from Dairy A, 200 gallons from Dairy B, and 700 gallons from Dairy C
c) 500 gallons from Dairy A, 300 gallons from Dairy B, and 700 gallons from Dairy C
d) 300 gallons from Dairy A, 700 gallons from Dairy B, and 500 gallons from Dairy C

Answer 1

To meet the requirements, DeeLite Milk Company should choose option c) 500 gallons from Dairy A, 300 gallons from Dairy B, and 700 gallons from Dairy C.

Step-by-step explanation:

To determine which combination of milk from the three dairies will meet the requirements of DeeLite Milk Company, we need to consider the desired amount of butterfat and the available quantity and cost of milk from each dairy.

Option c) 500 gallons from Dairy A, 300 gallons from Dairy B, and 700 gallons from Dairy C, meets the requirements. Dairy A supplies 500 gallons, which is more than the required 400 gallons, and has a higher butterfat percentage and lower cost compared to the other options. Dairy B and Dairy C supply quantities that meet the requirements as well.

Therefore, the correct answer is option c) 500 gallons from Dairy A, 300 gallons from Dairy B, and 700 gallons from Dairy C.