Posted: July 24th, 2016

What is a gallon?

Carl Lara owner of the Sticky wicket bar at Queens Park Oval in Trinidad, is
preparing for 20/20 cricket final, and he must determine how much beer to stock. Lara
stocks three brands of beer, Carib, Hairoun, and Redstripe. The cost per gallon (to the
Bar owner) of each brand is as follows:

Brand Cost/Gallon
Carib $1.50
Hairoun 0.90
Redstripe 0.50

The Bar has a budget of $2,000 for beer for the 20/20 final. Lara sells Carib at a rate
of $3.00 per gallon, Hairoun at $2.50 per gallon, and Redstripe at $1.75 per gallon.
Based on past 20/20 games, Lara has determined the maximum customer demand to
be 400 gallons of Carib, 500 gallons of Hairoun, and 300 gallons of Redstripe. The Bar
has the capacity to stock 1,000 gallons of beer; Lara wants to stock up completely. Lara
wants to determine the number of gallons of each brand of beer to order so as to
maximize profit.

Formulate problem to maximize profit
(i) Objective function
(ii) Five constraints plus nonnegativity constraints