The sun river beverage company is a regional producer of teas, exotic juices, and energy drinks. with an interest in healthier lifestyles, there has been an increase in demand for its new sugar-free energy drink formulation. the blending and final packing operation requires 13 tasks. each week, there is a demand for 130,000 bottles of this product. this product could be made and packaged using any of the five manufacturing processes in the product-process matrix. list the advantages and disadvantages of selecting each process, and then select the best one for this application.

Afinancial institution, the thriftem bank, is in the process of formulating its loan policy for the next quarter. a total of $12 million is allocated for that purpose. being a full-service facility, the bank is obligated to grant loans to different clientele. the following table provides the types of loans, the interest rate charged by the bank, and the possibility of bad debt as estimated from past experience. type of loaninterest rateprobability of bad debtpersonal.140.10car.130.07home.1 20.03farm.125.05commercial.100.02 bad debts are assumed unrecoverable and hence produce no interest revenue either. competition with other financial institutions in the area requires that the bank allocate at least 40% of the total funds to farm and commercial loans. to assist the housing industry in the region, home loans must equal at least 50% of the personal, car, and home loans. the bank also has a stated policy specifying that the overall ratio for bad debts on all loans may not exceed .04. formulate this problem as a linear program. define your variables clearly and write all the constraints explaining the significance of each.

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