Iam having trouble with part b of this problem:
lutz brewery brews three brands of beers: lu...
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Mathematics, 14.09.2019 11:20 psa180
Iam having trouble with part b of this problem:
lutz brewery brews three brands of beers: lutz lager, lutz light, lutz ultralight. lager sells for $12 per barrel, light sells for $10 and ultralight sells for $14 per barrel. producing a barrel of lager requires 8 pounds of corn and 4 pounds of hops. producing a barrel of light requires 2 pounds of corn, 6 pounds of rice, and 3 pounds of hops. producing a barrel of ultralight requires 1 pounds of corn, 8 pounds of rice, and 2 pounds of hops. the brewery has 5000 pounds of corn, 3000 pounds of rice, and 4000 pounds of hops. to supply demand from established customers, lutz brewery should produce at least 200 barrels of each product.
a) assuming a linear relationship, use excel solver to determine the optimal mix of lager, light and ultralight that maximizes lutz brewery’s revenue.
b) conduct sensitivity analysis and interpret results.
answer to part a is below using excel solver:
blend lager light ultralight
decision variable x1 x2 x3
production plan 546.875 200 225
unit profit 12 10 14
subject to rhs
lager demand 1 547 > = 200
light demand 1 200 > = 200
ultralight demand 1 225 > = 200
corn 8 2 1 5000 < = 5000
rice 0 6 8 3000 < = 3000
hops 4 3 2 3238 < = 4000
total profit 11712.5
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