Betty Malloy, owner of the Eagle Tavern in Pittsburgh, is preparing for Super Bowl Sunday, and she must determine how much beer to stock. Betty stocks three brands of beer-Yodel, Shotz, and Rainwater. The cost per gallon (to the tavern owner) of each brand is shown in table below. The tavern has a budget of $2,000 for beer for Super Bowl Sunday. Betty sells Yodel at a rate of $3,00 per gallon, Shotz at $2.50 per gallon, and Rainwater at $1.75 per gallon. Based on past football games, Betty has determined the maximum customer demand to be 400 gallons of Yodel, 500 gallons of Shotz, and 300 gallons of Rainwater. The tavern has the capacity to stock 1,000 gallons of beer; Betty wants to stock up completely. Betty wants to decide on the number of gallons of each brand of beer to order so as to make the most profit. Formulate a linear programming model for this problem. Define x₁ as the number of gallons of Yodel to order, x2 as the number of gallons of Shotz to order, x3 as the number of gallons of Rainwater to order, and Z as the total profit. Which of the following model formulations is correct? Brand Cost/Gallon Yodel $1.50 Shotz 0.90 Rainwater 0.50
Betty Malloy, owner of the Eagle Tavern in Pittsburgh, is preparing for Super Bowl Sunday, and she must determine how much beer to stock. Betty stocks three brands of beer-Yodel, Shotz, and Rainwater. The cost per gallon (to the tavern owner) of each brand is shown in table below. The tavern has a budget of $2,000 for beer for Super Bowl Sunday. Betty sells Yodel at a rate of $3,00 per gallon, Shotz at $2.50 per gallon, and Rainwater at $1.75 per gallon. Based on past football games, Betty has determined the maximum customer demand to be 400 gallons of Yodel, 500 gallons of Shotz, and 300 gallons of Rainwater. The tavern has the capacity to stock 1,000 gallons of beer; Betty wants to stock up completely. Betty wants to decide on the number of gallons of each brand of beer to order so as to make the most profit. Formulate a linear programming model for this problem. Define x₁ as the number of gallons of Yodel to order, x2 as the number of gallons of Shotz to order, x3 as the number of gallons of Rainwater to order, and Z as the total profit. Which of the following model formulations is correct? Brand Cost/Gallon Yodel $1.50 Shotz 0.90 Rainwater 0.50
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Only need help with the budget constraint
Transcribed Image Text:Betty Malloy, owner of the Eagle Tavern in Pittsburgh, is preparing for Super Bowl Sunday, and she
must determine how much beer to stock. Betty stocks three brands of beer-Yodel, Shotz, and
Rainwater. The cost per gallon (to the tavern owner) of each brand is shown in table below. The
tavern has a budget of $2,000 for beer for Super Bowl Sunday. Betty sells Yodel at a rate of $3,00
per gallon, Shotz at $2.50 per gallon, and Rainwater at $1.75 per gallon. Based on past football
games, Betty has determined the maximum customer demand to be 400 gallons of Yodel, 500
gallons of Shotz, and 300 gallons of Rainwater. The tavern has the capacity to stock 1,000 gallons of
beer; Betty wants to stock up completely. Betty wants to decide on
the number of gallons of each brand of beer to order so as to make the most profit. Formulate a
linear programming model for this problem. Define x₁ as the number of gallons of Yodel to order, x2
as the number of gallons of Shotz to order, x3 as the number of gallons of Rainwater to order, and Z
as the total profit. Which of the following model formulations is correct?
Brand
Cost/Gallon
Yodel
$1.50
Shotz
0.90
Rainwater
0.50
![According to Excel's sensitivity report for the previous formulated model (Eagle Tavern), which of the
following statement is correct regarding the shadow price of budget constraint?
O The shadow price for budget constraint is $.25
O Increasing current budget does NOT result in profit increase for the tavern
O The shadow price of $.25 is only valid when the tavern's budget is between [$1100, +infinity]
O The shadow price is zero because the tavern has used up all of its current budget](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0506d55b-bb84-43f9-9218-6fc41e3ed9b6%2F396dd943-2c29-4cb4-8f2a-3720c5766f42%2F39t931_processed.jpeg&w=3840&q=75)
Transcribed Image Text:According to Excel's sensitivity report for the previous formulated model (Eagle Tavern), which of the
following statement is correct regarding the shadow price of budget constraint?
O The shadow price for budget constraint is $.25
O Increasing current budget does NOT result in profit increase for the tavern
O The shadow price of $.25 is only valid when the tavern's budget is between [$1100, +infinity]
O The shadow price is zero because the tavern has used up all of its current budget
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