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Don’t Drink And Drive Brewery (DDAD) produces beer and ale. Beer sells for $5.70 per barrel, and ale sells for $2.05 per barrel. Producing a barrel of beer requires 5 pounds of corn and 2 pounds of hops. Producing a barrel of ale requires 2 pounds of corn and 1 pound of hops. Operational costs are $0.25 for a barrel of beer and $0.10 for a barrel of ale. The brewery has 12,000 pounds of corn and 6,000 pounds of hops. DDAD wants to maximize its profit. a) Find the optimal production plan that maximizes the revenue. Write the solution. b) What is (are) the bottleneck resource(s) for the brewery? Why? c) If additional corn is available at 1.25 $/pound, should DDAD purchase any? Why (not)?

Don’t Drink And Drive Brewery (DDAD) produces beer and ale. Beer sells for $5.70 per barrel, and ale sells for $2.05 per barrel. Producing a barrel of beer requires 5 pounds of corn and 2 pounds of hops. Producing a barrel of ale requires 2 pounds of corn and 1 pound of hops. Operational costs are $0.25 for a barrel of beer and $0.10 for a barrel of ale. The brewery has 12,000 pounds of corn and 6,000 pounds of hops. DDAD wants to maximize its profit. a) Find the optimal production plan that maximizes the revenue. Write the solution. b) What is (are) the bottleneck resource(s) for the brewery? Why? c) If additional corn is available at 1.25 $/pound, should DDAD purchase any? Why (not)?

Practical Management Science
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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Don’t Drink And Drive Brewery (DDAD) produces beer and ale. Beer sells for $5.70 per barrel, and ale sells for $2.05 per barrel. Producing a barrel of beer requires 5 pounds of corn and 2 pounds of hops. Producing a barrel of ale requires 2 pounds of corn and 1 pound of hops. Operational costs are $0.25 for a barrel of beer and $0.10 for a barrel of ale. The brewery has 12,000 pounds of corn and 6,000 pounds of hops. DDAD wants to maximize its profit.

a) Find the optimal production plan that maximizes the revenue. Write the solution.

b) What is (are) the bottleneck resource(s) for the brewery? Why?

c) If additional corn is available at 1.25 $/pound, should DDAD purchase any? Why (not)?

 

1.Brewery 2.Oil Refinery A В C D E F G H | 1 Don't Drink And Drive Brewery 2 Used Unit (per barrel) Produced Selling price $ $ 3 Corn Нops Cost Profit 5.70 $ 0.25 $ 2.05 $ 0.10 $ 4 Вeer 5.45 5 Ale 2 1 1.95 Resource Used 7 <= 8 Available 12,000 6,000 9. 10 Total Profit: 11 12 13 14 15 16 17 18 19
Transcribed Image Text:1.Brewery 2.Oil Refinery A В C D E F G H | 1 Don't Drink And Drive Brewery 2 Used Unit (per barrel) Produced Selling price $ $ 3 Corn Нops Cost Profit 5.70 $ 0.25 $ 2.05 $ 0.10 $ 4 Вeer 5.45 5 Ale 2 1 1.95 Resource Used 7 <= 8 Available 12,000 6,000 9. 10 Total Profit: 11 12 13 14 15 16 17 18 19
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