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)?
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F091e15d2-7260-4545-9276-1090fe0c8451%2F01390a5c-2466-4a37-8ba3-146e205b9de3%2Fs2y5tec_processed.jpeg&w=3840&q=75)
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