Answered: The daily production process at a soda…

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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The daily production process at a soda bottling company produces regular orange-flavored (x₁ ), regular lemon-flavored(x₂)_, diet orange-flavored (x₃ ), and diet lemon-flavored (x₄)drinks. The company operates 18 hours (1,080 minutes) per day and uses two types of syrups with daily available inventories of 260 and 220 gallons for syrup types 1 and 2, respectively. The demand for the two orange-flavored drinks combined is no more than 250 bottles and the two lemon-flavored drinks have a combined daily demand of at least 300 bottles. The company wishes to choose the production level for each type of drink in order to maximize its total profit.

	production time (minutes)	Syrup 1 (gallons)	Syrup 2 (gallons)	profit unit
Regular orange drink	1.2	0.30	0.10	$1.20
regular lemon drink	1	0.25	0.25	$1.50
diet orange drink	1.4	0.25	0.20	$1.80
diet lemon drink	2	0.40	0.30	$2.00

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The optimal value of one of the decision variables is zero. What should the minimum profit per bottle be for this decision variable to change to a nonzero value?

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