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    A Winemaker in California

    Uploaded by

    Vikram Kumar
    The document describes a scenario where a winemaker must decide how much table wine and dessert wine to produce from grapes to maximize profit. It provides production details and formulates a linear programming model to determine the optimal production quantities. The optimal solution from implementing the model in Excel Solver is described, with two constraints binding. A sensitivity analysis shows the winemaker should be willing to pay $0.625 for an additional labor hour.

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    A Winemaker in California

    Uploaded by

    Vikram Kumar
    7 views2 pages
    The document describes a scenario where a winemaker must decide how much table wine and dessert wine to produce from grapes to maximize profit. It provides production details and formulates a linear programming model to determine the optimal production quantities. The optimal solution from implementing the model in Excel Solver is described, with two constraints binding. A sensitivity analysis shows the winemaker should be willing to pay $0.625 for an additional labor hour.

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    The document describes a scenario where a winemaker must decide how much table wine and dessert wine to produce from grapes to maximize profit. It provides production details and formulates a linear programming model to determine the optimal production quantities. The optimal solution from implementing the model in Excel Solver is described, with two constraints binding. A sensitivity analysis shows the winemaker should be willing to pay $0.625 for an additional labor hour.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    7 views2 pages

    A Winemaker in California

    Uploaded by

    Vikram Kumar
    The document describes a scenario where a winemaker must decide how much table wine and dessert wine to produce from grapes to maximize profit. It provides production details and formulates a linear programming model to determine the optimal production quantities. The optimal solution from implementing the model in Excel Solver is described, with two constraints binding. A sensitivity analysis shows the winemaker should be willing to pay $0.625 for an additional labor hour.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    A winemaker in California's Napa Valley must decide how much of two types of wine

    she will produce from a particular variety of grapes. Each liter of table wine yields $8
    profit, whereas each liter of dessert wine produces $3 profit. The labor hours and
    bottling process time used for type of wine are given in the table below. Resources
    available include 200 labor hours and 80 hours of bottling process time. Assume the
    winemaker has more than enough grapes available to supply any feasible production
    plan.

    Table Desert
    Labor (Hours) 0.20 0.60
    Process Time (Hours) 0.30 0.10
    Formulate a linear programming model that will enable the winemaker to determine
    the number of liters of each type of wine to produce in order to maximize her profit.
    (Points: 7)
    X2 -
    X1 - Table Dessert RHS Dual
    Maximize 8 3
    Constraint
    1 0.2 0.6 <= 200 0.625
    Constraint
    2 0.3 0.1 <= 80 26.25
    Solution-> 175 275 Profit $2,225

    1. Refer to the scenario. Find an optimal solution to the model in 6 and determine the
    maximum profit. (Points: 7)
    X2 -
    X1 - Table Dessert RHS Dual
    Maximize 8 3
    Constraint
    1 0.2 0.6 <= 200 0.625
    Constraint
    2 0.3 0.1 <= 80 26.25
    Solution-> 175 275 Profit $2,225

    1. Refer to the scenario. Implement the model of 6 in Excel Solver and obtain an
    answer report. Which constraint(s) are binding on the optimal solution? (Points: 7)
    Reduced Original Lower Upper
    Variable Value Cost Val Bound Bound
    X1 175 0 8 1 9
    X2 275 0 3 2.6667 24
    Dual Slack/Surplu Original Lower Upper
    Constraint Value s Val Bound Bound
    Constraint
    1 0.625 0 200 53.3333 480
    Constraint
    2 26.25 0 80 33.3333 300
    1. ) Refer to the scenario. Obtain a sensitivity report for the model in 6. How much
    should the winemaker be willing to pay for an additional labor hour? (Points: 7)
    Basic
    Cj Variables 8 X1 3 X2 0 slack 1 0 slack 2 Quantity
    Iteration 1
    0 slack 1 0.2 0.6 1 0 200
    0 slack 2 0.3 0.1 0 1 80
    zj 0 0 0 0 0
    cj-zj 8 3 0 0
    Iteration 2
    146.666
    0 slack 1 0 0.5333 1 -0.6667 7
    266.666
    8 X1 1 0.3333 0 3.3333 7
    zj 8 2.6667 0 26.6667 2,133.33
    cj-zj 0 0.3333 0 -26.6667
    Iteration 3
    3 X2 0 1 1.875 -1.25 275
    8 X1 1 0 -0.625 3.75 175
    zj 8 3 0.625 26.25 2,225.00
    cj-zj 0 0 -0.625 -26.25

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