Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A winemaker in Barrossa Valley must decide how much of two types of wine she will produce from a particular variety of grapes. Each litre

A winemaker in Barrossa Valley must decide how much of two types of wine she will produce from a particular variety of grapes. Each litre of table wine yields $8 profit, while each litre of dessert wine produces $5 profit. The labour (hour), bottling process time (hour), and grapes required (kg) used for each litre of table wine is 0.5, 0.2, and 1.2, respectively. 

The labour (hour), bottling process time (hour), and grapes required (kg) used for each litre of dessert wine is 0.6, 0.2, and 1.0, respectively. Resources available include 1000 labour hours, 800 hours of bottling process time, and 1800 kg of grapes. Model the problem in Excel spreadsheet and solve it using Solver. 


What is the optimal production plan? 

How much profit would the winemaker be able to make? 

Generate the sensitivity analysis report for the problem. Now, the winemaker has the opportunity to purchase additional labour and bottling hours at $2/hour, and the opportunity to purchase more grapes at $2/kg. If the winemaker has $1000 to spend, which resource should the winemaker purchase? Why?

Step by Step Solution

3.34 Rating (157 Votes )

There are 3 Steps involved in it

Step: 1

Set up Excel model as follows FORMULA VIEW Enter Solver Parameters as ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Discovering Advanced Algebra An Investigative Approach

Authors: Jerald Murdock, Ellen Kamischke, Eric Kamischke

1st edition

1559539844, 978-1604400069, 1604400064, 978-1559539845

More Books

Students also viewed these Management Leadership questions