Question
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
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, while each liter of dessert wine produces $3 profit. The labor hours and bottling process time used for each 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.
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a) 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.
b) Implement the model in part a) in Excel Solver and obtain the sensitivity report.
c) Determine what is the lower and the upper bounds that the objective coefficients can change without changing the optimal solution.
d) Can you increase the bottling process time from 80 to 100 hours? If YES explain why and how this change affects the optimal objective function value. If NOT, explain why not.
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