Find an optimal solution to the model

Reference no: EM131900190

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 liter of table wine yields $8.25 profit, while each liter of dessert wine produces $3.25 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 of inputs Labor (hours) Table wine=.20 Dessert Wine= .60 Process (hours) Table wine= .30 Dessert Wine= .10

1) Find an optimal solution to the model in Part 1 and determine the maximum profit.

2) Obtain a sensitivity report for the model in Part 1.

How much should the winemaker be willing to pay for an additional labor hour? I only need help on the last part of question 2. I have the sensitivity report, but I'm unsure of how to interpret the report in order to answer the question.

Reference no: EM131900190

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