What is the optimal solution

Assignment Help Operation Management

Reference no: EM13251546

A winery has the following capacity to produce an exclusive dinner wine at either of its two vineyards at the indicated costs: ]
Vineyard Capacity Cost per Bottle
1 3,500 $23
2 3,100 $25

Four Italian restaurants around the country are interested in purchasing this wine. Because the wine is exclusive, they all want to buy as much as they need but will take whatever they can get. The maximum amounts required by the restuarants and the prices they are willing to pay are summarized in the following table.
Restaurant Maximum Demand Price

1 1,800 $69
2 2,300$67
31,250$70
4 1,750$66

The costs of shipping the bottle from the vineyards to the restaurants are summarized in the following table:
Restaurants
Vineyard 1 2 3 4
1 $7 $8 $13 $9
2$12$6 $8 $7
The winery needs to determine the production and shipping plan that allows it to maximize its profits on this wine.
a. Formulate an LP model for this problem.
b. Create a spreadsheet model for this problem, and solve it using Solver.
c. What is the optimal solution?

Reference no: EM13251546

Questions Cloud

What is the total cost of crashing : Which activity should be crashed, and what is the total cost of crashing? (Assume that A-E-G-H remains the critical path after crashing)

Compare and contrast project management : They are different names for possibly the same thing. These are very different topics. Compare and contrast project management, program management, and project portfolio management.

What is the tire pressure in pascals : An automobile tire is inflated with air originally at 10.0°C and normal atmospheric pressure. During the process, What is the tire pressure in pascals

Calculate the minimum gamma-ray expose : A pocket ion chamber is built with an internal volume of 10 cc and a capacitance of 20 pF. calculate the minimum gamma-ray expose to which the pocket chamber will be sensitive

What is the optimal solution : Four Italian restaurants around the country are interested in purchasing this wine. Because the wine is exclusive, they all want to buy as much as they need but will take whatever they can get.

Find the saturated ion current : An air-filled ion chamber is operated at a pressure of 3 atm, find the saturated ion current corresponding to a gamma-ray exposure of 1 mR/h

Briefly discuss what is meant by critical path analysis : Briefly discuss what is meant by critical path analysis. What are critical path activities and why are they important?

How many production runs per year will be made : Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in Jakarta, the company produces subcomponents at a rate of 300 per day, and it uses these subcomponets at a rate of 12,500 per year(of 250 working days).

Find the time needed to reverse course : An airplane traveling at 480 km/h needs to reverse its course. The pilot decides to accomplish this by banking the wings at an angle of 38o. Find the time needed to reverse course

User Account

All Pages