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The operations manager for the Blue Moon Brewing Co. produces two beers: Lite (L) and Dark (D).
Two of his resources are constrained: production time, which is limited to 8 hours (480 minutes) per day; and malt extract (one of his ingredients), of which he can get only 675 gallons each day.
To produce a keg of Lite beer requires 2 minutes of time and 5 gallons of malt extract, while each keg of Dark beer needs 4 minutes of time and 3 gallons of malt extract.
Profits for Lite beer are $3.00 per keg, and profits for Dark beer are $2.00 per keg.
a. What is the profit equation?
b. What are the two constraints (equations)?
c. What is the maximum profit?
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