Question

In: Statistics and Probability

Bloomington Breweries produces beer, ale, lager and a pilsner. Beer sells for $3 per barrel. Ale...

Bloomington Breweries produces beer, ale, lager and a pilsner. Beer sells for $3 per barrel. Ale sells for $4 per barrel. Lager sells for $6 per barrel and Pilsner sells for $4.50 per barrel. The table below shows ingredient requirements (in lbs.) for each barrel of brewery type produced as well as availability of each ingredient. Assume all quantities of Pilsner produced can be sold but no more than 50,000 barrels of each Ale and lager can be sold and at least 30,000 barrels of beer must be sold. Formulate an LP problem to maximize brewery sales, explain objextive and constraints equations and solve

Requirements
Ingredient Beer Ale Lager Pilsner Amount Available (in lbs.)
Corn 5 4 6 4 700000
Malt 1 2 3 2 500000
Hops 2 3 3 3 500000

Solutions

Expert Solution

beer - x ale - y, Lager - z Pilsner - w

maximize z = 3x+ 4y+ 6z + 4.5w

x >= 30000

y <= 50000, z<= 50000

5x+4y+6z+4w<= 700000

x+2y+3z+2w<= 500000

2x+3y+3z+3w<= 500000

Solving in excel

Ingredient Beer Ale Lager Pilsner Amount Available (in lbs.)
30000.02 0 0 137500
Corn 5 4 6 4 700000 700000
Malt 1 2 3 2 500000 304999.9748
Hops 2 3 3 3 500000 472499.9706
3 4 6 4.5 708749.956
Ingredient Beer Ale Lager Pilsner Amount Available (in lbs.)
30000.0167762109 0 0 137499.979027588
Corn 5 4 6 4 700000 =SUMPRODUCT($B$2:$E$2,B3:E3)
Malt 1 2 3 2 500000 =SUMPRODUCT($B$2:$E$2,B4:E4)
Hops 2 3 3 3 500000 =SUMPRODUCT($B$2:$E$2,B5:E5)
3 4 6 4.5 =SUMPRODUCT($B$2:$E$2,B7:E7)

X = 30000

Y = 0

z = 0

W = 137500


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