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 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 Dessert Labor (Hours) 0.20 0.60 Process Time (Hours) 0.30 0.10 a. Using Excel, find an optimal solution and determine the maximum profit. b. Which constraint(s) are binding in the optimal solution? c. Obtain a sensitivity report for the model. How much should the winemaker be willing to pay for an additional labor hour?
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 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
Dessert
Labor (Hours)
0.20
0.60
Process Time (Hours)
0.30
0.10
a. Using Excel, find an optimal solution and determine the maximum profit.
b. Which constraint(s) are binding in the optimal solution?
c. Obtain a sensitivity report for the model. How much should the winemaker be willing to pay for an additional labor hour?
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