Answered: PRODUCT Light Beer (x) Resource…

PRODUCT Light Beer (x) Resource Availability (per month) Dark Beer Resource (x2) Barley 0.1 gram 0.6 gram 2,000 grams Bottling 1 bottle 1 bottle 6,000 bottles Market 1 bottle 4,000 bottles

MARKETING 2018

19th Edition

ISBN:9780357033753

Author:Pride

Publisher:Pride

Chapter1: An Overview Of Strategic Marketing

Section1.2: Dollar Shave Club: The Company For Men

Problem 2C

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Concept explainers

Optimization Models

Optimization models are mathematical models that help organizations determine the best way to allocate scarce resources to achieve specific objectives. These models can be used to solve a wide variety of problems, from finding the most efficient route for a delivery truck to determining the optimal mix of products to stock in a store.

Question

Mile-High Microbrewery makes a light beer and a dark
beer. Mile-High has a limited supply of barley, limited bot-
tling capacity, and a limited market for light beer. Profits
are $0.20 per bottle of light beer and $0.50 per bottle of dark
beer.
a. The following table shows resource availability of
products at the Mile-High Microbrewery. Use the graphic
method of linear programming to maximize profits. How
many bottles of each product should be produced per
month?

b. Identify any constraints with slack or surplus

PRODUCT
Light Beer
(x)
Resource Availability
(per month)
Dark Beer
Resource
(x2)
Barley
0.1 gram
0.6 gram
2,000 grams
Bottling
1 bottle
1 bottle
6,000 bottles
Market
1 bottle
4,000 bottles

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