Q3. La Jolla Beverage Products is considering producing a wine cooler that would be a blend of a white wine, a rose wine and fruit juice. To meet taste specifications, the wine cooler must consist of at least 20% white wine, at least 50% and no more than 60% rose, and exactly 10% fruit juice. La Jolla purchases the wine from local wineries and the fruit juice from a processing plant in San Francisco. For the current production period, 8,000 gallons of white wine and 7000 gallons of rose wine can be purchased; an unlimited amount of fruit juice can be ordered. The costs for the wine are $1 per gallon for the white and $2 per gallon for the rose; the fruit juice can be purchased for $0.50 per gallon. La Jolla Beverage Products can sell all of the wine cooler they can produce for $4 per gallon. a. Is the cost of the wine and fruit juice a sunk cost or a relevant cost in this situation? Explain. b. Formulate a linear program to determine the blend of the three ingredients that will maximize the total profit. Solve the linear program to determine the number of gallons of each ingredient La Jolla should purchase and the total profit contribution they will realize from this blend. Note: You shall use a software, either Management Scientist or Excel Solver, to solve this problem. Attach the software model and output (Answer and Sensitivity Analysis) to your homework submission. c. If La Jolla could obtain additional amounts of the white wine, should they do so? If so, how much should they be willing to pay for each additional gallon, and how many additional gallons would they want to purchase?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
I just need help with question 3b, unable to get the answer under Excel solver, please help.
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