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la jolla beverage products is considering producing a wine cooler that would be a blend of a white wine,rose wine, and fruit juice. to meet specifications, the wine cooler must contain at least 50% white wine, at least 20% and no more than 30% rose, and exactly 20% fruit juice. for current production period 10,000 gallons of white wine and 8,000 gallons of rose wine can be purchased an unlimited amount of fruit can be ordered. the cost of white wine is 1.00 per gallon rose wine 1.50 per gallons and fruit juice .50 per gallon. la jolla can sell the wine cooler they produced for 2.50 per gallon

A. Formulate a linear program to determine the blend of the three ingredients tha will maximize the total profit contribution. solve the linear program to determine the number of galllons if each ingredient la jolla should purchased and the total profit contribution they will realize from this blend.

B. if la jolla could obtain additional 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 purchased

C. if la jolla could obtain additional rose wine should they do so if so how much should they be willing to pay for each additional gallon and how many additional would they want to purchased

D. intepret the dual price for the constriant corresponding to the requirement that the wine cooler must contain at least 50% of white wine. what is your advice to manangement given this duel price

E. interpret the dual price for the constriant corresponding to the requirement that the wine cooler must contain exactly 20% juice.

what is your advice to management given this duel price

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M9446480

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