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The operations manager for the Blue Moon Brewing Co. produces two beers: Lite (L) and Dark (D).

Two of his resources are constrained: production time, which is limited to 8 hours (480 minutes) per day; and malt extract (one of his ingredients), of which he can get only 675 gallons each day.

To produce a keg of Lite beer requires 2 minutes of time and 5 gallons of malt extract, while each keg of Dark beer needs 4 minutes of time and 3 gallons of malt extract.

Profits for Lite beer are $3.00 per keg, and profits for Dark beer are $2.00 per keg.

a. What is the profit equation?

b. What are the two constraints (equations)?

c. What is the maximum profit?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92716559

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