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Betty Malloy, owner of the Eagle Tavern in Pittsburgh, is preparing for Super Bowl Sunday, and she must determine how much beer to stock. Betty stocks three brands of beer-Yodel, Shotz, and Rainwater. The cost per gallon (to the tavern owner) of each brand is shown in table below. The tavern has a budget of $2,000 for beer for Super Bowl Sunday. Betty sells Yodel at a rate of $3,00 per gallon, Shotz at $2.50 per gallon, and Rainwater at $1.75 per gallon. Based on past football games, Betty has determined the maximum customer demand to be 400 gallons of Yodel, 500 gallons of Shotz, and 300 gallons of Rainwater. The tavern has the capacity to stock 1,000 gallons of beer; Betty wants to stock up completely. Betty wants to decide on the number of gallons of each brand of beer to order so as to make the most profit. Formulate a linear programming model for this problem. Define x₁ as the number of gallons of Yodel to order, x2 as the number of gallons of Shotz to order, x3 as the number of gallons of Rainwater to order, and Z as the total profit. Which of the following model formulations is correct? Brand Cost/Gallon Yodel $1.50 Shotz 0.90 Rainwater 0.50

Betty Malloy, owner of the Eagle Tavern in Pittsburgh, is preparing for Super Bowl Sunday, and she must determine how much beer to stock. Betty stocks three brands of beer-Yodel, Shotz, and Rainwater. The cost per gallon (to the tavern owner) of each brand is shown in table below. The tavern has a budget of $2,000 for beer for Super Bowl Sunday. Betty sells Yodel at a rate of $3,00 per gallon, Shotz at $2.50 per gallon, and Rainwater at $1.75 per gallon. Based on past football games, Betty has determined the maximum customer demand to be 400 gallons of Yodel, 500 gallons of Shotz, and 300 gallons of Rainwater. The tavern has the capacity to stock 1,000 gallons of beer; Betty wants to stock up completely. Betty wants to decide on the number of gallons of each brand of beer to order so as to make the most profit. Formulate a linear programming model for this problem. Define x₁ as the number of gallons of Yodel to order, x2 as the number of gallons of Shotz to order, x3 as the number of gallons of Rainwater to order, and Z as the total profit. Which of the following model formulations is correct? Brand Cost/Gallon Yodel $1.50 Shotz 0.90 Rainwater 0.50

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section: Chapter Questions
Problem 46P
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Only need help with the budget constraint
Betty Malloy, owner of the Eagle Tavern in Pittsburgh, is preparing for Super Bowl Sunday, and she must determine how much beer to stock. Betty stocks three brands of beer-Yodel, Shotz, and Rainwater. The cost per gallon (to the tavern owner) of each brand is shown in table below. The tavern has a budget of $2,000 for beer for Super Bowl Sunday. Betty sells Yodel at a rate of $3,00 per gallon, Shotz at $2.50 per gallon, and Rainwater at $1.75 per gallon. Based on past football games, Betty has determined the maximum customer demand to be 400 gallons of Yodel, 500 gallons of Shotz, and 300 gallons of Rainwater. The tavern has the capacity to stock 1,000 gallons of beer; Betty wants to stock up completely. Betty wants to decide on the number of gallons of each brand of beer to order so as to make the most profit. Formulate a linear programming model for this problem. Define x₁ as the number of gallons of Yodel to order, x2 as the number of gallons of Shotz to order, x3 as the number of gallons of Rainwater to order, and Z as the total profit. Which of the following model formulations is correct? Brand Cost/Gallon Yodel $1.50 Shotz 0.90 Rainwater 0.50
Transcribed Image Text:Betty Malloy, owner of the Eagle Tavern in Pittsburgh, is preparing for Super Bowl Sunday, and she must determine how much beer to stock. Betty stocks three brands of beer-Yodel, Shotz, and Rainwater. The cost per gallon (to the tavern owner) of each brand is shown in table below. The tavern has a budget of $2,000 for beer for Super Bowl Sunday. Betty sells Yodel at a rate of $3,00 per gallon, Shotz at $2.50 per gallon, and Rainwater at $1.75 per gallon. Based on past football games, Betty has determined the maximum customer demand to be 400 gallons of Yodel, 500 gallons of Shotz, and 300 gallons of Rainwater. The tavern has the capacity to stock 1,000 gallons of beer; Betty wants to stock up completely. Betty wants to decide on the number of gallons of each brand of beer to order so as to make the most profit. Formulate a linear programming model for this problem. Define x₁ as the number of gallons of Yodel to order, x2 as the number of gallons of Shotz to order, x3 as the number of gallons of Rainwater to order, and Z as the total profit. Which of the following model formulations is correct? Brand Cost/Gallon Yodel $1.50 Shotz 0.90 Rainwater 0.50
According to Excel's sensitivity report for the previous formulated model (Eagle Tavern), which of the following statement is correct regarding the shadow price of budget constraint? O The shadow price for budget constraint is $.25 O Increasing current budget does NOT result in profit increase for the tavern O The shadow price of $.25 is only valid when the tavern's budget is between [$1100, +infinity] O The shadow price is zero because the tavern has used up all of its current budget
Transcribed Image Text:According to Excel's sensitivity report for the previous formulated model (Eagle Tavern), which of the following statement is correct regarding the shadow price of budget constraint? O The shadow price for budget constraint is $.25 O Increasing current budget does NOT result in profit increase for the tavern O The shadow price of $.25 is only valid when the tavern's budget is between [$1100, +infinity] O The shadow price is zero because the tavern has used up all of its current budget
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