Question: C - town brewery brews two beers: Expansion Draft and Burning River. Expansion Draft sells for $ 2 0 per barrel, while Burning River sells
Ctown brewery brews two beers: Expansion Draft and Burning River.
Expansion Draft sells for $ per barrel, while Burning River sells for $ per barrel.
Producing a barrel of Expansion draft takes pounds of corn and pounds of hops. Producing a barrel of Burning River requires pounds of corn, pounds of rice, and pounds of hops. The brewery has pounds of corn, pounds of rice, and pounds of hops.
Lady Giga is a marketing manager at Ctown brewery and she started to formulate the above problem using Excel to maximize Ctowns revenue. Her worksheet and solver entries can be found below.
a What is the Excel formula in Cell CWhat did Lady Giga type in Cell C
b What is the Excel formula in Cell CWhat did Lady Giga type in Cell C
After clicking on Solve the optimal decision variables turn out to be and respectively. Lady Giga generated the following sensitivity report:
Variable Cells
Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease
$C$ Expansion Draft
$D$ Burning River
E
Constraints Final Shadow Constraint Allowable Allowable
Cell Name Value Price RH Side Increase Decrease
$C$ Corn Used
$C$ Rice Used
$C$ Hops Used
E
c What is the optimal objective value?
d If Ctown brewery has additional pounds of corn, by how much will the optimal revenue
increase?
e If Ctown brewery lost pounds of rice, by how much will the optimal revenue change?
f If Ctown brewery has additional pounds of hops, by how much will the optimal revenue
increase?
g If the unit revenue for Expansion Draft is increased by $ how much will the optimal revenue
increase?
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