To celebrate the recent addition of the Hospitality and Tourism Management (HTM) department in the Spears...

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To celebrate the recent addition of the Hospitality and Tourism Management (HTM) department in the Spears School of Business, here is a hypothetical wine blending problem. Varietal A Varietal B Varietal C Varietal D Varietal E Flavor Brix Sales Flavor Brix 65 8 72 6.1 76 23 20 Winet x65 x21 x23 -216 004 27 24.4 22 MAX Cost 75 60 120 75 86 Wine2 Wine3 67 22 19 28 25 All units are in barrels. You can blend 3 wines from 5 varietals of grapes, which have different characteristics of flavor and sugar (Brix). You know the maximum amount of each grape available (MAX), and its assessed cost. You have no more than 9000 units (dollars if you wish) to spend on Varietal procurement cost. You do not have to use all the grapes available in production. You want to blend 3 wines with the characteristics shown above. FLAVOR - is the limit of average flavor for each wine, BRIX is the lower and upper bound of the BRIX value, and Sales is the per barrel revenue associated with each of the three wine types that are blended. Our goal in blending wines is to maximize sales less costs. Additional requirements besides the weighted averages of BRIX and FLAVOR - Wine I cannot have any one varietal make up more than 40% of the overall amount of Wine 1 produced. Each varietal must make up at least 15% of Wine 2's production. And any one varietal cannot make up more than 50% of Wine 3 produced. You must make at least 85 barrels of each of the three wines. Additionally, an individual Wine cannot be more than 40% of the total wine produced. Finally-only integer decision variables. To celebrate the recent addition of the Hospitality and Tourism Management (HTM) department in the Spears School of Business, here is a hypothetical wine blending problem. Varietal A Varietal B Varietal C Varietal D Varietal E Flavor Brix Sales Flavor Brix 65 8 72 6.1 76 23 20 Winet x65 x21 x23 -216 004 27 24.4 22 MAX Cost 75 60 120 75 86 Wine2 Wine3 67 22 19 28 25 All units are in barrels. You can blend 3 wines from 5 varietals of grapes, which have different characteristics of flavor and sugar (Brix). You know the maximum amount of each grape available (MAX), and its assessed cost. You have no more than 9000 units (dollars if you wish) to spend on Varietal procurement cost. You do not have to use all the grapes available in production. You want to blend 3 wines with the characteristics shown above. FLAVOR - is the limit of average flavor for each wine, BRIX is the lower and upper bound of the BRIX value, and Sales is the per barrel revenue associated with each of the three wine types that are blended. Our goal in blending wines is to maximize sales less costs. Additional requirements besides the weighted averages of BRIX and FLAVOR - Wine I cannot have any one varietal make up more than 40% of the overall amount of Wine 1 produced. Each varietal must make up at least 15% of Wine 2's production. And any one varietal cannot make up more than 50% of Wine 3 produced. You must make at least 85 barrels of each of the three wines. Additionally, an individual Wine cannot be more than 40% of the total wine produced. Finally-only integer decision variables.

Answer rating: 100% (QA)

ANSWER The best blend of wines would be Varietal A 65 Varietal B 8 Varietal C 27 This blend ... View the full answer