Lost Maples Winery makes three varieties of contemporary Texas Hill Country wines: Austin Formation (a fine...

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Lost Maples Winery makes three varieties of contemporary Texas Hill Country wines: Austin Formation (a fine red), Ste. Genevieve (a table white), and Los Alamos (a hearty pink Zinfandel). The raw materials, labor, and contribution per case of each of these wines is summarized below. Austin Formation Ste. Genevieve Los Alamos Grapes Variety A bushels 4 0 2 Grapes Variety B bushels 0 4 2 Sugar pounds 1 0 2 Labor (man- hours) 3 1 2 Contrib. per case $24 $28 $20 The winery has 2800 bushels of Variety A grapes, 2040 bushels of Variety B grapes, 800 pounds of sugar, and 1060 man-hours of labor available during the next week. The firm operates to achieve maximum contribution. Refer to the POM for Windows panels showing the solution to this problem. Answer the following questions. a. For maximum contribution, how much of each wine should be produced? b. What is the optimal objective function value, i.e., how much profits will be made by selling the wines? c. Is there any sugar left at optimal level of production? If so, how much? If not, what is its dual value? Explain what this value means to Lost Maples' management. d. Interpret the meaning of the lower bound to "Labor" constraint in the sensitivity range analysis. Explain how the solution would change if the amount of labor fell by 60 units from the present. e. Interpret the meaning of the upper bound to "Los Alamos wine" decision variable in the sensitivity range analysis. Lost Maples Winery makes three varieties of contemporary Texas Hill Country wines: Austin Formation (a fine red), Ste. Genevieve (a table white), and Los Alamos (a hearty pink Zinfandel). The raw materials, labor, and contribution per case of each of these wines is summarized below. Austin Formation Ste. Genevieve Los Alamos Grapes Variety A bushels 4 0 2 Grapes Variety B bushels 0 4 2 Sugar pounds 1 0 2 Labor (man- hours) 3 1 2 Contrib. per case $24 $28 $20 The winery has 2800 bushels of Variety A grapes, 2040 bushels of Variety B grapes, 800 pounds of sugar, and 1060 man-hours of labor available during the next week. The firm operates to achieve maximum contribution. Refer to the POM for Windows panels showing the solution to this problem. Answer the following questions. a. For maximum contribution, how much of each wine should be produced? b. What is the optimal objective function value, i.e., how much profits will be made by selling the wines? c. Is there any sugar left at optimal level of production? If so, how much? If not, what is its dual value? Explain what this value means to Lost Maples' management. d. Interpret the meaning of the lower bound to "Labor" constraint in the sensitivity range analysis. Explain how the solution would change if the amount of labor fell by 60 units from the present. e. Interpret the meaning of the upper bound to "Los Alamos wine" decision variable in the sensitivity range analysis.

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a For maximum contribution the optimal solution is to produce 1000 cases of Austin Formation ... View the full answer