Model Based Decision Making

Q1. The Blackhook Brewery Problem

• Blackhook Brewery has malt, hops and yeast available for brewing. There are 35 pounds of malt, 50 pounds of hops, and the pounds of yeast is 45
• Each barrel of Light uses 1 pound of malt, 2 pounds of hops, and 1 pound of yeast.
• Each barrel of Premium uses 3 pounds of malt, 1 pound of hops, and 4 pounds of yeast.
• Each barrel of Light yields a profit of $30.
• Each barrel of Premium yields a profit of $20.

How many barrels of their Light and Premium beers should Blackhook produce to maximize the brewery's profit?

This problem can be formulated as a linear programming problem.

Requirements:

1. Provide the formulas for decision variables, objective functions and subject to functions.
2. Solve the problem using excel. Paste the outputs from screen shot.

Please note that because you have different number for yeast, the answer will be different for each of you.