Question: Now let's solve a more classic blending problem, the wine blending problem. M . L . Doud Wine Distributors sells a blended red wine called
Now let's solve a more classic blending problem, the wine blending problem.
ML Doud Wine Distributors sells a blended red wine called CMS Select to midtier restaurants for $ per gallon, and they can sell as much as they make. The blend consists of Cabernet, Merlot, and Syrah called varietals and the blend may vary slightly, but the final product must contain at least Cabernet, Merlot, and Syrah. ML Doud Wine Distributors purchases their wine from the Sonoma Valley, where they have located Cabernet, Merlot, and Syrah varietals at the prices dollars per gallon and quantities in gallons shown in the table below.
Wine
Price Gal
Availability
Cabernet
$
Gallons
Merlot
$
Gallons
Syrah
$
Gallons
Blending, bottling, and packaging adds $ per gallon in costs. Based on this information, how much wine of each varietal should ML Doud purchase from the Sonoma Valley to make their CMS Select blend? What is their profit? How many gallons of CMS Select do they actually make?
For decision variables: C amount of Cabernet in gallons to purchase for the blend; M amount of Merlot in gallons to purchase for the blend; S amount of Syrah in gallons to purchase for the blend.
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