Operations Management Appendix A

Question 7

C-town brewery brews two beers: Expansion Draft and Burning River. Expansion draft sells for $12 per barrel while Burning River sells for $5 per barrel. Producing a barrel of Expansion Draft takes 6 pounds of corn and 8 pounds of hops. Producing a barrel of Burning River requires 4 pounds of corn, 12 pounds of rice, and 4 pounds of hops. The brewery has 700 pounds of corn, 540 pounds of rice, and 360 pounds of hops. Assuming a linear relationship, use the Excel Solver to determine the optimal mix of Expansion Draft and Burning River that maximizes C-town's revenue. (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places.)

\begin{tabular}{|l|l|} \hline & \\ \hline Decision for expansion draft & \\ \hline Decision for burning river & \\ \hline Total sales & \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline & Resources Used \\ \hline Corn & \\ \hline Rice & \\ \hline Hops & \\ \hline \end{tabular}