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Linear programming:Formulaion and solution

Using Excel, please solve the follwing:

Betty Malloy, owner of the Eagle Tavern in Pittsburg, is preparing for Super Bowl Sunday, and she must determine how much beer to stock. Betty stocks three brands of beer- Yodel, Shotz, and Rainwater. The cost per gallon (to the tavern owner) of each brand is as follows:

Yodel - $1.50 cost/gallon
SHotz- 0.90 cost/gallon
Rainwater 0.50 cost/gallon

The tavern has a budget of $2,000 for beer on Super Bowl Sunday. Betty sells Yoder at a rate of $3.00 per gallon, Shotz at $2.50 per gallon, and Rainwater at $1,75 per gallon. Based on past football games, Betty has a maximum customer demand to be 400 gallons of Yodel, 500 gallons of Shotz, and 300 gallons of Rainwater. The tavern has the capacity to stick 1,000 gallons of beer, and Betty wants to stock up completely. Betty wants to determine the number of gallons of each brand of beer to order so as to maximize profit.

a) Formulate a linear programming model for this problem.
b) Solve the model using the computer.


Solution Summary

This posting contains a linear programming problem formulation and solution using Microsoft excel solver