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Formulate Linear Programming Model & Solve using Computer

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

Brand Cost/Gallon
Yodel $1,50
Shotz 0.90
Rainwater 0.50

The tavern has a budget of $2,000 for beer for Super Bowl Sunday. Betty sell Yodel at a rate of $3.00 per gallon, Shotz at $2.50 per gallon. Rainwater at $1.75 per gallon. Based on past football games, Betty has determined the maximum customer demand to be 400 gallon of Yodel, 500 gallon of Shotz. and 300 gallon of Rainwater. The tavern has the capacity to stock 1,000 gallons of beer; Betty want to stock up completely. Betty wants to determine the number of gallon 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 by using the computer;

Solution Summary

A Complete, Neat and Step-by-step Solution is provided in the attached Excel file.