The operations manager for the Blue Moon Brewing Co. produces two beers: Lite (L

Question

The operations manager for the Blue Moon Brewing Co. produces two beers: Lite (L) and Dark (D). Two of his resources are constrained: production time, which is limited to 8 hours (480 minutes) per day; and malt extract (one of his ingredients), of which he can get only 675 gallons each day. To produce a keg of Lite beer requires 2 minutes of time and 5 gallons of malt extract, while each keg of Dark beer needs 4 minutes of time and 3 gallons of malt extract. Profits for Lite beer are $3.00 per keg, and profits for Dark beer are $2.00 per keg. For the production combination of 135 Lite and 0 Dark which resource is not fully used (has slack)2 eer requires?perktes oortheanodgaroo brat nof135 Select one: O a. Neither Time nor Malt Extract O b. 5L +3D

Explanation / Answer

Quantity of Malt required for production of 135 Lite and 0 Litre Lite

= 5 Gallons/ Litre x 135 Lite + 3 Gallons / Litre x 0

= 675 Gallons

Amount of time required for production of 135 litre and 0 litre Lite

= 2 minutes/ Gallon x 135 litre + 4 minutes/ Litre x 0

= 270 minutes

Maximum available malt in a day = 675 Gallons. Therefore resource Malt is fully utilized since requirement is also for 675 Gallons

Maximum available time in a day is 480 minutes . However resource utilized is 270 minutes . Therefore , resource time is not fully utilized and has slack

Therefore , answer is “C. Time only “

Answer : c ) time only

Answer : c ) time only

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