The production planner for a private label soft drink maker is planning the prod

Question

The production planner for a private label soft drink maker is planning the production of two soft drinks: root beer (R) and sassafras soda (S). Two resources are constrained: production time (T), of which she has at most 12 hours per day; and carbonated water (W), of which she can get at most 1500 gallons per day. A case of root beer requires 2 minutes of time and 5 gallons of water to produce, while a case of sassafras soda requires 3 minutes of time and 5 gallons of water. Profits for the root beer are $6.00 per case, and profits for the sassafras soda are $4.00 per case.

Q7. What are optimal daily profits?

$960

$1,800

$2,520

$1,900

$1,560

$960

$1,800

$2,520

$1,900

$1,560

Explanation / Answer

Maximum 300 unit can be produce for both of the drink with Profit Function

6x (R) + 4x (S) =Z

As available water is 1500 gallon and each drink required 5gallon of water to produce.

For Optimal solution as a profit

6x300 + 4x0 = Z

Z= $1800

So if we produce only root drink the profit will be more i.e. $1800.

But for Optimal solution for both of drinks optimal profit will be

Z= 6x180+4x120

Z= 1080 + 480

Z = $1560

Option (E) $1560 will be optimal daily profit using both resource for both drink.

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