Question: Betty Malloy, owner of the Eagle Tavern in Pittsburgh, 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:

The tavern has a budget of $2,000 for beer for Super Bowl Sunday. Betty sells Yodel 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 determined the maximum customer demand to be 400 gallons of Yodel, 500 gallons of Shotz, and 300 gallons of Rainwater. The tavern has a capacity to stock 1,000 gallons of beer; 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.

1. Formulate a linear programming model for this problem
2. Solve this problem by using the computer.

NOTE: When you formulate the linear programming model, please write out the formulation including the decision variables, objective function and constraints. You can write the formulation on the same sheet with the solution. Use either QM for Windows or Excel Solver to solve this problem . If using Excel Solver, submit the Excel file with the solution and model formulation. Be sure to keep all formulas in the cells that you develop and be sure the Solver parameter Window has the Solver setup as well. If using QM for Windows, copy and paste the Solution window with the original problem setup into a Word or Excel document and submit that file, making sure you have the written formulation included on the Word or Excel document. This problem is worth 20 points, 10 for the model formulation and 10 for the solution.

Price: $2.99

Solution: The downloadable solution consists of 3 pages
Deliverable: Word Document