1.The Bluegrass Distillery produces custom-blended whiskey. A particular blend consists of rye and bourbon whiskey. The company has received an order for a minimum of 400 gallons of the custom blend. The customer specified that the order must contain at least 40% rye and not more than 250 gallons of bourbon. The customer also specified that the blend should be mixed in the ratio of two parts rye to one part bourbon. The distillery can produce 500 gallons per week, regardless of the blend. The production manager wants to complete the order in 1 week. The blend is sold for $5 per gallon. The distillery company’s cost per gallon is $2 for rye and $1 for bourbon. The company wants to determine the blend mix that will meet customer requirements and maximize profits. Formulate a linear programming model and solve graphically using Excel and QM.
I have the set up in Excel for this problem, but am not sure where to plug in the correct numbers for the formulas to work. I am not sure what the constraints should be in regards to gallons and maximizing the profits. I have gotten similar problems like this one but they did not contain percents/gallons ratio.
2.
Universal Claims Processors processes insurance claims for large national insurance companies.Most claim processing is done by a large pool of computer operators,some of whom are perma-nent and some of whom are temporary. A permanent operator can process 16 claims per day,whereas a temporary operator can process 12 per day,and on average the company processesatleast 450 claims each day. The company has 40 computer workstations. A permanent operatorgenerates about 0.5 claim with errors each day,whereas a temporary operator averages about1.4defective claims per day. The company wants to limit claims with errors to 25 per day. A per-manent operator is paid $64 per day,and a temporary operator is paid $42 per day. The companywants to determine the number of permanent and temporary operators to hire in order tominimize costs.
(a) Solve the linear programming model we developed as part of assignment 1 using graphical method.
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