# Beerco manufactures ale and beer from corn, hops, and malt. Currently, 40 lb of corn, 30 lb of hops

April 14, 2018

Beerco manufactures ale and beer from corn, hops, and malt. Currently, 40 lb of corn, 30 lb of hops, and 40 lb of malt are available. A barrel of ale sells for \$40 and requires 1 lb of corn, 1 lb of hops, and 2 lb of malt. A barrel of beer sells for \$50 and requires 2 lb of corn, 1 lb of hops, and 1 lb of malt. Beerco can sell all ale and beer that is produced. To maximize total sales revenue, Beerco should solve the following LP:.transtutors.com/qimage/image08232014205.png” alt=” width=”>.transtutors.com/qimage/image08232014206.png” alt=” width=”>ALE = barrels of ale produced, and BEER = barrels of beer produced. An optimal tableau for this LP is shown in Table.zAleBeers1s2s3rhs100200101,200001.transtutors.com/qimage/image08232014207.png” alt=” width=”>0.transtutors.com/qimage/image08232014208.png” alt=” width=”>.transtutors.com/qimage/image08232014209.png” alt=” width=”>000.transtutors.com/qimage/image08232014208.png” alt=” width=”>1.transtutors.com/qimage/image08232014208.png” alt=” width=”>.transtutors.com/qimage/image08232014210.png” alt=” width=”>010.transtutors.com/qimage/image08232014208.png” alt=” width=”>0.transtutors.com/qimage/image08232014207.png” alt=” width=”>.transtutors.com/qimage/image08232014209.png” alt=” width=”>a Write down the dual to Beercoâ€™s LP and find its optimal solution.b Find the range of values of the price of ale for which the current basis remains optimal.c Find the range of values of the price of beer for which the current basis remains optimal.d Find the range of values of the amount of available corn for which the current basis remains optimal.e Find the range of values of the amount of available hops for which the current basis remains optimal.f Find the range of values of the amount of available malt for which the current basis remains optimal.g Suppose Beerco is considering manufacturing maltliquor. A barrel of malt liquor requires 0.5 lb of corn, 3lb of hops, and 3 lb of malt and sells for \$50. Should Beerco manufacture any malt liquor?h Suppose we express the Beerco constraints in ounces. Write down the new LP and its dual.i What is the optimal solution to the dual of the new LP?

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