### Linear programming model to maximize budget

Assignment Help Basic Statistics
##### Reference no: EM1321799

Q1) Betty Malloy, owner of Eagle Tavern in Pittsburgh, is making for Super Bowl Sunday, and she should find out how much beer to stock.  Betty stocks 3 brands of beer - Yodel, Shotz, and Rainwater. Cost per gallon (to the tavern owner) of each brand is as follows:

 Brand Cost/gallon Yodel \$1.50 Shotz 0.90 Rainwater 0.50

Tavern has budget of \$2,000 for beer for Super Bowl Sunday. Betty sells Yodel at 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 have determined maximum customer demand to be 400 gallons of Yodel, 500 gallons of Shotz, and 300 gallons of Rainwater.  Tavern has capacity to stock 1,000 gallons of beer; Betty wishes to stock up completely. Betty desires to find out number of gallons of each brand of beer to order so as to maximize profit.

a) Create a linear programming model for this problem.

b) Solve this problem using computer.

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