Jimbo Mountain Winery blends fine wines for local restaurants. One of its customers has requested a special blend of two burgundy wines, call them A and B. The customer wants 500 gallons of wine and it must contain at least 100 gallons of A and be at least 45% B. The customer also specified that the wine have an alcohol content of at least 12%. Wine A contains 14% alcohol while wine B contains 10%. The blend is sold for $10 per gallon. Wine A costs $4 per gallon and B costs $3 per gallon. The company wants to determine the blend that will meet the customer's requirements and maximize profit.
a. Create an EXCEL spreadsheet of LP model showing attention to both accuracy and presentation
b. Use Analytic Solver Platform to verify graphical solution (b). Explain comparison—anything different?
c. Create Answer report [use report to answer following questions]
1. Which constraints are binding?
2. Which constraints show slack?
c. Create a Sensitivity Report; perform an analysis by answering questions below.
1. Is the optimal solution degenerate? Explain why or why not.
2. Is the optimal solution unique? If not, identify an alternate optimal solution for the problem.
3. What is the highest value the objective function coefficient X1 can assume without changing the optimal solution?
4. Will the current solution remain optimal if a binding constraint is increased by 5 percent? Identify and analyze the chosen constraint and Explain.