Question

Very Good Juice Company produces five different juices: cherry, apple, orange, pineapple, and lemon. Each month, management is faced with the decision of how much of each product to produce for the next month. Virtually no finished product inventory is carried, but ample supplies of the raw materials are on hand. The products yield different profits and require different amounts of machine time in each of three processes (blending, straining, and bottling). The relevant data, per 1,000 gal as well as the minutes available per process appear in the table below.

Apple Cherry Lemon Orange Pineapple Minutes Available
Blend 23 22 18 19 19 5000
Strain 22 40 20 34 22 3000
Bottle 10 10 10 10 10

5000

Apple Cherry Lemon Orange Pineapple
Profit $/1000gal. $800 $320 $1120 $1440 $800
Max Sales 0gal. 20 30 50 50 20
MMin Sales 0gal. 10 15 20 40 10

Sensitivity Report

Adjustable Cells Cell Name $B$16 Production Apple $C$16 Production Cherry SD$16 Production Lernon SE$16 Production Orange $F$

Which of the upper bound constraints are binding?

A. Only Lemon

B. All of them

C. None of them

D. Only Apple, Cherry, Orange, and Pineapple

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Answer #1

The right answer is

C. None of them

The reason is that the quantity produced of each type of juice is less than the maximum sales goal. Strain minutes used are getting exhausted before the upper bound constraint on any of the juice's quantity is reached.

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