Problem

Oliver Winery produces four award-winning wines in Bloomington. Indiana, The profit contri...

Oliver Winery produces four award-winning wines in Bloomington. Indiana, The profit contribution, labor hours, and tank usage (in hours) per gallon for each type of wine are given in Table 61, By law, at most 100,000 gallons of wine can be produced each year. A maximum of 12,000 labor hours and 32,000 tank hours are available annually. Each gallon of wine 1 spends an average of  year in inventory; wine 2, an average of 1 year; wine 3, an average of 2 years; wine 4, an average of 3.333 years. The winery’s warehouse can handle an average inventory level of 50,000 gallons. Determine how much of each type of wine should be produced annually to maximize Oliver Winery’s profit.

table 61

Wine

Profit ($)

Labour (Hr)

Tank (Hr)

1

  6

.2

 .5

2

12

.3

 .5

3

20

.3

1  

4

30

.5

1.5

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