The Production Planner for a Private Label Soft Drink Maker

question 4

Multiple Choice

The production planner for a private label soft drink maker is planning the production of two soft drinks: root beer (R) and sassafras soda (S) .Two resources are constrained: production time (T) ,of which she has at most 12 hours per day; and carbonated water (W) ,of which she can get at most 1500 gallons per day.A case of root beer requires 2 minutes of time and 5 gallons of water to produce,while a case of sassafras soda requires 3 minutes of time and 5 gallons of water.Profits for the root beer are $6.00 per case,and profits for the sassafras soda are $4.00 per case.What is the objective function?

• A)Z = $4 R + $6 S
• B)Z = $2 R + $3 S
• C)Z = $6 R + $4 S
• D)Z = $3 R + $2 S
• E)Z = $5 R + $5 S

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Definitions:

Supply Increases

A condition in which the quantity of goods and services offered by businesses rises, often leading to lower prices if demand remains constant.

Demand Decreases

Occurs when consumers are less willing or able to purchase a product at any given price, leading to a leftward shift in the demand curve.

Shift Left

A decrease in the supply or demand of a product in a market diagram, typically resulting in a lower equilibrium quantity and potentially a higher or lower equilibrium price.

Demand

The quantity of a good or service consumers are willing and able to purchase at various prices.