Use Linear Programming to Solve Problems
-A Vineyard Produces Two $\$ 11.00$

question 146

Multiple Choice

Use Linear Programming to Solve Problems
-A vineyard produces two special wines, a white and a red. A bottle of the white wine requires 14 pounds of grapes and 1 hour of processing time. A bottle of red wine requires 25 pounds of grapes and 2 hours of processing time. The vineyard has on hand 2,198 pounds of grapes and can allot 160 hours of processing time to the production of these wines. A bottle of the white wine sells for $\$ 11.00$ , while a bottle of the red wine sells for $\$ 20.00$ . How many bottles of each type should the vineyard produce in order to maximize gross sales?

• A) 132 bottles of white and 14 bottles of red
• B) 14 bottles of white and 132 bottles of red
• C) 76 bottles of white and 42 bottles of red
• D) 42 bottles of white and 59 bottles of red

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Definitions:

Holding Costs

Expenses associated with storing inventory over a certain period, including warehousing, insurance, depreciation, and opportunity costs, among others.

Level Scheduling

is a production strategy aimed at producing goods at a consistent rate, balancing production output with customer demand to minimize inventory costs and optimize operational efficiency.

Aggregate Planning Horizon

The timeframe over which a company plans its overall production levels and inventory positions to meet forecasted demand, typically ranging from 3 to 18 months.

Hiring And Layoffs

Employment practices that involve adding new employees to the workforce or releasing employees from a company, typically due to economic conditions or company restructuring.