# Wave Brewery produces beer and ale. Beer sells for \$50 per barrel, and ale sells for \$55 per…

Wave Brewery produces beer and ale. Beer sells for \$50 per barrel, and ale sells for \$55 per barrel. Producing a barrel of beer requires 5 pounds of corn and 3 pounds of hops. Producing a barrel of ale requires 6 pounds of corn and 2 pounds of hops. The brewery has 300 pounds of corn and 120 pounds of hops. Bloomington Brewery wants to determine the production that will maximize its revenue – assume that all barrels produced can be sold. a) In a text box, write down the managerial formulation for this problem (words), followed by its mathematical equivalent: Inputs: Managerial: Decision variables: Managerial: Mathematical (variables): Objective: Managerial: Mathematical (equation): Constraints: Managerial: Mathematical (equations): This means you need to write EQUATIONS for the objective function and constraints in terms of the DECISION VARIABLES. b) Set up a spreadsheet showing inputs, decision variables, and objective/ output for this problem. Make sure that you format yotir value cells appropriately (e.g. S for currency) and that you use formula when relevant (e.g. SUMPRODUCT). Assume initially that Wave Brewery wants to produce 20 barrels of beer and 20 barrels of ale.

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