Operations Management and Business Analytics - Management Assignment Help

Operations Management and Business Analytics Management Assignment Help

Assignment Task:
 

Part (a)

The objective of this analysis was to maximize the data by deciding the amount of two wines from table and dessert wine. Therefore, the production amount of these two wines act as decision variables for the problem.

It was given that each litre of table wine yields $16 profit, while each litre of dessert wine produces $10 profit. The labour (hour), bottling process time (hour), and grapes required (in kg) used for each litre of table wine is 0.4, 0.3, and 1.5, respectively. The labour (hour), bottling process time (hour), and grapes required (in kg) used for each litre of dessert wine is 0.6, 0.2, and 0.8, respectively. Resources available include 1000 labour hours, 800 hours of bottling process time, and 2000 kg of grapes.

The following table shows the optimal plan for the problem based on available resources as mentioned before.

Part (b)

The following table shows the sensitivity report.

We can see that we still have bottling process time available, therefore, the winemaker should spend money on additional grapes and labor hours.

Part (c)

The market study reveals that there will be a demand of 600 litres of each of the wines. Therefore, the optimal plan should be updated to producing only 600 litres of each since we are producing way more than expected demand. The following table discussed this plan.

In this case, the winemaker is producing 15,600 as total profit.

Part (d)

If the winemaker produces 1800 litres of table wine, then in that case the production plan will be:

But we can see that for this production, we will need 700 extra grapes that will cost 1400-unit currency. Therefore, the final profit will be 28800-1400=27400.

The table below discusses the production plan in case she only produced dessert wine.

For this production plan, she will need 80 extra labour hours that she can buy for 160-unit currency. Therefore, the maximum profit will be 18000-160=17840-unit currency.

Therefore, she can make a maximum profit of 27400 by using 700 kgs of additional grapes for Table wine or if she just has 1000-unit currency then she can produce almost 1670 litres of Table wine by using only 1000-unit currency for buying grapes