The operations manager for the Blue Moon Brewing Co.produces two beers: Lite (L)and Dark (D).Two of his resources are constrained:
Production time,which is limited to 8 hours (480 minutes)per day; and malt extract (one of his ingredients),of which he can get only 675 gallons each day.To produce a keg of Lite beer requires 2 minutes of time and 5 gallons of malt extract,while each keg of Dark beer needs 4 minutes of time and 3 gallons of malt extract.Profits for Lite beer are $3.00 per keg,and profits for Dark beer are $2.00 per keg.For the production combination of 135 Lite and 0 Dark,which resource is "slack" (not fully used)?
A) Time (only)
B) Malt extract (only)
C) Both time and malt extract
D) Neither time nor malt extract
E) Cannot be determined exactly

Question

Quizplus · Accepted Answer

To produce 135 kegs of Lite beer, the production time required would be:
2 minutes per keg x 135 kegs = 270 minutes
Similarly, the malt extract required would be:
5 gallons per keg x 135 kegs = 675 gallons
So, the production has completely used up the available malt extract. But, the production time required is only 270 minutes, which is well under the available limit of 480 minutes. Hence, the resource that is slack (not fully used) is time (only).

The Operations Manager for the Blue Moon Brewing Co