A Linear Programming Optimization of Chateau DeClines Bottling Plan

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A Linear Programming Optimization of Chateau
DeClines Bottling Plan
Presenter 1 Ann Presenter 2
Binh Presenter 3 Carl Presenter 4 Dan
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System Constraints

• Chautea Decline has the following supplies and
  costs for their products, as well as sales prices
• Meritage blend is made up of 40 Cab_N,
  40Merlot_N, 15 CabF_L, 5 MouN

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Results of Our Analysis

• We use Excels Solver to do Linear Programming,
  with the Objective Coefficients as Per-Bottle
  Profits and Must Supplies are modeled with Less
  Than Constraints.
• We had 7 decision variables in our formulation,
  and although we cannot make fractions of a
  bottle, we were able to use linear programming
  rather than integer programming because our
  numbers were sufficiently large.
• When we changed the problem to allow for the
  solver to compute the optimal Meritage blend, we
  had to use 12 decision variables. We also had
  to add two more constraints to make sure that we
  kept the Meritage blend to be at least 85 Napa
  grapes and also that at least 70 of the grapes
  had to be either CabS or Merlot.

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Optimal Solution When We Hold the Meritage Recipe
as Fixed
Our formulation and Optimal Answer
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New Results with Relaxing the Blending Constraints
Total Profit now 263,980.00
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Sensitivity Report
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Sensitivity Report Relaxing the Blend
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Additional Recommendations

• Increase supplies of must
• Lower cost of must
• Increase units sold
• Generate more accurate forecasting demand
• Make sparkling wines and non-alcoholic wines
• To maximize usage year round, open Winery Grounds
  to public as a Theme Park and Destination Resort
• Co-market with snack manufacturers, opening up
  Wine with Munchiesniche

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Thank You

• Lets Get Drunk!