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Kilgores Deli is a small delicatessen located near a major university. Kilgores does a large walk-in carry-out lunch busine

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Answer #1

a)

Let,

W = # of servings of Wimpy to make
D = # of servings of Dial 911 to make

Objective is to maximize profit so objective function = Max 0.45W + 0.55D

Subject to,

0.45W + 0.45D <= 37 (Beef)

0.45W + 0.72D <= 46 (Onions)

5W + 1D <= 93 (Special sauce)

7D <= 98 (Hot sauce)

W,D >= 0 (Non-negativity constraint)

b)

Solution: W = 15.8, D = 14, Profit = $14.81

C D G 1 2 W D 15.8 Objective function 14. 14.81 4 5 Beef 0.45 0.45 13.41= 37 6 Onions 0.45 0.72 17.19 <= 46 7 Special Sauce 5

c)

Sensitivity report

5 6 Variable Cells Final Reduced Objective Allowable Allowable 7 Value Cell Coefficient 8 Name Cost Increase Decrease $B$3 W

From the above sensitivity report we can see Dual value for Special sauce is $0.09 (Dual value is the shadow price)

d)

As the increase of 1 ounce of Special sauce is within allowable increase limit so the shadow price will remain valid So the profit will increase by 1*0.09 = 0.09 and new profit will be 14.81+0.09 = 14.9

Solution: W = 16, D = 14, Profit = $14.90

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