Tom's, Inc., produces various Mexican food products and sells them to Western Foods, a chain of grocery stores located in Texas and New Mexico. Tom's,
Tom's, Inc., produces various Mexican food products and sells them to Western Foods, a chain of grocery stores located in Texas and New Mexico. Tom's, Inc., makes two salsa products: Western Foods Salsa and Mexico City Salsa. Essentially, the two products have different blends of whole tomatoes, tomato sauce, and tomato paste. The Western Foods Salsa is a blend of 50% whole tomatoes, 30% tomato sauce, and 20% tomato paste. The Mexico City Salsa, which has a thicker and chunkier consistency, consists of 70% whole tomatoes, 10% tomato sauce, and 20% tomato paste. Each jar of salsa produced weighs 10 ounces. For the current production period, Tom's, Inc., can purchase up to 280 pounds of whole tomatoes, 130 pounds of tomato sauce, and 100 pounds of tomato paste; the price per pound for these ingredients is $0.96, $0.64, and $0.56, respectively. The cost of the spices and the other ingredients is approximately $0.10 per jar. Tom's, Inc., buys empty glass jars for $0.02 each, and labeling and filling costs are estimated to be $0.03 for each jar of salsa produced. Tom's contract with Western Foods results in sales revenue of $1.64 for each jar of Western Foods Salsa and $1.93 for each jar of Mexico City Salsa.
| Letting |
| W = jars of Western Foods Salsa |
| M = jars of Mexico City Salsa |
| |
| leads to the following formulation: |
Max | 1W | + | 1.25M | | | |
s.t. | | |||||
| 5W | + | 7M | ≤ | 4480 | Whole tomatoes |
| 3W | + | 1M | ≤ | 2080 | Tomato sauce |
| 2W | + | 2M | ≤ | 1600 | Tomato paste |
W, M ≥ 0 | | |||||
|
The sensitivity report is shown in figure below.
Optimal Objective Value = 860.00000 | |||||||
| |||||||
| | Variable | | Value | | Reduced Cost | |
| | W | | 560.00000 | | 0.00000 | |
| | M | | 240.00000 | | 0.00000 | |
| | ||||||
| | Constraint | | Slack/Surplus | | Dual Value | |
| | 1 | | 0.00000 | | 0.12500 | |
| | 2 | | 160.00000 | | 0.00000 | |
| | 3 | | 0.00000 | | 0.18750 | |
| |
| | Variable | | Objective | | Allowable | | Allowable | |
| | W | | 1.00000 | | 0.25000 | | 0.10714 | |
| | M | | 1.25000 | | 0.15000 | | 0.25000 | |
| |||||||||
| | Constraint | | RHS | | Allowable | | Allowable | |
| | 1 | | 4480.00000 | | 1120.00000 | | 160.00000 | |
| | 2 | | 2080.00000 | | Infinite | | 160.00000 | |
| | 3 | | 1600.00000 | | 40.00000 | | 320.00000 | |
|
What is the optimal solution, and what are the optimal production quantities? If required, round your answers for W and M to the nearest whole number. If required, round your answer for Profit to the nearest dollar.
W | |
M | |
Profit | $ |
Specify the objective coefficient ranges. Round your answers to three decimal places. If there is no lower or upper limit, then enter the text "NA" as your answer.
Variable | Objective Coefficient Range | |
| lower limit | Upper limit |
Western Foods Salsa | | |
Mexico City Salsa | | |
What are the shadow prices for each constraint? Round your answers to three decimal places.
Constraint | Shadow Price |
Whole tomatoes | |
Tomato sauce | |
Tomato paste | |
Interpret each shadow price.
The shadow price is the value that the objective function will change by if you increase the constraint by one unit.
Whole tomatoes have a shadow price of .125 which means that if we add one ounce of whole tomatoes the value of the objective function would increase by $0.125 .
Tomato sauce has a shadow price of 0 which means that if we add one ounce of tomato sauce the value of the objective function would not change .
Tomato paste has a shadow price of .188 which means that if we add one ounce of tomato paste the value of the objective function would increase by $0.188 .
Constraints with a shadow price of 0 means that It is a non-binding constraint .
Identify each of the right-hand-side ranges. If required, round your answers to the nearest whole number. If there is no lower or upper limit, then enter the text "NA" as your answer.
Constraint | Right-Hand-Side Range | |
| lower limit | upper limit |
Whole tomatoes | | |
Tomato sauce | | |
Tomato paste | | |
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
W 560 jars M 240 jars Profit 86000 Specify the objective coefficient ranges The allowable increase a...See step-by-step solutions with expert insights and AI powered tools for academic success
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