Current Situation: Wes and Steve produce/sell breakfast baked goods for their lunch truck business. They make $2 profit for Muffins (x1) and $3 profit for Croissants (x2). They want to maximize profit of these items but are restricted to daily production minutes as shown in the table on page 2. The company utilizes LINDO to plan for production. Data from the LINDO range report is also shown on page below.
Profit Information: $2 profit for Muffins (x1) $3 profit for Croissants (x2) Constraint Data: Mixing 5 Packaging 1 Product Muffins Croissants Minutes Available Measuring 3 2 72 Baking 4 3 120 2 2 60 40 LINDO SENSITIVITY ANALYSIS DATA CONSTRAINTS Measuring Mixing Baking Packaging SLACK OR SURPLUS 22.000000 0.000000 47.50000 0.000000 DUAL PRICES 0.000000 0.125000 0.000000 1.375000 OBJECTIVE FUNCTION COEFFICIENT RANGES RIGHT-HAND SIDE RANGES ALLOW DECREASE VARIABLE X1 CURRENT COEFF 2.00 3.00 ALLOW ALLOW INCREASE DECREASE 5.50 .50 1.00 2.20 CURRENT RHS 72 60 120 VARIABLE Measuring Mixing Baking Packaging ALLOW INCREASE INFINITY 44.00 INFINITY 20.00 X2 22.00 20.00 47.50 40 28.00 1. What is the optimal combination for production and corresponding profit? (3 pts) 2. The optimal solution is created by which constraints? How do you know? (1 pt) 3. If the profit for an X1 were to increase to $6, how much additional profit would the company make? (1 pt) 4. If the profit for an X2 were to decrease to $1, how much profit would the company lose? (1 pt) 5. If the company could obtain an additional 20 minutes of mixing at a cost of $.15/min, what is their NEW TOTAL PROFIT? Explain in 1 statement. (1 pt) 6. If the company could obtain an additional 15 minutes of packaging at a cost of $1.00/min, what is their ADDITIONAL PROFIT? (1 pt) 7. If the measuring machine was to break down and the number of minutes available for today was reduced to 45, what is the impact to the profitability? Explain in 1 statement. (1 pt) 8. If the company could obtain 30 additional minutes of baking time at a cost of $1/minute, what is their ADDITIONAL PROFIT? Explain in 1 statement. (1 pt) Profit Information: $2 profit for Muffins (x1) $3 profit for Croissants (x2) Constraint Data: Mixing 5 Packaging 1 Product Muffins Croissants Minutes Available Measuring 3 2 72 Baking 4 3 120 2 2 60 40 LINDO SENSITIVITY ANALYSIS DATA CONSTRAINTS Measuring Mixing Baking Packaging SLACK OR SURPLUS 22.000000 0.000000 47.50000 0.000000 DUAL PRICES 0.000000 0.125000 0.000000 1.375000 OBJECTIVE FUNCTION COEFFICIENT RANGES RIGHT-HAND SIDE RANGES ALLOW DECREASE VARIABLE X1 CURRENT COEFF 2.00 3.00 ALLOW ALLOW INCREASE DECREASE 5.50 .50 1.00 2.20 CURRENT RHS 72 60 120 VARIABLE Measuring Mixing Baking Packaging ALLOW INCREASE INFINITY 44.00 INFINITY 20.00 X2 22.00 20.00 47.50 40 28.00 1. What is the optimal combination for production and corresponding profit? (3 pts) 2. The optimal solution is created by which constraints? How do you know? (1 pt) 3. If the profit for an X1 were to increase to $6, how much additional profit would the company make? (1 pt) 4. If the profit for an X2 were to decrease to $1, how much profit would the company lose? (1 pt) 5. If the company could obtain an additional 20 minutes of mixing at a cost of $.15/min, what is their NEW TOTAL PROFIT? Explain in 1 statement. (1 pt) 6. If the company could obtain an additional 15 minutes of packaging at a cost of $1.00/min, what is their ADDITIONAL PROFIT? (1 pt) 7. If the measuring machine was to break down and the number of minutes available for today was reduced to 45, what is the impact to the profitability? Explain in 1 statement. (1 pt) 8. If the company could obtain 30 additional minutes of baking time at a cost of $1/minute, what is their ADDITIONAL PROFIT? Explain in 1 statement. (1 pt)
