Question
The manager of the deli section of a grocery superstore has just learned that the department has 112 pounds of mayonnaise, of which 70 pounds
The manager of the deli section of a grocery superstore has just learned that the department has 112 pounds of mayonnaise, of which 70 pounds is approaching its expiration date and must be used. To use up the mayonnaise, the manager has decided to prepare two items: a ham spread and a deli spread. Each pan of the ham spread will require 1.4 pounds of mayonnaise, and each pan of the deli spread will require 1.0 pound. The manager has received an order for 10 pans of ham spread and 8 pans of the deli spread. In addition, the manager has decided to have at least 10 pans of each spread available for sale. Both spreads will cost $3 per pan to make, but ham spread sells for $5 per pan and deli spread sells for $7 per pan. PART I A) Solve to Minimize Cost B) Solve to Maximize Profit and generate reports. PART 2 A) Which constraints are binding? B) Which constraints are non-binding? C) What is the range of optimality for Ham Spread? D) How much profit would I have if I expect to get a profit of $5 for the Ham Spread? E) How much profit would I have if I expect to get a profit of $6 for the Ham Spread? F) How much would my profit increase if I had 40 more pounds of mayo? G) How much would my profit increase if I had 40 less pounds of mayo? H) How much would my profit increase if I had 45 more pounds of mayo? I) How much would my profit increase if I had 45 less pounds of mayo? Used Excel
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