Question
The production manager for the Whoppy soft drink company is considering the daily production of two kinds of soft drinks: number of cases of regular
The production manager for the Whoppy soft drink company is considering the daily production of two kinds of soft drinks: number of cases of regular (R) and number of cases of diet (D). The main constraints are production time, availability of syrup and shipment capacity. Profit for regular soft drink is $3.00 per case and diet soft drink is $2.00 per case.
The formulation for this problem is given below.
MAX Z = $3R + $2D
s.t.
2R + 4D 480 (Production in minutes)
5R + 3D 675 (Syrup in gallons)
R + D 200 (Shipment capacity in cases)
R>= 0, D>= 0
The sensitivity report is given below.
Complete the following sentences using the information from the Sensitivity Report.
a) The optimal number of cases of regular drink to produce is __________, and the optimal number of cases of diet drink to produce is __________, for total profits of __________.
b) If the profit per case of Diet drink increases by $2.50, what would be effect on the optimal solution and total profit?
c) If it costs the same to increase production time by 2 hours or availability of syrup by 10 gallons, which one should the company increase? Support your answer.
d) If downtime reduced the production time by 200 minutes (from 480 to 280 minutes), what would be effect on the optimal solution and total profit?
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