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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 285 pounds of whole tomatoes, 150 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 formulation (units for constraints are ounces):
Max 1W +1.25M
s.t.
5W +7M <=4,560 oz of whole tomatoes
3W +1M <=2,400 oz of tomato sauce
2W +2M <=1,600 oz of tomato paste
W, M >=0
The sensitivity report is shown below.
Variable Cells
Model Variable Name Final Value Reduced Cost Objective Coefficient Allowable Increase Allowable Decrease
W Western Foods Salsa 520.0000.0001.0000.2500.107
M Mexico City Salsa 280.0000.0001.2500.1500.250
Constraints
Constraint Number Name Final Value Shadow Price Constraint R.H. Side Allowable Increase Allowable Decrease
1 Whole tomatoes 4,560.0000.1254,560.0001,040.000560.000
2 Tomato sauce 1,840.0000.0002,400.0001E+30560.000
3 Tomato paste 1,600.0000.1881,600.000140.000297.143
(a)
What is the optimal solution, and what are the optimal production quantities?
W
520
Correct: Your answer is correct.
jars
M
280
Correct: Your answer is correct.
jars
profit $
1394.20
Incorrect: Your answer is incorrect.
(b)
Specify the objective function ranges. (Round your answers to three decimal places.)
Western Foods Salsa
0.893
Correct: Your answer is correct.
to
1.250
Correct: Your answer is correct.
Mexico City Salsa
1.000
Correct: Your answer is correct.
to
1.400
Correct: Your answer is correct.
(c)
What are the shadow prices for each constraint? Interpret each.
constraint 1
One additional ounce of whole tomatoes will improve profits by $0.125.
One additional ounce of whole tomatoes will improve profits by $560.00.
One additional ounce of whole tomatoes will improve profits by $0.188.
Additional ounces of whole tomatoes will not improve profits.
Correct: Your answer is correct.
constraint 2
One additional ounce of tomato sauce will improve profits by $0.125.
One additional ounce of tomato sauce will improve profits by $560.00.
One additional ounce of tomato sauce will improve profits by $0.188.
Additional ounces of tomato sauce will not improve profits.
Correct: Your answer is correct.
constraint 3
One additional ounce of tomato paste will improve profits by $0.125.
One additional ounce of tomato paste will improve profits by $560.00.
One additional ounce of tomato paste will improve profits by $0.188.
Additional ounces of tomato paste will not improve profits.
Correct: Your answer is correct.
(d)
Identify each of the right-hand-side ranges. (If there is no upper or lower limit, enter NO LIMIT. Round your answers to two decimal places.)
constraint 1
Incorrect: Your answer is incorrect.
to
Correct: Your answer is correct.
constraint 2
Correct: Your answer is correct.
to
Correct: Your answer is correct.
constraint 3
Incorrect: Your answer is incorrect.
to
Incorrect: Your answer is incorrect.

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