Question: QUESTION 2: Linear Programming Sensitivity Analysis (22 points) A salad dressing supplier to Ottawa area restaurants has been using Linear Programming (LP) for years to

QUESTION 2: Linear Programming Sensitivity

QUESTION 2: Linear Programming Sensitivity

QUESTION 2: Linear Programming Sensitivity

QUESTION 2: Linear Programming Sensitivity

QUESTION 2: Linear Programming Sensitivity Analysis (22 points) A salad dressing supplier to Ottawa area restaurants has been using Linear Programming (LP) for years to determine how much dressing they should produce for every season. In particular, they specialize in producing three kinds of dressing: Dijon, Classic Vinaigrette, and Roasted Garlic. All these dressings require some use of olive oil to produce. Taking this into account, the management team has formulated the following LP model that determines the optimal amount they should produce for each dressing. X: the amount of Dijon Y: the amount of Classic Vinaigrette G: the amount of Roasted Garlic Maximize Z= 1.2X+1.6Y+1.4G (total profit) subject to (Olive oil) 6X+5Y+3G=0 The model has been solved using Excel and the following sensitivity report was generated. Variable Cells Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease $B$10 Dijon 0 -0.8 1.2 0.8 1E+30 $C$10 Classic Vinaigrette 1.6 0.738461538 0.48 $D$10 Roasted Garlic 40 0 1.4 0.6 20 0 0.3 Constraints Final Allowable Allowable Shadow Price Constraint R.H. Side Cell Name Value Increase Decrease $F$13 Olive Oil Usage 220 0 300 1E+30 A $F$14 Labour Usage 280 0.2 280 120 120 $F$15 Machine Usage B 0.1 320 147.6923077 96 (a) What is the optimal profit? (2 points) (6) Two numbers have been removed from the resource sensitivity table by your professor (the letters A and B appear instead of the numbers). What are the correct values of A and B? Justify. (4 points) (c) The supplier learned recently that the price of Olive oil has been dropping significantly, and is wondering if they should take this opportunity to purchase more oils. Provide your answer and JUSTIFY it. (3 points)

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