Question: Remaining Time: 1 hour, 59 minutes, 18 seconds. Question Completion Status: 50 points Save Answer QUESTION 2 Ken and Larry, Inc., supplies its ice cream

Remaining Time: 1 hour, 59 minutes, 18 seconds.

Remaining Time: 1 hour, 59 minutes, 18 seconds.

Remaining Time: 1 hour, 59 minutes, 18 seconds.

Remaining Time: 1 hour, 59 minutes, 18 seconds. Question Completion Status: 50 points Save Answer QUESTION 2 Ken and Larry, Inc., supplies its ice cream parlors with three flavors of ice cream: chocolate, vanilla, and banana. Due to extremely hot weather and a high demand for its products, the company has run short of its supply of ingredients: milk, sugar, and cream. Hence, they will not be able to fill all the orders received from their retail outlets, the ice cream parlors. Due to these circumstances, the company has decided to choose the amount of each flavor to produce that will maximize total profit, given the constraints on supply of the basic ingredients. The chocolate, vanilla, and banana flavors generate, respectively, $1.00, $0.90, and $0.95 of profit per gallon sold. The company has only 200 gallons of milk, 150 pounds of sugar, and 60 gallons of cream left in its inventory. The linear programming solved and the sensitivity report are shown below. F G 1 2 3 4 5 6 7 8 Resource Milk Sugar Cream Unit Profit Solution B D E Resource Usage Per Unit of Each Activity Activity Chocolate Vanilla Banana Totals 0.45 0.5 0.4 180 0.5 0.4 0.4 150 0.1 0.15 0.2 60 1 0.9 0.95 $341.25 o 300 75 VI VI VI Resource Available 200 150 60 Save All Answers Save and Submit Remaining Time: 1 hour, 59 minutes, 03 seconds. Question Completion Status: 150 VIVI 5 6 7 8 150 60 60 Sugar Cream Unit Profit Solution 0.5 0.1 1 o 0.4 0.15 0.9 300 0.4 0.2 0.95 75 $341.25 Changing Cells Final Reduced Objective Cell Name Value Cost Coefficient $B$8 Solution Chocolate 0 -0.0375 1 $C$8 Solution Vanilla 300 0 0.9 $D$8 Solution Banana 75 0 0.95 Allowable Increase 0.0375 0.05 0.021429 Allowable Decrease 1E+30 0.0125 0.05 Constraints Final Shadow Constraint Allowable Value Price R.H. Side Increase Allowable Decrease Cell Name $E$4 Milk Totals $E$5 Sugar Totals $E$6 Cream Totals 150 60 1.875 1 150 60 10 15 30 3.75 Final Shadow Constraint Allowable Value Price R.H. Side Increase Allowable Decrease Cell Name $E$4 Milk Totals $E$5 Sugar Totals $E$6 Cream Totals 150 60 1.875 1 150 60 10 15 30 3.75 (a) What is the optimal solution and total profit? (b) Suppose the profit per gallon of banana changes to $1.00. Will the optimal solution change, and what can be said about the effect on total profit? (c) Suppose the profit per gallon of banana changes to 92C. Will the optimal solution change, and what can be said about the effect on total profit? (d) Suppose the company discovers that 3 gallons of cream have gone sour and so must be thrown out. Will the optimal solution change, and what can be said about the effect on total profit? (e) Suppose the company has the opportunity to buy an additional 15 pounds of sugar at a total cost of $15. Should they? Explain

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