# Pizza - Another DMOR Sensitivity Analysis Example My Family...

This preview shows pages 1–2. Sign up to view the full content.

Another DMOR Sensitivity Analysis Example 10/02/07 My Family owns an Italian restaurant, even though they only know how to make three Italian dishes: pizza, cheese sticks, and calzones. They would like to determine how much of each food product to make. Each food consists of dough, sauce, and cheese. We have 20 units of dough, 10 units of sauce, and 40 units of cheese available to us. Consider the following grid of resource utilization by each food, and price for which they can sell the food. FOOD Dough consumption Sauce consumption Cheese consumption Price Pizza 1 1 3 \$10 Cheese sticks 2 0 1 \$6 Calzones 2 1 1 \$8 We can thus model this problem as the following linear program, where x 1 is the amount of pizza produced, x 2 is the amount of cheese sticks produced, and x 3 is the amount of calzones produced: Maximize 10 x 1 + 6 x 2 + 8 x 3 Subject to x 1 + 2 x 2 + 2 x 3 20 (dough) x 1 + x 3 10 (sauce) 3 x 1 + x 2 + x 3 40 (cheese) x 0 After optimizing this problem, we have the following optimal simplex tableau. Basics z x 1 x 2 x 3 s 1 s 2 s 3 RHS 1 0 0 5 3 7 0 130 x 2 0 0 1 1/2 1/2 -1/2 0 5 x 1 0 1 0 1 0 1 0 10 s 3 0 0 0 -5/2 -1/2 -5/2 1 5 Question a. What are the shadow prices of each constraint? Question b. Right now, x 3 = 0 and so we don’t want to produce any calzones. Paulie believes that if we increase the price of calzones, it will become optimal to sell them.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern