Solutions-Assignment2

Solutions-Assignment2 - BUS 220 Introduction to Decision...

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BUS 220 – Introduction to Decision Science Assignment 2 Solutions Problem 1 a. Optimal solution calls for the production of 560 cheese pizzas and 240 Double pizzas; profit of $1720. b. Variable Range of Optimality Cheese pizza 1.786 to 2.5 Double pizza 2.000 to 2.800 c. Constraint Shadow (Dual) Price Interpretation 1 0.125 Increase of one unit in the RHS of Dough will increase profits by $0.125 2 0.000 Additional units in the RHS of Cheese will not improve profits; slack of 320. 3 0.187 One more unit in the RHS of tomatoes will increase profits by $0.187 d. Constraint Range of Feasibility 1 8640 to 11200 2 3840 to No Upper Limit 3 2560 to 3280 Problem 2 a. $12.00 per hour is $0.20 per minute. Since the shadow price for the design constraint is 0.33, I would recommend using the overtime. b. Shadow price: -4.0. This indicates that an increase of one unit in the newspaper ads requirement will cause $4.00 decrease in profit contribution. c. No change in the optimal values of variables since there is no upper limit for the objective function
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Solutions-Assignment2 - BUS 220 Introduction to Decision...

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