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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 Fall '08
 drexel
 Operations Research, upper limit, RHS, Dual) Price

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