Solutions-Assignment2

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

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

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

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.

## This note was uploaded on 11/18/2011 for the course BUS 220 taught by Professor Drexel during the Fall '08 term at SUNY Stony Brook.

### Page1 / 2

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

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online