ES4 Total Protit (s) 2.85 341.25 ariable Cells Original Value Final Value Cell S

Question

ES4 Total Protit (s) 2.85 341.25 ariable Cells Original Value Final Value Cell SB$3 Gallons Chocolate Name 300 75 SDS3 Gallons Banana Constraints Slack 20 0 0 Status Cell SES7 SES8 SES9 Cell Value 180 150 60 Formula SES7-$G$7 Not Binding SE$8 $G$8 Binding SE$9-$G$9 Binding Name Milk (gallons) LHS Sugar (pounds) LHS Cream (gallons) LHS Microsoft Excel 12.0 Sensitivity Report Adjustable Cells Final Value Reduced Objective Allowable Allowable Coefficient Increase Decrease 0.037 0.050 0.021 Cost Cell SB$3 SC$3 SD$3 Name Gallons Chocolate Gallons Vanilla Gallons Banana 1E+30 0.0125 0.05 0.0375 300 75 0.9 0.95 0 Constraints Final Value 180 150 Shadow Constraint Allowable Allowable R.H. Side Increase Decrease 1E+30 10 Price Cell SES7 SE$8 SES9 Name Milk (gallons) LHS Sugar (pounds) LHS Cream (gallons) LHS 20 1.875 150 3.75

Explanation / Answer

a.

profit = 341.25, cream and sugar are binding constraints, milk is not binding constraint.

b

profit will increase to 347.25 as 300 gallons of vanila icecream is produced for maximum profit.

c

no effect on total profit as milk is not a binding constraint and for maximizing profit, only 180 is used out of 200 gallons of milk. (20 in slack).

d

profit will be increased to 343.125, therefore they should buy sugar

e

therefore sugar should be increased as it gives more profit

C V B Z 0 300 75 341.25 constraints 180 150 60 200 150 60 milk sugar cream

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