Delectation Delicatessen Essay

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Homework Problem Set #1
Delectation Delicatessen
Problem a)
Answer:
Delectation wants to determine the number of Fish-n-Fowl and Surf-n-Turf sandwiches it should make each day to maximize the deli’s revenues in USD$. The decision variables are how many units of Fish-n-Fowl and Surf-n-Turf sandwiches Delectation should make each day.
F= units of Fish-n-Fowl sandwiches Delectation should make each day. S= units of Surf-n-Turf sandwiches Delectation should make each day.
The objective function: maxmize F x 5.50 + S x 6.95
The Constraints: 0.25 x F + 0.25 x S<=200 | Tuna fish salad | Pound | 0.5 x F <=260 | Sliced turkey | Pound | 0.40 x S <=60 | Sliced roast beef
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And Plant A losing production capacity will not change this fact. So only Plant B will increase its production by 100 untis to make up the loss of capacity in Pant A. 2.The transportation costs for A to region 1 and 2 are $1.50 and $2.10. The difference is $0.70. The transportation costs for Plant B to region 1 and 2 are $2.35 and $3.55. The difference is $1.20. Since $1.20>$0.70, Plant A will reduce its production and shipment to region 1 by 100 untis and Plan B will produce $100 units more and ship to region 1.
Problem b) 50 cents increase in unit transportation cost between plant A and region 2
Answer:
Production and shipment plan will not be changed because the allowable increase of objective coefficient of “from plant A to region 2” is 60 cents. The 50 cents change is within the limit so it will not change the production and shipment plan. So it will only increase total cost by $450 as 900x$0.5.

Problem c)
Answer:
The additional revenue will cover the cost. The reasons are: First only Plant B has available capacity to cover the 80 additional units. Second, 80 additional units is within the allowable increase range of plan B so
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