A food factory produces two kinds of pizza: standard and healthy. The healthy one uses 0.05kg white flour and 0.05kg wholemeal flour, while the standard one uses 0.09kg white flour and 0.01kg wholemeal flour. The company makes £0.9 profit with the standard pizza and £1.6 profit with the healthy pizza. Their supply of white flour is restricted to 4100kg a week, while their supply for wholemeal flour is restricted to 2200kg a week. Using linear programming, find the optimal solution. Then calculate the extra profit or shadow price that can be generated arising from having one more kg of white flour available. Give your result for the shadow price in pounds and to at least 2 decimal places.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question

3

A food factory produces two kinds of pizza: standard and healthy. The healthy one uses 0.05kg white
flour and 0.05kg wholemeal flour, while the standard one uses 0.09kg white flour and 0.01kg
wholemeal flour. The company makes £0.9 profit with the standard pizza and £1.6 profit with the
healthy pizza. Their supply of white flour is restricted to 4100OK a week, while their supply for
wholemeal flour is restricted to 2200kg a week.
Using linear programming, find the optimal solution. Then calculate the extra profit or shadow price
that can be generated arising from having one more kg of white flour available. Give your result for the
shadow price in pounds and to at least 2 decimal places.
Transcribed Image Text:A food factory produces two kinds of pizza: standard and healthy. The healthy one uses 0.05kg white flour and 0.05kg wholemeal flour, while the standard one uses 0.09kg white flour and 0.01kg wholemeal flour. The company makes £0.9 profit with the standard pizza and £1.6 profit with the healthy pizza. Their supply of white flour is restricted to 4100OK a week, while their supply for wholemeal flour is restricted to 2200kg a week. Using linear programming, find the optimal solution. Then calculate the extra profit or shadow price that can be generated arising from having one more kg of white flour available. Give your result for the shadow price in pounds and to at least 2 decimal places.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 4 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.