Formulate an LP for this problem and solve the problem using the simplex method.How many Cram-Decker and Triple Decker should Debonair Pizza produce to maximize profits?
QUESTION FOUR
Debonair Pizza at Mukuba Mall makes two types of Pizza: the Cram-Decker and the Triple Decker. The only scarce resource that is needed to produce Pizza is labour. At present, the company has two shifts. In shift one a worker should be willing to work up to 60 hours per week and is paid K25 per hour. In shift two, a worker will work up to 40 hours per week for K30 per hour. The price as well as the resources required to make each type of Pizza are given in Table below:
Cram-Decker Triple Decker
Price K300 Resource; Price K270 Resource;
Shift One 4 hour labour Shift One 6 hours labour
Shift Two 4 hour labour Shift Two 2 hours labour
Raw material cost K50 Raw material cost K40
Required
i. Formulate an LP for this problem and solve the problem using the simplex method.How many Cram-Decker and Triple Decker should Debonair Pizza produce to maximize profits?
ii. For what values of the price of a Cram-Decker would the current basis remain
optimal?
iii. For what values of the price of a Triple Decker would the current basis remain optimal?
iv. If a worker in Shift One were willing to work only 30 hours per week, then would the current basis remain optimal? Find the new optimal solution to the LP.
v. If a worker in Shift Two were willing to work up to 60 hours per week, then would the current basis remain optimal? Find the new optimal solution to the LP
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