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ae . Ken and Larry, Inc., supplies its ice cream parlors with three flavors of i

ID: 3326626 • Letter: A

Question

ae . Ken and Larry, Inc., supplies its ice cream parlors with three flavors of ice cream: chocolate, vanilliaz Due to extremely hot weather and high demand for its products, the company has run short ot i milk, sugar, vill not be able to fill all the orders received from their retail outlets, the ice cream ees, the company has decided to choose the amount of each flavor to produce that will maximize total profit, given the constraints on supply of the basic ingredients Vanila, and banana gencrate, respectively, S1.00, so.90, and so.95 of profit per gallon sold. The company has only 200 gallons of milk, 150 programming formulation for this problem is shown below. C-gallons of chocolate ice cream produced V- gallons of vanilla ice cream produced B gallons of banana ice cream produced Let Maximize Z-1.00C+ 0.90V+0.95B Subject to 0.45C + 0.50v+0.40B s 200 gallons (milk) 0.50C + 0.40V+0.40B s 150 pounds (sugar) 0.10C + 0.15V+0.20B s 60 gallons (cream) This LP problem has been solved using the Excel Solver. Answer the followiag squestions based on the answer report and the sensitivity report C, V, B 20 (a) (2 pts) What is the optimal solution and total profit? (b) (3 pts) Suppose the profit of vanilla ice cream increases from s0.90 to $0.92 per gallon. Will that affect the optimal solution and total profit? If so, how? (Be specifie) (o) (B ptsy) Suppose the company discovers that 10 gallons of milk have gone sour and so must be thrown out will that affect total profit? Explain. (d) (3 pts) Suppose the company has the opportunity to buy an additional 5 pounds of sugar at a cost of $1 pound. Should they? Explain. (e) (2 pts) If you could increase one resource by one unit, which one would you choose?, Why?

Explanation / Answer

ii.

iv

v if sugar is increase by 1 unit

if cream is increased by 1 unit

more profit by increasing sugar.

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