Reference no: EM132916937
The Pizza Man is a local shop that plans to make its sales this Saturday from its sidewalk tables during the town's holiday parade. On this occasion, the shop's owners know that customers will buy by the slice and any kind of pizza offered will sell. The Pizza Man offers plain, meat, vegetable, and supreme pizzas. Each variety has its own requirement of sauce, cheese, dough, and toppings (in ounces as shown in the table), and each has its own selling price.
Plain Meat Vegetables Supreme Available
Dough 5 5 5 5 200
Sauce 3 3 3 3 90
Cheese 4 3 3 4 120
Meat 0 3 0 2 75
Vegetables 0 0 3 2 40
Price $8 $10 $12 $15
The Pizza Man would like to determine what the right combination of pizzas to make (using its existing stock of ingredients) to maximize revenue from its sales.
a) Write the Linear Program formulation for the above optimization problem. Make your fo1mulation clear by defining the variables, constraints, objective function etc. clearly.
b) Solve it using Excel solver. Please attach your Solver model and output (including Answer and Sensitivity Report) as a separate document with a snapshot of solver dialog box and all formulas.
c) What is the maximum sales revenue? What mix of pizzas should be made to achieve this sales revenue?
d) Which ingredients are economically scarce (i.e. they are limiting our profits)?