Answer to Question #170613 in Management for tyx

Question

Food For U Sdn Bhd., a catering company is to make breakfast for a business meeting. It will serve chicken sandwiches, egg sandwiches, and vegetarian sandwiches. A chicken sandwich has 1 serving of vegetables, 4 slices of chicken, 2 slices of cheese, and 2 slices of bread. An egg sandwich has 2 serving of vegetables, 2 servings of egg, 2 slices of cheese and 2 slices of bread. A vegetarian sandwich has 3 servings of vegetables, 2 slices of cheese, and 2 slices of bread. A total of 5 bags of chicken are available, each of which has 40 slices; 19 loaves of bread are available, each with 14 slices; 200 servings of vegetables and eggs are available, and 15 bags of cheese, each with 60 slices, are available. a) Formulate linear programming model based on the above problem by using Microsoft Excel. Show the answer and sensitivity report. (9 marks) b) Given the resources, how many of each sandwich can be produced if the goal is to maximize the number of sandwiches? (3 marks) c) What is the optimal number of sandwiches? (2 marks) d) Suppose the company wants to reduce 2 servings of vegetables, what would be the implication on the overall number of sandwiches? (5 marks) e) Since sandwiches requires a lot of bread, the company plans to add 5 more loaves of bread. What is your advice to the company? (3 marks) f) What is the shadow cost for chicken? Interpret the meaning.

Answer 1

The company is going to make a lot of profit since sandwiches are a widespread type of lunch food, school, taken to work, or picnics to be eaten as part of a filled lunch or dinner. Therefore, the shadow cost of chicken will also increase.