# Essay on Delectation Delicatessen

Words: 1232
Pages: 5

Homework Problem Set #1
Delectation Delicatessen
Problem a)
Delectation wants to determine the number of Fish-n-Fowl and Surf-n-Turf sandwiches it should make each day to maximize the deli’s revenues in USD\$. The decision variables are how many units of Fish-n-Fowl and Surf-n-Turf sandwiches Delectation should make each day.
F= units of Fish-n-Fowl sandwiches Delectation should make each day. S= units of Surf-n-Turf sandwiches Delectation should make each day.
The objective function: maxmize F x 5.50 + S x 6.95
The Constraints: 0.25 x F + 0.25 x S<=200 | Tuna fish salad | Pound | 0.5 x F <=260 | Sliced turkey | Pound | 0.40 x S <=60 | Sliced roast beef
So Gaussian should take the order.

Problem d)
The 800 units production line should be added to plant C .The reasons are: 1. Plant C has the higher absolute value of shadow price. One addition unit of production can reduce costs by \$0.75. 2. 800 units are within the allowable increase for Plan C. So adding 800 units on Plant will cause costs savings of 800 x \$0.75. 3. Total costs savings from adding small line are \$0.75x500-\$400= -\$25<0
Total costs savings from adding large line are \$0.75 x 800-\$500= \$100>0
So adding large line is more financial beneficial.

National steel company
Problem a) losing 100 units of production capacity at plant A