SEATWORK #1: Sensitivity Report

The manager of a Burger Doodle franchise wants to determine how many sausage biscuits and
ham biscuits to prepare each morning for breakfast customers. The two types of biscuits require
the following resources:

Biscuit Labor (hr.) Sausage (lb.) Ham (Ib.) Flour (Ib.)

Sausage 0.010 0.10 0.04
Ham 0.024 0.15 0.04

The franchise has 6 hours of labor available each morning. The manager has a contract with a
local grocer for 30 pounds of sausage and 30 pounds of ham each morning. The manager also
purchases 16 pounds of flour. The profit for a sausage biscuit is $0.60; the profit for a ham
biscuit is $0.50. The manager wants to know the number of each type of biscuit to prepare each
morning in order to maximize profit.

A. Solve the linear programming model formulated for the Burger Doodle restaurant
graphically. Attach the graph

Maximize: Z = 0.60x + 0.50y

X = Sausage
Y= Ham Subject to:
0.010x + 0.024y ≤ 6
0.04x + 0.04y ≤ 16
0.10x ≤ 30
0.15y ≤ 30
x, y ≥ 0

Mathematical Model
B. Solve the optimal solution using the excel. Attached the excel output.
C. Attach the sensitivity report

From the computer solution output (Excel and sensitivity report), determine the
following:

1. How many ham and sausage biscuits the company should prepare to maximize
the profit?
- The Burger Doodle Franchise should prepare a total of 300 Sausage
Biscuits and 100 Ham Biscuits in order to the get the Maximum Profit.

2. How much is the profit at the optimal solution?

- The Profit at the optimal solution is $230.

3. After how many hours will it result in slack hours of labor?

- It takes more than 0.6 hour of decrease in labor hour for the
operation of the business to be in result of slack hours.
4. What is the sensitivity range for the labor constraints?
- 5.4 ≤ X1 ≤ 1E+30

5. What is the sensitivity range for the flour?

- 12 ≤ X2 ≤ 17

6. How much is the profit if the staff will only work 5 hours on a particular day?
- The total profit if the staff will only work for 5 hours on that particular
day is $221.67.

7. How much extra sausage and ham is left over at the optimal solution point?
- There will be zero (0) left over for the Sausage and there will be 15
left over for the Ham at the optimal solution point.

8. ls there any idle labor time?

- Yes, the idle labor time is 0.6 hour.

9. What would the solution be if the profit for a ham biscuit were increased from
$0.50 to $0.60?
- If the profit for a ham biscuit were increased from $0.50 to $0.60, there
will be a profit of $240.

10. What would be the effect on the optimal solution if the manager could obtain 2
more pounds of flour?
- The effect on the optimal solution if the manager could obtain 2 more
pounds of flour, there will be a stable 300 Sausage Biscuit and there will be an
increase of 25 Ham Biscuit, which results a total of 125 Ham Biscuits that
changes the total Maximum Profit amounting to $242.5.