Joan has committed to the local PTA to make some items for a bake sale on Saturday.

She has
decided to make some combination of chocolate cakes, loaves of white bread, custard pies, and
sugar cookies. Thursday evening she goes to the store and purchases 20 pounds of flour, 10
pounds of sugar, and 80 eggs, which are the three main ingredients in all the baked goods she is
thinking about making. The following table shows how much of each of the main ingredients is
required for each baked good:

Ingredient
Flour(cups) Sugar(cups) Eggs Baking Time(min.)
Cake 2 2 2 45
Bread 9 1 0 25
Pie 1 1 5 40
Cookies 3 1 2 20

There are 13 cups in a 2-pound bag of flour and 18 cups in a 2-pound bag of sugar. Joan plans to
get up and start baking on Friday morning after her kids leave for school and finish before they
return after soccer practice (6 hours). She has five baking oven for a total of 30 hours of baking
time. She knows that the PTA will sell a chocolate cake for $12, a loaf of bread for $8, a custard
pie for $10, and a batch of cookies for $6. Joan wants to decide how many of each type of baked
good she should make in order for the PTA to make the most money possible.
a) Formulate a linear programming model for this problem. (6 marks).
b) Joan’s problem was solved using Excel Solver and the sensitivity report is shown below.
Note: The problem was solved using Linear Programming Relaxation technique.

Variable Cells
Final Reduced Objective Allowable Allowable
Name Value Cost Coefficient Increase Decrease
Cake 35 0 12 1.05 4.21
Bread 5 0 8 1.16 2
Pie 0 -1.22 10 1E+30
Cookie 5 0 6 6.89 0.310

Constraints
Final Shadow Constraint Allowable Allowable
Name Value Price R.H. Side Increase Decrease
Flour 130 0.2 130 350 50
Sugar
Baking Time 1800 0.248 1800 138.89 972.22
Eggs 80 0.22 80 26.32 7.04
[Note: missing numbers in the sensitivity report are left on purpose]

Answer the following questions using information from the sensitivity report shown above.
 c) What is the optimal baking plan and the expected total profit? (3 marks).
d) If Joan could get 20 more eggs, 40 more cups of flour, or 30 more minutes of oven time,
which should she choose? Why? (4 marks).
e) Suppose the selling price of a Cake doubles. Will the optimal solution change, and what can
be said about the effect on total profit? (3 marks).
f) Interpret the Reduced Cost value for Pie. Also, what is the allowable increase of the objective
coefficient of Pie? (3 marks).
g) Fill in all the sensitivity report information for the Sugar constraint. Explain how you were
able to deduce each number. (4 marks).
h) Are any of the ingredients left over? (2 marks).