Optimization models for Business Decision Making

Problem set - 2

Problem 1

Back to Par Inc.

Problem 2

Use XL to analyze if the following Par Inc. problem (with a new objective function) has
multiple optimal solutions?

Max 6.3S + 9D
Subject to constraints,

(7/10)S + D <= 630

(1/2) S + (5/6)D <= 600
S + (2/3)D <= 708
(1/10)S + (1/4)D <= 135
Problem 3
Problem 4

Problem 5
Problem 6

Great Dosas fast-food restaurant sells two varieties of dosas – special masala and masala. A
special masala dosa uses 0.25kg of potatoes, and a masala dosa uses only 0.2kg. The
restaurant starts the day with 200kg of potatoes. It may order more potatoes at Rs. 25/kg.
Great Dosa’s profits are Rs. 20 for a special masala dosa and Rs. 15 for a masala dosa. Great
Dosa doesn’t expect to sell more than 900 dosas in a day. How many of each type of dosa
should Great Dosa plan for the day?