Tom's, Inc., produces various Mexican food products and sells them to Western Foods, a chain of grocery stores located in Texas and New Mexico. Tom's, Inc., makes two salsa products: Western FoodsSalsa and Mexico City Salsa. Essentially, the two products have different blends of whole tomatoes, tomato sauce, and tomato paste. The Western Foods Salsa is a blend of 50% whole tomatoes, 30%tomato sauce, and 20% tomato paste. The Mexico City Salsa, which has a thicker and chunkier consistency, consists of 70% whole tomatoes, 10% tomato sauce, and 20% tomato paste. Each jar ofsalsa produced weighs 10 ounces.For the current production period, Tom's, Inc., can purchase up to 275 pounds of whole tomatoes, 140 pounds of tomato sauce, and 100 pounds of tomato paste; the price per pound for theseingredients is $0.96, $0.64, and $0.56, respectively. The cost of the spices and the other ingredients is approximately $0.10 per jar. Tom's, Inc., buys empty glass jars for $0.02 each, and labeling andfilling costs are estimated to be $0.03 for each jar of salsa produced. Tom's contract with Western Foods results in sales revenue of $1.64 for each jar of Western Foods Salsa and $1.93 for each jar ofMexico City Salsa. LettingW = jars of Western Foods SalsaM = jars of Mexico City Salsaleads to the formulation (units for constraints are ounces):Max 1W + 1.25Ms.t.< 4,400< 2,240< 1,6005W + 7Moz of whole tomatoes3W + 1Moz of tomato sauceoz of tomato paste2W + 2MW, M 2 0The computer solution is shown below.Optimal Objective Value850.00000VariableValueReduced CostW600.000000.00000M200.000000.00000ConstraintSlack/SurplusDual Value10.000000.12500240.000000.000000.000000.18750ObjectiveAllowableAllowableVariableCoefficientIncreaseDecreaseW1.000000.250000.10714M1.250000.150000.25000RHSAllowableAllowableConstraintValueIncreaseDecrease14400.000001200.00000240.000002240.00000Infinite240.0000031600.0000060.00000342.85714(a) What is the optimal solution, and what are the optimal production quantities?Wjars (a) What is the optimal solution, and what are the optimal production quantities?WjarsMjarsprofit(b) Specify the objective function ranges. (Round your answers to five decimal places.)Western Foods SalsatoMexico City Salsato(c) What are the dual values for each constraint? Interpret each.constraint 1One additional ounce of whole tomatoes will improve profits by $0.125.One additional ounce of whole tomatoes will improve profits by $0.188.One additional ounce of whole tomatoes will improve profits by $240.00.Additional ounces of whole tomatoes will not improve profits.constraint 2One additional ounce of tomato sauce will improve profits by $0.125.One additional ounce of tomato sauce will improve profits by $0.188.One additional ounce of tomato sauce will improve profits by $240.00.Additional ounces of tomato sauce will not improve profits.constraint 3One additional ounce of tomato paste will improve profits by $0.125.One additional ounce of tomato paste will improve profits by $0.188.One additional ounce of tomato paste will improve profits by $240.00.Additional ounces of tomato paste will not improve profits.(d) Identify each of the right-hand-side ranges. (Round your answers to two decimal places. If there is no upper or lower limit, enter NO LIMIT.)constraint 1toconstraint 2toconstraint 3toO O O OO O O O

The concept of linear programming is used in the logistics industry as well as the manufacturing…

Answered: (a) What is the optimal solution, and…

MARKETING 2018

19th Edition

ISBN:9780357033753

Author:Pride

Publisher:Pride

Chapter12: Developing And Managing Products

Section12.1: Sriracha Heats Up The Hot Sauce Market

Problem 3VC

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