family pack
objecti
ve
coeffici
ent
price
vani
la
chocol
ate
rajbh
og
man
go
gree
n
pista
large cup&
cones
vani butt
la
er
scot
ch
50
50
25
25
small cup&
cones
vani butt
la
er
scot
ch
30
30
10
10
7.2
60
9.6
80
14.4
120
10.8
90
butt
er
scot
ch
9
75
360
0
360
0
60
3600
5400
4500
3375
2450
1500
1500
500
500
3600
5400
4500
3375
2450
1500
1500
500
500
45
45
50
45
35
500
60
<=
60
60
<=
60
50
<=
50
50
<=
50
8.4
70
Profit
Max
117
51
From this above we obtained that by if we do not put constraints in large cup &
small cup as demand as less than we would get all to liter quantity in large cup for
vanilla as it has its highest profit.
So in solution we will get liter of quantity to be sold or are currently sold at Amul
ice cream parlour.
Vanilla family pack:
60 liter
Chocolate family pack:
45 liter
Rajbhog family pack:
45 liter
Mango family pack:
50 liter
Butter scotch family pack: 45 liter
Green pista family pack:
35 liter
Vanilla large cup & cones: 60 liters
Butter scotchlarge cup & cones: 60 liters
Vanilla small cup & cones: 50 liters
Butter scotch large cup & cones: 50 liters
Hence by getting this all calculation using linear programming we can suggest the
particular parlor to sell the products more having shadow price and limit sale
where there is reduced cost.
Answer Report
Constraints
Cell
Name
Cell
Formula
Stat
Sla
=
500
Value
$L$1
6
$M$
16
$N$
16
$O$
16
$P$1
6
$Q$
16
$R$1
6
$S$1
6
$T$1
6
$U$
16
$T$1
8
$U$
18
$W$
18
$R$1
8
$S$1
8
vanila
3600
chocolate
3600
rajbhog
5400
mango
butter
scotch
green
pista
4500
vanila
butter
scotch
1500
vanila
butter
scotch
500
vanila
butter
scotch
50
3375
2450
1500
500
50
500
vanila
butter
scotch
60
60
$L$16<=$L
$17
$M$16<=$
M$17
$N$16<=$
N$17
$O$16<=$
O$17
$P$16<=$P
$17
$Q$16<=$
Q$17
$R$16<=$
R$17
$S$16<=$S
$17
$T$16<=$T
$17
$U$16<=$
U$17
$T$18<=$T
$18
$U$18<=$
U$18
$W$18=$V
$19
$R$18<=$
R$20
$S$18<=$S
$20
us
Bindi
ng
Bindi
ng
Bindi
ng
Bindi
ng
Bindi
ng
Bindi
ng
Bindi
ng
Bindi
ng
Bindi
ng
Bindi
ng
Bindi
ng
Bindi
ng
Bindi
ng
Bindi
ng
Bindi
ng
ck
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Sensitivity Report
Variable Cells
Cell
$L$1
8
$M$1
8
$N$1
8
$O$1
Name
Fin
al
Val
ue
Reduced
Cost
Objecti
ve
Coeffici
ent
Allowa
ble
Increas
e
Allowa
ble
Decrea
se
vanila
60
7.2
1.2
1E+30
chocolate
45
9.6
1E+30
2.4
rajbhog
mango
45
50
0
0
14.4
10.8
1E+30
1E+30
7.2
3.6
8
$P$1
8
$Q$1
8
$R$1
8
$S$1
8
$T$1
8
$U$1
8
butter
scotch
green
pista
45
1E+30
1.8
35
8.4
1E+30
1.2
vanila
butter
scotch
60
50
1E+30
42.8
60
50
1E+30
42.8
vanila
butter
scotch
50
30
1E+30
22.8
50
30
1E+30
22.8
Constra
int
R.H.
Side
Allowa
ble
Increas
e
Allowa
ble
Decrea
se
3600
1E+30
0.03
3600
4800
0.06
5400
7200
0.04
4500
5400
0.024
0.017142
857
3375
4500
2450
4200
1.712
1500
1.712
1500
Constraints
Cell
$L$1
6
$M$1
6
$N$1
6
$O$1
6
$P$1
6
$Q$1
6
$R$1
6
$S$1
6
$T$1
6
$U$1
6
$T$1
8
$U$1
8
$W$
18
Analysis
Name
vanila
chocolate
rajbhog
mango
butter
scotch
green
pista
vanila
butter
scotch
Fin
al
Val
ue
360
0
360
0
540
0
450
0
337
5
245
0
150
0
150
0
Shadow
Price
vanila
butter
scotch
500
2.28
500
600
500
2.28
500
600
vanila
butter
scotch
50
1E+30
50
1E+30
500
7.2
500
60
Here we are getting 11,751 rs as profit per freezer and the data is for single freezer but the
data is for summer season as thus the parlor also has 12 family pack flavors and 6 variety
in large & small cups and cones. The flavor we took are the most commonly sold in the
market with highest sales. As the freezer get emptied in a week so as per the ownersecond
freezer get emptied in 2 weeks so if we want to calculate per month profit it would be
11,751*4+11,751*2= 70,506rs.
But here we are considering per freezer per week so our decision would be based on it.
Being a manager we should take care about the space (area), storage and 8 months being
off season then there would be more cost of electricity as well as area acquired. So at that
period owner should accommodate or run only 1 freezer and another should be utilized
for storage of milk products or it can rent it for other storage purpose so that it can earn
something from it which is more than the expense keeping it idleand utilizing the floor
constraints are binding and if any quantity is increased than it can be sold.
As allowable decrease as in chocolate family pack state that if 2 liter of pack has been
reduced to 43 than our profit will be reduced by 19.2 rs. But if it is reduced to 42 liter
than our profit comes to 11,708 rs which comes to the difference of 43 rs. Hence same
would be the case for the other flavor and other cups. Thus if the value is decreased more
than the allowable decrease than drastic reduction in profit is seen. If we reduce the
quantity up to the allowable decrease than that price reduction would be reduced as to the
objective coefficient.
In constraints of chocolate family pack we are getting allowable increase of 4800rs as it
would be increase from 45 liter to 105 liter as by doing this our profit has increased
by144 rs as 0.03*4800. As shadow is also interpreted as if value of a product is 10 rs and
shadow price is 2 than from bring product from outside or arranging by any means
possible profit can be obtained up to 12 but after 12 we would incur loss. As the value
increases for 10 to 12 our profit goes on reducing. This can be same for the rest of the
flavor and for arrangement of additional quantity it can use other freezer if it is filled half
or it can outsource from other place.
Based on the previous solver problem we can take assumption that as there is more profit
on large cups and cones so I would recommend it to increase its sales as being a franchise
it cannot reduce the price so offering the choice to buyers buying other products would
help to increase the sale, whereas the owner is only maintaining the parlor so there is no
additional cost as to the electricity where he has to run both the freezer 24X7.
Other steps to undertake would be it should stick cartoon wallpaper so that children in the
parlor get excited and by such ways it can sale it candies and cones so it would help to
sell more for that products.