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Case study on hospitality business

Case study on hospitality business

Company produces two types of chicken patties for sale to fast food restaurants.

Each type of Patty consists of white meat and dark meat. Patty 1 sells for $4/lb and must

contain at least 70% white meat. Patty 2 sells for $3/lb and must contain at least 60% white

meat. At most 50 lb of Patty 1 and 30 lb of Patty 2 can be sold. The two types of chicken

used to manufacture the patties are called Roasters and Fryers. Each Roaster costs $10 and

yields 5 lb of white meat and 2 lb of dark meat. Each Fryer costs $8 and yields 3 lb of white meat and 3 lb of dark meat.

A) Determine how the company can maximize its profits. Answer using solver in excel

B) Use the sensitivity report to answer the following questions

a. The company is considering an ad campaign that will target either Patty 1 or Patty 2. Which of the patties should be targeted

b. If Roasters are put on sale for $9 per pound, what will happen to the optimal variable values and to the optimal objective function value

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