The assistant manager had taken a management science class a few years before and while she knew enough to formulate the problem and implement it in Excel,
the only sensitivity training she had ever received had to do with being more empathetic to the plight of her minimum wage workforce. Help her interpret the sensitivity report for the cheese and meat constraints as it appears below.
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$G$7 Cheese 400 0.25 400 16.66666667 233.3333333
$G$8 Meat 150 0.125 150 110 10
Answer: All 400 ounces of the cheese and 150 ounces of the meat are used in the optimal product mix. If the assistant manager could buy an ounce of cheese for 25 cents or less, they should do that up to an additional 16.6 ounces of cheese. If they were to waste cheese, each ounce lost would effectively lose them 25 cents up to losing 233 ounces. Additional meat should be purchased up to a price of 12.5 cents per ounce and up to an additional 110 ounces. Wasting an ounce of meat costs 12.5 cents per ounce up to a loss of 10 ounces.
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