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Operations Research II

An assignment submitted by:


to: Prof. Gonzales
Bustamante, Ma-Ann P
De Castro, Heidi V.
Gipit, Ma. Redelyn P.
Liguan, Abegail C.
Oldan, Georgette Mae C.
Raymundo, Jeraldine C.

Submitted

Background of the Problem/Objective


Every business aim is to provide products/ services that will generate
maximum profit. Whether it is a small business or a huge one, it will always revolve
around profit. As of today, numbers of businesses are already in boom and among
those that are in demand are canteens, or eateries. Addressing the humans basic
necessity for food, surely, these types of businesses will always have high chances
of getting a market. They operate in a very simple way but on the other hand gain a
great deal of money if the business runs right. Positioning the business in the right
locale, proper sanitation, offering great tasting products, getting the right
ingredients at a minimum cost, and of course, selling the product at the right prices
are some of the factors that must be considered well in order for these types of
businesses to succeed. One must be able to combine all these factors in order for
the business to be more successful, and thus, generate more profit or income.
Considering the right dishes to be offered is also one of the factors that must be
addressed, a factor that will be addressed in this problem.

Scope and Limitation


The locale is limited to the chosen eatery only and will not include other
eateries. Also, out of all the dishes offered, only two dishes of different main
ingredients are to be involved.

Statement of the Problem


Daddys eatery offers two different types of dishes, Pork Steak and Laing. If they
were to comprise 1kilogram (1000g) of main ingredients each, how many servings
of each must be made in order to attain maximum profit?
Note: They must serve 10 persons
Available Data
P30.00 1 serving of Pork Steak

P15.00 1 serving of Laing


Pork
Laing

Total # of g to be used
1000g
1000g

Methodology
Using Linear Programming to solve the problem:
Let:
P = Pork Steak
L = Laing
Objective Function:
Zmax = P30P + P15L
For Pork
75P = 1
P = 1000g
P0
For Laing
30P = 1
L = 1000
L0
For the total number of servings of Pork Steak:
75P =1
P = 1000
76P = 1001
P = 13.17
P = 13 servings
For the total number of servings of Laing
30L = 1
L = 1000
31L = 1001
L = 32.29
L = 32 servings
Zmax = P30 (13) + P15 (32)
= P390 + P480
Zmax = P870

# of g per servings
75g
30g

Findings
From the results gathered, it turns out that at the given magnitudes, 13
servings of pork steak and 32 servings of Laing can be offered. Producing such
results will give the owner a total of P870.00 pesos of earnings which is more than
half of the investment, if only the prices of the main ingredients are to be
considered.
Recommendations
Since vegetables are cheaper than meats, the eatery can offer products that
are composed of more vegetables, or incorporate vegetables to meat dishes in
order to lessen the cost and thus maximizing the profit.