Taco Loco Is Considering a New Addition to Their Menu $\text { Variable Cells }$

question 18

Short Answer

Taco Loco is considering a new addition to their menu. They have test marketed a number of possibilities and narrowed them down to three new products, X, Y, and Z. Each of these products is made from a different combination of beef, beans, and cheese, and each product has a price point. Taco Loco feels they can sell an X for $17, a Y for $13, and a Z for $14. The company's management science consultant formulates the following linear programming model for company management.
Max R = 14Z + 13Y + 17X
subject to:
Beef 2Z + 3Y + 4X ≤ 28
Cheese 9Z + 8Y + 11X ≤ 80
Beans 4Z + 4Y + 2X ≤ 68
X,Y,Z ≥ 0
The sensitivity report from the computer model reads as follows:
$\text { Variable Cells }$
$\begin{array}{llccccc}\hline \text { Cell } & \text { Name } & \begin{array}{c}\text { Final } \\\text { Value }\end{array} & \begin{array}{c}\text { Reduced } \\\text { Cost }\end{array} & \begin{array}{c}\text { Objective } \\\text { Coefficient }\end{array} & \begin{array}{c}\text { Allowable } \\\text { Increase }\end{array} & \begin{array}{c}\text { Allowable } \\\text { Decrease }\end{array} \\\hline \text { \$C\$4 } & \mathrm{Z} & 1.45 & 0 & 14 & 0.63 & 5.33 \\\hline \text { \$D\$4 } & \text { Y } & 8.36 & 0 & 13 & 8 & 0.56 \\\hline \text { \$E\$4 } & \mathrm{X} & 0 & -0.818 & 17 & 0.818 & 1 \mathrm{E}+30 \\\hline\end{array}$

$\text { Constraints }$
$\begin{array}{llccccc}\hline {\text { Cell }} & {\text { Name }} & \begin{array}{c}\text { Final } \\\text { Value }\end{array} & \begin{array}{c}\text { Shadow } \\\text { Price }\end{array} & \begin{array}{c}\text { Constraint } \\\text { R.H. Side }\end{array} & \begin{array}{c}\text { Allowable } \\\text { Increase }\end{array} & \begin{array}{c}\text { Allowable } \\\text { Decrease }\end{array} \\\hline \text { \$F\$6 } & \text { Beef } & 28 & 0.45 & 28 & 2 & 10.22 \\\hline \text { \$F\$7 } & \text { Cheese } & 80 & 1.45 & 80 & 46 & 5.33 \\\hline \text { \$F\$8 } & \text { Beans } & 39.27 & 0 & 68 & 1 \mathrm{E}+30 & 28.73 \\\hline\end{array}$
-If Taco Loco reduces the price of the X product by about 82 cents, then their optimal product mix will contain ________ X.

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Definitions:

Specific Phobia

An intense, irrational fear of, or aversion to, specific objects or situations that poses little to no actual danger.

Anxiety Disorder

A group of mental health disorders characterized by significant feelings of anxiety and fear, affecting daily living.

Phobia

an extreme or irrational fear of or aversion to something, significantly impacting an individual's ability to function normally in certain situations.

Psychodynamic Model

A psychological perspective that emphasizes unconscious processes and childhood experiences in shaping behaviors and personalities.