<<<The following example is optimized here as a demonstration.
This lean ground beef is a mixture of two meat cuts: chuck and sirloin, both of which contain both lean and fat meat. The cost per pound and percentage of lean meat and fat meat for these two cuts are as follows:
This lean ground beef is a mixture of two meat cuts: chuck and sirloin, both of which contain both lean and fat meat. The cost per pound and percentage of lean meat and fat meat for these two cuts are as follows:
| Cut | Lean Meat | Fat Meat | Cost |
|---|---|---|---|
| Chuck | 9% | 2% | $9.3 /lb |
| Sirloin | 60% | 6% | $8.4 /lb |
In order for Jim's company to market its beef as "lean ground beef," it must contain at least 30% lean meat and at most 5% fat meat.
Jim wishes to minimize his cost in creating his company's lean ground beef. Jim also needs to make at least 50 pounds of meat per day.
Note: {{431.25,{x1->12.5,x2->37.5}},{408.75,{x1->-12.5,x2->62.5}}}The shadow price or dual
value or marginal value for a unit increase in fat meat percentage of the lean ground beef which
decreases total cost from $431.25 to $408.75. is $22.5.
Adapted from Operations Research: An Introduction, 8e, by Hamdy Taha (2007), page 23.
Note: {{431.25,{x1->12.5,x2->37.5}},{408.75,{x1->-12.5,x2->62.5}}}The shadow price or dual
value or marginal value for a unit increase in fat meat percentage of the lean ground beef which
decreases total cost from $431.25 to $408.75. is $22.5.
Adapted from Operations Research: An Introduction, 8e, by Hamdy Taha (2007), page 23.
