Quantitative Methods – MAT 540/ Spring 2012
Dr. Buddy Bruner
May 19, 2012
A) Formulate and solve an L.P. model for this case.
B) Evaluate the prospect of borrowing money before the first game.
After observing the ranging chart calculations indicate that the upper bound in the budget is equal to 1638.4. The original value of the budget is 1500. If you subtract the 1500 from the 1638.4 it will leave 138.4 which indicate room for Julie to borrow. This is a good thing for Julie because for every 138.4 she borrows dual value will increase 1.5. She will also have enough funds to purchase more sandwiches. After she pays any funds back that she has borrowed then she will earn a profit of at least $69.20 which is half of the $138.40 borrowed.
C) Evaluate the prospect of paying a friend $100/game to assist.
The linear programming results show that Julie will have a profit of $2250 minus the $1000 for booth rent for the month which will leave $1150. She only wants to make a profit of $1000 therefore she has at least $150 to keep $50 to purchase more sandwiches and $100 to pay a friend. After the purchase of more sandwiches Julie made need some additional help. Therefore it will be feasible to hire a friend for extra help which could help to generate more profit.
D) Analyze the impact of uncertainties on the model.
The impact of uncertainties on the model could first be the oven could have a malfunction and burn some of the food purchased which Julie would need to replace the food. The second uncertainty that could happen is that the game could have a huge crowd causing Julie and her friend to work harder. Therefore her friend may request a higher pay than $100. The third uncertainty could be the game could get rained out and she will make no money. Assuming any of these...