MEMORIAL UNIVERSITY OF NEWFOUNDLAND

Faculty of Business Administration

Business 2400 Section 081

Managerial Decision Modeling
Instructor: Paul Hamilton

FEEDBACK TEST # 2
June 29, 2012
NAME:

Last (Please Print)

First (Please Print)

MUN #:

INSTRUCTIONS:
1. Please show all work, without which you will not receive credit.
2. Be neat and legible. Please remember, if I cannot read it then I cannot give credit for it.
3. Formula sheets are attached at the end of the test.
4. All transmitting electronic devices must be turned off and placed out of site (e.g. inside a
bag; at the front of the room).
5. Calculators are allowed. NO PROGRAMMING FEATURES MAY BE USED.
6. University Regulations against academic dishonesty apply to this examination.
7. Please make sure that this booklet contains 10 pages (including cover and blank last page
but excluding formula sheets).
8. Please provide your answers in this booklet only.

Please Do Not Turn This Page Until Instructed To Do So

Question

Total

25

25

25

25

100

Mark
Out of

B2400 Spring 2012

Feedback Test #2

1.

Page 2

(25 Marks) Kathy Moriyama, campus dietician for a small college, is designing a nutritious meal plan
for students. For an evening meal, she feels that the following five meal-content requirements should
be met: (1) between 900 and 1500 calories; (2) at least 4 milligrams of iron; (3) no more than 50 grams
of fat; (4) at least 26 grams of protein; and (5) no more than 50 grams of carbohydrates. On a
particular day, Kathys food stock includes seven items that can be prepared and served for supper to
meet these requirements. The cost and nutritional contribution per kilogram of each ingredient, is
provided in the spreadsheet. Her objective is the find the lowest cost way to satisfy her constraints.
The spreadsheet and corresponding sensitivity report used to solve Kathys meal plan are both
provided on the following page; use them to answer the following questions.
a)

(5 marks) State the solution in words and provide the optimal function value.

b)

(4 marks) Which constraints are binding?

Consider each of the following changes separately. Calculate the impact on the total costs, being as
specific as possible.
c)
(4 marks) The cost of milk increases by $0.25 per kilogram

d)

(4 marks) The cost of ground meat is reduced to $3.90 per kilogram

e)

(4 marks) The meal now requires at least 975 calories

f)

(4 marks) The meal now requires at most 65 grams of carbohydrates

B2400 Spring 2012

Feedback Test #2

Page 3

Kathys Meal Plan

Number of Kilos
Cost
Constraints:
Min calories
Min iron
Min protein
Max calories
Max fat
Max carbohydrates

Milk
0.000
$1.20

Ground
meat
0.250
$4.70

Chicken
0.086
$2.30

Fish
0.000
$4.50

Beans
0.000
$1.16

Spinach
0.053
$2.34

Potatoes
0.381
$0.66

590
0.4
32
590
32
44

2432
0.4
162
2432
192
0

788
8.6
148
788
18
0

716
6.4
166
716
1
0

256
6.4
14
256
1.6
56

236
28.2
28
236
2.8
38

558
4.4
16
558
1
126

$1.75

<- Objective

900.0
4.0
60.8
900.0
50.0
50.0
LHS

>=
>=
>=
<=
<=
<=
Sign

900
4
26
1500
50
50
RHS

Sensitivity Report:
Adjustable Cells
Cell
$B$5
$C$5
$D$5
$E$5
$F$5
$G$5
$H$5

No.
No.
No.
No.
No.
No.
No.

of
of
of
of
of
of
of

Name
kilos Milk
kilos Ground beef
kilos Chicken
kilos Fish
kilos Beans
kilos Spinach
kilos Potatoes

Final
Value
0
0.250
0.086
0
0
0.053
0.381

Reduced
Cost
0.297
0.000
0.000
2.465
0.522
0.000
0.000

Objective
Coefficient
1.2
4.7
2.3
4.5
1.16
2.34
0.66

Allowable
Increase
1E+30
0.454563463
1.945882828
1E+30
1E+30
0.454422099
0.820159593

Allowable
Decrease
0.296878028
22.1280462
0.143293572
2.464681841
0.522015921
1.960037202
1.506768012

Final
Value
900.0
4.0
60.8
900.0
50.0
50.0

Shadow
Price
0.002
0.074
(0.003)
(0.007)

Constraint
R.H. Side
900
4
26
1500
50
50

Allowable
Increase
90.38968061
33.24467419
34.7800174
1E+30
3.741156287
11.06644523

Allowable
Decrease
47.37751676
1.382074358
1E+30
600
7.213623054
44.19464481

Constraints
Cell
$I$8
$I$9
$I$10
$I$11
$I$12
$I$13

Name
Min calories
Min iron
Min protein
Max calories
Max fat
Max carbohydrates

B2400 Spring 2012

Feedback Test #2

2.

Page 4

(25 Marks) NewFoundLand Atlantic Corporation needs to decide on the locations for two new
warehouses. The candidate sites are Port Blandford, Twillingate, Dunville, and Corner Brook. The
table provides the monthly capacities and the monthly fixed costs for operating warehouses at each
potential site.
Warehouse
Port Blandford
Twillingate
Corner Brook
Dunville

Monthly Capacity
(units)
250
180
275
200

Monthly Fixed Cost

$1000
$800
$1200
$700

The warehouses will need to ship to three marketing areas: North, South, and West. Monthly
requirements are 200 units for the North, 180 units for the South, and 120 units for the West. The
table below shows the cost to ship one unit between each location and destination.
Warehouse
Port Blandford
Twillingate
Corner Brook
Dunville

North
$4
$6
$5
$8

South
$7
$3
$6
$10

West
$9
$11
$5
$2

In addition, the following conditions must be met:

A warehouse must be opened in either Port Blandford or Dunville.
If a warehouse is opened in Twillingate, then one in Corner Brook must also be opened.
The company wants to build the warehouses that will minimize total monthly operating costs (fixed
and shipping) while meeting the other constraints listed above. Being sure to define your variables
clearly, formulate a linear programming model to help the company choose the appropriate locations.
DO NOT SOLVE

B2400 Spring 2012

Feedback Test #2

Page 5

B2400 Spring 2012

Feedback Test #2

3.

Page 6

(25 Marks) A local college is sponsoring a community job fair that requires hiring 4 temporary
employees to handle 4 separate tasks. The table below provides the total costs for each employee-task
combination based on the number of approximate hours each employee would require to perform
each task along with their hourly labour costs. Assume each employee can be assigned only one task.
Being sure to define your variables clearly, formulate a linear programming model to assign employees
to tasks in a manner that minimizes total labour costs. DO NOT SOLVE.
Employee
Judy
Kathy
Bob
Steve

Mailings Phone Calls Registration Set Up Hourly Labour

(1)
(2)
(3)
(4)
Costs($)
150
110
80
60
$10
285
150
75
120
$15
196
182
98
70
$14
204
96
72
48
$12

B2400 Spring 2012

Feedback Test #2

Page 7

B2400 Spring 2012

Feedback Test #2

4.

Page 8

A) (5 Marks) Wiring and cable connections are required for each of the nodes shown in the network
below for a new office building. What nodes should be connected to minimize the amount of
materials required for the project?

275

140
C

100

90

170

75

E
155

130

80

150
180

200
150

D
160

B2400 Spring 2012

Feedback Test #2

Page 9

B) (20 Marks) The following network describes the hourly volume of traffic that can flow between
various communities in Shelburne. Traffic can flow in both directions between each community at the
same rate and the numbers by the nodes represent the traffic flow in hundreds of cars per hour. Being
sure to define your variables clearly, develop a linear programming model to determine the maximum
flow of cars between Communities 1 and 6 in one hour?
6
5

4
2

4
4

5
6

5
5

B2400 Spring 2012

Feedback Test #2

Page 10

This page provides extra space for the continuation (if needed) for any problem. Please label with the
problem number.