MIDTERM EXAM

UDT’s Problem

a. Algebraic Formulation
Let Xi = The number of hours assigned each consultant to each project (With X = (A;
B; C; D; E; F) and i = [1;8]).
Maximize the total suitability of consultants for projects means maximize the total
rating:
Total rating point = (3A1+3A2+5A3+5A4+3A5+3A6+3A7+3A8) +
(3B1+3B2+2B3+5B4+5B5+5B6+3B7+3B8) + (2C1+C2+3C3+3C4+2C5+C6+5C7+3C8)
+ (D1+3D2+D3+D4+2D5+2D6+5D7+D8) + (3E1+E2+E3+2E4+2E5+E6+3E7+3E8) +
(4F1+5F2+3F3+2F4+3F5+4F6+3F7+3F8)
Subject to the following constraints:
Hour per consultant:
Consultant A: A1+A2+A3+A4+A5+A6+A7+A8 ≤ 450.
Consultant B: B1+B2+B3+B4+B5+B6+B7+B8 ≤ 600.
Consultant C: C1+C2+C3+C4+C5+C6+C7+C8 ≤ 500.
Consultant D: D1+D2+D3+D4+Đ5+D6+D7+D8 ≤ 300.
Consultant E: E1+E2+E3+E4+E5+E6+E7+E8 ≤ 710.
Consultant F: F1+F2+F3+F4+F5+F6+F7+F8 ≤ 860.
Hour per project:
Project 1: A1+B1+C1+D1+E1+F1 = 500.
Project 2: A2+B2+C2+D2+E2+F2 = 240.
Project 3: A3+B3+C3+D3+E3+F3 = 400.
Project 4: A4+B4+C4+D4+E4+F4 = 475.
Project 5: A5+B5+C5+D5+E5+F5 = 350.
Project 6: A6+B6+C6+D6+E6+F6 = 460.
Project 7: A7+B7+C7+D7+E7+F7 = 290.
Project 8: A8+B8+C8+D8+E8+F8 = 200.
Revenue per project:
Project 1: 155A1+140B1+165C1+300D1+270E1+150F1 ≤ 100.000 ($).
Project 2: 155A2+140B2+165C2+300D2+270E2+150F2 ≤ 80.000.
Project 3: 155A3+140B3+165C3+300D3+270E3+150F3 ≤ 120.000.
 Project 4: 155A4+140B4+165C4+300D4+270E4+150F4 ≤ 90.000.
Project 5: 155A5+140B5+165C5+300D5+270E5+150F5 ≤ 65.000.
Project 6: 155A6+140B6+165C6+300D6+270E6+150F6 ≤ 85.000.
Project 7: 155A7+140B7+165C7+300D7+270E7+150F7 ≤ 50.000.
Project 8: 155A8+140B8+165C8+300D8+270E8+150F8 ≤ 55.000.
Result:
The number of hours to assign each consultant to each project:
1 2 3 4 5 6 7 8

A 0 0 400 50 0 0 0 0

B 0 0 0 199,074 350 50,926 0 0

C 0 0 0 225,926 0 0 274,074 0

D 0 0 0 0 0 80,741 15,926 0

E 208,337 0 0 0 0 0 0 200

F 291,667 240 0 0 0 328,333 0 0

The maximize total rating point = 12.444,259.
b. Solver and QM.
c. If the company want to maximize revenue while ignoring client preferences and
consultant compatibility, this will change the solution in b:

1 2 3 4 5 6 7 8

A 0 0 0 0 0 0 250 200

B 0 0 0 0 100 460 40 0

C 0 0 0 250 250 0 0 0

D 0 0 75 225 0 0 0 0

E 145 240 325 0 0 0 0 0

F 355 0 0 0 0 0 0 0
 d. …
Constraint
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$K$14 A Hour per consultant 450 3 450 80.74074074 27.48842593
$K$15 B Hour per consultant 600 3 600 80.74074074 27.48842593
$K$16 C Hour per consultant 500 1 500 80.74074074 27.48842593
$K$17 D Hour per consultant 96.66666667 0 300 1E+30 203.3333333
$K$18 E Hour per consultant 408.3333333 0 710 1E+30 301.6666667
$K$19 F Hour per consultant 860 2 860 80.74074074 29.32098765
$C$21 Hour per project 500 0.75 500 13.03155007 35.88477366
$D$21 Hour per project 240 3 240 29.32098765 80.74074074
$E$21 Hour per project 400 2 400 27.48842593 80.74074074
$F$21 Hour per project 475 2 475 27.48842593 80.74074074
$G$21 Hour per project 350 2 350 27.48842593 80.74074074
$H$21 Hour per project 460 2 460 14.66049383 80.74074074
$I$21 Hour per project 290 2.777777778 290 12.36979167 36.33333333
$J$21 Hour per project 200 3 200 3.703703704 200
$C$25 Revenue per project = 100000 0.008333333 100000 9688.888889 3518.518519
$D$25 Revenue per project = 36000 0 80000 1E+30 44000
$E$25 Revenue per project = 62000 0 120000 1E+30 58000
$F$25 Revenue per project = 72898.14815 0 90000 1E+30 17101.85185
$G$25 Revenue per project = 49000 0 65000 1E+30 16000
$H$25 Revenue per project = 80601.85185 0 85000 1E+30 4398.148148
$I$25 Revenue per project = 50000 0.007407407 50000 10900 2150
$J$25 Revenue per project = 54000 0 55000 1E+30 1000

In this case:
- The shadow price of constraint “Hour per consultant” is the change in “Total rating"
when the “Available Hours” is increased by one unit (in allowable range).
- The shadow price of constraint “Hour per project” is the change in “Total rating”
when the “Project Hours” is increased by one unit (in allowable range).
- The shadow price of constraint “Revenue per project” is the change in “Total rating"
when the “Contract Budget” is increased by one unit (in allowable range).
e.
Percentage of allowable increase=100 ( 200−155155 ) ≈ 29,03 %
Percentage of allowable decrease=100 ( 270−270200 ) ≈ 25,93 %
∑ ¿54,96 % <100 %
So, the shadow price and the solution won’t change.
f. According to the Sensitivity Report of Excel Solver, we can see that the shadow
price will change when consultant B and E getting better.