Julia Booth
Julia Booth Case Study
Angela Walker
June, 06, 2013
Dr. Carl Tucker field
In this case study, I must create a linear programming model for Julia that will help her to decide whether or not she need to lease a booth. The three products or variable we must consider for this booth are pizza, hotdogs, and barbecue sandwiches. In this model, x 1 equal the number of pizza slices Julia should purchase, x2 equals the number of hotdogs Julia should purchase, and x3 equal the number of barbecue sandwiches Julia should purchase. The objective is to maximize total profit and the way to do that is to calculate each variable by subtracting cost from the selling price. For instance, if the pizza cost six dollar for eight slices then that mean she is only paying seventy-five cent for pizza and to make her money back she need to sell them for $1.50. If she borrow money from a friend before the first game to purchase more ingredients, could she increase her profit? If so, how much should she borrow and how much will she make? What factor constrains her from borrowing even more money than this amount? By looking at the model, it tells us that she can increase her profit if she borrow the money from her friend.by looking at the sensitivity analysis report it tells us that she will make $1.50 for every dollar she borrow she will make a $1.50 in return. The price seem well within range of her budget in which she can borrow up to the max of that budget but the factor that constrains her is the food booth which limit is 1658.88. The model show that if she borrow $158.88 from a friend then she will make a profit of $238.32. Yes, I think she should hire a friend because she will make an extra $100 and her profit will be $2400 that makes it to be $50 for her profit per game. Julia thinks everything will go as plans but she needs to take into consideration that her oven my breakdown, she may not get her delivery on time and that her friend may not want to work for her and that her
Angela Walker
June, 06, 2013
Dr. Carl Tucker field
In this case study, I must create a linear programming model for Julia that will help her to decide whether or not she need to lease a booth. The three products or variable we must consider for this booth are pizza, hotdogs, and barbecue sandwiches. In this model, x 1 equal the number of pizza slices Julia should purchase, x2 equals the number of hotdogs Julia should purchase, and x3 equal the number of barbecue sandwiches Julia should purchase. The objective is to maximize total profit and the way to do that is to calculate each variable by subtracting cost from the selling price. For instance, if the pizza cost six dollar for eight slices then that mean she is only paying seventy-five cent for pizza and to make her money back she need to sell them for $1.50. If she borrow money from a friend before the first game to purchase more ingredients, could she increase her profit? If so, how much should she borrow and how much will she make? What factor constrains her from borrowing even more money than this amount? By looking at the model, it tells us that she can increase her profit if she borrow the money from her friend.by looking at the sensitivity analysis report it tells us that she will make $1.50 for every dollar she borrow she will make a $1.50 in return. The price seem well within range of her budget in which she can borrow up to the max of that budget but the factor that constrains her is the food booth which limit is 1658.88. The model show that if she borrow $158.88 from a friend then she will make a profit of $238.32. Yes, I think she should hire a friend because she will make an extra $100 and her profit will be $2400 that makes it to be $50 for her profit per game. Julia thinks everything will go as plans but she needs to take into consideration that her oven my breakdown, she may not get her delivery on time and that her friend may not want to work for her and that her