Quantitative Methods (MAT540)
Formulate and solve an L.P. model for this case.
The first steps involved in formulating and solving an L.P. model include identifying the variables and products to be purchased. Those items include: X1= the number of Pizza slices to be purchased X2= the number of Hotdogs to be purchased X3= the number of Barbeque sandwiches to be purchased
As with any other business, Julia’s primary goal is to generate revenue and maximize profit from selling pizza slices, hot dogs, and barbeque sandwiches. After identifying variables and products to be purchased, Julia must figure out how much the selling price per item will be. The cost per each item must be subtracted from the selling price. One example of this would be pizza. Each pizza costs Julia $6.00 and will include 8 slices so…
Pizza: 8 slices/$6.00 will cost Julia $0.75.
Hot dogs cost- $0.45
Barbeque sandwich cost- $0.90
Evaluate the prospect of borrowing money before the first game.
Borrowing money would be beneficial for Julia. Borrowing money before the first game would be beneficial because for each additional dollar, Julia’s shadow price is $1.50. Julia must acknowledge her constraints such as her limited budget and limited shelf space in the leased warming oven. Acknowledging constraints will help Julia acknowledge the value of borrowing money before the first game.
Evaluate the prospect of paying a friend $100/game to assist.
After formulating and solving an L.P. model for this case, the prospect of paying a friend $100 per game to assist is a smart business decision. This is a wise strategy because Julia will need the extra help to prepare the food and take care of her customers. Without the additional help, Julia will not be able to reach her goals. The money borrowed from a friend previously will also assist…