Assignment #3: Case Problem “Julia’s Food Booth”
Complete the “Julia’s Food Booth” case problem on page 109 of the text. Address each of the issues A – D according the instructions given.
•(A) Formulate and solve an L.P. model for this case.
•(B) Evaluate the prospect of borrowing money before the first game.
•(C) Evaluate the prospect of paying a friend $100/game to assist.
•(D) Analyze the impact of uncertainties on the model.
Julia’s Food Booth
Julia Robertson is a senior at Tech and she’s investigating different ways to finance her final year at school. She is considering leasing a food booth outside the Tech stadium at home football games. Tech sells out every home game and Julia knows, from attending the games herself, that everyone eats a lot of food. She has to pay $1,000 per game for a booth, and the booths are not very large. Vendors can sell either food or drinks on Tech property, but not both. Only the Tech athletic department concession stands can sell both inside the stadium. She thinks slices of cheese pizza, hot dogs and barbecue sandwiches are the most popular food items among fans and so these are the items she would sell.
Most food items are sold during the hour before the game starts and during half time, thus it will not be possible for Julia to prepare the food while she is selling it. She must prepare the food ahead of times and then store it in a warming oven. For $600 she can lease a warming oven for the six-game home season. The oven has 16 shelves and each shelf is 3 feet by 4 feet. She plans to fill the oven with the three food items before the game and then again before half time.
Julia has negotiated with a local pizza delivering company to deliver 14 inch cheese pizzas twice each game 2 hours before the game and right after the opening kickoff. Each pizza will cost her $6 and will include 8 slices. She estimates it will cost her $0.45 for each hot dog and $0.90 for each barbecue sandwich if she makes the barbecue herself the…