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The management of CDC Construction Pioneers have decided to build 900 new apartments in the Kasoa area due to the influx of immigrant workers into the country. Two Architectural Companies have provided building plans and technical schematics for the project. Management are happy with the proposals of both Standard apartment and Deluxe apartment. After investigating the steps involved in construction, management determined that each apartment complex built will require some resources. Management analysed each of the bids and concluded that if the plans of Standard apartment are built, it requires 0.7 days in foundation works, 0.5 days in the masonry, 1 day in finishing, and 0.1 days in painting works. Deluxe apartment will require 1 day in foundation works, 0.83 days in the masonry, 0.67 days in finishing, and 0.25 days in the painting works. Management estimate that, 630 days for foundation works, 600 days for masonry, 708 days for finishing and 135 days for painting works will be available to build the apartments. The company accountant assigned all relevant variable costs and arrived at a rent that will result in a daily profit contribution of Gh¢ 10 for every Standard apartment and Gh¢ 9 for every Deluxe apartment built. Management wants to know how many Standard apartments and Deluxe apartments Co construct a) Express the decision variables for this problem and formulate a linear programming model for this problem. F) (i) If the unit contribution margin on daily Delux apartment was GH¢ 11 instead of GH¢ 9, how would that affect the optimal solution (iii) If management of CDC could obtain additional resources, which one would you advice to be of most value to them and why? (iv) Which constraints is/are binding

The management of CDC Construction Pioneers have decided to build 900 new apartments in the Kasoa area due to the influx of immigrant workers into the country. Two Architectural Companies have provided building plans and technical schematics for the project. Management are happy with the proposals of both Standard apartment and Deluxe apartment. After investigating the steps involved in construction, management determined that each apartment complex built will require some resources. Management analysed each of the bids and concluded that if the plans of Standard apartment are built, it requires 0.7 days in foundation works, 0.5 days in the masonry, 1 day in finishing, and 0.1 days in painting works. Deluxe apartment will require 1 day in foundation works, 0.83 days in the masonry, 0.67 days in finishing, and 0.25 days in the painting works. Management estimate that, 630 days for foundation works, 600 days for masonry, 708 days for finishing and 135 days for painting works will be available to build the apartments. The company accountant assigned all relevant variable costs and arrived at a rent that will result in a daily profit contribution of Gh¢ 10 for every Standard apartment and Gh¢ 9 for every Deluxe apartment built. Management wants to know how many Standard apartments and Deluxe apartments Co construct a) Express the decision variables for this problem and formulate a linear programming model for this problem. F) (i) If the unit contribution margin on daily Delux apartment was GH¢ 11 instead of GH¢ 9, how would that affect the optimal solution (iii) If management of CDC could obtain additional resources, which one would you advice to be of most value to them and why? (iv) Which constraints is/are binding

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question 5 The management of CDC Construction Pioneers have decided to build 900 new apartments in the Kasoa area due to the influx of immigrant workers into the country. Two Architectural Companies have provided building plans and technical schematics for the project. Management are happy with the proposals of both Standard apartment and Deluxe apartment. After investigating the steps involved in construction, management determined that each apartment complex built will require some resources. Management analysed each of the bids and concluded that if the plans of Standard apartment are built, it requires 0.7 days in foundation works, 0.5 days in the masonry, 1 day in finishing, and 0.1 days in painting works. Deluxe apartment will require 1 day in foundation works, 0.83 days in the masonry, 0.67 days in finishing, and 0.25 days in the painting works. Management estimate that, 630 days for foundation works, 600 days for masonry, 708 days for finishing and 135 days for painting works will be available to build the apartments. The company accountant assigned all relevant variable costs and arrived at a rent that will result in a daily profit contribution of Gh¢ 10 for every Standard apartment and Gh¢ 9 for every Deluxe apartment built. Management wants to know how many Standard apartments and Deluxe apartments to construct a) Express the decision variables for this problem and formulate a linear programming model for this problem. C) (i) If the unit contribution margin on daily Delux apartment was GH¢ 11 instead of GH¢ 9, how would that affect the optimal solution (iii) If management of CDC could obtain additional resources, which one would you advice to be of most value to them and why? binding (iv) Which constraints is/are Pg Shi Ent eds) Del
Transcribed Image Text:Question 5 The management of CDC Construction Pioneers have decided to build 900 new apartments in the Kasoa area due to the influx of immigrant workers into the country. Two Architectural Companies have provided building plans and technical schematics for the project. Management are happy with the proposals of both Standard apartment and Deluxe apartment. After investigating the steps involved in construction, management determined that each apartment complex built will require some resources. Management analysed each of the bids and concluded that if the plans of Standard apartment are built, it requires 0.7 days in foundation works, 0.5 days in the masonry, 1 day in finishing, and 0.1 days in painting works. Deluxe apartment will require 1 day in foundation works, 0.83 days in the masonry, 0.67 days in finishing, and 0.25 days in the painting works. Management estimate that, 630 days for foundation works, 600 days for masonry, 708 days for finishing and 135 days for painting works will be available to build the apartments. The company accountant assigned all relevant variable costs and arrived at a rent that will result in a daily profit contribution of Gh¢ 10 for every Standard apartment and Gh¢ 9 for every Deluxe apartment built. Management wants to know how many Standard apartments and Deluxe apartments to construct a) Express the decision variables for this problem and formulate a linear programming model for this problem. C) (i) If the unit contribution margin on daily Delux apartment was GH¢ 11 instead of GH¢ 9, how would that affect the optimal solution (iii) If management of CDC could obtain additional resources, which one would you advice to be of most value to them and why? binding (iv) Which constraints is/are Pg Shi Ent eds) Del
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