Overview
The government is auctioning off oil leases at two sites: 1 and 2.At each site, 100,000 acres of land are to be auctioned.Cliff Ewing, Blake Barnes and Alexis Pickens are bidding for the oil.Government rules state that no bidder can receive more than 40% of the land being auctioned.Cliff has bid $1000 per acre for site 1 land and $2000 per acre for site 2 land. Blake has bid $900 per acre for site 1 land and $2200 per acre for site 2 land.Alexis has bid $1100 per acre for site 1 land and $1900 per acre for site 2 land.The government would like to maximize revenue from these bids.
Run the Sensitivity Report for the model in Question 1.Use the Sensitivity Report to answer these questions.Change the sheet name to “Question 2”.
- Blake really wants some of the site 1 land.Assume bids are only allowed in even 100’s (1200, 900, etc).How much should Blake bid per acre of site 1 land to win some of it?
- The government held some acres in reserve.If one more acre of site 1 land becomes available, how much more money can the government receive?
A company is taking bids on four construction jobs.Their bids, in thousands of dollars, are given below.
- Formulate this model and implement it in a sheet called “Question 1”.I would definitely draw a picture to help me think about the problem scenario.
- Solve the model you have formulated using Solver.Report the important decisions that the company must make.How much money will the solution yield for the government?
- Note: Feel free to use the model to confirm your answers, but be sure that when you turn this assignment in, you have Question 1 actually answering Question 1.
Job 1
Job 2
Job 3
Job 4
Contractor 1
50
46
42
40
Contractor 2
51
48
44
-
Contractor 3
-
47
45
45
A dash indicates that the contractor did not bid on the given job.Contractor 1 can do only one job, but contractors 2 and 3 can each do up to 2 jobs.Determine the minimum cost assignment of contractors to jobs.
1200
1000
1100
600
400
900
600
900
400
800
650
600
1300
New York
Cleveland
St. Louis
Nashville
Phoenix
Dallas
Salt Lake City
Los Angeles
1800
1800
A truck must travel from New York to LA.As shown in the figure below, several routes are available.
The number associated with each arc is the number of gallons of fuel required by the truck to traverse the arc.Determine the route from New York to Los Angeles that uses the minimum amount of gas.