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Julia's Food Booth

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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.

See Excel worksheet.

(B) Evaluate the prospect of borrowing money before the first game.

I would suggest that Julia consider borrowing money before the first game to open up her food booth. According to the first constraint, she is subject to a $1,500 budget with a potential to make a profit of $2,250 if she were to sell all her pizza and hot dogs. This result yields a profit of $750 or 50%. Even if no sales were made, the potential is high, considering the opportunity. Plus, I am sure that a small initial investment is not detrimental to her personal funds, to where if things did not go as planned, she could recover the funds.

(C) Evaluate the prospect of paying a friend $100/game to assist.

I would suggest that Julia consult a friend for $100/game to assist in her food booth. After running a break-even analysis (see Excel), holding all things constant, where she only sells pizza and hot dogs, she would have to sell 67 slices of pizza and 48 hotdogs to break-even after paying her friend $100. This does not seem too farfetched, considering her maximum sales, given these constraints, is 1,250 slices of pizza and 1,250 hot dogs, only about 5% and 4% of maximum sales, respectively.

On top of that, Julia may need the help to meet demand. For instance, 1 person cooking the food, ensuring everyone gets their correct order, and handling the money seems a bit much. A friend’s help would ensure these things get done accurately and in a timely manner. If the consumers are not happy, they may not buy at all!

(D) Analyze the impact of uncertainties on the model.

Two uncertainties right off the bat are the sales of each…...

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