Julia's Food Booth

Julia’s Food Booth

Tonia Branch

Dr. Javad Seyed

August 19, 2013

In this case, Julia’s Food Booth, Julia Robertson, who is a senior at Tech, is 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 (Taylor 2011).

(A) Formulate and solve an L.P. model for this case.

P-Pizza, H-Hotdogs, B- Barbeque

The oven space has 27, 648 sq.in. Julia plans to fill the oven with pizza, hotdogs and barbeque before the game and then before half time. Total oven space is total oven space is 55, 296 sq. in.

P- 14 sq in of space 14*14=196 sq in 8 slices per pizza, 196/8=24.5. Pizza will cost $6.00/8=0.75 per slice. Julia will sell each slice $1.50. Cost = $0.75. Profit = $0.75

H- 16 sq in of space. It will cost $ 0.45. Julia will sell them for $1.50 each. Cost = $0.45, Profit = $1.05

B- 125 sq in. It will cost $0.90. Julia will sell them for $2.25 each. Cost = $0.90, Profit=$1.35

Julia has 1, 500.00 available cash. Julia will sell at least ≥ as much as P, H, and B.

Julia’s Food Booth Model:

Maximize Z = $0.75P + $1.05H + $1.35B

$0.75P + $0.45H + $0.90 ≤ $1500

24P + 16H + 25B ≤ 55, 296 sq. in.

P ≥ H + B (in the table) 1 -1 -1 ≥ 0

H/B ≥ 2.0 (in the table) 1 -2 ≥ 0

Julia would sell 1250 slices of pizza and 1250 hot dogs per game. Julia’s profit =2250.00 Julia should sell 1250 slices of pizza and 1250 hot dogs per game. When you subtract the $1,000 lease Julia will be left with $ 1,250.00. Julia must pay for the lease of the oven at $600.00 for 6 games at 100.00 per game. Plus, she must pay for the lease of the oven at $600.00 total for 6 games; at $100.00 per game. Julia should lease the booth and sell food during at her schools games.

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

The dual price or shadow price is $1.50 for each additional price she earns. The upper limit is $ 1,638.40 (1500+ 138.40). Julia can borrow...