HW#3A.2010W - COMMERCE 290 Homework 3A Due Thursday October...

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COMMERCE 290 Homework # 3A Due: Thursday, October 7, 2010 before 12:00 noon Completed homework must be handed into the Commerce 290 Homework Mailboxes located on the second floor of the Swing Building. These Mailboxes are located a few steps down the hall from Swing Room 210. This is a Group Homework. This Homework is to be completed and submitted in groups of either 2 people or 3 people. Each member of the group will receive the same grade for the homework. It is expected that each member of the group will contribute in equal parts to all problems . This includes participating in the discussion and debate about the problem, developing appropriate models and the writing of the homework. The Cover page format is particularly important for the markers. Please see the attached page entitled “Group Homework” for more complete details. Also, see the attached sample cover page for a group submitted homework. Question 1 (45 marks) Fred Jonasson manages a family owned farm that grows tomatoes and pumpkins. To supplement these two food products grown on the farm, Fred also raises pigs for market. He now wishes to determine the daily quantities of the available types of feed (corn, tankage and alfalfa) that should be given to each pig. Although Fred knows that pigs will eat almost anything, Fred wants to keep his costs down and has determined that the more expensive corn should be between 20% and 35% of the total daily feed mix and alfalfa and tankage together should be at least 60% of the total daily feed mix. The objective is to determine which mix will meet certain nutritional requirements of carbohydrates, protein and vitamins at minimum cost. The number of units of each type of basic nutritional ingredient contained within one kilogram of each feed type is given in the table below, along with the minimum daily nutritional requirements and feed costs. Each Kilogram of Corn Tankage Alfalfa Minimum Daily Requirement Carbohydrates 90 20 40 200 Protein 30 80 60 180 Vitamins 10 20 60 150 Cost $0.84 $0.72 $0.60
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Answer only the following questions: (a) What are the decisions that need to be made? (b) Are the costs of the corn, tankage and alfalfa, sunk cost or a relevant costs in this situation? Explain. (c) Set up the above problem in Excel using the style that we used in class. Make sure that your spreadsheet model is logical, well organized and easy to understand. Use only the Excel Model and sensitivity report to answer the remaining questions. Questions are independent. (d) Solve the problem using Solver and create a Sensitivity Report. What would be your recommendation to Fred in terms of how many total kilograms of food Fred should feed each pig per day? (e)
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This note was uploaded on 01/19/2011 for the course COMMERCE 290 taught by Professor Brianogram during the Winter '09 term at UBC.

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HW#3A.2010W - COMMERCE 290 Homework 3A Due Thursday October...

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