is summer I had some work done on my house. I had my 1-foundation fixed 2- porch
ID: 387416 • Letter: I
Question
is summer I had some work done on my house. I had my 1-foundation fixed 2- porch resealed roof repaired and 4- house power washed.I looked online and was surprised that many companies do all of these of these things. That being said, I was shocked when each of four companies Ifound said they were so busy up they could only schedule one of the four things I needed done within a month Thus, I was forced to contract each of these four repairs to only one company. Below are the bids that each company gave me for the things I needed completed Bids by Company Component Foundation Fixed Porch Resealed Roof Repaired House Power washed $10,000 $11,250 $9,650 $10,350 $400 $2,310 $500 $500 $380 $2,240 $2,205 $2,500 $502 $450 $425 $445 Assuming all the companies can perform each task equally as well, to which company should I hire to each task, so I can minimize my total cost? a. Formulate this problem in Solver and solve it, what is the optimal answer?Explanation / Answer
First let us put up the companies as ranking in terms of lowest bidders like
L1 – lowest bid ;
L2 – 2nd lowest bid
L3 – 3rd lowest bid
L4 – highest bid
We will see following
Minimum Bid $
Component
(L1)
Company
(L2) bid $
Company
(L3) Bid $
Company
(L4) bid $
Company
Foundation Fixed
9650
C
10000
A
10350
D
11250
B
Porch Resealed
380
B
400
A
450
D
500
C
Roof Repaired
2205
C
2240
B
2310
A
2500
D
House Power Washed
425
C
445
D
500
A
502
B
As we have restriction that one company do only job therefore first we have to see first that where is the maximum difference between L1 and L2
Component
difference in L1 and L2
in $
Foundation Fixed
350
Porch Resealed
20
Roof Repaired
35
House Power Washed
20
Therefore we can see that in Foundation Fixed difference between L1 and L2 bid is maximum as $350.
So for Foundation Fixed we will have to select Company “C” with bid as $ 9650 as the company to become optimum
Now Company “C” is selected , we cannot select Company “C” for second time.
Therefore if now difference between L1 and L2 bid in remaining 3 jobs , Porch Resealed is having maximum difference of $35 between L1 and L2 bids, But since we have already select Company “C” earlier therefore we will select L2 bid $2240 by company “B” for Roof Repaired job.
Now 2 jobs are fixed and remaining jobs are Porch Resealed and House Power Washed.
Now we will to difference between L2 and L3 bids for Porch Resealed and House Power Washed jobs
difference in L2 and L3 bids in $
Porch Resealed
50
House Power Washed
55
So we will select L3 bid for House Power Washed first
best bid for House Power Washed is by Company “C but Company “C” is selected , we cannot select Company “C” for second time. So we will choose Company D or House Power Washed here with $ 445 bid
Remaining job is Porch Resealed and only option left is company A for Porch Resealed job with bid of $400.
So our optimum selection of companies for minimizing the cost will be as below:
Job
Bid
Company
Foundation Fixed
$9650
C
Porch Resealed
$400
A
Roof Repaired
$2240
B
House Power Washed
$445
D
Total
$12735
Minimum Bid $
Component
(L1)
Company
(L2) bid $
Company
(L3) Bid $
Company
(L4) bid $
Company
Foundation Fixed
9650
C
10000
A
10350
D
11250
B
Porch Resealed
380
B
400
A
450
D
500
C
Roof Repaired
2205
C
2240
B
2310
A
2500
D
House Power Washed
425
C
445
D
500
A
502
B
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