Họ tên: Nguyễn Minh Nguyên

MSSV: 31211020572
Lớp: IBC04 – K47

MIDTERM
UDT is a consulting firm that develops e-commerce project, systems and websites for its
clients. It has six available consultants and eight clients project is under contract. The
consultants have different technical abilities and experience, and as a result, the company
charges different hourly rates for its services. Also, the consultant’s skill are more suited for
some projects than others, and clients sometimes prefer some consultants over others. The
suitability of a consultant for a project is rated according to a 5-point scale, in which 1 is the
worst and 5 is the best. The following table shows the rating for each consultant for each
project, as well as the hours available for each consultant and the contracted hours and
maximum budget for each project :
Project
Consultan Hourly 1 2 3 4 5 6 7 8 Available
t wage hours
A $150 3 3 5 5 3 4 3 3 450
B $140 3 3 2 4 5 5 3 3 550
C $160 2 1 3 3 2 1 5 3 500
D $300 1 3 1 1 2 2 5 1 300
E $270 3 1 1 2 2 3 3 3 710
F $150 4 5 3 2 3 4 3 3 860
Project 500 240 400 450 350 460 290 200
Hours
Contract 100 80 120 90 65 85 50 55
budget
(x1000
USD)

The company wants to know how many hours to assign each consultant to each project in
order to best utilize their skill while meeting clients needs
a. Formulate a linear programming model and write down the mathematical model for
this problem.
b. Solve this problem using QM and SOLVER
c. If the company want to maximize revenue while ignoring client preferences and
consultant compatibility, will this change the solution in b. ?
d. Create a sensitivity report. What is the shadow price in this case ?
e. If consultant A and E change their hourly wage from $155 to $200 (A) and from $270
to $200, will the solution change ?
f. By exprerience, consultant B and E is getting better at their ability, which mean their
capacity for every project now minimum start from 3 instead of 1 or 2, will the
shadow price change ?
Solution
a. Formulate a linear programming model and write down the mathematical
model for this problem.
VARIABLE : A1, A2, A3, A4, A5, A6, A7, A8, B1, B2, B3, B4, B5, B6, B7, B8,
C1, C2, C3, C4, C5, C6, C7, C8, D1, D2, D3, D4, D5, D6, D7, D8, E1, E2, E3, E4,
E5, E6, E7, E8, F1, F2, F3, F4, F5, F6, F7, F8
A1: The hours that Consultant A are assigned to project 1
A2: The hours that Consultant A are assigned to project 2
A3: The hours that Consultant A are assigned to project 3
A4: The hours that Consultant A are assigned to project 4
A5: The hours that Consultant A are assigned to project 5
A6: The hours that Consultant A are assigned to project 6
A7: The hours that Consultant A are assigned to project 7
A8: The hours that Consultant A are assigned to project 8
B1: The hours that Consultant B are assigned to project 1
B2: The hours that Consultant B are assigned to project 2
B3: The hours that Consultant B are assigned to project 3
B4: The hours that Consultant B are assigned to project 4
B5: The hours that Consultant B are assigned to project 5
B6: The hours that Consultant B are assigned to project 6
B7: The hours that Consultant B are assigned to project 7
B8: The hours that Consultant B are assigned to project 8
C1: The hours that Consultant C are assigned to project 1
C2: The hours that Consultant C are assigned to project 2
C3: The hours that Consultant C are assigned to project 3
C4: The hours that Consultant C are assigned to project 4
C5: The hours that Consultant C are assigned to project 5
C6: The hours that Consultant C are assigned to project 6
C7: The hours that Consultant C are assigned to project 7
C8: The hours that Consultant C are assigned to project 8
D1: The hours that Consultant D are assigned to project 1
D2: The hours that Consultant D are assigned to project 2
D3: The hours that Consultant D are assigned to project 3
D4: The hours that Consultant D are assigned to project 4
D5: The hours that Consultant D are assigned to project 5
D6: The hours that Consultant D are assigned to project 6
D7: The hours that Consultant D are assigned to project 7
D8: The hours that Consultant D are assigned to project 8
E1: The hours that Consultant E are assigned to project 1
E2: The hours that Consultant E are assigned to project 2
E3: The hours that Consultant E are assigned to project 3
E4: The hours that Consultant E are assigned to project 4
E5: The hours that Consultant E are assigned to project 5
E6: The hours that Consultant E are assigned to project 6
E7: The hours that Consultant E are assigned to project 7
E8: The hours that Consultant E are assigned to project 8
F1: The hours that Consultant F are assigned to project 1
F2: The hours that Consultant F are assigned to project 2
F3: The hours that Consultant F are assigned to project 3
F4: The hours that Consultant F are assigned to project 4
F5: The hours that Consultant F are assigned to project 5
F6: The hours that Consultant F are assigned to project 6
F7: The hours that Consultant F are assigned to project 7
F8: The hours that Consultant F are assigned to project 8

OBJECTIVE:
Max Suitability = 3A1 + 3A2 + 5A3 + 5A4 + 3A5 + 4A6 + 3A7 + 3A8 + 3B1 +
3B2 + 2B3 + 4B4 + 5B5 + 5B6 + 3B7 + 3B8 + 2C1 + C2 + 3C3 + 3C4 + 2C5 +
C6 + 5C7 + 3C8 + D1 + 3D2 + D3 + D4 +2 D5 +2 D6 + 5D7 + D8 + 3E1 + E2 +
E3 + 2E4 + 2E5 + 3E6 + 3E7 + 3E8 + 4F1 + 5F2 + 3F3 + 2F4 + 3F5 + 4F6 + 3F7
+ 3F8

CONSTRAINT:
Project hours: A1 + B1 + C1 + D1 + E1 + F1 = 500
A2 + B2 + C2 + D2 + E2 + F2 = 240
A3 + B3 + C3 + D3 + E3 + F3 = 400
A4 + B4 + C4 + D4 + E4 + F4 = 450
A5 + B5 + C5 + D5 + E5 + F5 = 350
A6 + B6 + C6 + D6 + E6 + F6 = 460
A7 + B7 + C7 + D7 + E7 + F7 = 290
A8 + B8 + C8 + D8 + E8 + F8 = 200
Contract budget
150A1 + 140B1 + 160C1 + 300D1 +270E1 + 150F1 <= 100000
150A2 + 140B2 + 160C2 + 300D2 +270E2 + 150F2 <= 80000
150A3 + 140B3 + 160C3 + 300D3 +270E3 + 150F3 <= 120000
150A4 + 140B4 + 160C4 + 300D4 +270E4 + 150F4 <= 90000
150A5 + 140B5 + 160C5 + 300D5 +270E5 + 150F5 <= 65000
150A6 + 140B6 + 160C6 + 300D6 +270E6 + 150F6 <= 85000
150A7 + 140B7 + 160C7 + 300D7 +270E7 + 150F7 <= 50000
150A8 + 140B8 + 160C8 + 300D8 +270E8 + 150F8 <= 55000
Total hours
A1 + A2 + A3 + A4 + A5 + A6 + A7 + A8 <= 450
B1 + B2 + B3 + B4 + B5 + B6 + B7 + B8 <= 550
C1 + C2 + C3 + C4 + C5 + C6 + C7 + C8 <= 500
D1 + D2 + D3 + D4 + D5 + D6 + D7 + D8 <= 300
E1 + E2 + E3 + E4 + E5 + E6 + E7 + E8 <= 710
F1 + F2 + F3 + F4 + F5 + F6 + F7 + F8 <= 860
b. Solve this problem using QM and SOLVER
c. If the company want to maximize revenue while ignoring client preferences
and consultant compatibility, will this change the solution in b?
The hours that are available for each project and the contract project hours are
fixed, but the hours that are provided to each employee for a project and the
overall project hours are flexible. If customer preferences and consultant
compatibility are ignored, the overall number of hours used for each project and
project will change. Because the corporation wants to focus on generating the most
income in this situation. They ignored customer preferences and consultant
compatibility in order to maximize money.

d. Create a sensitivity report. What is the shadow price in this case ?

e. If consultant A and E change their hourly wage from $155 to $200 (A) and
from $270 to $200, will the solution change?
There will be changes in the number of hours each consultant spends on each
project, resulting in the following changes:
The Total revenue also decrease $ 497371.4286→ $ 484571.4286 Conclusion:
Revenue varies when we increase and decrease in the hourly wages of consultant
A and consultant E respectively.
Question b

Question e
f. By experience, consultant B and E is getting better at their ability, which mean
their capacity for every project now minimum start from 3 instead of 1 or 2,
will the shadow price change?
By experience, consultant B and E is getting better at their ability, which mean
their capacity for every project now minimum start from 3 instead of 1 or 2.
Therefore, we can see the change in shadow price. Because the limits, rather than
the consultant's capacity, determine the price of the shadow price below
Shadow price in Question d
Shadow price in Question f