1) Suppose that supplier 2 says that they will give a total disount of 200 dollars if they win at least 2 out of 3 bids. What additional decision variables, linear constraints and changes to the objective function would you introduce in the yes no model to accommodate this discount?

2) Now suppose that the original model has a different additional constraint: supplier 2 should win at least 2 out of 3 bids or none. What additional decision variables, linear constraints and changes to the objective function would you introduce in the yes no model to accommodate this discount?

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In Mars Inc. case in Assignment 4, we examined procurement auction problems. For each bid (indicated by Bid ID i), you defined a binary decision variable: Xi = Bid ID Supplier ID When we set our objective function to minimize the total procurement cost, the optimal solution ob- tained was as follows (the Solver model is also implemented in the excel file Mars_finished.xlsx under tabs a and b): 1 1 Bid Chosen 1 (1 if bid ID i is accepted 10 otherwise 221 3 4 5 4 0 o wi 0 HE 1 1 8 9 10 11 12 6 7 2 5 6 3 7 2 5 0 1 0 1 0 0 0 In the current allocation, Supplier 2 has submitted 3 bids but has only won 1. In Mars Inc. case in Assignment 4, we examined procurement auction problems. For each bid (indicated by Bid ID i), you defined a binary decision variable: Xi = Bid ID Supplier ID When we set our objective function to minimize the total procurement cost, the optimal solution ob- tained was as follows (the Solver model is also implemented in the excel file Mars_finished.xlsx under tabs a and b): 1 1 Bid Chosen 1 (1 if bid ID i is accepted 10 otherwise 221 3 4 5 4 0 o wi 0 HE 1 1 8 9 10 11 12 6 7 2 5 6 3 7 2 5 0 1 0 1 0 0 0 In the current allocation, Supplier 2 has submitted 3 bids but has only won 1.

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