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A Cape Town based contractor has identified a group of eight large building projects from the Department a of Transport and Infrastructure for which sealed
A Cape Town based contractor has identified a group of eight large building projects from the Department a of Transport and Infrastructure for which sealed bids will be solicited. The contractor is pretty confident in his ability to submit the lowest quote on each of the projects, but lacks the resources to complete them all. These are large-scale projects, and each will require a unique combination of labour, resources, and equipment to complete. Labour and equipment resources are restricted for the contractor. Each bid also requires preparation time and specialized skills, both of which are limited. The question facing the contractor is which projects should be selected for bidding. The table below contains pertinent data for each of the eight projects, including the time required to prepare a bid and the anticipated profit from winning and finishing each project. Additionally, estimates for the key resources required for a certain project are presented. The company owns 3 cranes, each of which is suitable for any of the projects. Only 30,000 hours of skilled labour are expected to be available to the contractor during the period of the projects. A team of four project estimators will prepare all bids so that over the next three months, a total of only 50 person- weeks are available. The company confidently assumes that it will win any bid that it prepares. You have been tasked to identify which projects should be pursued? Project Time to prepare Thousands of Crane required for Profit IF bid hours of skilled the project? Project Won (person-weeks) labour needed (1=yes) (Million Rands) (0=no) 1 8 6 1 80 2 12 5 0 110 3 13 1 100 4 11 0 90 5 9 8 0 70 6 7 3 80 7 8 90 8 8 5 1 60 4 7 1 co o Ol 4 1 1. Formulate the above linear programming
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