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Cairo Consulting wants to determine whether reselling process consulting services provided by third parties would reduce the costs of this type of consulting. Switch to

  1. Cairo Consulting wants to determine whether reselling process consulting services provided by third parties would reduce the costs of this type of consulting. Switch to the Process Providers worksheet, and then run Solver to solve this problem as follows:
    1. Set the objective as minimizing the value in cell E10 (Total Costs).
    2. Use the range B4:D4 as the changing variable cells. Adjust the hours provided by each company using the following constraints:
    3. E4=5500, the total hours of process consulting signed
    4. E10 is less than or equal to 1350000, the maximum third-party fees
    5. B4:D4 is less than or equal to 5000, the maximum hours provided by a single third-party provider
    6. B4:D4 should be an Integer
    7. Run Solver, keep the solution, and then return to the Solver Parameters dialog box. Save the model to the range A14:A21, and then close the Solver Parameters dialog box.

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B D E F G 1 Cairo Consulting - Process Consulting Providers 2 3 Process Pros ABQ Consulting 4 Hours Provided 500 0 Tema Han 5,000 Total 5,500 $ 280,000.00 $ 178,000.00 $ 356.00 104,500.01 209.00 282,500 $ 26,700.00 5.34 1,025,000.00 205.00 1,051,700 $ 220.00 $ $ 1,334,200 6 Fixed Costs 7 Fixed Cost Per Hour 8 Variable Costs 9 Variable Cost Per Hour 10 Total Costs 11 12 13 Minimum Total Cost Model 14 15 16 17 18 19 20 21

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