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this is for my intro to science management course. please follow the instructions and provide the linear program model as well as the pros and

this is for my intro to science management course. please follow the instructions and provide the linear program model as well as the pros and cons for a thumbs up review. thank you image text in transcribed
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Create Thread FORUM DESCRIPTION Choose one of the three Case Problems at the end of Chapter 3. Develop the linear programming model. Then, discuss the pros and cons of using this mathematical model in making a managerial decision for this kind of problems. You do not need to post the model to the threaded discussion. This assignment is worth 1% of your grade and is due by 11:30 p.m. Saturday September 26, 2020. Case Problem 3 TRUCK LEASING STRATEGY Reep Construction recently won a contract for the excavation and site preparation of a new rest area on the Pennsylvania Turnpike. In preparing his bid for the job, Bob Reep, founder and president of Reep Construction, estimated that it would take four months to perform the work and that 10, 12, 14, and 8 trucks would be needed in months I through 4, respectively The firm currently has 20 trucks of the type needed to perform the work on the new proj- ect. These tracks were obtained last year when Bob signed a longterm lease with Penn State Leasing. Although most of these trucks are currently being used on existing jobs, Bob esti- mates that one truck will be available for use on the new project in month 1, two trucks will be available in month 2, three trucks will be available in month 3, and one truck will be available in month 4. Thus, to complete the project, Bob will have to lease additional trucks. The long-term leasing contract with Penn State has a monthly cost of $600 per truck. Reep Construction pays its truck drivers $20 an hour, and daily fuel costs are approximately $100 per truck. All maintenance costs are paid by Penn State Leasing. For planning purposes, Bob estimates that each truck used on the new project will be operating eight hours a day, five days a week for approximately four weeks each month. Bob does not believe that current business conditions justify committing the firm to addi- tional long-term leases. In discussing the short-term leasing possibilities with Penn State Leas- ing, Bob leamed that he can obtain short-term leases of 1-4 months. Short-term leases differ from long-term leases in that the short-term leasing plans include the cost of both a truck and a driver. Maintenance costs for short-term leases also are paid by Penn State Leasing. The follow- ing costs for each of the four months cover the lease of a truck and driver: Length of Lease 1 2 3 4 Cost per Month ($) 4000 3700 3225 3040 Bob Roep would like to acquire a lease that would minimize the cost of meeting the monthly trucking requirements for his new project, but he also takes great pride in the fact that his company has never laid off employees. Bob is committed to maintaining his no-layoff policy, that is, he will use his own drivers even if costs are higher. Managerial Report Perform an analysis of Reep Construction's leasing problem and prepare a report for Bob Reep that summarizes your findings. Be sure to include information on and analysis of the following items: 1. The optimal leasing plan 2. The costs associated with the optimal leasing plan 3. The cost for Reep Construction to maintain its current policy of no layoffs Appendix 3.1 SENSITIVITY ANALYSIS WITH EXCEL SOLVER In Appendix 2. I we showed how Excel Solver can be used to solve a linear program by using it to solve the Par, Inc., problem. Let us now see how it can be used to provide sensitivity analysis When Solver finds the optimal solution to a linear program, the Solver Results dialog box (see Figure 3.22) will appear on the screen. If only the solution is desired, you simply click OK. To obtain the optimal solution and the sensitivity analysis output, you must

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