Question: A developer specializing in tiny homes made from reclaimed shipping containers has decided to subcontract five components of the homes. Five companies (A, B, C,

A developer specializing in tiny homes made from reclaimed shipping containers has decided to subcontract five components of the homes. Five companies (A, B, C, D, and E) are interested in getting this business, but none can handle more than one subcontract. The bids made by the companies for the various subcontracts (in $1,000s) are as follows:

Companies' Bids

Component A B C D E

  1. 1185 225 193 207 215
  2. 2200 190 175 210
  3. 3330
  4. 4375 389
  5. 5250 280

315 300 290 425 445 350 275 240

the subcontracts on which they bid equally well

Assume all bidders can perform each of

(an empty cell in the table means no bid was placed). Write and solve a linear optimization model to help the developer decide how to assign the subcontracts to bidders so as to minimize the total subcontracting cost.

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