Using a linear programming framework and the data from case Exhibit 1, formulate and solve the problem of finding the cost-minimizing set of bids that meet Mars' business requirements and determines the winning suppliers. (Ignore the requirement that first bid wins in the case of ties. 

 

Q2. In hypothesis, Mr. Ng wants to compare the solution in Q1 to other solutions in different conditions. If the following constraints are newly set in place, answer how much different is going to be from the original cost respectively. 1. If Mr. Ng ignores the condition "Mars did not want to become dependent on just a few suppliers" and rather chooses as a few suppliers as possible. 2. If Mr. Ng allows each supplier only to win at most one bid. Show 2 different calculation sheets and discuss.

 

 

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Items in the auction (all items can be oversupplied): Mars display boxes: 1,000 large 2,500 medium 4,000 small . Exhibit 1 ILLUSTRATIVE EXAMPLE OF A MARS PACKAGING AUCTION • . M&M display boxes: 800 large 1,500 medium 2,500 small Snickers display boxes: 400 large 750 medium 1,200 small 3 Musketeers display boxes: 100 large 100 medium 50 small First Round Bids received: 1:05 p.m. Supplier 1 bids $2,050 to supply all Mars display boxes. 1:06 p.m. Supplier 2 bids $350 to supply Snickers small display boxes. 1:10 p.m. Supplier 3 bids $1,199 to supply all large display boxes. 1:11 p.m. Supplier 1 bids $220 to supply Snickers large, and all 3 Musketeers display boxes. 1:14 p.m. Supplier 4 bids $4,639 to supply everything. 1:20 p.m. Supplier 2 bids $199 to supply 3 Musketeers medium and small display boxes. 1:26 p.m. Supplier 5 bids $1,199 to supply all M&M, and 3 Musketeers medium and small display boxes. 1:35 p.m. Supplier 6 bids $1,350 to supply Mars, M&M and 3 Musketeers small display boxes. 1:40 p.m. Supplier 3 bids $350 to supply Snickers medium display boxes. 1:41 p.m. Supplier 7 bids $2,200 to supply Mars and M&M large and medium display boxes. 1:52 p.m. Supplier 2 bids $999 to supply M&M medium and small display boxes. 1:59 p.m. Supplier 5 bids $1,700 to supply all small display boxes. 2:00p.m. Auction first round closes. Items in the auction (all items can be oversupplied): Mars display boxes: 1,000 large 2,500 medium 4,000 small . Exhibit 1 ILLUSTRATIVE EXAMPLE OF A MARS PACKAGING AUCTION • . M&M display boxes: 800 large 1,500 medium 2,500 small Snickers display boxes: 400 large 750 medium 1,200 small 3 Musketeers display boxes: 100 large 100 medium 50 small First Round Bids received: 1:05 p.m. Supplier 1 bids $2,050 to supply all Mars display boxes. 1:06 p.m. Supplier 2 bids $350 to supply Snickers small display boxes. 1:10 p.m. Supplier 3 bids $1,199 to supply all large display boxes. 1:11 p.m. Supplier 1 bids $220 to supply Snickers large, and all 3 Musketeers display boxes. 1:14 p.m. Supplier 4 bids $4,639 to supply everything. 1:20 p.m. Supplier 2 bids $199 to supply 3 Musketeers medium and small display boxes. 1:26 p.m. Supplier 5 bids $1,199 to supply all M&M, and 3 Musketeers medium and small display boxes. 1:35 p.m. Supplier 6 bids $1,350 to supply Mars, M&M and 3 Musketeers small display boxes. 1:40 p.m. Supplier 3 bids $350 to supply Snickers medium display boxes. 1:41 p.m. Supplier 7 bids $2,200 to supply Mars and M&M large and medium display boxes. 1:52 p.m. Supplier 2 bids $999 to supply M&M medium and small display boxes. 1:59 p.m. Supplier 5 bids $1,700 to supply all small display boxes. 2:00p.m. Auction first round closes.

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To formulate and solve the problem of finding the costminimizing set of bids that meet Mars business requirements and determine the winning suppliers ... View the full answer