7.17. The school board for the Bellevue School District has made the decision to purchase 1,350 additional Macintosh computers for computer laboratories in all its schools. Based on past experience, the school board also has directed that these computers should be purchased from some combination of three companies-Educomp, Macwin, and McElectronics. In all three cases, the companies charge a discounted variable cost per computer and a fixed delivery and installation cost for these large sales to school districts. The next table shows these charges as well as the capacity (the maximum number of computers that can be sold from the limited inventory) for each of the companies. Capacity Fixed cost Variable cost Educomp 700 $45,000 $750 Macwin 700 $35,000 $775 McElectronics 1,000 $50,000 $700 The school board wants to determine the minimum-cost plan for meeting its computer needs. a. Formulate a BIP model in algebraic form for this problem. b. Formulate and solve this model on a spreadsheet. Page 272

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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7.17. The school board for the Bellevue School District has made the decision to purchase 1,350 additional Macintosh computers
for computer laboratories in all its schools. Based on past experience, the school board also has directed that these computers
should be purchased from some combination of three companies—Educomp, Macwin, and McElectronics. In all three cases, the
companies charge a discounted variable cost per computer and a fixed delivery and installation cost for these large sales to school
districts. The next table shows these charges as well as the capacity (the maximum number of computers that can be sold from the
limited inventory) for each of the companies.
Capacity
Fixed cost
Variable cost
Educomp
700
$45,000
$750
Macwin
700
$35,000
$775
McElectronics
1,000
$50,000
$700
The school board wants to determine the minimum-cost plan for meeting its computer needs.
a. Formulate a BIP model in algebraic form for this problem.
b. Formulate and solve this model on a spreadsheet.
Page 272
Transcribed Image Text:7.17. The school board for the Bellevue School District has made the decision to purchase 1,350 additional Macintosh computers for computer laboratories in all its schools. Based on past experience, the school board also has directed that these computers should be purchased from some combination of three companies—Educomp, Macwin, and McElectronics. In all three cases, the companies charge a discounted variable cost per computer and a fixed delivery and installation cost for these large sales to school districts. The next table shows these charges as well as the capacity (the maximum number of computers that can be sold from the limited inventory) for each of the companies. Capacity Fixed cost Variable cost Educomp 700 $45,000 $750 Macwin 700 $35,000 $775 McElectronics 1,000 $50,000 $700 The school board wants to determine the minimum-cost plan for meeting its computer needs. a. Formulate a BIP model in algebraic form for this problem. b. Formulate and solve this model on a spreadsheet. Page 272
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