Date: January 12, 2008

To: MgS students

From: Dr. Whalen

Re: Homework Assignment 5:

Write a cogent, businesslike memo (one page only, formatted like this page) to the manager of Snako Oil.  Begin with a specific recommendation about how to use the currently-available resources.  Then go on to discuss possible additional profit that could be made if a specific additional amount of one of the ingredients could be acquired at a higher price on the spot market.  Be sure to specify the highest spot price management should be willing to pay.

Include a brief, accurate, quantitative, and non-technical justification for whatever you recommend using specific numbers from the sensitivity analysis.  Your memo must be self-contained, not requiring the reader to also look at the spreadsheet.

Use business language; do NOT use any linear programing jargon.  Do nut use any of the following words: dual, shadow, allowable.

The spreadsheets are on the website, so don;t turn those in; turn in only the one page memo.

If two students turn in papers that show signs that one student copied from another, they shared files, or both studentss copied from a common rough draft, both students will receive a grade of zero.  I will not be the judge of who is the copier and who is the person being copied from whether willingly or negligently.