UNIVERSITY OF WALES /MDIS

MASTER OF BUSINESS ADMINISTRATION

PROJECT MANAGEMENT AND OPERATIONAL RESEARCH

ASSIGNMENT

BAY CITY MOVERS

Bay City Movers is a local company that specializes in intercity moves. In the business
plan submitted to its backers, Bay City has committed itself to a total trucking capacity of
at least 36 tons.

The company is in the process of replacing its entire fleet of trucks with 1 ton pick up
trucks and 2.5 ton moving van type trucks. The 1 ton pick up trucks will be manned by
one worker, whereas the large vans will utilize a total of four personnel for larger moves.

Bay City Movers currently employs 48 workers and has facilities for 40 trucks. Pick up
trucks cost the company $24,000 and the moving vans cost $60,000. The company
wishes to make a minimum investment in trucks that will provide a trucking capacity of
at least 36 tons while not requiring any new hires or trucking facilities.

Although the continuity assumption is violated (since the number of each truck purchased
must be integer), use a linear programming model to determine the optimal purchase of
pick up trucks and vans for Bay City Movers. You will find that alternative optimal
solutions are possible.

Prepare a report detailing several of these options and discuss the pros and cons of each.
Among the alternatives, you should present in your report are the following :

1. Purchasing only one type of truck.

2. Purchasing the same number of pick up trucks as moving vans.

3. Purchasing the minimum total number of trucks.

Also include in your report pertinent sensitivity information you feel would be interest to
management at Bay City Movers.

(Please attached the feedback forms in the next page

as your front page of your submission)
University of Wales
 Coursework Assignment Feedback Form

B.Sc. (Hons) in Management with Accounting

B.Sc. (Hons) in Entrepreneurship & Management
B.Sc. (Hons) in Business & Marketing

Master of Business Administration X

Master of Science in Management with specialization
in
Banking & Finance
Marketing
Management

Student Name : ________________________ Class : MBWD5

Module Title : __PMOR________________ Lecturer : Siew Ngung Chia

Criteria A B C D F
Background Theory
Methodology explanation
Limitation of LP
Analysis of case
Range of Optimality
Range of Feasibility
Reduced Cost
Shadow Price
Solutions of case
Modeling / QSB printout
Discussion of 3 Options
Recommendations
Conclusions
Organisation of report
Layout and flow
Overall presentation, references and layout.

*Grade:

1. This form should accompany all pieces of assessed coursework.

2. Please note that only *LETTER GRADES are permitted.
a. 70-100 A
b. 60-69 B
c. 50-59 C
d. 40-49 D
e. 0-39 F