...McKinsey & Company McKinsey Problem Solving Test Practice Test © 2010 APTMetrics, Inc. Practice Test McKinsey Problem Solving Test – Practice Test Practice Test Overview and Instructions This practice test has been developed to provide a sample of the actual McKinsey Problem Solving Test used for selection purposes. This test assesses your ability to solve business problems using deductive, inductive, and quantitative reasoning. This practice test contains a total of 26 questions. The actual test contains 26 questions and you will be given 60 minutes to answer as many questions as possible. You will be presented with three scenarios based on actual McKinsey client cases. Information related to each scenario will be shown in text, tables, and exhibits. This information is presented in doublebordered areas and is distributed in sections throughout the scenario. The questions ask you to find the most appropriate answer to the problem as described using only the information presented. You should select one and only one answer to any question. While completing this practice test, do not use any electronic devices (e.g., calculator, computer) when performing calculations to answer the questions. Electronic devices will not be permitted to be used during the actual test administration. Also during the actual test administration, you may use all blank space in the test booklet as scratch paper to assist you in performing any calculations and recording any notes. No scratch...
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...Food Safety Bulletin Dona Eisenbart SCI/220 August 31, 2011 TP Narayan Food Safety Bulletin Hot Dogs Recalled Doe to E. coli By Dona Eisenbart. August 31, 2011- More than 75,000 packages of St. Johns beef hot dogs sold at local grocery stores in the San Diego County have been recalled due to possible E. coli contamination. The hot dogs were supplied by St. Johns packaging Company, and were sold throughout the county by Fatco, Lucky Stores, and Black Checker Foods. The USDA reports that routine testing at a San Diego Health facility revealed the presence of E. coli 0157.H7 bacteria and found the St. Johns Packaging Company to be the source. The USDA states that only five cases have been reported to have been hospitalized, however more than 100 cases reported ill. E. coli 0157.H7 is a potentially fatal bacteria that causes diarrhea, dehydration, and in the most serious cases, kidney failure. Children, the elderly, and those with a weak immune system are more likely to be effected. Officials say that the hot dog recall affects products sold in San Diego and the surrounding counties including Riverside, San Bernardino, and as far as Los Angeles. People should return any affected hot dogs to their stores for a full refund. For more information on the recall, contact the American Association of Poison Control at 1-800-222-1222. Common Safety Issues Related to Food Purchase, Storage, and Presentation Some common safety issues related to food purchase are not checking the...
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...The three products/variables in this problem that must be considered for purchase are: x1: Pizza Slices x2: Hot Dogs x3: Barbeque Sandwiches The objective is for Julia to maximize profits. Julia’s goal is to earn a profit of at least $1,000.00 after each game. Profit = Sell – Cost Profit Function: Z = 0.75(X1) + 1.05(X2) + 1.35(X3) Constraints and Cost: The maximum amount of funds available for purchase is $1500.00 Cost per pizza slice = $0.75 because Julia purchases each pizza for $6.00 and there are 8 slices per pizza. Cost per hot dog = $0.45 Cost per sandwich = $0.90 LPP Model: Maximize Profit: Z= $0.75x1 + $0.45x2 + $0.90x3 < $1,500 Subject to 24x1 + 16x2 + 25x3 < 55,296 oven space x1 > x2 + x3 (changed to –x1 + x2 + x3 < 0 for constraint) x2/x3 > 2 (changed to –x2 + 2x3 < 0 for constraint) x1, x2, x3 > 0 Solve the LPM: Pizza(X1) = 1,250; Hotdogs(X2) = 1,250 and Barbecue sandwiches(X3) = 0 Maximum value of Z = $2,250 It would be in Julia’s best interest to stock 1,250 slices of pizza, 1, 250 hot dogs and no barbecue sandwiches as it will yield the maximum profit of $2,250.00 (B) Evaluate the prospect of borrowing money before the first game. I do assert that Julia should borrow money from her friend to increase her profits. The shadow price is $1.50 for each additional dollar Julia earns. The upper limit in the model that is given is $1,658.88. This means that Julia can borrow $158.88 from her friend, which will help her yield...
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...Charles V Sewell English 1539 Ms. Amanda Sevella Culture Is what brings friends, and family together, as far as me, and my friends we can’t wait for someone to say cookout then it’s on getting starting out is not as easy as it seems, cause it takes work, but once it is going it is fun, so there is a person seating around doing nothing having a boring time them an idea pops into some one’s head they are tired of being bored so nine times out of ten there is a barbeque pit seating or leaning on the side of the house so we have a pit to cook on, now someone will start calling friends we know asking about food manly chicken, hamburger meat hot dogs things that would be in the refrigerator, and do you want to throw them on the grill them on saying this is saying hey we are having a cookout you want a come put something on the grill play cards, card games, watch movies and just kick it, with us, if there not doing anything would they will be down for a cookout then call someone up to see if they have some stamps to sell most of the time in the hood stamps sell for half of their worth meaning 100 dollars in stamps is worth 50 dollars cash, and so on in the hood you can always find someone selling food stamps we used the stamps to buy potatoes, corn meal, macaroni and cheese manly the cheese Velveeta all real foods what I meaning I prefer to eat only real food not generic type food I am not rich or better them anybody else but I like Kraft foods, products, Hunts Ketchup, Nabisco...
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...outside the Tech stadium for the home football games, so she can make profit to finance a final year. Tech sells out every home game, and the one thing Julia knows from attending the every games, is that everyone eats a lot of food. She has a booth, and the booths are not very large. Vendors can sell either food or drinks on Tech property, but not both. Only the Tech athletic department concession stands can sell both inside the stadium. Then, she had a great idea, she thinks slices of cheese pizza, hot dogs, and barbecue sandwiches are the most popular food items among fans and so these are the items she would sell. A. Formulate a linear programming model for this case X1= the number of slices of pizza X2=the number of hot dog X3=the number of sandwiches The objective is to maximize total profit. Profit is calculated for each variable by subtracting cost from the selling price. For Pizza slice, Cost/slice=$6/8=$0.75 For hot dog= 1.50-0.45=1.05 For sandwishes=2.25-0.90=1.35 Maximize; Z = $0.75x1 + $1.05x2 + $1.35x3 Subject to: $0.75x1 + $0.45x2 + $0.90x3 = 2.0 X1, X2, X3 >= 0 Constraints; Cost $0.75x1 + $0.45x2 + $0.90x3 =2X3 A)- Yes, she should borrow money from friend; the dual value is $1.50 for each additional dollar. The upper limit of the sensitivity range for budget is $1,658.88, so she should only borrow $158 and her total profit would be $2...
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...so she started a food booth outside the Tech stadium selling Slices of cheese pizza, hot dogs, and barbecue sandwiches. This covers the items X1, X2, and X3 respectively. The costs of these items are $4.50, $0.50 and $1.00 respectively. As one knows the objective is to maximize Julia Robertson’s profit. The method of doing this is by evaluating subtracted costs from the selling price. Things to consider are constraints and the cost of everything involved. Being that cost always seems the most important this paper will start there. Profit on pizza slice = $1.50 - $0.75 = $ 0.75 Profit on hot dog = $1.50 – 0.45 = $1.05 Profit on sandwich = $2.25 - $0.90 = $1.35 The overall profit would be the following: Z=0.75 X1+ 1.05 X2 + 1.35 X3 Constraints: Budget Constraints would go as follows: 0.75X1 + 0.45X2 + 0.90X3 <=$1500 Space Constraints: Space available = 3 x 4 x 16 = 192 sq. feet = 192 x 12 x 12 =27648 sq. inches The oven will be refilled during half time. Thus total space available = 27648 x 2 = 55296 Space required for pizza = 14 x 14 = 196 sq. inches Space required for pizza slice = 196/ 8 = 24.5 sq. inches Total Oven Space required: 24.5 X1 + 16 X2 + 25 X3 Constraint: 24.5 X1 + 16 X2 + 25 X3 ≤ 55296 sq. Inches Another area to consider is the demand or potential demand for each item and what the availability is. Julia can sell at least as many slices of pizza as she is able to sell hot dogs and sandwiches represented by: X2 ≥2 X3 X2 - 2 X3 ≥ 0 LP programming model : Maximize...
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...$1260 in hourly wages for the 36 workers. This brings the total fixed cost per game to $26060 20000+4800+1260=26060 2. Portion of fixed costs allocated to each item sold. Soft drink sales 25% or $6515 Coffee sales 25% or $6515 Hot Dog sales 20% or $5212 Hamburger sales 20% or $5212 Miscellaneous snacks 10% or $2606 3. What unit of sales is required to achieve the breakeven point? Soft drinks cost $.75 and sell for $1.50, revenue from soft drinks $.75 per drink The breakeven point for soft drinks is 8687 drinks (6515/.75) Coffee cost is $.50 and sells for $2.00, revenue from coffee $1.50 per cup The breakeven point on coffee is 4343 cups (6515/1.50) A hot dog costs $.80 and sells for $2.00, revenue from each hot dog sold is $1.20 The breakeven point for hot dogs is 4343 hot dogs sold (5212/1.20) Hamburgers cost $1.00 and sell for $2.50, revenue from each hamburger sold is $1.50 The breakeven point for hamburgers is 3475 sold, (5212/1.50) Miscellaneous snacks cost $.40 and sell for $1.00, revenue from snacks is $.60 The breakeven point for snacks is 4343 sold (2606/.60) 4. What dollar amount of sales is required per item and in total to breakeven? Soft drinks 8687*$1.50 $13030.50 Coffee 4343*$2.00 $ 8686.00 Hot dogs 4343*$2.00 $ 8686.00 Hamburgers 3475* $2.50 $ 8687.50 Snacks 4343* $1.00 $ 4343.00 Total breakeven sales $43433.00 5. What are the realistic sales estimates per attendee necessary to breakeven. At 35000 attendees to break even each...
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...Assignment 3 Julia’s food booth A).Formulate and solve a linear programming model for Julia that will help you advise her if she should lease the booth. X1=number of cheese pizza slices X2=number of hot dogs X3=number of BBQ sandwiches Julia Food Booth | | | | | | | | | | | | | | | | Products | Pizza X1 | Hot Dog X2 | Barb Sand X3 | | | | | Profit per unit | $0.75 | $1.05 | $1.35 | Resources | Constraints | | | | Avail | Usage | Left Over | | Budget (i) | $0.75 | $0.45 | $0.90 | 1500 | 1500 | 0 | | Oven Space (ii) | 24 | 16 | 25 | 55,296 | 50000 | 5296 | | Demand (iii) | 1 | -1 | -1 | 0 | -2.3E-13 | 2.27E-13 | | Demand (iv) | 0 | 1 | -2 | 0 | 1250 | -1250 | | | | | | | | | | | | | | | | | | Production | | | | | | | | Pizza | 1250 | | | | | | | Hotdogs | 1250 | | | | | | | Barbecue | 0 | | | | | | | Profit | 2250 | | | | | | | B). If Julia were to borrow money from a friend before the first game to purchase more ingredients, could she increase her profit? If so, how much should she borrow and how much additional profit would she make? What factor constrains her from borrowing even more money than this amount? Yes, Julia could increase her profit if she borrowed from a friend. The shadow price is 1.50 for each additional dollar that she earns. This was found by looking at the sensitivity analysis report from the computer solution output. The shadow...
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...Week 8 Assignment 1 Keila Stinson Strayer University MAT 540 Dr. Negash Begashaw March 2, 2015 In the case study regarding Julia’s food booth a solution needs to be determined as to if investing in a booth to sell food during Tech football games is a sound investment. Julia is considering leasing a booth to sell food outside of Tech stadium at home football games to generate revenue in order to finance her final year at the school. After all of her expenses are paid Julia wants to bring in a profit of $ 1,000 per game. If she can accomplish this then she feels that it will be worth the money to invest in a booth. The fixed cost associated with leasing the booth would include $1,000 per game for booth rental and $600 to lease a warming oven for the six home football games. Julia’s has $1,500 available cash, which she will use to purchase and prepare the food for the first game. For the remaining home games she plans on using funds generated from the previous game to purchase her ingredients. In order to help Julia determine if she should lease a booth a linear programming model should be formulated and solved. The first step in setting up the model is to determine the variables. The variables for this case include: x1 =Pizza, x2 = Hotdogs, and x3= BBQ sandwiches. These variables are the three food choices Julia wishes to sell at her booth. Julia’s objective function in this case is to maximize profit (maximize Z). Julia’s objective function in this case equates...
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...friend to help her with the booth and she is uncertain about the impact of the model. By looking at the L.P. model Ken can determine her best course of action and if she should lease the booth. The first step is to create the L.P. model to determine an objective function. The objective function ken determines to use is Max Z= .75p+1.05h+1.35b which can be done by looking at the information available such as items being sold, how much those items cost Julia to buy, how much she plans to sell each item for, looking at how one item can sell as much as or more than another item. Julia wants to sell Pizza, Hot Dogs, and Bar-B-Q sandwiches. Julia is going to have a Pizza company deliver a 14 inch Pizza twice each game which will cost her $6.00, Julia estimates it will cost her $0.45 per Hot Dog, and $0.90 for each Bar-B-Q sandwich. Julia plans to sell a piece of Pizza and a Hot Dog for a $1.50 a piece and a sandwich for $2.50. Julia also has to lease a warming oven for the food items; this warming oven has 16 shelves and measure 3x4 each. Julia has $1500.00 in cash to purchase and...
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...Max Z =Profit1x1+ Profit2x2+ Profit3x3 A - Formulation of the LP model x1 - number of pizza slice x2 - number of hot dogs x3 - number of barbecue sandwiches Constraints Cost Maximum fund available for food = $1500 Cost per pizza $6 ÷08 (slices) = $0.75 Cost for a hot dog = $0.45 Cost for a barbecue sandwich = $0.90 Constraint: 0.75x1+0.45x2+0.90x3 ≤1500 Oven space Space available 16.3.4.2 = 384ft^2 384.144=55296 in ^2 Space required for pizza: 14.14 = 196 ^2 inches Space for slice of pizza; 196 ÷8 = 24.50 in ^2 Space for hot dog: 16 in ^2 Space for barbecue = 25 in ^2 Constraint 24.50x1+16x2+25x3 ≤55296 Julia can sell at least as many slice of pizza (x1) as hot dogs (x2) and Barbecue sandwiches (x3) combined. x1-x2-x3≥0 Julia can sell at least twice as many hot dogs as Barbecue sandwiches +x2-2x3≥0 Non negative constraint x1,x2,x3≥0 Objective Function | SELL | COST | PROFIT | Pizza slice (x1) | $1.50 | $0.75 | $0.75 | Hot dog (x2) | $1.50 | $0.45 | $1.05 | Barbecue Sandwich (x3) | $2.25 | $0.90 | $1.35 | Profit = Sell - Cost Max Z=0.75x1+1.05x2+1.35x3 LPP Model: Maximize Z = 0.75 X1 + 1.05 X2 + 1.35 X3 Subject to 24.5 X1 + 16 X2 + 25 X3 ≤ 55296 0.75 X1 + 0.45 X2 + 0.90 X3 ≤ 1500 X1 - X2 - X3 ≥ 0 X2 - 2 X3 ≥ 0 X1≥ 0, X2≥ 0 and X3 ≥0 Solve the LPM -answer in QM for Windows solution Based on the QM for Windows...
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...Grocery List Hotdogs buns Hamburger buns Steak rolls Contadina Sauce 10oz - 6.43 Mustard Spicy package – 26.13 per box Onions Sauerkraut Relish – 9.71 a jug Pickles – 6.59 a jar Mustard package – 16.05 per box Cheese: American, Provolone, Mozzarellas, Shred Cheese Mayo package – 29.70 per box Eggs Salt package – 3.48 Pepper package 9.52 Salt Black pepper – 13.98 All Spice – 12.77 Seasoning salt – 9.18 Hot dogs – 36.90 80 per case Hamburger meat – 17.99 5lbs Italian sausage Ground cinnamon – 9.13 Tomatoes sauce – 4.68 Tomatoes paste – 6.92 Red pepper – 8.19 Oregano – 7.09 Bay leaves whole – 8.34 Paprika – 8.41 Chili powder – 10.36 Kidneys beans Onions rings – 7.15 Garlic power – 12.39 Basil – 5.53 Parsley – 13.31 Malt Vinegar – 9.19 Old bay seasoning – 43.20 Foil paper – 12x10 500 18.86 Napkins Sugar – 23.30 25lbs Vegetable oil – 53.75 50lbs Bowls - 12oz 1000 21.84, 16oz 500 24.22 Bowls lids - 22.62 Food service gloves- 500 7.99 Straws- 500 4.59 Hot dogs trays 250 24.18 Hamburger trays 250 24.18 Fries tray 250 14.99 Portion cups 200 4.09 Portion cups lids 200 2.29 Garbage bags – 38.39 Linear paper 6.99 Cups 16 oz 1000 39.42, 24oz 500 24.41, 32oz 500 37.40 Cups lids 16oz 100 2.21 20 oz 1000 18.60 32oz 500 22.62 Ketchup pack – 33.80 Ketchup jug – 4.99 Mustard jug 4.99 Spicy mustard brown jug – 10.14 Mayo Hellmans 1 gallon 18.99 Flour 10.48 Guest checks .75 T- shirt bags 1000 29.10 Pam 3.94 Milk Ice cream Lettuce ...
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...problem that we must consider for purchase. X1 = number of pizza slices Julia should purchase X2 = number of hotdogs Julia should purchase X3 = number of barbecue sandwiches Julia should purchase. Julia decided to have a food booth in order to make some money. Her goal is to maximize the profit that she can get from selling the hotdogs, pizza, and barbeque sandwiches that she plans on selling. The first thing to do is find the profit that Julia will make per Item. To find that per Item price, the cost of the item will be subtracted from the selling price. Pizza: Julia can buy a pizza that contains 8 slices for $6. That means each slice of pizza will cost her $0.75. She plans to sell each piece for 1.50. $1.50-$0.75= $0.75 profit Hot dog: $1.50 - $0.45 = $1.05 profit Barbecue Sandwiches: $2.25 - $0.90 = $1.35 profit The objective function can now be written since we have found the potential profit of each food item. The objective of this function is to maximize Z (profit). Z= $0.75x1 + $1.05x2 + $1.35X3 Budget is the one thing that has to be taken into consideration. Julia has $1,500 on hand to purchase and prepare food for the first home game. A constraint must be formed for the budget. Cost of each item and money available is what is known, so it is easy to form the budget constraint. This shows the total cost to purchase each item $0.75X1 + $0.45X2 + $0.90X3. Since the idea is to remain within the $1,500 budget, this is the budget constraint: $0.75X1 + $0.45X2 +...
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...In 1936, Johnny Colera began selling hot dogs at his lunch counter in Jamestown, New York. Thanks to his special chili sauce and savvy business management, his restaurant, named Johnny’s Lunch, became a huge success and a local institution. Johnny’s Lunch offers good food, low prices, top-notch service, and a unique store atmosphere, featuring Johnny’s hot dogs, burgers, fries, onion rings, and shakes, as well as less common options like homemade rice pudding. The restaurant now wants to grow into a national QSR (quick-service restaurant, or fast food) leader similar to McDonald’s. The company is currently led by two of Colera’s grandchildren, Anthony and John Calamunci, and a newly assembled team of executives with experience in the QSR industry. Growing the company from its humble origins into a national presence faces significant challenges. One will be to retain the restaurant’s small-town, local flavour as franchises proliferate across the country. Accomplishing this goal will require a coordinated effort. Another challenge for Johnny’s Lunch will be to sustain growth despite the impact of a weak economy. Analysts predict that the slow economy will threaten growth potential for QSRs; it’s estimated that the sector’s annual growth will slow to 2% or 3%, down from much higher rates during more promising times. The company hopes that familiar and cheap food will translate to success even in an economic down turn during 2009 and beyond. Management wanted to expand to 30-50 restaurants...
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...Complaints Both the Pareto chart and frequency chart below show that close to 80% of the cumulative complaints can be accredited to waiting too long in line, food being cold and no vegetarian food choices being present. By addressing these three issues, Ted’s Dogs and Burgers will receive higher customer satisfaction which will ultimately lead to higher profits. First and foremost, the current workers need to be as organized as possible in order to tackle the biggest complaint of long wait times. Each worker should have a specific role in the order process and stick to their position. Instead of having three or four workers running around trying to fulfill orders, each worker should be assigned to a specific station. For example, one worker can take orders and handle payment, another worker can assemble hot dogs, another worker can run the burgers while a fourth worker can handle compiling the order and serving drinks. This will allow the workers to become efficient and quickly assemble orders. Each worker can also prepare for customer rushes (half time, before the games begin and shortly after the games are finished) by prepping their work spaces. Hot dog buns can be laid out on plates, napkins can be arranged, cheese can be laid on burger buns and cups can be filled with ice to further speed up the order process. If additional workers were able to be hired and there was money available to spend on additional equipment, there are a couple more options for reducing...
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