Reference no: EM132190460

Goodway Industries The Director of Development for Goodway Industries, a nonprofit organization that depends largely on charitable gifts for its income, is planning to assign one of the four members of her staff (George, Sarah, Libby, and Eric) to each of six donors for this year’s campaign. Table 1 shows her estimates of the probability of successfully obtaining a donation for each possible combination of staff member and donor. Table 1. Estimated Probability of Success Based on Staff-Donor Assignment Donor 1 Donor 2 Donor 3 Donor 4 Donor 5 Donor 6 George 0.95 0.90 0.90 0.78 0.78 0.81 Sarah 0.89 0.93 0.85 0.82 0.62 0.85 Libby 0.85 0.91 0.83 0.80 0.50 0.83 Eric 0.75 0.87 0.68 0.65 0.45 0.65 These probability estimates are based on prior contacts between donors and staff. She has also made estimates of the amounts each donor would give if the donor chooses to donate this year as shown in Table 2. Table 2. Estimated donation if donor is successfully solicited Donor 1 Donor 2 Donor 3 Donor 4 Donor 5 Donor 6 Potential Donation $ 2,000,000 $ 1,200,000 $ 800,000 $ 1,550,000 $ 3,200,000 $ 1,800,000 Each donor will be assigned to exactly one staff member. Staff members must be assigned to at least one but no more than two donors except for George which based on his seniority will be assigned to exactly one donor. Develop and solve a model to determine the staff to donor assignments that will maximize the expected value of the donations generated.