Questions and Answers of Management Science The Art Of Modeling With Spreadsheets

Rowers North, Inc. (RNI) would like to develop an inventory policy that will minimize the total cost associated with the company’s inventory of rowing machines, while ensuring that few customers
A small, private company is contemplating an initial public offering (IPO) in which they will sell 40,000 shares of stock. The price of the stock at the IPO is uncertain, with the following
A pharmaceutical company has a new drug under development and would like to know how much profit it might expect to make. The drug has to be tested to pass FDA approval. One hundred subjects will be
Kardjian Brothers, Inc. has invented a fundamentally new way to control the photolithography process used in manufacturing computer chips. Before they sell or license this technological breakthrough,
A large manufacturing company self-insures its employee health insurance claims. That is, it collects a fixed amount each month from every employee for health care costs and then it pays the entire
A recent MBA would like your assistance in determining how much to save for retirement. He is planning to invest $3,000 in a tax-sheltered retirement fund at the end of each year (i.e., appreciation
A firm operates a docking facility for container ships in Singapore. At present, the facility consists of two identical docks. Ships typically arrive during the night. The number of ships that arrive
A small nonprofit organization is planning a door-to-door marketing campaign to sell Christmas wrapping and gifts. They plan to visit 100 homes. Consultants have estimated that they should expect to
A small nonprofit organization is planning a door-to-door marketing campaign to sell Christmas wrapping and gifts. They plan to visit 100 homes. Consultants have estimated that they should expect to
A firm is in the process of assessing the economic prospects for a new bottling machine it is developing. Future research and development expenses could range from $4 to $9 million, with a most
Delta Electric Service is an electrical-utility company serving parts of several states. It is considering replacing some of its equipment at generating substations and is trying to decide whether it
Delta Electric Service is an electrical-utility company serving parts of several states. It is considering replacing some of its equipment at generating substations and is trying to decide whether it
A small manufacturer uses an industrial boiler in its production process.Anew boiler can be purchased for $10,000. As the boiler gets older, its maintenance expenses increase while its resale value
Copy Makers Inc. (CMI) has just received a credit request from a new customer who wants to purchase a copying machine. As input to its decision of whether to grant credit, CMI has made the following
You are contemplating an investment project that has two phases. As currently planned, the first phase of the project requires an investment of $100,000 today. One year from now, the project will
JR Davidson recently started a practice in Landscape Design and is considering the purchase of an automated drafting system. JR can purchase a system with three possible drafting capacities. The
Gamma Construction Company has been asked to bid on the construction of 20 lighted tennis courts for State University. Each court will cost $20,000 in construction costs, and, in addition, there will
A project-based course assigns students to project teams at the start of the term. For this purpose, each student is asked to examine the set of projects available and to identify three of the
The Spencer Shoe Company manufacturers a line of inexpensive shoes in one plant in Pontiac and distributes to five main distribution centers (Milwaukee, Dayton, Cincinnati, Buffalo, and Atlanta) from
The National Tire Company (NTC) manufactures only one type of tire and wants to plan its production and inventory levels for the next five months. Company policy is to schedule all of its overtime
Your sister has just won $300,000 (tax-free) in the state lottery. She’s decided to quit her job and devote herself to writing novels for the next ten years, using her lottery winnings to support
Your uncle has $90,000 that he wishes to invest now in order to use the accumulation for purchasing a retirement annuity in five years. After consulting with his financial adviser, he has been
A small firm buys and sells wheat. They own a warehouse with a capacity of 10,000 bushels, and as of late August, there will be 2,000 bushels in the warehouse. Wheat is delivered to the warehouse
Wollmer Distribution Company collects fruit from several small farms in the region, consolidates its collections, and then ships the fruit to a regional wholesale fruit market by truck. Having made
A small engineering firm has 4 senior designers available to work on the firm’s 4 current projects over the next 2 weeks. The firm’s manager has developed the following table of quality scores,
Chris Pearson is running a tennis tournament and is in the process of scheduling the umpires for each match in today’s rounds. There are five matches to be played today, and there are six umpires
The Lannon Lock Company manufactures a commercial security lock at plants in Atlanta, Louisville, Detroit, and Phoenix. The unit cost of production at each plant is $35.50, $37.50, $37.25, and
An automobile manufacturer wants to award contracts for the supply of five different engine components. Some of the components are used in most models, while other components are specialized to one
Fidelity Savings & Loans (FS&L) operates a number of banking facilities throughout its region of the country. The officers of FS&L would like to analyze the efficiency of the various
The Hawley Lighting Company manufactures four families of household lighting at its factory. The product families are table lamps, floor lamps, ceiling fixtures, and pendant lamps. The following
A local bank wants to build a bond portfolio from a set of five bonds with $1 million available for investment. The expected annual return, the worst-case annual return on each bond, and the
A local bank wants to build a bond portfolio from a set of five bonds with $1 million available for investment. The expected annual return, the worst-case annual return on each bond, and the
Managers at Industrial Supply, Inc. are planning a sales campaign for the coming year in which they must determine how many sales representatives they will assign to seven product lines. S-shaped
Managers at Office Products, Inc. are planning their sales campaigns for the coming year. As one part of this effort, they are attempting to determine the relationship between the number of sales
Many labor-intensive production operations experience a learning curve effect. The learning curve specifies that the cost to produce a unit is a function of the unit number; that is, as production
Three liquid fuels are stored in tanks for use in a blending process. Each fuel is characterized by a demand rate, a fixed replenishment cost, and a unit cost. Inventory carrying costs are assessed
A firm uses the policy of ordering two particular items at a time because they come from the same supplier. The characteristics of these items are shown in the following table:a. Find the optimal
Coastal Fuel Oil is a distributor of fuel-oil products in the Northeast. It contracts with shippers for deliveries of home heating oil and distributes product in its own trucks. Since its storage
Big Box, the local discount retailer, is negotiating a major expansion with the Planning Board. It has been asked as part of this process to develop a sales forecast for the next several years.
The town of Hillside has a surface reservoir that supplies water to the homes in the town’s central residential district. A committee of residents is concerned about the system’s capacity and
The database Voting Records.xlsx** contains data on the voting records for 435 members of the U.S. House of Representatives on 16 important pieces of legislation. The goal is to create a Neural
The database Credit Approval.xlsx** contains information on a large number of individuals who have applied for credit cards, including whether they were approved. The data include demographic data
The database German Credit.xlsx** contains information on the credit risk of 1,000 customers. The data include demographic information (e.g., gender) and financial information (e.g., savings account
The database German Credit.xlsx** contains information on the credit risk of 1,000 customers. The data include demographic information (e.g., gender) and financial information (e.g., savings account
The database German Credit.xlsx** contains information on the credit risk of 1,000 customers. The data include demographic information (e.g., gender) and financial information (e.g., savings account
The database ICU Data.xlsx contains information on 200 subjects from a much larger study of the survival of patients admitted to an intensive care unit (ICU) of a hospital. The data provided include
The database Airfare s.xlsx*** contains information on the airfare on 638 routes in the United States. In addition, it contains data on the length of the route, the average income in the starting and
The database Wine Quality.xlsx** contains data on the chemical properties of nearly 5,000 wines. It also has a quality score for each wine that is based on the opinions of experts. The goal is to
The database Automobile Losses.xlsx** contains information on the average loss payment per insured year for a number of makes and models of cars. It also contains data on the physical characteristics
The database Boston Housing.xlsx** contains information on 506 census tracts around the city of Boston. The data include housing-related information (e.g., average rooms per dwelling) as well as
The database Spambase.xlsx** contains detailed in for mation on the words used in a large number of emails. The emails are classified as Spam or Not Spam. The goal is to create a Naïve Bayes model
The database Bank Marketing.xlsx** contains information on the results of a direct marketing campaign by a Portuguese bank. The purpose of the campaign was to enroll customers in a bank term deposit
The database Forest Fires.xlsx* contains information on the weather and ground conditions before the start of a number of forest fires. The goal is to create a k-Nearest Neighbor model to predict the
The database Low Birth Weight.xlsx* consists of data on 189 women, 59 of whom had low-birth-weight babies. The data provided include basic demographic information (e.g., age of mother) as well as
The database German Credit.xlsx** contains data on prior applicants for credit, including whether they proved to have good or bad credit.a. How many records are in this database?b. How many fi elds
Refer to the BMW Company case. From the corresponding exercise in Chapter 3, review the design of a spreadsheet that will allow BMW management to estimate the cost of disposal a decade into the
Refer to the Snoey Software Company case. From the corresponding exercise in Chapter 3, review the design of a spreadsheet for the desired five-year economic analysis mentioned in the case.a.
Refer to the Medical Supplies for Banjul case. From the corresponding exercise in Chapter 3, review the design of a spreadsheet that will enable you to request the required funds from your team’s
Perry Enterprises is considering a number of investment possibilities. Specifically, each investment under consideration will draw on the capital account during each of its first three years, but in
A high-volume call center must determine how many customer service representatives (CSRs) to schedule each day of the week to cover the call volume. CSRs work a five-day week with two days off but
Software System Evaluation. A new software system will cost $2 million initially and take around 2 years to install (the actual time to complete installation will be lognormally distributed with a
California Products Company has the capability of producing and selling three products. Each product has an annual demand potential (at current pricing and promotion levels), a variable contribution,
The Van Horne Company manufactures air conditioners that are sold to five large retail customers around the country. Van Horne is evaluating its manufacturing and logistics strategy to ensure that it
TCS Corporation has recently decided to manufacture a product in its own facilities rather than outsource to Asian manufacturers. Its new plant will last about ten years. TCS is considering two
A new product will sell for $8. The company expects to sell around 900,000 units. (Use a normal distribution with a mean of 900,000 and a standard deviation of 300,000.) Fixed costs are normally
Explore the mess by answering the following questions:(a) What do we know?(b) What can we assume?(c) What could the results look like?(d) What information can be brought to bear?(e) What can we ask
The Red Cross provides about 40 percent of the replacement blood supply for the United States. The available donor base has been shrinking for years, and although increased advertising has kept Red
A major pharmaceutical manufacturer is facing a difficult decision concerning one of its hearing enhancement products. The product has been on the market less than two years, and reports have
The relationship between the effectiveness of a new drug and the amount spent on R&D.
The relationship between the cost of manufacturing a product and the cumulative quantity produced.
The relationship between the time it takes to complete a project and the number of people assigned to work on it.
The relationship between the probability the FDA will approve a given drug and the number of patients enrolled in the clinical trials of the drug.
The relationship between the sales of a given brand of cereal in a grocery store and the amount of shelf space devoted to displaying it.
The database Dish.xlsx contains a transaction history describing more than 4,000 purchases of detergent at a number of stores in a grocery chain over a period of several weeks.a. Compile a pivot
The database Tissue.xlsx contains a transaction history describing more than 3,700 purchases of facial tissues at a number of stores in a grocery chain over a period of several weeks.a. Compile a
The database Applicants.xlsx contains a description of an MBA applicant pool for an unspecified year in the 1990s. For each of the following requirements, create a separate worksheet and extract the
The database Population.xlsx contains data on the populations of the 50 states from 1990 to 1999. For each of the following requirements, create a separate worksheet and extract the data from the
The database Executives.xlsx contains salary and company data on 100 executives. For each of the following requirements, create a separate worksheet and extract the data from the original database.a.
The database Applicants.xlsx contains a description of an MBA applicant pool for an unspecified year in the 1990s. For each of the following requirements, create a separate worksheet and extract the
Your company is changing its name, and you’ve been asked to study the impact of a name change announcement on the subsequent return generated by the firm’s stock. In a sample of 400 companies
Five years ago, an automobile manufacturer started offering an extended warranty to buyers of its sport-utility vehicle. The extended warranty covered defects occurring after the initial three-year
The Luxor Computer Company plans to introduce a pyramid-shaped desktop computer. The company is interested in the proportion of prospective customers who find the unusual shape a positive selling
The number of staff personnel needed to handle patients at a medical center is determined by the mean time that patients must wait before being attended to by a physician. For a random sample of 100
Oxbridge University is contemplating a policy under which they would pay employees to not bring their vehicles to campus. Instead of paying an annual fee for on-campus parking, employees would
An engineer working on the auto assembly line is preparing to estimate the mean time required to install a dashboard. Assuming a required standard deviation of 10 seconds in the estimated mean,
A food products company believes that storing frozen foods at low temperatures for several weeks might cause a noticeable weight loss in the product. Some data were collected to test this belief, as
A toy company has been marketing souvenir toys in conjunction with various professional sports teams in a number of cities. Over the past few years, this experience has provided some data on the
The Center for Disease Control has collected the following data on cigarette advertising and brand preferences among adolescents and adults.a. Explore the possibility of a linear relation between
A marketing manager for a computer manufacturer was interested in whether consumers could evaluate the price of laptops and desktops with different features. An Weeks experiment was devised in which
The Energy Conservation Committee at National Electronics Company is trying to understand energy use at their plant. As a first step, the committee wants to build a model that will predict monthly
The National Transportation Safety Board collects data by state (including the District of Columbia) on traffic fatalities. Part of this data is shown in the following table, along with potentially
A commission on state parks is interested in identifying the factors that determine park revenues. Data are available at the state level on total revenues, acreage, number of day visitors, number of
Cost-of-living indices are often used to measure the desirability of living in a particular geographical area. The data in the following table give a composite index and six component indices for
Cost Modeling. General Widget Corporation has collected data on the daily output and daily production cost of widgets produced at its factory. (Data for the study are shown in the table below.) The
Curve Fitting with Constraints. A bank’s economist has been interested in developing a production function for the bank. The model recognizes three explanatory variables, which are measures of
Financial Planning. Managers at Industrial Supply, Inc. are planning a sales campaign for the coming year in which they must determine how many sales representatives they will assign to seven product
Leasing Warehouse Space. Cox Cable Company needs to lease warehouse storage space for five months at the start of the year. Cox knows how much space will be required in each month, and the company
Coordinating Advertising and Production. The Hawley Lighting Company manufactures four families of household lighting at its factory. The product families are table lamps, floor lamps, ceiling
Cargo Loading. You are in charge of loading cargo ships for International Cargo Company (ICC) at a major East Coast port. You have been asked to prepare a loading plan for an ICC freighter bound for