- Consider Figure 4.11, which shows the sensitivity report for the Flair Furniture example in Section 4.3. For each of the situations described below, check to see if the 100% rule can be used to
- Modify the Executive Furniture example of Section 5.3 to include another potential factory in Little Rock, Arkansas. Unit costs from Little Rock are $4 to Albuquerque, $6 to Boston, and $4 to
- Complete the exercise that asks you to compute the average fill rate for Simkin’s Hardware Store as described under “Analyzing the Results” for the Data Table for Figure 10.10.Figure 10.10
- An alternative to using Excel’s built-in functions to generate “live” random numbers that change each time that a model is recalculated is to use Excel’s Random Number Generator tool found
- In the old game show “Let’s Make a Deal,” contestants chose one of three curtains, behind which were either fabulous prizes or nothing, or worse (sometimes “booby prizes” would be behind a
- What is a correlation coefficient? Why is it useful?
- Explain how Solver can be used to identify the optimal weights in the weighted moving averages model.
- Suppose that you are using exponential smoothing method described in this chapter to forecast sales, and you know that sales will be decreasing every period for the foreseeable future. What value of
- In Figure 11.35, we discovered a potential multicollinearity problem. It appeared that home size was no longer a significant input given the presence of land area.(a) Run a single regression based on
- A limitation of using ExcelModules for some of the forecasting models described in this chapter is that the program creates a custom spreadsheet that covers a specific length of time. Thus, as actual
- Jacquie Welkener owns a company that manufactures sailboats. Actual demand for Jacquie’s sailboats during each of the past two years was as follows:Jacquie has forecasted that annual demand for her
- Suppose that you use a weighted moving average forecasting method with weights of 12, 30, and 20, for one period ago, two periods ago, and three periods ago, respectively. If January’s demand was
- What is a random variable? What are the various types of random variables?
- Which of the following are probability distributions? Why?(a)Random Variable X ................ Probability−2 .................................................... 0.1−1
- Complete the exercise that asks you to compute other output measures for Simkin’s Hardware Store and include them in the Scenario Manager as described under “Analyzing the Results” for the
- The newsvendor model is a classic inventory problem based on the situation of newsstand owner who must determine how many newspapers to order early in the morning to satisfy that day’s demand. She
- Consider Figure 10.10 for Simkin’s Hardware Store. Column J in the spreadsheet indicates a value of 1 if an order is placed and a value of 0 if an order is not placed. Modify the spreadsheet to
- If you look carefully at the formulas in this chapter for all four unlimited population models, you can verify that for each one, L = λW and Lq = λWq. These are instances of the more general
- Consider a standard M/M/1 queuing system at a bank with a single teller. You know that customers arrive at a rate of 40 per hour (Poisson distributed). If you also know that the teller is idle on
- Richard Muszynski’s Gas and Wash has an automatic car wash, and customers purchasing gas at the station receive a discounted car wash, depending on the number of gallons of gas they buy. The car
- Lizao Zhang, owner of Lizao Zhang’s Treats, is considering the purchase of three alternative self-serve sundae machines to serve customers. The average service time for all three machines is
- A unique feature of the exponential distribution is that the standard deviation of its service time is equal to the mean of its service time.(a) Run the M/M/1 model with an arrival rate of 20
- A unique feature of the exponential distribution is that the standard deviation of its service time is equal to the mean of its service time.(a) Run the M/M/1 model with an arrival rate of 15
- Consider the Arnold’s Muffler Shop example in Figure 9.8. Arnold has three chairs in the waiting room area.(a) If all customers who bring their cars into the shop want to wait in the waiting room,
- A typical subway station in Washington, DC, has six turnstiles, each of which can be controlled by the station manager to be used for either entrance or exit control—but never for both. The manager
- Bru-Thru is a chain of drive-through beer and wine outlets where customers arrive, on average, every five minutes. Management has a goal that customers will be able to complete their transaction, on
- What are the components of the following systems? Draw and explain the configuration of each.(a) Barbershop(b) Car wash(c) Laundromat(d) Small grocery store
- The “equally likely” decision criterion is equivalent to a “maxi-mean” rule. A related, but not necessarily equivalent rule would be “maxi-median”. Apply a “maxi-median” rule to the
- Revise the Excel spreadsheet in Figure 8.3 to create a template for a decision with four alternatives and four outcomes.Figure 8.3 A. D. E 1 Thompson Lumber (Dec Making Under Risk) 3 PAYOFFS Outcomes
- Consider the Thompson Lumber EMV decision from Table 8.8. Suppose that the utility function for Thompson Lumber can be expressed as 1 – 1.2 – [(X + 120,000) / 30,000] for monetary value
- Revise the Excel spreadsheet in Figure 8.1 to create a template for a decision with four alternatives and four outcomes.Figure 8.1 IF function is used to identify the best alternative. Identifies
- Xun Xu’s Aeronautics is comparing market research proposals from two different companies. If both research reports were free, the EMV using the report from Jackson Analytics would be $240,000,
- Create your own new decision criterion for decision making under uncertainty that is logical but not exactly the same as the five criteria described in Section 8.4.(a) Describe the rule in complete
- The decision tree in Figure 8.18 is designed to choose the cost-minimizing strategy set. What is the expected monetary value of the best solution? $30 0.75 $120 2 0.25 0.30 0.65 $58 $99 0.50 0.35
- What is the purpose of utility theory?
- What is an alternative? What is an outcome?
- Consider the budgeting problem for the General Foundry project as described in Section 7.5, using the information provided in Table 7.4. Suppose that cash flow is a big concern for the project
- Consider the data for a simple project as given in the following table.(a) Note that this project has only one path. What is the expected completion time of the project?(b) What is the probability of
- Consider the data for a simple project as given in the following table.(a) What is the critical path? What is the expected completion time of the project?(b) What is the probability of all activities
- Suppose that you are chair of the senior banquet planning committee at your college. Develop a list of activities for this project, including considerations such as entertainment, guest speaker,
- Complete the designated calculations for the following subsets of activities. Each subset is independent of the other subsets in the problem.(a) Activity H has an EFT of 12 days. Activity I has an
- The table for this problem describes the various activities of a construction project in a chemical plant.(a) Set up and solve an LP model using Excel to crash this project to 22 days. What is the
- What is an activity? What is an immediate predecessor?
- Dexter is taking 18 credit hours this semester, and he has 6 final exams on Monday. The first one starts at 8:00 a.m., and they run straight through until the last one is over at 8:00 p.m. It is 3:00
- Consider the Greenberg Motors example from section 3.8. Retrieve file Figure 3.14.xlsx, Sheet: Figure 3.14 from the Companion Website. Rerun the model (seen in Figure 3.14) by making all decision
- Indicate which of the following constraints are linear (or could be with the appropriate algebraic manipulation). In all cases, A, B, and C are continuous decision variables.(a) 5A + B/C ≤ 100(b)
- A company is considering opening new stores in the United States. The potential new locations are contained in the following table, where each binary variable equals 1 if that location gets a new
- Suppliers frequently offer quantity discounts to their customers to entice large orders. Consider the following incremental quantity discount schedule.Units ordered ................ Price per
- Suppliers frequently offer quantity discounts to their customers to entice large orders. Consider the following all-units quantity discount schedule.Units ordered .................... Price per
- A binary variable can be introduced to a mixed integer program to allow for a “threshold constraint.” A threshold constraint says that if any units are used, at least a specified minimum amount
- The “knapsack problem” has a long history in operations research. The traditional version has a hiker getting ready to go camping, and she needs to determine which items to carry in her knapsack.
- Binary variables can be used to provide a choice of RHS values for a constraint. For example, perhaps the amount of beer produced must fit into a 6-pack, a 12-pack, or a 24-pack. If there are T
- A binary variable can be used to ensure that at least one out of two constraints must be satisfied, but not necessarily both. Define Y as a binary variable and incorporate it into the constraints
- The “traveling salesperson problem” has a long history in operations research. A traveling salesperson must visit each of n cities exactly once, minimizing the total cost of travel and returning
- Which of the following are NLP models, and why? Are any of these quadratic programming models? Assume that all variables are nonnegative in all problems.(a)(b)(c)(d) Maximize profit = 3X, +5X, +99X,
- What does it mean to rank goals in GP? How does this affect the problem’s solution?
- What are deviation variables? How do they differ from decision variables in traditional LP problems?
- What is meant by satisficing, and why is the term often used in conjunction with GP?
- Provide your own examples of five applications of IP.
- Create a template in Excel, including all of the appropriate Solver settings, that would accommodate a standard shortest path problem with 8 nodes, where the objective is to find the shortest path
- In what ways do you think that corporations or governments could abuse their access to big data? What types of safeguards can governments, corporations, and individuals implement to try to mitigate
- What is implementation, and why is it important?
- St. Joseph’s School has 1,200 students, each of whom pays $8,000 per year to attend. In addition to revenues from tuition, the school receives an appropriation from the church to sustain its
- (a) Modify the Millers’ Tax Computation program in Figure 1.2 to include the next higher tax bracket: 28% for earnings between $153,101 and $233,350.(b) Suppose that Sue’s estimated income is now
- (a) Modify the Millers’ Tax Computation program in Figure 1.2 to include a tax deduction for educator expenses.(b) Next modify the program to account for a growing family. In particular, instead of
- Create an Excel model to provide the answer for Problem 1–19.Problem 1–19A website has a fixed cost of $15,000 per day. The revenue is $0.06 each time the website is accessed. The variable cost
- Suppliers frequently provide quantity discounts to customers who place large orders. An all-units quantity discount applies a discount to all units purchased once the applicable price breaks have
- Suppliers frequently provide quantity discounts to customers who place large orders. An incremental quantity discount provides a discount to all units purchased beyond the applicable price breaks,
- Consider a machine that fills bottles with beer. Output is known to be normally distributed with a standard deviation σ of 0.2 ounces. The bottle labels state that the bottles contain 10 ounces of
- What are the components of defining a problem in Excel so that it can be solved using Solver?
- What is the optimal solution (X, Y, Z) to the following linear program? You should be able to solve this question by inspection, i.e., without graphing or using Excel.Max 2X + 4Y + 6Zsubject to the
- Consider the following constraints from a two-variable linear program.(1) X ≥ 0(2) Y ≥ 0(3) 10X + 4Y ≤ 110(4) 5X − Y ≤ 90If constraints (2) and (3) are binding, what is the optimal solution
- Solve the following LP problem by using the graphical procedure and by using Excel:Minimize cost = 4X + 7Y subject to the constraints3X + 6Y ≥ 10010X + 2Y ≥ 1602Y ≥ 402X ≤ 75X, Y ≥ 0
- The Coastal Tea Company sells 60-pound bags of blended tea to restaurants. To be able to label the tea as South Carolina Tea, at least 55% of the tea (by weight) in the bag must be Carolina grown.
- A small manufacturer makes two types of motors, models A and B. The assembly process for each is similar in that both require a certain amount of wiring, drilling, and assembly. Each model A takes 3
- Find the intersection of each of the following sets of constraints.(a) 10X + 8Y = 800 and X + 4Y = 100(b) 2X + 4Y ≤ 28 and 3X – 12Y ≥ 6(c) 4X + 9Y ≤ 180 and 8X + 2Y ≤ 240(d) 4X – 7Y ≥
- Consider the linear programming formulation below. Which constraint is redundant?Maximize profit = 4X + 4Ysubject to the constraints6X + 4Y ≤ 1203X + 8Y ≤ 1202X + 2.5Y ≤ 100X, Y ≥ 0
- Consider the linear programming formulation below, where X and Y represent units of production of two different products. As currently written, the formulation is infeasible. The formulation can
- Consider the linear programming formulation below.Minimize cost = 5X + 4Ysubject to the constraints5X + 4Y ≥ 2004X + 6Y ≥ 3608X + 4Y ≤ 160X ≥
- Consider the linear programming formulation below.Maximize profit = 50X + 42Ysubject to the constraints5X − 4Y ≤ 200X ≤ 60Y ≥ 10X, Y ≥ 0(a) Try to solve the problem in Excel. What error
- Solve the following LP problem by using the graphical procedure and by using Excel:Maximize 40X + 50Ysubject to the constraintsX + 2Y ≤ 804X + 3Y ≤ 240X ≤ 51X, Y ≥ 0
- Consider the linear programming formulation below.Maximize 9T + 10S + 2Psubject to the constraintsT + S + P = 6S ≥ 3T ≥ 1P ≤ 3T, S, P ≥ 0This is a linear program with 3 variables. Rewrite
- Solve the following LP problem, which involves three decision variables, by using Excel:Minimize cost = 10.50X + 4.60Y + 12.20Zsubject to the constraints5X + 4Y ≥ 2004X − 6Y + 8Z ≥ 360X ≤
- Modify the Holiday Meal Turkey Ranch Problem in Figure 2.22 to include a third brand (Brand C). Brand C feed costs $0.12 per pound. Each pound of Brand C feed contains 12 protein units, 2 vitamin
- Solve the following LP problem, which involves four decision variables, by using Excel:Maximize profit = 210A + 400B + 320C + 280Dsubject to the constraints5A + 14B + 6C + 8D ≤ 200A ≥ 10B ≤
- A manufacturer of travel pillows must determine the production plan for the next production cycle. He wishes to make at least 300 of each of the three models that his firm offers and no more than
- Consider the Win Big Gambling Club media selection problem in Section 3.3 (Figure 3.4). In that formulation, we maximized audience coverage subject to an advertising budget constraint (plus other
- College freshman Jon Jackson wants to plan his Saturday night schedule for the next three weekends. In particular, he wants to determine what to do between 8:00 p.m. until 2:00 a.m. each Saturday
- Pullman Tire Company would like to plan production for the next three months. The firm can satisfy demand by using inventory, regular production (at $40 per tire), overtime (at $50 per tire), or
- The Marketing Club on campus sells three popular mixed soda drinks on campus to raise funds. The drinks are simple mixed blends of pure flavors of grape, orange, and cherry soda. “Starburst”
- Some countries impose “local content rules” on products manufactured in their country to try to stimulate the use of local suppliers and presumably to help the local economy. Global Industries,
- The Good-to-Go Suitcase Company makes three kinds of suitcases: (1) Standard, (2) Deluxe, (3) Luxury styles. Each suitcase goes through four production stages: (1) Cutting
- Consider Figure 4.20, which shows the Sensitivity Report for the Burn-Off Diet Drink example in Section 4.7. For each of the situations described below, check to see if the 100% rule can be used to
- Consider Figure 4.11, which shows the Sensitivity Report for the Flair Furniture Company example in Section 4.3. By examining this figure and the LP formulation, can you compute by hand the optimal
- Consider Figure 4.16, which shows the Sensitivity Report for the Anderson Home Electronics example in Section 4.4. Use the Sensitivity Report to answer the following questions, if possible. Each
- Consider the Flair Furniture example from Sections 4.2 and 4.3. Suppose that the company is considering the option of making stools in addition to its tables and chairs. Stools take 1 hour of
- Consider Figure 4.22 from the Hong Kong Bank labor planning example presented in Solved Problem 4–1. Suppose that every day between 11:00 a.m. and noon, two tellers’ worth of demand comes from
- Consider Figure 4.22 from the Hong Kong Bank labor-planning example presented in Solved Problem 4–1. What would be the impact on daily cost if corporate policy changed to allow the part-time hours
- Create a template in Excel, including all of the appropriate Solver settings, that would accommodate a standard transportation problem with 5 origins and 4 destinations.
- Create a template in Excel, including all of the appropriate Solver settings, that would accommodate a standard transshipment problem with 2 origins, 3 transshipment nodes, and 3 destinations.