Mackey Enterprises is a conglomerate composed of several manufacturing entities. Recently, the Board of Directors budgeted...

  

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Mackey Enterprises is a conglomerate composed of several manufacturing entities. Recently, the Board of Directors budgeted $2,300,000 for sustainability-oriented projects. The Board solicited sustainability- expenditure ideas from all Mackey employees. The following projects, listed in random order, made the final cut. (Unfortunately, the budget is not large enough to accommodate all of the projects. Your assignment is to advise the Board as to how the money should be spent.) FOOTPRINTING: One project involves the environmental footprinting of Mackey Enterprises. The Board has divided the Company into eight separate facilities for the purpose of footprinting. Any or all of the eight facilities can be footprinted. The cost of determining and presenting each footprint is $90,000. LEAN MANUFACTURING: A single project to implement Lean philosophies throughout the Company would cost $300,000. This project would extend upstream (to suppliers), but there are no plans to go downstream (to customers) at this time. ISO CERTIFICATION: A rather extensive project would involve certification based upon the ISO-14000 family of standards. Thirteen separate entities need certification. Any number of entities can be certified. Each certification process costs $70,000. SAFETY: Mackey Enterprises is already well-known for its safety record, but many employees believe additional progress can be made. The Board decided to include this project because it only costs $40,000. MOVING TO THE CLOUD: The Board believes that as time goes by, much of the sustainability of Mackey Enterprises will revolve around moving as many operations as possible to the Cloud. This cloud- computing project costs $800,000. RISK MANAGEMENT: Wall Street hates surprises. Regardless of the projects chosen, sustainability will mean change, and change must be managed. The Board believes that the cost of managing this change will be $250,000. EMPLOYEE TRAINING: the Board believes that much can be achieved in terms of sustainability simply by training employees. Training can help employees better understand the green philosophies of top management, diversity throughout the workplace, Mackey Enterprises' responses to changes in climate, and a host of other concerns. The Board would want to train as many of its 2,500 employees as possible. The cost is expected to be $200 per employee trained. In addition to cost, the Company is constrained by the number of executives that must oversee these projects. Also, via consultation throughout the Company, the Board has developed measures of utility- in terms of public relations-for each project. The Board believes that much of the benefit to be derived from Sustainability Projects comes from such "PR." Necessary executives and measures of utility are summarized in the following table. The Company has 70 executives, but would prefer to use only 25 for these projects. The Company may also want to maximize utility. Project FOOTPRINTING LEAN MANUFACTURING ISO CERTIFICATION SAFETY MOVING TO THE CLOUD RISK MANAGEMENT EMPLOYEE TRAINING Measure Per Footprint Per Entire Project Per Certification Per Entire Project Per Entire Project Per Entire Project Per Employee Executives Utility 0.500 30 6.000 19 1.000 50 2.000 2.000 1.000 0.025 8 1 1 5 Requirements: A) Design a linear programming solution wherein a single objective-maximizing utility-is achieved. <nine points> B) Design a goal-programming (multiple-objective) solution for each of the following considerations: 1) The Board's highest priority (weight-100) is to include the RISK MANAGEMENT project. The next highest priority (weight-10) is to spend all $2,300,000. Third highest priority (weight-5) is to use only 25 executives. The fourth goal (weight-1) is to maximize utility. <forty-one points> Mackey Enterprises is a conglomerate composed of several manufacturing entities. Recently, the Board of Directors budgeted $2,300,000 for sustainability-oriented projects. The Board solicited sustainability- expenditure ideas from all Mackey employees. The following projects, listed in random order, made the final cut. (Unfortunately, the budget is not large enough to accommodate all of the projects. Your assignment is to advise the Board as to how the money should be spent.) FOOTPRINTING: One project involves the environmental footprinting of Mackey Enterprises. The Board has divided the Company into eight separate facilities for the purpose of footprinting. Any or all of the eight facilities can be footprinted. The cost of determining and presenting each footprint is $90,000. LEAN MANUFACTURING: A single project to implement Lean philosophies throughout the Company would cost $300,000. This project would extend upstream (to suppliers), but there are no plans to go downstream (to customers) at this time. ISO CERTIFICATION: A rather extensive project would involve certification based upon the ISO-14000 family of standards. Thirteen separate entities need certification. Any number of entities can be certified. Each certification process costs $70,000. SAFETY: Mackey Enterprises is already well-known for its safety record, but many employees believe additional progress can be made. The Board decided to include this project because it only costs $40,000. MOVING TO THE CLOUD: The Board believes that as time goes by, much of the sustainability of Mackey Enterprises will revolve around moving as many operations as possible to the Cloud. This cloud- computing project costs $800,000. RISK MANAGEMENT: Wall Street hates surprises. Regardless of the projects chosen, sustainability will mean change, and change must be managed. The Board believes that the cost of managing this change will be $250,000. EMPLOYEE TRAINING: the Board believes that much can be achieved in terms of sustainability simply by training employees. Training can help employees better understand the green philosophies of top management, diversity throughout the workplace, Mackey Enterprises' responses to changes in climate, and a host of other concerns. The Board would want to train as many of its 2,500 employees as possible. The cost is expected to be $200 per employee trained. In addition to cost, the Company is constrained by the number of executives that must oversee these projects. Also, via consultation throughout the Company, the Board has developed measures of utility- in terms of public relations-for each project. The Board believes that much of the benefit to be derived from Sustainability Projects comes from such "PR." Necessary executives and measures of utility are summarized in the following table. The Company has 70 executives, but would prefer to use only 25 for these projects. The Company may also want to maximize utility. Project FOOTPRINTING LEAN MANUFACTURING ISO CERTIFICATION SAFETY MOVING TO THE CLOUD RISK MANAGEMENT EMPLOYEE TRAINING Measure Per Footprint Per Entire Project Per Certification Per Entire Project Per Entire Project Per Entire Project Per Employee Executives Utility 0.500 30 6.000 19 1.000 50 2.000 2.000 1.000 0.025 8 1 1 5 Requirements: A) Design a linear programming solution wherein a single objective-maximizing utility-is achieved. <nine points> B) Design a goal-programming (multiple-objective) solution for each of the following considerations: 1) The Board's highest priority (weight-100) is to include the RISK MANAGEMENT project. The next highest priority (weight-10) is to spend all $2,300,000. Third highest priority (weight-5) is to use only 25 executives. The fourth goal (weight-1) is to maximize utility. <forty-one points>

Answer rating: 100% (QA)

A Let x1 number of facilities to be footprinted x2 whether or not to implement Lean Manufacturing x3 number of entities to be ISO certified x4 whether ... View the full answer