Question: Chapter 9 Enhancing Decision Making with Solver Case Problems Level 1 Creating a Production Plan ...

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Chapter 9 Enhancing Decision Making with Solver Case Problems Level 1 - Creating a Production Plan for ATC Inc. Operations Management ATC Inc, is a manufacturing company that produces industrial valves. As the operations manager, you need to determine the production schedule for manufacturing three valves in the new 102 Series, which is used in oil refineries. Producing the 102 Series valves is a three part process. During the casting phase, the body of the valve and some of the attaching pieces are created. During the machining phase, the casting surfaces are finished, and the inner valve flange is created. Finally, during the last phase, the valves are assembled and inspected. The plant manager provided you with a workbook that contains the production times for each production phase, and the unit cost and list price for each 102 Series valve. The plant manager also told you that your time is limited to 500 hours in the Casting hours in the Machining Department, and 100 hours in the Final Assembly Department. No more time is available in these departments. The workbook also includes the setup costs associated with a production run for each valve. You account for these costs in the profit amounts for each valve. Based on historical demand for these valves, the company has a policy that any single valve in the 102 Series should constitute at least 10% of the production run and that no single valve should constitute more than 50% of the total production time. Your goal is to maximize the total profit of producing these valves while not exceeding the time available in each department. Complete the following: 1. Open the ATC Valve.xlsx workbook from the Chapter 9 folder, and then save the file as ATC Valve Production.xlsx. 2. Write the formulas that calculate the total production time used for casting, machin- ing, and final assembly. Enter a mathematical formula in the objective cell, and then enter formulas to link the objective cell with the variable cells. Add sample values to the variable cells to ensure that your worksheet is set up correctly and produces the expected results. 3. Create a constraints table in the worksheet that identifies the constraints in this problem. 4. Use Solver to determine the optimal combination of valves to build to maximize profit. 5. Produce an answer report of your solution. Which constraints could you modify to maximize the total profit? Place your recommendations in a text box on the answer report worksheet. 600 Enhancing Decision Making with Solver Chapter 9 & Save your solution as Scenario 1 Modify the constraints in your constraints table and in Solver that you determined would further improve the solution, and then run Solver again. Save this scenario as Scenario 2. Add a comment to the scenario describing the constraints you modified and why you chose to do so. 8. Produce an answer report of your revised solution. Did your solution accomplish the goals you identified in Step 5? What other changes can you recommend to maximize the total profit? Place your recommendations in a text box on the answer report worksheet 9. Save and close the ATC Valve Production.xlsx workbook Level 2 - Managing Purchases for Brightstar Toy Company +/- Brightstar Toy Company, a national toy store, is planning a huge promotion for Power Blocks action figures during the upcoming holiday season. As the company's purchasing manager, your job is to determine the best way to purchase these toys from the manufacturer at the lowest price. Accounting After contacting the Power Blocks manufacturer, you learned that volume discounts and discounts for preseason orders are available on the Power Blocks product line. You need to determine the best product mix based on the following information. The Power Blocks Urban Adventure set is the first item that most people will buy. Customers can also purchase the optional Turbo Action kit, which can be attached to the Power Blocks Urban Adventure set. Another companion set, the Outdoor set, has an optional Camping kit that customers can purchase separately. Chapter Exercises The marketing director for Brightstar, Betty Wright, wants to allocate the purchasing budget of $100,000 among the four toys. Because the Turbo Action kit and the Camping kit are accessories, Betty wants to buy at least half as many kits as sets, but the total number of kits cannot exceed the number of sets. Betty also wants to purchase at least 5,000 units of each set. Because you are purchasing the Power Blocks toys early, you must consider the cost of Storing the toys in the Brightstar warehouse until the holiday sales season begins. Your Workbook includes the retail price for each toy, the unit cost from Power Blocks, and the storage cost for storing the toys until you can send them to retailers. Your objective is to maximize the profit on all four toys. Chapter 9 Enhancing Decision Making with Solver Case Problems Level 1 - Creating a Production Plan for ATC Inc. Operations Management ATC Inc, is a manufacturing company that produces industrial valves. As the operations manager, you need to determine the production schedule for manufacturing three valves in the new 102 Series, which is used in oil refineries. Producing the 102 Series valves is a three part process. During the casting phase, the body of the valve and some of the attaching pieces are created. During the machining phase, the casting surfaces are finished, and the inner valve flange is created. Finally, during the last phase, the valves are assembled and inspected. The plant manager provided you with a workbook that contains the production times for each production phase, and the unit cost and list price for each 102 Series valve. The plant manager also told you that your time is limited to 500 hours in the Casting hours in the Machining Department, and 100 hours in the Final Assembly Department. No more time is available in these departments. The workbook also includes the setup costs associated with a production run for each valve. You account for these costs in the profit amounts for each valve. Based on historical demand for these valves, the company has a policy that any single valve in the 102 Series should constitute at least 10% of the production run and that no single valve should constitute more than 50% of the total production time. Your goal is to maximize the total profit of producing these valves while not exceeding the time available in each department. Complete the following: 1. Open the ATC Valve.xlsx workbook from the Chapter 9 folder, and then save the file as ATC Valve Production.xlsx. 2. Write the formulas that calculate the total production time used for casting, machin- ing, and final assembly. Enter a mathematical formula in the objective cell, and then enter formulas to link the objective cell with the variable cells. Add sample values to the variable cells to ensure that your worksheet is set up correctly and produces the expected results. 3. Create a constraints table in the worksheet that identifies the constraints in this problem. 4. Use Solver to determine the optimal combination of valves to build to maximize profit. 5. Produce an answer report of your solution. Which constraints could you modify to maximize the total profit? Place your recommendations in a text box on the answer report worksheet. 600 Enhancing Decision Making with Solver Chapter 9 & Save your solution as Scenario 1 Modify the constraints in your constraints table and in Solver that you determined would further improve the solution, and then run Solver again. Save this scenario as Scenario 2. Add a comment to the scenario describing the constraints you modified and why you chose to do so. 8. Produce an answer report of your revised solution. Did your solution accomplish the goals you identified in Step 5? What other changes can you recommend to maximize the total profit? Place your recommendations in a text box on the answer report worksheet 9. Save and close the ATC Valve Production.xlsx workbook Level 2 - Managing Purchases for Brightstar Toy Company +/- Brightstar Toy Company, a national toy store, is planning a huge promotion for Power Blocks action figures during the upcoming holiday season. As the company's purchasing manager, your job is to determine the best way to purchase these toys from the manufacturer at the lowest price. Accounting After contacting the Power Blocks manufacturer, you learned that volume discounts and discounts for preseason orders are available on the Power Blocks product line. You need to determine the best product mix based on the following information. The Power Blocks Urban Adventure set is the first item that most people will buy. Customers can also purchase the optional Turbo Action kit, which can be attached to the Power Blocks Urban Adventure set. Another companion set, the Outdoor set, has an optional Camping kit that customers can purchase separately. Chapter Exercises The marketing director for Brightstar, Betty Wright, wants to allocate the purchasing budget of $100,000 among the four toys. Because the Turbo Action kit and the Camping kit are accessories, Betty wants to buy at least half as many kits as sets, but the total number of kits cannot exceed the number of sets. Betty also wants to purchase at least 5,000 units of each set. Because you are purchasing the Power Blocks toys early, you must consider the cost of Storing the toys in the Brightstar warehouse until the holiday sales season begins. Your Workbook includes the retail price for each toy, the unit cost from Power Blocks, and the storage cost for storing the toys until you can send them to retailers. Your objective is to maximize the profit on all four toys