If x1-x4 are binary decision variables denoting choosing or not choosing of projects 1-4 for investing, The constraint x1− x2= 0 implies that if project 1 is selected, project 2 cannot be. True False
Q: Imagine you are the CEO of a company. While taking the elevator, three individuals pitch their…
A: Making decisions about new product ideas as the CEO of a company can be difficult. Three people…
Q: A manufacturer procures a subassembly from a supplier. The annual demand is 145,000 units, the cost…
A: The annual demand is 145000 The cost per unit is 4 The inventory carrying cost=12%×The cost per unit…
Q: What is a system's model? Which factors should be taken into consideration when constructing the…
A: A system's model is a representation of a real-world system that captures its important features and…
Q: What prerequisites must a company have in order to design a SIS?
A: A Safety Instrumented System (SIS) is type of control system used to manage safety risks and prevent…
Q: Consider a continuous review inventory system. Demand is normally distributed with an average of…
A: Monthly Demand (d) = 28,000 units per monthStandard deviation of demand (σd) = 4900 unitsLead time…
Q: Here is a 5 by 5 assignment problem. 69 14 82 36 22 71 93 74 79 120 28 75 109 44 27 69 7 96 12 41 61…
A: Find the Given details below: Given details: 69 14 82 36 22 71 93 74 79 72 120 28 75 109 44…
Q: For the Min LP min w = 24 y1-15 y2 + 27 3 s.t. C1: 8y1 + 6y2 - 4y3 >= 48 C2: y18y2 + 10y3 >= 20 C3:…
A: Objective Functions and Constraints: Based on the given details, the objective…
Q: The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements…
A: Cost is the amount that is incurred by the company on producing goods and services. The cost of…
Q: Type of Error a b с d e f g h i Supplied Data % age of Problems 5 1 13 15 3 12 10 35 6 Cost to Fix…
A: Pareto analysis is a decision-making technique which helps to identify the most significant factors…
Q: Regional Supermarket is open 355 days per year. Daily use of cash register tape averages 20 rolls.…
A: Given that Today Days = 355 Daily Usage = 20 Annual Demand = 355×20 = 7100 Standard Deviation = 2…
Q: The Walgreen chain prefers to operate one outlet in a town that has four major market segments. The…
A: Market X Coordinates (X) Y Coordinates (Y) No. of Customers(N) 1 4 15 3300 2 10 13 900 3 5 2…
Q: Aside from the most obvious benefit, which is an increase in vehicle sales, could technologies for…
A: Inventory valuation is the process of assigning a monetary value to the goods or products that a…
Q: What are JAD and RAD, and how do they vary from conventional techniques of fact-finding? What are…
A: JAD and RAD are two well-liked team-based operations management strategies for obtaining and…
Q: Problem 2: You go to the racetrack and are choosing between 2 horses: Belle and Jeb (you are at the…
A: Decision analysis is a part of business operations where the organization has to take a decision…
Q: Develop an aggregate production schedule for the year using a constant workforce. For simplicity,…
A: An aggregate production plan is the operation management method that helps determine the…
Q: For the next project: | | TIME ESTIMATE…
A:
Q: A restaurant uses 40 jars of a special sauce each week. The manager is willing to accept no more…
A: Inventory management involves the management of stock level in the organization so that the…
Q: U.S. productivity has improved noticeably in recent years, averaging 4%–5% per year, while the U.S.…
A: The issue of American employees' status in the contemporary economy is complex and multifaceted.…
Q: What would be the hardest part of an overseas assignment and why?
A: An overseas assignment can be a challenging yet rewarding experience, offering a unique opportunity…
Q: The management of Brinkley Corporation is interested in using simulation to estimate the profit (in…
A: Find the Given details below: Given details: Procurement cost Probability Labor cost…
Q: Define the specific terms by Johnny Cash, Grand Old Opry, and Southern Strategy with their…
A: Define the specific terms by Johnny Cash, Grand Old Opry, and Southern Strategy with their…
Q: conceptualize the following concepts 1. Information technology in supply chain management 2…
A: Supply chain management involves managing the entire process of creating and delivering products and…
Q: The following prompts are based on the Operations Management P-Systems topic: 3) Despite being a…
A: Selling Price = $3.57Cost Price = $1.06Salvage value = $0.58
Q: C. Calculate the slack for each activity. (Enter your responses as integers.) Slack Activity (days)…
A: In a project, slack refers to the length of time that an activity can be postponed without delaying…
Q: Floral Beauty, Inc., is a large floral arrangements store located in Asheville Mall. Bridal Lilies,…
A: From Current supplier:Annual demand (D) = 22,000Unit cost (C) = $19Ordering cost (S) = $85Unit…
Q: Provide a critical analysis of social, environmental and economic benefits and drawbacks of…
A: Sustainability has received a lot of attention in recent years, as concerns about climate change,…
Q: How exactly can the demands for information be monitored?
A: Information is a crucial resource for firms in the hectic commercial world of today. Operations…
Q: 7. The BD restaurant chain purchases materials from four different food suppliers. The company wants…
A: Location X Y Load A 200 200 75 B 100 500 105 C 250 600 135 D 500 300 60
Q: Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall,…
A: A production plan is a detailed strategy that outlines how a company plans to make and deliver its…
Q: A shoe factory produces 95,000 shoes each week. The equipment used costs $15,000 and will remain…
A: Demand = 95000Equipment Cost = 15000Productive years = 3labor Cost = 16000Assuming number of weeks =…
Q: We have three Suppliers and four Demanders. the Suppliers have inventory of 23 , 43, 37…
A: D1 D2 D3 D4 Supply S1 48 55 76 62 23 S2 36 66 32 85 43 S3 44 84 80 93 37 Demand 34 11 50 8…
Q: To ensure a full line of outdoor clothing and accessories, the marketing department at Teddy Bower…
A: Mean Demand = 400 bootsStandard deviation of demand = 300 bootsSelling price = $54Purchase cost =…
Q: The management of Brinkley Corporation is interested in using simulation to estimate the profit (in…
A: Find the given details below: Given details: Procurement cost Probability Labor cost…
Q: Once the project is completed, predicted costs vs. actual costs are compared, providing benchmarks…
A: An expected costing is a part of the budget plan for any project. While the actual costs are always…
Q: Break Even is defined as Revenue = Total Cost What is the quantity of toys that must be sold to…
A: Let the number of toys sold be x Formula to be used : Total revenue= Total Fixed cost + Total…
Q: O Suppose we wish to set up a production plan for the JC Company for the next six months. We are…
A: EOQ or economic order quantity is a business production model that lets an organization know how…
Q: A restaurant uses 40 jars of a special sauce each week. The manager is willing to accept no more…
A: Weekly demand (d) = 40 jars Standard deviation (SD) = 0.5 jars Stock out accepted = .62% Service…
Q: Get familiar with ERP software and supply-chain management databases.
A: Enterprise Resource Planning (ERP) software and supply chain management (SCM) databases are…
Q: Identify the ways how can firms use supply chain management to differentiate their products?
A: Product differentiation is a strategy adopted by the firm in which a firm distinguishes its product…
Q: What strategies can the organization take to survive, improve its performance, and compete with…
A: ABC Hospital, a privately-owned community hospital established in 1960, has been facing financial…
Q: write a literature review ,Critical Analysis and discussion on Hand Layup process
A: Research is the scientific study as well use of systematic methods to solve the problems faced by…
Q: The Fore and Aft Marina is located on the Ohio River near Madison, Indiana. Fore and Aft currently…
A: *As per guidline for many questions, first three are answerable please repost the reamining parts.…
Q: Harvesting Fruit Toward the middle of the harvesting sea-son, peaches for canning come in three…
A: Venn diagrams are the diagrams in form of intersecting circles where different parts of the diagram…
Q: Explain why organizations should utilize defined projects vs continuous improvement efforts to close…
A: Organisations may utilise both defined projects and continuous improvement efforts to close gaps…
Q: White, an employee of ABC Corporation, intentionally issued two payments for the same invoice. After…
A: In a "pay and return" scheme, the perpetrator mainly takes advantage of the fact that the vendor or…
Q: There are three factories located at Arkansas (AR), Indianapolis (IN), and Texas (TX) respectively.…
A: Find the Given details below: Cost Warehouse A Warehouse B Capacity AR 5 3 24…
Q: Why should a systems developer be concerned with ISO? What is ISO?
A: Today, ISO certification is particularly significant for organizations working in worldwide business…
Q: Oprah says I can solve this Primal Min LP min w 3y₁ + 2y2 + Ys = 8.t. Y1+ y2 + Y3 Y2Y3 91 + y2 + 2y3…
A: Max -w = - 4y1-2y2-y3Subject to--y1-y2 -y3≤-4y2-y3≤2y1 +y2+ 2y3≤6y1, y2, y3≥0
Q: Customer’s requirements should not be the basis for developing/generating concepts.
A: As per Bartleby guidelines, only one question can be solved at a time..Other questions need to be…
Q: a) For a 90% service level, what is the ROP? The reorder point is cigars (round your response to the…
A: Mean Lead Time (LT) = 4 weeks Standard Deviation of Lead Time (σLT) = 2 weeks Mean Demand (d) = 150…
If x1-x4 are binary decision variables denoting choosing or not choosing of projects 1-4 for investing, The constraint x1− x2= 0 implies that if project 1 is selected, project 2 cannot be.
True
False
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- A common decision is whether a company should buy equipment and produce a product in house or outsource production to another company. If sales volume is high enough, then by producing in house, the savings on unit costs will cover the fixed cost of the equipment. Suppose a company must make such a decision for a four-year time horizon, given the following data. Use simulation to estimate the probability that producing in house is better than outsourcing. If the company outsources production, it will have to purchase the product from the manufacturer for 25 per unit. This unit cost will remain constant for the next four years. The company will sell the product for 42 per unit. This price will remain constant for the next four years. If the company produces the product in house, it must buy a 500,000 machine that is depreciated on a straight-line basis over four years, and its cost of production will be 9 per unit. This unit cost will remain constant for the next four years. The demand in year 1 has a worst case of 10,000 units, a most likely case of 14,000 units, and a best case of 16,000 units. The average annual growth in demand for years 2-4 has a worst case of 7%, a most likely case of 15%, and a best case of 20%. Whatever this annual growth is, it will be the same in each of the years. The tax rate is 35%. Cash flows are discounted at 8% per year.You now have 10,000, all of which is invested in a sports team. Each year there is a 60% chance that the value of the team will increase by 60% and a 40% chance that the value of the team will decrease by 60%. Estimate the mean and median value of your investment after 50 years. Explain the large difference between the estimated mean and median.Based on Kelly (1956). You currently have 100. Each week you can invest any amount of money you currently have in a risky investment. With probability 0.4, the amount you invest is tripled (e.g., if you invest 100, you increase your asset position by 300), and, with probability 0.6, the amount you invest is lost. Consider the following investment strategies: Each week, invest 10% of your money. Each week, invest 30% of your money. Each week, invest 50% of your money. Use @RISK to simulate 100 weeks of each strategy 1000 times. Which strategy appears to be best in terms of the maximum growth rate? (In general, if you can multiply your investment by M with probability p and lose your investment with probability q = 1 p, you should invest a fraction [p(M 1) q]/(M 1) of your money each week. This strategy maximizes the expected growth rate of your fortune and is known as the Kelly criterion.) (Hint: If an initial wealth of I dollars grows to F dollars in 100 weeks, the weekly growth rate, labeled r, satisfies F = (I + r)100, so that r = (F/I)1/100 1.)
- W. L. Brown, a direct marketer of womens clothing, must determine how many telephone operators to schedule during each part of the day. W. L. Brown estimates that the number of phone calls received each hour of a typical eight-hour shift can be described by the probability distribution in the file P10_33.xlsx. Each operator can handle 15 calls per hour and costs the company 20 per hour. Each phone call that is not handled is assumed to cost the company 6 in lost profit. Considering the options of employing 6, 8, 10, 12, 14, or 16 operators, use simulation to determine the number of operators that minimizes the expected hourly cost (labor costs plus lost profits).Based on Babich (1992). Suppose that each week each of 300 families buys a gallon of orange juice from company A, B, or C. Let pA denote the probability that a gallon produced by company A is of unsatisfactory quality, and define pB and pC similarly for companies B and C. If the last gallon of juice purchased by a family is satisfactory, the next week they will purchase a gallon of juice from the same company. If the last gallon of juice purchased by a family is not satisfactory, the family will purchase a gallon from a competitor. Consider a week in which A families have purchased juice A, B families have purchased juice B, and C families have purchased juice C. Assume that families that switch brands during a period are allocated to the remaining brands in a manner that is proportional to the current market shares of the other brands. For example, if a customer switches from brand A, there is probability B/(B + C) that he will switch to brand B and probability C/(B + C) that he will switch to brand C. Suppose that the market is currently divided equally: 10,000 families for each of the three brands. a. After a year, what will the market share for each firm be? Assume pA = 0.10, pB = 0.15, and pC = 0.20. (Hint: You will need to use the RISKBINOMLAL function to see how many people switch from A and then use the RISKBENOMIAL function again to see how many switch from A to B and from A to C. However, if your model requires more RISKBINOMIAL functions than the number allowed in the academic version of @RISK, remember that you can instead use the BENOM.INV (or the old CRITBENOM) function to generate binomially distributed random numbers. This takes the form =BINOM.INV (ntrials, psuccess, RAND()).) b. Suppose a 1% increase in market share is worth 10,000 per week to company A. Company A believes that for a cost of 1 million per year it can cut the percentage of unsatisfactory juice cartons in half. Is this worthwhile? (Use the same values of pA, pB, and pC as in part a.)Six months before its annual convention, the American Medical Association must determine how many rooms to reserve. At this time, the AMA can reserve rooms at a cost of 150 per room. The AMA believes the number of doctors attending the convention will be normally distributed with a mean of 5000 and a standard deviation of 1000. If the number of people attending the convention exceeds the number of rooms reserved, extra rooms must be reserved at a cost of 250 per room. a. Use simulation with @RISK to determine the number of rooms that should be reserved to minimize the expected cost to the AMA. Try possible values from 4100 to 4900 in increments of 100. b. Redo part a for the case where the number attending has a triangular distribution with minimum value 2000, maximum value 7000, and most likely value 5000. Does this change the substantive results from part a?
- In August of the current year, a car dealer is trying to determine how many cars of the next model year to order. Each car ordered in August costs 20,000. The demand for the dealers next year models has the probability distribution shown in the file P10_12.xlsx. Each car sells for 25,000. If demand for next years cars exceeds the number of cars ordered in August, the dealer must reorder at a cost of 22,000 per car. Excess cars can be disposed of at 17,000 per car. Use simulation to determine how many cars to order in August. For your optimal order quantity, find a 95% confidence interval for the expected profit.In Example 11.1, the possible profits vary from negative to positive for each of the 10 possible bids examined. a. For each of these, use @RISKs RISKTARGET function to find the probability that Millers profit is positive. Do you believe these results should have any bearing on Millers choice of bid? b. Use @RISKs RISKPERCENTILE function to find the 10th percentile for each of these bids. Can you explain why the percentiles have the values you obtain?You have 5 and your opponent has 10. You flip a fair coin and if heads comes up, your opponent pays you 1. If tails comes up, you pay your opponent 1. The game is finished when one player has all the money or after 100 tosses, whichever comes first. Use simulation to estimate the probability that you end up with all the money and the probability that neither of you goes broke in 100 tosses.
- Amanda has 30 years to save for her retirement. At the beginning of each year, she puts 5000 into her retirement account. At any point in time, all of Amandas retirement funds are tied up in the stock market. Suppose the annual return on stocks follows a normal distribution with mean 12% and standard deviation 25%. What is the probability that at the end of 30 years, Amanda will have reached her goal of having 1,000,000 for retirement? Assume that if Amanda reaches her goal before 30 years, she will stop investing. (Hint: Each year you should keep track of Amandas beginning cash positionfor year 1, this is 5000and Amandas ending cash position. Of course, Amandas ending cash position for a given year is a function of her beginning cash position and the return on stocks for that year. To estimate the probability that Amanda meets her goal, use an IF statement that returns 1 if she meets her goal and 0 otherwise.)The annual demand for Prizdol, a prescription drug manufactured and marketed by the NuFeel Company, is normally distributed with mean 50,000 and standard deviation 12,000. Assume that demand during each of the next 10 years is an independent random number from this distribution. NuFeel needs to determine how large a Prizdol plant to build to maximize its expected profit over the next 10 years. If the company builds a plant that can produce x units of Prizdol per year, it will cost 16 for each of these x units. NuFeel will produce only the amount demanded each year, and each unit of Prizdol produced will sell for 3.70. Each unit of Prizdol produced incurs a variable production cost of 0.20. It costs 0.40 per year to operate a unit of capacity. a. Among the capacity levels of 30,000, 35,000, 40,000, 45,000, 50,000, 55,000, and 60,000 units per year, which level maximizes expected profit? Use simulation to answer this question. b. Using the capacity from your answer to part a, NuFeel can be 95% certain that actual profit for the 10-year period will be between what two values?Based on Grossman and Hart (1983). A salesperson for Fuller Brush has three options: (1) quit, (2) put forth a low level of effort, or (3) put forth a high level of effort. Suppose for simplicity that each salesperson will sell 0, 5000, or 50,000 worth of brushes. The probability of each sales amount depends on the effort level as described in the file P07_71.xlsx. If a salesperson is paid w dollars, he or she regards this as a benefit of w1/2 units. In addition, low effort costs the salesperson 0 benefit units, whereas high effort costs 50 benefit units. If a salesperson were to quit Fuller and work elsewhere, he or she could earn a benefit of 20 units. Fuller wants all salespeople to put forth a high level of effort. The question is how to minimize the cost of encouraging them to do so. The company cannot observe the level of effort put forth by a salesperson, but it can observe the size of his or her sales. Thus, the wage paid to the salesperson is completely determined by the size of the sale. This means that Fuller must determine w0, the wage paid for sales of 0; w5000, the wage paid for sales of 5000; and w50,000, the wage paid for sales of 50,000. These wages must be set so that the salespeople value the expected benefit from high effort more than quitting and more than low effort. Determine how to minimize the expected cost of ensuring that all salespeople put forth high effort. (This problem is an example of agency theory.)