12-20. During the past five months the emergency room at thenew County Hospital has observed the number of patientsduring two parts of every other week-the weekend (Fridaythrough Sunday) and weekdays (Monday through Thurs-day). They typically experience greater patient traffic onweekends than during the week:12Number of PatientsWeekWeekendWeekdays1105732119853.12289412883511796136787141911261001438310140101a. Develop a seasonally adjusted forecasting model fornumber of patients during each part of the week forweek 11.

Seasonal adjustment is a strategy for information smoothing that is utilized to foresee monetary…

Answered: 0. During the past five months the…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter7: Nonlinear Optimization Models

Section: Chapter Questions

Problem 52P

See similar textbooks

Similar questions

The eTech Company is a fairly recent entry in the electronic device area. The company competes with Apple. Samsung, and other well-known companies in the manufacturing and sales of personal handheld devices. Although eTech recognizes that it is a niche player and will likely remain so in the foreseeable future, it is trying to increase its current small market share in this huge competitive market. Jim Simons, VP of Production, and Catherine Dolans, VP of Marketing, have been discussing the possible addition of a new product to the companys current (rather limited) product line. The tentative name for this new product is ePlayerX. Jim and Catherine agree that the ePlayerX, which will feature a sleeker design and more memory, is necessary to compete successfully with the big boys, but they are also worried that the ePlayerX could cannibalize sales of their existing productsand that it could even detract from their bottom line. They must eventually decide how much to spend to develop and manufacture the ePlayerX and how aggressively to market it. Depending on these decisions, they must forecast demand for the ePlayerX, as well as sales for their existing products. They also realize that Apple. Samsung, and the other big players are not standing still. These competitors could introduce their own new products, which could have very negative effects on demand for the ePlayerX. The expected timeline for the ePlayerX is that development will take no more than a year to complete and that the product will be introduced in the market a year from now. Jim and Catherine are aware that there are lots of decisions to make and lots of uncertainties involved, but they need to start somewhere. To this end. Jim and Catherine have decided to base their decisions on a planning horizon of four years, including the development year. They realize that the personal handheld device market is very fluid, with updates to existing products occurring almost continuously. However, they believe they can include such considerations into their cost, revenue, and demand estimates, and that a four-year planning horizon makes sense. In addition, they have identified the following problem parameters. (In this first pass, all distinctions are binary: low-end or high-end, small-effect or large-effect, and so on.) In the absence of cannibalization, the sales of existing eTech products are expected to produce year I net revenues of 10 million, and the forecast of the annual increase in net revenues is 2%. The ePIayerX will be developed as either a low-end or a high-end product, with corresponding fixed development costs (1.5 million or 2.5 million), variable manufacturing costs ( 100 or 200). and selling prices (150 or 300). The fixed development cost is incurred now, at the beginning of year I, and the variable cost and selling price are assumed to remain constant throughout the planning horizon. The new product will be marketed either mildly aggressively or very aggressively, with corresponding costs. The costs of a mildly aggressive marketing campaign are 1.5 million in year 1 and 0.5 million annually in years 2 to 4. For a very aggressive campaign, these costs increase to 3.5 million and 1.5 million, respectively. (These marketing costs are not part of the variable cost mentioned in the previous bullet; they are separate.) Depending on whether the ePlayerX is a low-end or high-end produce the level of the ePlayerXs cannibalization rate of existing eTech products will be either low (10%) or high (20%). Each cannibalization rate affects only sales of existing products in years 2 to 4, not year I sales. For example, if the cannibalization rate is 10%, then sales of existing products in each of years 2 to 4 will be 10% below their projected values without cannibalization. A base case forecast of demand for the ePlayerX is that in its first year on the market, year 2, demand will be for 100,000 units, and then demand will increase by 5% annually in years 3 and 4. This base forecast is based on a low-end version of the ePlayerX and mildly aggressive marketing. It will be adjusted for a high-end will product, aggressive marketing, and competitor behavior. The adjustments with no competing product appear in Table 2.3. The adjustments with a competing product appear in Table 2.4. Each adjustment is to demand for the ePlayerX in each of years 2 to 4. For example, if the adjustment is 10%, then demand in each of years 2 to 4 will be 10% lower than it would have been in the base case. Demand and units sold are the samethat is, eTech will produce exactly what its customers demand so that no inventory or backorders will occur. Table 2.3 Demand Adjustments When No Competing Product Is Introduced Table 2.4 Demand Adjustments When a Competing Product Is Introduced Because Jim and Catherine are approaching the day when they will be sharing their plans with other company executives, they have asked you to prepare an Excel spreadsheet model that will answer the many what-if questions they expect to be asked. Specifically, they have asked you to do the following: You should enter all of the given data in an inputs section with clear labeling and appropriate number formatting. If you believe that any explanations are required, you can enter them in text boxes or cell comments. In this section and in the rest of the model, all monetary values (other than the variable cost and the selling price) should be expressed in millions of dollars, and all demands for the ePlayerX should be expressed in thousands of units. You should have a scenario section that contains a 0/1 variable for each of the binary options discussed here. For example, one of these should be 0 if the low-end product is chosen and it should be 1 if the high-end product is chosen. You should have a parameters section that contains the values of the various parameters listed in the case, depending on the values of the 0/1 variables in the previous bullet For example, the fixed development cost will be 1.5 million or 2.5 million depending on whether the 0/1 variable in the previous bullet is 0 or 1, and this can be calculated with a simple IF formula. You can decide how to implement the IF logic for the various parameters. You should have a cash flows section that calculates the annual cash flows for the four-year period. These cash flows include the net revenues from existing products, the marketing costs for ePlayerX, and the net revenues for sales of ePlayerX (To calculate these latter values, it will help to have a row for annual units sold of ePlayerX.) The cash flows should also include depreciation on the fixed development cost, calculated on a straight-line four-year basis (that is. 25% of the cost in each of the four years). Then, these annual revenues/costs should be summed for each year to get net cash flow before taxes, taxes should be calculated using a 32% tax rate, and taxes should be subtracted and depreciation should be added back in to get net cash flows after taxes. (The point is that depreciation is first subtracted, because it is not taxed, but then it is added back in after taxes have been calculated.) You should calculate the company's NPV for the four-year horizon using a discount rate of 10%. You can assume that the fixed development cost is incurred now. so that it is not discounted, and that all other costs and revenues are incurred at the ends of the respective years. You should accompany all of this with a line chart with three series: annual net revenues from existing products; annual marketing costs for ePlayerX; and annual net revenues from sales of ePlayerX. Once all of this is completed. Jim and Catherine will have a powerful tool for presentation purposes. By adjusting the 0/1 scenario variables, their audience will be able to see immediately, both numerically and graphically, the financial consequences of various scenarios.
A telephone-order sales company must determinehow many telephone operators are needed to staffthe phones during the 9-to-5 shift. It is estimated thatan average of 480 calls are received during this timeperiod and that the average call lasts for six minutes.There is no queueing. If a customer calls and all operators are busy, this customer receives a busy sig-nal and must hang up. If the company wants to have at most one chance in 100 of a caller receiving abusy signal, how many operators should be hired forthe 9-to-5 shift? Base your answer on an appropriatesimulation. Does it matter whether the service timesare exponentially distributed or gamma distributed?Experiment to find out.
Daniel Glaser, chairman of the College of San Antonio'sbusiness department, needs to assign professors to courses nextsemester. As a criterion for judging who should teach each course,Professor Glaser reviews the past 2 years' teaching evaluations(which were filled out by students). Since each of the four professorstaught each of the four courses at one time or another duringthe 2-year period, Glaser is able to record a course rating for eachinstructor. These ratings are shown in the following table.a) Find the assignment of professors to courses to maximize theoverall teaching rating.b) Assign the professors to the courses with the exception thatProfessor F isher cannot teach statistics.
The program manager for KWTV Channel 8 would like to determine the best way to allocate the time for the 11:00–11:30 evening news broadcast. Specifically, she would like to determine the number of minutes of broadcast time to devote to local news, national news, weather, and sports. Over the 30-minute broadcast, 10 minutes are set aside for advertising. The station’s broadcast policy states that at least 15% of the time available should be devoted to local news coverage; the time devoted to the combination of local news and national news must be at least 50% of the total broadcast time; the time devoted to the weather segment must be less than or equal to the time devoted to the sports segment; the time devoted to the sports segment should be no longer than the total time spent on the local and national news; and at least 20% of the time should be devoted to the weather segment. The production costs per minute are $300 for local news, $200 for national news, $100 for weather, and $100…
Help pleasee 15) Mining Company operates two mines for the purpose of extracting gold and silver. The Saddle Mine costs $26,000/day to operate, and it yields 50 oz of gold and 3000 oz of silver each of x day. The Horseshoe Mine costs $16,000/day to operate, and it yields 75 oz of gold and 1000 oz of silver each of y day. Company management has set a target of at least 650 oz of gold and 18,000 oz of silver. (a) How many days should each mine be operated so that the target can be met at a minimum cost?The minimum is C = at (x, y) = Suppose C = cx + 16,000y. Find the range of values that the Saddle Mine's daily operating cost, the coefficient c of x, can assume without changing the optimal solution.≤ CI Find the range of values that the requirement for gold can assume.≤ (requirement for gold) ≤ Find the shadow price for the requirement for gold. (Round your answer to the nearest cent.)
Seneca Hill Winery recently purchased land for the purpose of establishing a new vineyard.Management is considering two varieties of white grapes for the new vineyard: Chardonnayand Riesling. The Chardonnay grapes would be used to produce a dry Chardonnay wine,and the Riesling grapes would be used to produce a semidry Riesling wine. It takes approximatelyfour years from the time of planting before new grapes can be harvested. Thislength of time creates a great deal of uncertainty concerning future demand and makes thedecision about the type of grapes to plant difficult. Three possibilities are being considered:Chardonnay grapes only; Riesling grapes only; and both Chardonnay and Riesling grapes.Seneca management decided that for planning purposes it would be adequate to consideronly two demand possibilities for each type of wine: strong or weak. With two possibilitiesfor each type of wine, it was necessary to assess four probabilities. With the help of someforecasts in industry…
At modern woodworks, president and producer of apple crates sold to growers, has been able, with his current equipment, to produce 240 crates per 100 logs. He currently purchases 100 logs per day, and each log requires 3 labor hours to process. He believes that he can hire a profesional buyer who can buy a better quality log at the same cost. if this is the case, he can increase hos production to 260 crates per 100 logs. His labour-hours will increase by 8 hours per day. What will be the impact on productivity (measured in crates per labor-hour) if the buyer is hired?
Daniel Glaser, chairman of the College of San Antonio's business department, needs to assign professors to courses next semester. As a criterion for judging who should teach each course, Professor Glaser reviews the past 2 years' teaching evaluations (which were filled out by students). Since each of the four professors taught each of the four courses at one time or another during the 2-year period, Glaser is able to record a course rating for each instructor. These ratings are shown in the following table. Course Professor Statistics Management Finance Economics W.W. Fisher 65 75 70 50 D. Golhar 90 65 95 40 Z. Hug 70 60 80 75 N. K. Rustagi 85 40 80 60 a) The optimal assignment of courses to professors that will maximize the overall teaching rating is:…
In 2013 the president and chief executive officer of McDonalds, Don Thompson, saidthat McDonald’s was considering serving breakfast all day, instead of stopping at10.30.A.M.on weekdays and 11.00 A.M. on weekends. Several owners of McDonald’srestaurants however, point out that offering breakfast 24 hours a day presents twologistical problems. (1)Burgers and other meals need to be cooked at a highertemperature than eggs, so it would be difficult for employees to set the grill at the righttemperature for both foods, and (2) scrambled eggs require employees to continually stir, while hamburgers don’t require this attention. In addition some customers might buy thecheaper breakfast rather than the more expensive lunch or dinner meal.If you were the president and chief executive officer of McDonald’s, discuss how you wouldgo about deciding whether to serve breakfast all day.
Harvesting Fruit Toward the middle of the harvesting sea-son, peaches for canning come in three types, early, late, and extra late, depending on the expected date of ripening. During a certain week, the following data were recorded at a fruit delivery station:34 trucks went out carrying early peaches;61 carried late peaches;50 carried extra late;25 carried early and late;30 carried late and extra late;8 carried early and extra late;6 carried all three;9 carried only fgs (no peaches at all).(a) How many trucks carried only late variety peaches?(b) How many carried only extra late?(c) How many carried only one type of peach?(d) How many trucks (in all) went out during the week?
You are the district manager for the NCDNR aka the Game Wardens. You staff your law enforcement officers such that they have a 10 hour work day in a single shift. This means that they work 4 days in a row and have 3 consecutive days off. For your district, you need to make sure that you have at least: 10 working on Saturday, 0 on Sunday, 3 on Monday, 3 on Tuesday, 5 on Wednesday, 4 on Thursday, and 8 on Friday. Your current compensation plan approved by the state is: Days off M,T,W T,W,Th W,Th,F Th,F,Sa F,Sa,Su Sa,Su,M Su,M,T Wage 3000 2900 2820 2750 2600 2700 2720 Questions:  What is the objective function value?  How many employees do you have?  How many people show up for work on Sunday, despite this not being necessary according to the scheduling requirements?
Primer Inc. offers plumbing and air conditioning services to customers in Brooklyn, NY. The company’s product strategy is to solve the customer’s problem irrespective of what it takes, at the time the customer needs it solved. The company provides same-day service for customers, and the aim is to make the customer happy before leaving.The services of the company are available 24 hours a day, 7 days a week for customers. There is no extra charge for requests made on holidays, odd hours of the day, or in festive seasons. The company aims to be available at the call of customers without charging a pesewa extra, even at times when rival firms won’t get out of bed.The company fixes the price of the service before it begins, and customers can be assured of no extra charges. Irrespective of the customer’s location in the city, Primer Inc. does not charge additional fees for transportation. For all services, the company provides a one-year guarantee on all parts and labor used, while rival…

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

SEE MORE TEXTBOOKS