(a) What is the optimal solution and the total profit contribution (in $)? DRB DRW total profit contribution $ (b) Another supplier offered to provide Deegan Industries with an additional 500 pounds of the steel alloy at $2 per pound. Should Deegan purchase the additional pounds of the steel alloy? Explain. O Yes, there is no surplus of steel so any additional steel that becomes available should be purchased. O Yes, the dual value for steel available is 8.8. Each pound of steel will increase profits more than the $2 per pound that the supplier is offering. O No, there is a slack value of 6,273, so additional pounds of steel will not increase profits. O No, the dual value for steel available is 0.6. Each pound of steel will not increase profits enough to justify the $2 per pound that the supplier is offering. O No, the allowable increase for steel is only 24 pounds, so the additional profits are not applicable for 500 pounds. (c) Deegan is considering using overtime to increase the available assembly time. What would you advise Deegan to do regarding this option? Explain. Constraint ? has a slack. Increasing the number of hours of assembly time will ---Select---✓ profits.
Q: Use the data below to solve for the following: 2. Naïve method 3. Unweighted 3 month moving average…
A: Formulae used: 1) Naiive method:Previous period actual data = Current period forecast data.2)…
Q: 2. Your firm has implemented just-in-time replenishment. This is an operations decision in the area…
A: Inventory is the raw material that the organization keeps so that a smooth production process can be…
Q: Expected Table Format: See bellow DMUU: Letter/Value Reason Perfect Optimism: Perfect Pessimism…
A: MInimax regret: Minimax regret: Determine worst regret for each alternative and chose alternate…
Q: Could you quickly explain any two of the outputs that arise from the process of controlling quality…
A: The quality control process is a widely used process method in projects. Its aim is to measure the…
Q: Describe how project management software packages may help with project scheduling. Please respond…
A: Every company involves in some project at some point of time. The duration varies from company to…
Q: Describe the operations function and the nature of the operations manager's job. NOTE: please refer…
A: the operations consist of different activities which can be of the following types - producing goods…
Q: Michael's Mechanical sells 6,000 jettison machines annually. Each machine costs Michael's $2,000 to…
A: Given, Annual demand, d =6000 machines Ordering costs, O =$150 per order Purchase cost, u =$2000…
Q: Briefly Explain Risk Management, How you will calculate Risk in Logistical Operations and what are…
A: Risk Management: Logistics risks are major risks and it is related to production,…
Q: Create a graphical format Work Breakdown Structure (WBS) based on the project information below. The…
A: A work breakdown structure can be stated as the diagram that indicates the interlinks between the…
Q: The officers should rent buses and vans to minimize the transportation costs.
A: Linear programming is a mathematical technique that is also used in operations management…
Q: This exercise contains only parts b, c, and d. b) The activities on the critical path are A-B-F c)…
A: Forward pass: Earliest Start (ES) = Maximum of all predecessor activities (ES = 0 for Start…
Q: 8.- A small construction company specializes in the construction and sale of family homes. The firm…
A: The firm should build a combination of Model A and Model B that would maximize its profits. In this…
Q: 1. Write short notes about types of production systems
A: Note- Hi! Thank you for the question As per the honour code, We’ll answer the first question since…
Q: Tim runs a softball league consisting of 16 teams. Each team plays approximately 20 games each…
A: Using the linear programming concept, the optimal workforce scheduling can be determined. Decision…
Q: If the tracking signal for your forecast was consistently positive, you could then say this about…
A: Tracking signal, as the name suggests, is a way to evaluate the forecast in comparison to actual…
Q: Discuss the use of the Program Evaluation and ReviewTechnique (PERT) to schedule the tasks of a…
A: In a project management scenario, scheduling is described as listing the milestones, deliverables,…
Q: What is the standard deviation of the demand during lead-time? A. 60 bottles B. 90 bootles OC. 40…
A: Given- Lead Time (LT)= 4 daysWeekly Std. Deviation (σ)=30 bottlesService Level=90%
Q: Hokey Min's Kleen Karpet cleaned 65 rugs in October, consuming the following resources: 520 hours at…
A: Production per work hour is a measure of Labor productivity. Investment in the capital, technical…
Q: Susan manages the packaging supplies for the New Zealand distributorship of AllBirds product lines.…
A: Given that Annual demand D = 3900 Ordering cost S = 18 Holding cost H = 25% of 2.25 Lead time L = 7…
Q: Write a detailed summary of Aristopharma Company Overview.
A: ANSWER : Aristopharma Ltd. is one of the main 10 pharmaceutical companies in Bangladesh. The…
Q: Month 1 2 3 4 5 No. of Cases 105 115 120 120 125 Month 6 7 8 9 10 No. of Cases 125 130 140 145 150…
A: Given data is
Q: Chiltern Farms “[T]he beautiful valley of Vyeboom nestled between the majestic Franschhoek Mountains…
A: Supply chain management is nothing but the approach of controlling or handling the overall…
Q: Suppose you want to invest a maximum amount of $20,000 in a portfolio with the objective to maximize…
A: note: only formulation has been asked.
Q: 1. a.) What is forecasting? b. Explain the importance of forecasting for managers like you? c.) What…
A: 1a) Forecasting is a methodology that employs previous or historical data as primary inputs so as to…
Q: Describe the ways in which sustainability is important to business
A: Businesses value sustainability for a variety of reasons. Sustainable business practises can aid in…
Q: Define Omni-channel logistics in your own words. Do you think the Omni-channel logistics model is…
A: Logistic:- The term "logistics" describes the total process of controlling the acquisition, storage,…
Q: A small project consisting of ten activities has the following characteristics: Determine the…
A: Find the Given details below: Activity Immediate predecessor Optimistic Time(To) a(Weeks)…
Q: Q2: Consider a process consisting of three resources: Resource 1 2 3 Processing Time (min/unit)…
A: Bottleneck: The process step (station) in the flow diagram with the lowest capacity is referred to…
Q: The Ace Manufacturing Company has orders for three similar products. Orders (units) Product Min A…
A: Given data is
Q: issues associated with using robots in the context of logistics
A: Robotic solutions are now coming closer to becoming an actuality for warehouse managers &…
Q: Problem 2-3 (Algo) Compute the multifactor productivity measure for each of the weeks shown for…
A: Multifactor productivity = Output/Cost Cost = Wage cost + Overhead cost + Material cost Wage…
Q: REQUIRED: a) Draw a network that depicts the company's supply network. Identify the supply nodes,…
A:
Q: What are the challenges involved in forecasting?
A: Concept Introduction : Organizations use forecasting as a tool to think about and plan for the…
Q: QUESTION 2 a) Assess and discuss major expenses related to run to fail maintenance. In your opinion,…
A: Effective Maintenance:- According to Effective Maintenance, lowering equipment costs across the…
Q: W = jars of Western Foods Salsa M = jars of Mexico City Salsa leads to the formulation (units for…
A: As per Bartleby guidelines, we can only solve the first three subparts of one question at a…
Q: Chiltern Farms “[T]he beautiful valley of Vyeboom nestled between the majestic Franschhoek Mountains…
A: Supply chain and logistics is a popular concept that is an efficient network of people, resources,…
Q: E-commerce Is Growing – Are You Growing with It? By the end of 2019, e-commerce was a fast-growing…
A: i. Ecommerce refers to businesses and individuals that buy and sell products and services through…
Q: ____________ as 8 hundreds is 8 thousands.
A: A mathematical function can be stated as the function or rule that provides a certain value of any…
Q: Metropolitan Manila has four incinerator sites for processing solid waste. There are five garbage…
A: Given data is
Q: Explain why earned value management (EVM) is not used more often
A: Earned value management often called EVM can be stated as the project management performance tools…
Q: What is the Ealiest and Latest start for Activity I and Latest finish for Activity G?
A: Formulae used: Forward Pass- Early Start (ES) = Maximum (or Highest) EF value from immediate…
Q: The following table shows the various activities of the development of a new product in your…
A: PERT or Program Evaluation and Review Technique is a concept used in operations management where…
Q: Could you quickly explain any two of the outputs that arise from the process of controlling quality…
A: The quality control process is a widely used process method in projects. Its aim is to measure the…
Q: For the activity times and network model below, What is the expected completion time? ________ What…
A: Here is the network diagram with activity & time duration :
Q: Safari Bar and Restaurant uses 5,000 quart bottles of an imported wine each year. The effervescent…
A: Annual demand (D) = 5000 Weekly demand(d) = 100 Ordering cost(S) = $10 Purchase price(c) = $5…
Q: A food company is considering three different salad dressings to introduce nationally, Dressing A,…
A:
Q: project charter
A: Here is your detailed Solution example: A project charter is a formal, usually brief document that…
Q: Harlen Industries Limited has a simple forecasting model whose forecast demand has been plotted…
A: In this question, we have the table data for an 8 periods duration, for each period, we have actual…
Q: hat would be your production rate each month? A. 4250 B. 3500 OC. 4250, 3000, 4000, 5000 OD. 2000,…
A: Production is the process in which inputs are combined to have the required output. It includes a…
Q: Assess the challenges of working in HR for a larger business that needs to be addressed to better…
A: Every year, new HR issues arise as a result of changes in the political environment, social context,…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
- Suppose that GLC earns a 2000 profit each time a person buys a car. We want to determine how the expected profit earned from a customer depends on the quality of GLCs cars. We assume a typical customer will purchase 10 cars during her lifetime. She will purchase a car now (year 1) and then purchase a car every five yearsduring year 6, year 11, and so on. For simplicity, we assume that Hundo is GLCs only competitor. We also assume that if the consumer is satisfied with the car she purchases, she will buy her next car from the same company, but if she is not satisfied, she will buy her next car from the other company. Hundo produces cars that satisfy 80% of its customers. Currently, GLC produces cars that also satisfy 80% of its customers. Consider a customer whose first car is a GLC car. If profits are discounted at 10% annually, use simulation to estimate the value of this customer to GLC. Also estimate the value of a customer to GLC if it can raise its customer satisfaction rating to 85%, to 90%, or to 95%. You can interpret the satisfaction value as the probability that a customer will not switch companies.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.Although the normal distribution is a reasonable input distribution in many situations, it does have two potential drawbacks: (1) it allows negative values, even though they may be extremely improbable, and (2) it is a symmetric distribution. Many situations are modelled better with a distribution that allows only positive values and is skewed to the right. Two of these that have been used in many real applications are the gamma and lognormal distributions. @RISK enables you to generate observations from each of these distributions. The @RISK function for the gamma distribution is RISKGAMMA, and it takes two arguments, as in =RISKGAMMA(3,10). The first argument, which must be positive, determines the shape. The smaller it is, the more skewed the distribution is to the right; the larger it is, the more symmetric the distribution is. The second argument determines the scale, in the sense that the product of it and the first argument equals the mean of the distribution. (The mean in this example is 30.) Also, the product of the second argument and the square root of the first argument is the standard deviation of the distribution. (In this example, it is 3(10=17.32.) The @RISK function for the lognormal distribution is RISKLOGNORM. It has two arguments, as in =RISKLOGNORM(40,10). These arguments are the mean and standard deviation of the distribution. Rework Example 10.2 for the following demand distributions. Do the simulated outputs have any different qualitative properties with these skewed distributions than with the triangular distribution used in the example? a. Gamma distribution with parameters 2 and 85 b. Gamma distribution with parameters 5 and 35 c. Lognormal distribution with mean 170 and standard deviation 60