Devise a solution for the problem under each of the four criteria of decisions under uncertainty.
Q: a. Which of the warehouse locations will/will not be selected?
A: Linear programming is a mathematical technique that is also used in operations management…
Q: GOT7 Soda Pop, Inc., has a new fruits drink. The production planner has assembled the following cost…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: 1. Demonstrate how containers help to facilitate intermodal transportation. 2. Ah Meng Tow Truck…
A: Please note, “since you have asked multiple questions, we will solve the first question for you. If…
Q: As operations manager, you are concerned about being able to meet sales requirements in the coming…
A: Given data
Q: What are the benefits of automation and how will the communication signalling technology increase…
A: Automation:- Automation is the development and use of technology to manufacture and provide goods…
Q: A new airline has decided to join the market. It is considering offering flights out of Cagayan, and…
A: C = Charges per ticket for the round trip to Cebu P = Charges per ticket for the round trip to…
Q: Walmart (WMT) is robotic janitors in some of its stores. Walmart has purchased several Autonomous…
A: 1. From the above mentioned fact, it is very much evident that the costs of the robots are fixed…
Q: inute to check a pati A doctor spends 10 r
A: Given: Receptionist takes 1min nurse takes 2mins Doctor spends 10mins staff member takes 3mins
Q: Given the following project (all times are in days): please refer the pic All activities, except…
A: Find the Given details below: Activity Predecessor Normal Time (NT) (Days) Normal cost (NC) ($)…
Q: A manager wants to choose one of two forecasting alternatives: moving average and exponential…
A: Given data is
Q: For the Orlando real estate investment problem, assume the probabilities for the gasoline shortage,…
A: Given data is
Q: Q2. In the above question, the completion times of the activities BD and DE are on average 6 hours…
A: The question is related to Crtical Path. The Path having the longest duration is Critical Path. In…
Q: a- What is the forecast for this year using a 3-year weighted moving average where the weights are…
A: Forecasting is a technique used to predict future outcomes on the basis of past data. In businesses…
Q: Can anybody draw a network analysis diagram of this problem?
A: A network diagram related to the project shows the sequence of the task that is performed to…
Q: a Draw the Network diagram on your own paper. b. How many paths are there in the network? c. What is…
A: A network diagram related to the project shows the sequence of the task that is performed to…
Q: For the Orlando real estate investment problem, assume the probabilities for the gasoline shortage,…
A: Given data is
Q: How can a company gradually introduce sustainable supply chain management?
A: Sustainable supply chain management is described as the management of a supply chain that includes…
Q: 2. Using the same table above, compute the weighted moving average forecast for demand for four…
A: Forecasting is a technique used to predict future outcomes on the basis of past data. In businesses…
Q: Sales of Volkswagens have grown steadily at auto dealerships in Nevada during the past 5 years (see…
A: Tred projection or linear regression forecast is a method that uses the variation and trend in past…
Q: The state-of-nature probabilities are P(S₁) = 0.35, P(S₂) = 0.35, and P(S3) = 0.30. a. Use a…
A: A decision tree is a diagram that shows all of the possible outcomes of a decision and the…
Q: The government is auctioning off oil leases at two sites. At each site, 150,000 acres of land are to…
A: Find the Given details below: Given details: Cliff Ewing Blake Barnes Alexis Pickens Total…
Q: The fictitious Haskins & Collins Ice Cream Store needs an accurate estimate of demand. The owner of…
A: Find the Given details below: Given details: Quarter Year 1 2 3 4 January - March 370…
Q: Calculate the annual economic order quantity from the information provided below. INFORMATION GM…
A: Economic order quantity is described as the number of units that must be included in the inventory…
Q: Period 1 2 3 4 Actual 42 41 39 43 15 F
A: Ans) Weighted Moving Average. Formula: F(t) = w1*D(t-1) + w2*D(t-2) + w3*D(t-3) +w4*D(t-4) w1= 0.4…
Q: Demand beyond planning horizon can be managed by keeping a safety stock. GIVE ME ME MOER DETALIS…
A: Given, Service level, α =95% , Lead time, L =4 weeks =1 month
Q: QUESTION 1: Differentiate between a project and a program and highlight two major characteristics…
A: Businesses often undertake various stints to improve the existing and achieve new targets. Targets…
Q: nagement Is controlling applicable to the day-to-day activities of the engineer? Explain your…
A: Yes, definitely controlling plays important role in every one's day-to-day activities. Mostly in…
Q: he hotel has experi nced the following occupancy rates for ne past the coliseum opened. Compute an…
A: Forecasting is a technique used to predict future outcomes on the basis of past data. In businesses…
Q: Given the following data of actual sales and forecast for the five months: Month 1, Month 2, Month…
A: Given data is
Q: Which one is the stronger thesis statement? Watch out for thesis statements that are too general,…
A: a) this is not thesis.Thesis is a essay or dissertation involving personal research and based on…
Q: Can you provide these formulas in Excel?
A: Add the details in Excel as follows.
Q: C&A Printing takes 10 seconds to print a page in color, but after 500 pages, the printer must be…
A: Find the Given details below: Given details: Time taken for a page 10 Sec Waiting time 15…
Q: Is forecasting important in a planning of a project? why? why not?
A: Forecasting is a technique that takes into use of the historical data as the primary inputs and…
Q: A B ABC INVENTORY ANALYSIS Item Number B8867 J1252 K9667 L2425 M4554 T6334 W9856 X2215 Y3214 Y6339…
A: Given data is
Q: Critically discuss the affect of these packaging material cost onto goods that would affect the…
A: The volume of packaging material has been escalating in past years, as a result of retail…
Q: Maximize Z= 200x1 + 160x2 + 130x3 Subject to Assembly Inspection Packaging And x1, x2, x3 >=0 4x1…
A: Linear programming is a mathematical technique that is commonly used in operations management…
Q: Imagine that you own a coffee shop in downtown Toronto. You think it's time to expand to a second…
A: In the context of the statistical study, the sampling techniques can be stated as how an…
Q: urants. Founded in London in 1971, the company developed its brand through the themed restaurant…
A: Hard Rock Café is one of renowned brand name of café restaurant in the worldwide. In this we will…
Q: How does challenging old assumptions and traditions lead to entrepreneurial opportunities? How can…
A: Entrepreneur:- Entrepreneurs are people who launch new businesses, bearing the bulk of the risks and…
Q: Problem 1 Deb Bishop Health and Beauty Products has developed a new shampoo, and you need to develop…
A: The detailed solution is given in Step 2.
Q: uary 100 February 1,200 Ma 1,4 g stockout costs for lost sale r unit per month, and a zero b
A: Given: January February March April May June 1100 1200 1400 1800 1800 1600 Lost sales =…
Q: a) GOT7 Soda Pop, Inc., has a new fruits drink. The production planner has assembled the following…
A: General notes : This is a case of aggregate plan with multiple possible answers based on the…
Q: Draw up a plan for a preliminary assessment of waste minimization opportunities in a small…
A: Waste minimization is indeed a method of waste management that aims to lessen the quantity as well…
Q: Based on the following sequential decision tree, compute the expected payoff of node 7. It is (type…
A: A decision tree is the analysis of the options that are to be considered or chosen among to take the…
Q: Zhou Bicycle Company Zhou Bicycle Company (ZBC), located in Seattle, is a whole- sale distributor of…
A: Given details:
Q: 1 A company decides to establish an EOQ for an item. The annual demand is 100,000 units. The…
A: Ordering cost is the total cost that company in incurrd to order and transport the product to The…
Q: Give names of 2 companies who are awarded by Deming Prize, Baldrige Award, and EQA Award
A: Total quality management:- The goal of total quality management (TQM) is to create a culture within…
Q: standard mix of Peanut/Raisin Delite to put up. The deluxe mix has .68 pounds of raisins and .32…
A: Deluxe Standard Cost per pound Raisins (pounds) 0.68 0.5 $ 1.50 Peanuts (pounds) 0.32…
Q: Estimate the number of sales personnel needed for an XYZ company having a forecast for FY 21 as…
A: Salesforce forecasting based on the expected demand and the annual sales turnover helps to identify…
Q: . Sketch TEN (10) principles of materials handling related to logistics management
A: Material handling:- Short-distance movement within a building's walls or between a building and a…
Devise a solution for the problem under each of the four criteria of decisions under uncertainty.
Step by step
Solved in 3 steps with 5 images
- 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.)An automobile manufacturer is considering whether to introduce a new model called the Racer. The profitability of the Racer depends on the following factors: The fixed cost of developing the Racer is triangularly distributed with parameters 3, 4, and 5, all in billions. Year 1 sales are normally distributed with mean 200,000 and standard deviation 50,000. Year 2 sales are normally distributed with mean equal to actual year 1 sales and standard deviation 50,000. Year 3 sales are normally distributed with mean equal to actual year 2 sales and standard deviation 50,000. The selling price in year 1 is 25,000. The year 2 selling price will be 1.05[year 1 price + 50 (% diff1)] where % diff1 is the number of percentage points by which actual year 1 sales differ from expected year 1 sales. The 1.05 factor accounts for inflation. For example, if the year 1 sales figure is 180,000, which is 10 percentage points below the expected year 1 sales, then the year 2 price will be 1.05[25,000 + 50( 10)] = 25,725. Similarly, the year 3 price will be 1.05[year 2 price + 50(% diff2)] where % diff2 is the percentage by which actual year 2 sales differ from expected year 2 sales. The variable cost in year 1 is triangularly distributed with parameters 10,000, 12,000, and 15,000, and it is assumed to increase by 5% each year. Your goal is to estimate the NPV of the new car during its first three years. Assume that the company is able to produce exactly as many cars as it can sell. Also, assume that cash flows are discounted at 10%. Simulate 1000 trials to estimate the mean and standard deviation of the NPV for the first three years of sales. Also, determine an interval such that you are 95% certain that the NPV of the Racer during its first three years of operation will be within this interval.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.)
- When you use a RISKSIMTABLE function for a decision variable, such as the order quantity in the Walton model, explain how this provides a fair comparison across the different values tested.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.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).
- If a monopolist produces q units, she can charge 400 4q dollars per unit. The variable cost is 60 per unit. a. How can the monopolist maximize her profit? b. If the monopolist must pay a sales tax of 5% of the selling price per unit, will she increase or decrease production (relative to the situation with no sales tax)? c. Continuing part b, use SolverTable to see how a change in the sales tax affects the optimal solution. Let the sales tax vary from 0% to 8% in increments of 0.5%.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?Play Things is developing a new Lady Gaga doll. The company has made the following assumptions: The doll will sell for a random number of years from 1 to 10. Each of these 10 possibilities is equally likely. At the beginning of year 1, the potential market for the doll is two million. The potential market grows by an average of 4% per year. The company is 95% sure that the growth in the potential market during any year will be between 2.5% and 5.5%. It uses a normal distribution to model this. The company believes its share of the potential market during year 1 will be at worst 30%, most likely 50%, and at best 60%. It uses a triangular distribution to model this. The variable cost of producing a doll during year 1 has a triangular distribution with parameters 15, 17, and 20. The current selling price is 45. Each year, the variable cost of producing the doll will increase by an amount that is triangularly distributed with parameters 2.5%, 3%, and 3.5%. You can assume that once this change is generated, it will be the same for each year. You can also assume that the company will change its selling price by the same percentage each year. The fixed cost of developing the doll (which is incurred right away, at time 0) has a triangular distribution with parameters 5 million, 7.5 million, and 12 million. Right now there is one competitor in the market. During each year that begins with four or fewer competitors, there is a 25% chance that a new competitor will enter the market. Year t sales (for t 1) are determined as follows. Suppose that at the end of year t 1, n competitors are present (including Play Things). Then during year t, a fraction 0.9 0.1n of the company's loyal customers (last year's purchasers) will buy a doll from Play Things this year, and a fraction 0.2 0.04n of customers currently in the market ho did not purchase a doll last year will purchase a doll from Play Things this year. Adding these two provides the mean sales for this year. Then the actual sales this year is normally distributed with this mean and standard deviation equal to 7.5% of the mean. a. Use @RISK to estimate the expected NPV of this project. b. Use the percentiles in @ RISKs output to find an interval such that you are 95% certain that the companys actual NPV will be within this interval.
- 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?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 DC Cisco office is trying to predict the revenue it will generate next week. Ten deals may close next week. The probability of each deal closing and data on the possible size of each deal (in millions of dollars) are listed in the file P11_55.xlsx. Use simulation to estimate total revenue. Based on the simulation, the company can be 95% certain that its total revenue will be between what two numbers?