1- HIGHLINE FINANCIAL SERVICES, LTD. CASE Financial Services provides three categories of service to or promotion, and competition doesn't change, predict demand dients. Managing partner Freddie Mack is getting ready to pre- for the services the company offers for the next four quarters:2-Examine the demand that this company has experienced for the three categories of service it offers over the preceding two years. Assuming nothing changes in terms of advertising or promotion , and competition doesn't change , predict-demand for the services the company offers for the next four quarters . Note that there are not enough data to develop seasonal relatives. Nonetheless , you should be able to make reasonably good , approximate , intuitive estimates of demand. What general observations can you make regarding demand ? Should Freddie have any concerns ? Explain. CASEHIGHLINE FINANCIAL SERVICES, LTD.Highline Financial Services provides three categories of scrvice to its clients. Managing partner Freddic Mack is getting ready toprepare financial and personnel hiring (or layoff) plans for the coming year. He is a bit perplexed by the following printout he obtained,which seems to show oscillating demand for the three categories of services over the past cight quarters:ServiceYear Quarterв сA1.1609593458590310092 110475 65 90Examine the demand that this company has experienced for the three categories of scrvice it offers over the preceding two years.Assuming nothing changes in terms of advertising or promotion, and competition doesn't change, predict demand for the services thecompany offers for the next four quarters. Note that there are not enough data to develop scasonal relatives. Nonetheless, you shouldbe able to make reasonably good, approximate intuitive estimates of demand. What general observations can you make regardingdemand? Should Freddie have any concerns? Explain.ServiceYear QuarterA B C27285 10251757511285 11048550 1001,

HIGHLINE FINANCIAL SERVICES, LTD. CASE Financial Services provides three categories of service to or promotion, and competition doesn't change, predict demand dients. Managing partner Freddie Mack is getting ready to pre- for the services the company offers for the next four quarters: 2-Examine the demand that this company has experienced for the three categories of service it offers over the preceding two years. Assuming nothing changes in terms of advertising or promotion , and competition doesn't change , predict-demand for the services the company offers for the next four quarters . Note that there are not enough data to develop seasonal relatives. Nonetheless , you should be able to make reasonably good , approximate , intuitive estimates of demand. What general observations can you make regarding demand ? Should Freddie have any concerns ? Explain.

HIGHLINE FINANCIAL SERVICES, LTD. CASE Financial Services provides three categories of service to or promotion, and competition doesn't change, predict demand dients. Managing partner Freddie Mack is getting ready to pre- for the services the company offers for the next four quarters: 2-Examine the demand that this company has experienced for the three categories of service it offers over the preceding two years. Assuming nothing changes in terms of advertising or promotion , and competition doesn't change , predict-demand for the services the company offers for the next four quarters . Note that there are not enough data to develop seasonal relatives. Nonetheless , you should be able to make reasonably good , approximate , intuitive estimates of demand. What general observations can you make regarding demand ? Should Freddie have any concerns ? Explain.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter7: Nonlinear Optimization Models

Section: Chapter Questions

Problem 47P: Another way to derive a demand function is to break the market into segments and identify a low...

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The Pigskin Company produces footballs. Pigskin must decide how many footballs to produce each month. The company has decided to use a six-month planning horizon. The forecasted monthly demands for the next six months are 10,000, 15,000, 30,000, 35,000, 25,000, and 10,000. Pigskin wants to meet these demands on time, knowing that it currently has 5000 footballs in inventory and that it can use a given months production to help meet the demand for that month. (For simplicity, we assume that production occurs during the month, and demand occurs at the end of the month.) During each month there is enough production capacity to produce up to 30,000 footballs, and there is enough storage capacity to store up to 10,000 footballs at the end of the month, after demand has occurred. The forecasted production costs per football for the next six months are 12.50, 12.55, 12.70, 12.80, 12.85, and 12.95, respectively. The holding cost incurred per football held in inventory at the end of any month is 5% of the production cost for that month. (This cost includes the cost of storage and also the cost of money tied up in inventory.) The selling price for footballs is not considered relevant to the production decision because Pigskin will satisfy all customer demand exactly when it occursat whatever the selling price is. Therefore. Pigskin wants to determine the production schedule that minimizes the total production and holding costs. Can you guess the results of a sensitivity analysis on the initial inventory in the Pigskin model? See if your guess is correct by using SolverTable and allowing the initial inventory to vary from 0 to 10,000 in increments of 1000. Keep track of the values in the decision variable cells and the objective cell.
The Pigskin Company produces footballs. Pigskin must decide how many footballs to produce each month. The company has decided to use a six-month planning horizon. The forecasted monthly demands for the next six months are 10,000, 15,000, 30,000, 35,000, 25,000, and 10,000. Pigskin wants to meet these demands on time, knowing that it currently has 5000 footballs in inventory and that it can use a given months production to help meet the demand for that month. (For simplicity, we assume that production occurs during the month, and demand occurs at the end of the month.) During each month there is enough production capacity to produce up to 30,000 footballs, and there is enough storage capacity to store up to 10,000 footballs at the end of the month, after demand has occurred. The forecasted production costs per football for the next six months are 12.50, 12.55, 12.70, 12.80, 12.85, and 12.95, respectively. The holding cost incurred per football held in inventory at the end of any month is 5% of the production cost for that month. (This cost includes the cost of storage and also the cost of money tied up in inventory.) The selling price for footballs is not considered relevant to the production decision because Pigskin will satisfy all customer demand exactly when it occursat whatever the selling price is. Therefore. Pigskin wants to determine the production schedule that minimizes the total production and holding costs. As indicated by the algebraic formulation of the Pigskin model, there is no real need to calculate inventory on hand after production and constrain it to be greater than or equal to demand. An alternative is to calculate ending inventory directly and constrain it to be nonnegative. Modify the current spreadsheet model to do this. (Delete rows 16 and 17, and calculate ending inventory appropriately. Then add an explicit non-negativity constraint on ending inventory.)
The Pigskin Company produces footballs. Pigskin must decide how many footballs to produce each month. The company has decided to use a six-month planning horizon. The forecasted monthly demands for the next six months are 10,000, 15,000, 30,000, 35,000, 25,000, and 10,000. Pigskin wants to meet these demands on time, knowing that it currently has 5000 footballs in inventory and that it can use a given months production to help meet the demand for that month. (For simplicity, we assume that production occurs during the month, and demand occurs at the end of the month.) During each month there is enough production capacity to produce up to 30,000 footballs, and there is enough storage capacity to store up to 10,000 footballs at the end of the month, after demand has occurred. The forecasted production costs per football for the next six months are 12.50, 12.55, 12.70, 12.80, 12.85, and 12.95, respectively. The holding cost incurred per football held in inventory at the end of any month is 5% of the production cost for that month. (This cost includes the cost of storage and also the cost of money tied up in inventory.) The selling price for footballs is not considered relevant to the production decision because Pigskin will satisfy all customer demand exactly when it occursat whatever the selling price is. Therefore. Pigskin wants to determine the production schedule that minimizes the total production and holding costs. Modify the Pigskin model so that there are eight months in the planning horizon. You can make up reasonable values for any extra required data. Dont forget to modify range names. Then modify the model again so that there are only four months in the planning horizon. Do either of these modifications change the optima] production quantity in month 1?
Lemingtons is trying to determine how many Jean Hudson dresses to order for the spring season. Demand for the dresses is assumed to follow a normal distribution with mean 400 and standard deviation 100. The contract between Jean Hudson and Lemingtons works as follows. At the beginning of the season, Lemingtons reserves x units of capacity. Lemingtons must take delivery for at least 0.8x dresses and can, if desired, take delivery on up to x dresses. Each dress sells for 160 and Hudson charges 50 per dress. If Lemingtons does not take delivery on all x dresses, it owes Hudson a 5 penalty for each unit of reserved capacity that is unused. For example, if Lemingtons orders 450 dresses and demand is for 400 dresses, Lemingtons will receive 400 dresses and owe Jean 400(50) + 50(5). How many units of capacity should Lemingtons reserve to maximize its expected profit?
Another way to derive a demand function is to break the market into segments and identify a low price, a medium price, and a high price. For each of these prices and market segments, we ask company experts to estimate product demand. Then we use Excels trend curve fitting capabilities to fit a quadratic function that represents that segments demand function. Finally, we add the segment demand curves to derive an aggregate demand curve. Try this procedure for pricing a candy bar. Assume the candy bar costs 0.55 to produce. The company plans to charge between 1.10 and 1.50 for this candy bar. Its marketing department estimates the demands shown in the file P07_47.xlsx (in thousands) in the three regions of the country where the candy bar will be sold. What is the profit-maximizing price, assuming that the same price will be charged in all three regions?
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%.
A national truck rental services has a surplus of one truck in each of the cities, 1, 2, 3, 4, 5, and 6 and a deficit of one truck in each of the cities 7,8,9,10,11 and 12.The distance (in kilometers) between the cities with a surplus and cities with deficit are displayed below:a) b) How should the trucks be displayed so as to maximize the total distance travelled? 1 2 3 4 5 6 7 41 72 39 52 25 51 8 22 29 49 65 81 50 9 27 39 60 51 32 32 10 45 50 48 52 37 43 11 82 40 40 60 51 30
Financial planner Minnie Margin has a substantial number of clients who wish to own a mutual fund portfolio that matches, as a whole, the performance of the Russell 2000 index. Her task is to determine what proportion of the portfolio should be invested in each of the five mutual funds listed below so that the portfolio most closely mimics the performance of the Russell 2000 index. Annual Returns Year 1 Year 2 Year 3 Year 4 International Stock 22.37 26.73 4.86 2.17 Large-Cap Value 15.48 19.64 11.50 -5.25 Mid-Cap Value 17.42 20.07 -4.97 -1.69 Small-Cap Growth 23.18 12.36 3.25 3.81 Short-Term Bond 9.26 8.81 6.15 4.04 Russell 2000 Index 20 22 8 2 Write out the (non-linear) program that would produce a portfolio that most closely mimics the performance of the Russell 2000 Index. Use Excel's Solver with "GRG Non-Linear" as the solution algorithm: what is the optimal solution, i.e., what…
A specialist vehicle manufacturer in the U.K. produces two types of minibuses according to order: a 9-seat minibus and a 17-seat minibus. Forecasted sales for the minibuses for the 2022 calendar year are listed in the table below: MONTH 9seat minibus 17 seat mini bus 1 50 70 2 52 75 3 53 77 4 59+d6 80 5 62 85 6 63 90+d7 7 65 85 8 60 80 9 55 75 10 50 70 Starting inventory on January 2022: 1+d4Starting and ending workforce: 40+ d5Hours worked per month per worker:…
Kroeger supermarket sells its own brand of canned peas as well as several national brands. The store makes a profit of $0.28 per can for its own peas and a profit of $0.19 for any of the national brands. The store has 6 square feet of shelf space available for canned peas, and each can of peas takes up 9 square inches of that space. Point-of-sale records show that each week the store never sells more than one-half as many cans of its own brand as it does of the national brands. The store wants to know how many cans of its own brand of peas and how many cans of the national brands to stock each week on the allocated shelf space in order to maximize profit if Kroeger discounts the price of its own brand of peas, the store will sell at least 1.5 times as much of the national brands as its own brand, but its profit margin on its own brand will be reduced to $0.23 per can. What effect would the discount have on the optimal solution?
Based on the following sensitivity analysis, which of the following products would be considered most sensitive to changes or errors in the objective function coefficient? A. Product_2 B. Product_1 C. Product_3 Variable Cells Cell Name Final Value Reduced Cost Objective Coefficient AllowableIncrease AllowableDecrease $B$2 Product_1 0 −2 25 13 5 $B$3 Product_2 175 0 25 8 9 $B$4 Product_3 0 −1.5 25 11 3 Constraints Cell Name Final Value Shadow Price Constraint R.H.Side AllowableIncrease AllowableDecrease $H$9 Resource_A 0 0 100 1E+30 100 $H$10 Resource_B 525 0 800 1E+30 275 $H$11 Resource_C 700 1.75 700 366.6666667 700
INCORRECT FORFormulate a linear programming model that can be used to determine the pounds of Brazilian Natural and Colombian Mild that will maximize the total contribution to profit. (Let BR = pounds of Brazilian beans purchased to produce Regular, BD = pounds of Brazilian beans purchased to produce DeCaf, CR = pounds of Colombian beans purchased to produce Regular, and CD = pounds of Colombian beans purchased to produce DeCaf.) Max 2.033BR+2.582BD+1.868CR+2.418CD INCORRECT Pounds of Regular BR+CR≤900 INCORRECT Pounds of DeCaf BD+CD≤400 INCORRECT