The following table represents sales data for milk (in hundred liters0 sold by a grocery. Do the computations to fill out the table and answer the following questions: 1. Using MAD as the criterion, which of the following models you use for the given time series data? Why? A. Naïve Approach B. 5-month SMA model; C. WMA model with weights 0.1, 0.3, and 0.6; or D. ES model with a = 0.5 and a forecast of 3,500 liters in the first month. NOTE: In answering item 1, mention the whole description of the model; i.e. not just "SMA mode" but "SMA model with n = ..."; not just "WMA model" but "WMA model with weights..."; not just "ES model", "ES model with a = ...". 2. Interpret the MAD of the most accurate among the forecasting models above. 3. Based on your decision in Item 1, what should be the forecast for Month 11? Actual 100 liters Demand SMA F WMA NA |A -F| ES Month 100 liters F JA-F| F |A -F| F A -F| 1 39 47 3 39 4 44 49 48 7 45 56 53 10 61 11 MAD
Q: 1. Explain your observations about the optimal solution returned by the Solver. 2. If the company…
A: Objective function: Now, each of the decision variables represents the shipping volume, and we are…
Q: The Bargain Hut has 2400 cubic feet of storage space for refrigerators. Large refrigerators come in…
A: First we develop the model for the problem which is an LP (Linear Programming) problem. Assuming L…
Q: PM Computer Services produces personal computers from component parts it buys on the open market.…
A: a). To meet the demand for each month the production schedule for PM which will minimize total cost…
Q: Double Tree Hilton is a hotel that provides two types of rooms with three rental classes: Super…
A: Solution Let X1 be the number of type I super saver room. X2 be the number of type I deluxe room. X3…
Q: The management of the Keribels Company wishes to apply the Miller-Orr model to manage its cash…
A: Given data, Transaction cost =$100 Cash flow variance=75000 I =0.05%
Q: A firm offers three different prices on its products, depending upon the quantity purchased. Sınce…
A: Optimization modeling is a branch of mathematics that aims to find the best solution to a complex…
Q: Grass MixMix RequirementsWrigleyNo more than 50% tall fescue At least 20% mustang fescuePastureAt…
A: ANSWER : Now we need to create this question as an assignment problem. The mixes will be in column…
Q: Based on Carino and Lenoir (1988). BradyCorporation produces cabinets. Each week, Bradyrequires…
A: In the above question, the details of Brady Corporation producing Lumber with the demand and costs…
Q: The accompanying table gives amounts of arsenic in samples of brown rice from three different…
A:
Q: Heller Manufacturing has two production facilities that manufacture baseball gloves. Production…
A: Given data: TCD(X) = X2-X+3 TCH(Y)=Y2+2Y+2 5000 gloves per week production
Q: olve the following problem with Excel Solver: (Leave no cells blank be certain to enter "0" wherever…
A: Linear programming is a mathematical technique that is also used in operations management…
Q: During the next production period, The Diego Garcia Furniture Company is considering producing…
A: As per the sensitivity report, the allowable decrease for objective coefficient (Profit) for…
Q: subject to X, - 2x, + x, 2 20 2x1 + 4x2 + X3 = 50 and X, 2 0, X 2 0, X3 2 0. (a) Using the Big M…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: RMC, Inc., is a small firm that produces a variety of chemical products. In a particular production…
A: Let Fuel Additive = F and solvent base = S maximize Z = 2000 F + 1500 S subject to 2/6 F +…
Q: describe the specific internal control weakness (s) in the system that causes or contributes to the…
A: The answer is as below:
Q: A large CPA firm currently has 100 junior staffmembers and 20 partners. In the long run—say,20 years…
A: It is given in the question that a large firm (CPA) currently has junior 100 staff members and 20…
Q: Susan Solomon has been thinking about starting her own fuel station, but Susan's problem is to…
A: Given data:
Q: Daniel Glaser, chairman of the College of San Antonio'sbusiness department, needs to assign…
A: Given data is
Q: RMC, Inc., is a small firm that produces a variety of chemical products. In a particular production…
A: i. value of objective function = $1633.33 Dual price: highlighted in yellow: note: dual price…
Q: Comp Sets Answer the following questions regarding Comp Sets. Demonstrate how KPIs and percent…
A: KPIs for the comp set are inferred dependent on the totaled raw information for each different inn…
Q: A zoo wishes to transport a family of four wolves overnight to a facility 200 km away. The journey…
A: As the journey will take 6hrs+45mins at each end for loading and unloading of animals. As the sedate…
Q: Daniel Glaser, chairman of the College of San Antonio's business department, needs to assign…
A: This assignment problem is a maximization problem since we have to maximize the total rating.
Q: Use Excel to solve the linear program, optimal solution and objective function value. A political…
A: S = Number of small signs placed by the roadside L = Number of large signs placed by the roadside B…
Q: Based on the following sensitivity analysis, which of the following products would be considered…
A: Using the sensitivity report:
Q: A small manufacturing firm collected the following data on advertising expenditures A (in thousands…
A: A small manufacturing firm collected the following data on advertising expenditure A (in thousands…
Q: A company has $10,000 to invest , to be divided into fixed interest, equities and property. For…
A: Here, the individual wants to make an investment decision. Let x = Amount invested in fixed interest…
Q: Bags & Box Cereals produces two types of cereals: basic and premium. Each type is sold in box of 100…
A: Given Information: Box of 100 grams 4 machines can package 200,000 boxes which means that, Labor…
Q: The table below shows information about the number of customers (in thousand) of a coffee shop per…
A: Find the Given details below: Given details: Year Quarters 1 2 3 4 2018 1.2 0.9 0.7 1.8…
Q: Which one is valid for use in an LP problem? O log x1 + x1 x2 +3x3 <=100 3x1+4x2 <5 x3 Maximize x1 +…
A: Linear programming is a technique to accomplish the best result in a numerical model whose…
Q: Mr. Moola, the owner of Moola Farms is attempting to decide which of three crops he should plant on…
A: a)in case of substantial rainfall: Crop A= 7000*0.2 = 1400 Crop B= 2500*0.2 = 500 Crop C= 4000*0.2…
Q: • Formulate the problem of deciding how much of each product to make in the current week as a linear…
A: The linear programming method is a mathematical method by which the best outcome where profits are…
Q: Solve this problem in three ways; 1. Graphical 2. Excel solver 3. Sensitivity analysis/ report. a)…
A: Note: - Since we can only answer only up to three subparts and also it is not specified which…
Q: Chapter 6. Solve the following Linear Program using the Solver method and answer the questions given…
A: Maximize: 12A + 15B s.t. 3A + 7B <= 250 5A + 2B <= 200 B <= 25 A, B >= 0
Q: The Sea Wharf Restaurant would like to determine the best way to allocate a monthly advertising…
A: Let y & be the sum spent on Paper Ad & Radio ad individually.
Q: An investment company manages portfolios of stocks, bonds, and other investment alternatives. One of…
A: AS PART ONE IS ALREADY SOLVED. I AM JUMPING DIRECTLY TO QUESTION 2. Now we solve the above problem…
Q: A Make-or-Buy DecisionTriple X Company manufactures and sells refrigerators. It makes some of the…
A: If part has been manufactured: Fixed cost: $50,000 Labor cost: $1,25,000 Factory overhead: $60,000…
Q: G z Product Mix Example Product 3 P01 P02 P03 P04 Profit/unit: 26 35 25 37 Hours : Machine available…
A: The question is related to optimum product mix. The limiting factor is machine hours. First we have…
Q: XYZ Corporation manufactures two products, Simple and Complex. The following annual information was…
A: Profit maximization is a cycle business firms go through to guarantee the best result and cost…
Q: The table below shows the enrollments for the foui division of a college. There are 50 new overhead…
A: given,
Q: Based on the following sensitivity analysis, which of the following products would be considered…
A: Given sensitivity report : There are allowable ranges given corresponding to each variable.…
Q: The management of the Keribels Company wishes to apply the Miller-Orr model to manage its cash…
A: Given data, Transaction cost =$100 Cash flow variance=75000 I =0.05%
Q: An appliance manufacturer produces two models of microwave ovens: H and W. Both modelsrequire…
A: Given Information: Oven – H Oven-W Total Fabrication (hours) 4 2 600…
Q: Write the mathematical model and use Solver sensitivity analysis to answer the following question: A…
A: Objective Functions and Constraints: Based on the given details, the objective…
Q: Well Water Inc. wants to produce and sell a new flavored water. In order to penetrate the market,…
A: Given, Annual sales = 50000 bottles Selling cost = $2 Sales revenue = $2*50000 = $100,000 Desired…
Q: In the design of a jet engine part, the designer has a choice of specifying 10 either an aluminum…
A: Given data is Weight of aluminum casting = 1.2 kg Weight of steel casting = 1.35 kg Cost of aluminum…
Q: Based on the following sensitivity analysis, which of the following products would be considered…
A:
Q: RMC, Inc., is a small firm that produces a variety of chemical products. In a particular production…
A: given,
Q: As we saw in Figure 3.5, one way to show convexity of indifference curves is to show that, for any…
A: a). A function is said to be convex when the averages are preferred over extremes. For utility…
Q: Friendly Waste Co. runs three different factories and is required by law to safely dispose of…
A: THE ANSWER IS AS BELOW:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- 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%.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?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.
- 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?