Question: For the car wash simulation model, use

> Solve Valencia Products to ensure that the number of units produced is integer-valued. How much difference is there between the optimal integer solution objective function and the linear optimization solution objective function? Would rounding the contin

> FlowerAurora, a florist and gifts shop, prepares three types of flower bouquets to sell on the convocation day at a local university. The bouquets are made from four types of flowers: Gypsophila, gerberas, roses, and tulips. The number of stalks of each

> Conduct a Pareto analysis for the number of minutes that flights are late in the Global Airline Data Excel file. Interpret the results.

> Bangs Leisure Chairs produces three types of handcrafted outdoor chairs that are popular for beach, pool, and patios: sling chairs, Adirondack chairs, and hammocks. The unit profit for these products is $40, $100, and $90, respectively. Each type of chai

> A paper mill produces three grades of paper: X, Y, and Z. The mill has a budget of €100,000 to invest in the production of these three different types of paper. The cost per ton and expected profit over the next two years is given in the

> MK Manufacturing produces compressor and turbine blades for jet engines. The blades are manufactured from an alloy that is a mix of aluminum and titanium. Sheaths are part of the assembly that keep the compressor blades lightweight and are made from stee

> WoodFurni is a furniture manufacturer company that produces three main types of furniture: chairs, tables, and wardrobes. All three products require design and execution, and grinding and polishing before they can be shipped to customers. The following d

> Fruity Juices, Inc., produces five different flavors of fruit juice: apple, cherry, pomegranate, orange, and pineapple. Each batch of product requires processing in three departments (blending, straining, and bottling). The relevant data (per 1,000-gallo

> Starbucks coffee company uses three types of cup sizes for selling its bestseller drink Mocha Frappuccino: Tall, (8 ounces), Grande (12 ounces), Venti (16 ounces), which have unit profits of $0.60, $0.65, and $0.75, respectively. The projected monthly sa

> Suppose that David Samuel wants to invest in three company shares: APPL, FB, and IBM. He decides to do some market research before he invests his money in these shares. The following table provides information about the share units per transaction for ea

> Joan Weasley receives a reward bonus semi-annually from her company: $3,000 on 1st June and $3,500 on 1st December. She must pay $1,500 as an insurance installment for each of the January, April, July, and October quarters of the year. Payments are due o

> Reddy & Rao (R&R) is a small company in India that makes handmade, artistic chairs for commercial businesses. The company makes four models. The time required to make each of the models and cost per chair is given below. R&R employs four peop

> FujiFarm produces four types of vegetables with variable costs of $2.80, $3.54, $1.07, and $2.23 per acre. Due to an increment in the cost of fertilizers, the variable cost of each of the vegetables will increase by 3% at the beginning of next month. Dem

> The Excel file Retail Survey provides data about customers’ preferences for denim jeans. Use PivotTables and slicers to draw conclusions about how preferences differ by gender and age group and summarize your results in a brief memo.

> The background for this case was introduced in Chapter 2. For this part of the case, summarize the numerical data using frequency distributions and histograms, cross-tabulations, PivotTables, and descriptive statistics measures; find proportions for cate

> The Hansel Corporation, located in Bangalore, India, makes plastics materials that are mixed with various additives and reinforcing materials before being melted, extruded, and cut into small pellets for sale to other manufacturers. Four grades of plasti

> Valencia Products makes automobile radar detectors and assembles two models: LaserStop and SpeedBuster. The firm can sell all it produces. Both models use the same electronic components. Two of these can be obtained only from a single supplier. For the n

> Box Tile Company makes ceramic and porcelain tile for residential and commercial use. They produce three different grades of tile (for walls, residential flooring, and commercial flooring), each of which requires different amounts of materials and produc

> StraitCarrier and SunShipping are two logistics companies based in Malaysia. Both companies offer shipment services to four different neighboring countries, and the cost of shipping one container from Malaysia to the respective countries is given in the

> The Little Investment Advisors problem and illustrated scaling issues. In answering the following questions, be sure to scale the model appropriately. a. How would the results in Figure 13.26 change if there is a limit of $100,000 in each fund? b. What i

> DwiFurni, a furniture store, is conducting a sale at a local market. The store outsources its furniture production and has a budget of $30,000 for procurements costs. The table Data for Problem 33 shows the top four furniture items selling at the store w

> Boris’ department store chain is planning to open a new store. It needs to decide how to allocate the 100,000 square feet of available floor space among seven departments. Data on expected performance of each department per month, in te

> The Social Health Group is a nonprofit organization that conducts health talks for the local public. The organization conducts these talks at two different venues: Iron Age Hall and Virtual Town Amphitheatre. For the upcoming year, seven talks will be he

> Review the portfolio allocation model in this chapter. Identify the decision variables, objective function, and constraints in simple verbal statements, and mathematically formulate the linear optimization model.

> Sweet Tea markets three blends of tea: English breakfast, jasmine, and genmaicha. The firm uses tea leaves from its sources in India, China, and Japan. Net profit per pound for each blend is: $0.60 for English breakfast, $0.30 for jasmine tea, and $0.40

> The Excel file MBA Motivation and Salary Expectations provides data on students’ pre-MBA salary and post-MBA salary expectations. Define range names for each of these ranges and then use the range names in formulas to find the expected salary increase fo

> Ascent Constructions builds four different types of residential spaces: flats, condominiums, single-story houses, and double-story houses. Each type requires basic development in five different units: a. How many of each type of residential space should

> Most cake recipes have the basic ingredients of eggs, oil, flour, and milk. Susan just baked a cake, using 85% of the eggs, 73% of the oil, 78% of the flour, and 92% of the milk that she bought, by following the instructions from a recipe book that state

> For the investment situation, apply the same logic as we did for the Crebo Manufacturing model in the text to find the optimal solution. Compare your answer with the Solver solution.

> Classify the following descriptions of constraints as bounds, limitations, requirements, proportional relationships, or balance constraints: a. A production line is sufficiently meeting its customers’ orders. b. The total amount of money available to inv

> For the ColPal model, graph the constraints and identify the feasible region. Then identify each of the corner points and show how increasing the objective function value identifies the optimal solution.

> For the Valencia Products model, graph the constraints and identify the feasible region. Then identify each of the corner points and show how increasing the objective function value identifies the optimal solution.

> A farmer plans to plant both corn and carrot on a 100-hectare land. To meet his requirements, he must plant at least 20 hectares with corn and 35 hectares with carrot. In order to maximize his profit, he wants to plant more corn than carrot; however, wit

> Implement the linear optimization model that you developed for the Flower Aurora shop on a spreadsheet and use Solver to find an optimal solution. Interpret the Solver Answer Report and identify the binding constraints. [Note: Answers may be in integers

> Implement the linear optimization model that you developed for Bangs Leisure Chairs on a spreadsheet and use Solver to find an optimal solution. a. Interpret the Solver Answer Report, identify the binding constraints, and verify the values of the slack v

> Dion’s Décor shop has three bestseller products. Dion has a budget of $2,500 to purchase these products from an outstation wholesale warehouse. The cost and the profits made from the sale of each of these products are given

> Use PivotTables to find the number of loans by different purposes, marital status, and credit risk in the Excel file Credit Risk Data (Base Data worksheet).

> Implement the linear optimization model that you developed for Burger Office Equipment on a spreadsheet and use Solver to find an optimal solution. Interpret the Solver Answer Report, identify the binding constraints, and verify the values of the slack v

> Implement the linear optimization model that you developed for ColPal Products on a spreadsheet and use Solver to find an optimal solution. Interpret the Solver Answer Report, identify the binding constraints, and verify the values of the slack variables

> Implement the linear optimization model that you developed for Valencia Products on a spreadsheet and use Solver to find an optimal solution. Interpret the Solver Answer Report, identify the binding constraints, and verify the values of the slack variabl

> Malloy Milling grinds calcined alumina to a standard granular size. The mill produces two different size products from the same raw material. Regular grind can be produced at a rate of 10,000 pounds per hour and has a demand of 400 tons per week with a p

> Suggest additional generic examples of linear optimization models in the format based on your work experience, personal interests (hobbies, etc.), or information found in business articles.

> A government body is putting a large project out for low bid. Bids are expected from eight contractors and will have a normal distribution with a mean of $4.2 million and a standard deviation of $0.27 million. Devise and implement a sampling experiment s

> A formula in financial analysis is the following: Return on equity = net profit margin * total asset turnover * equity multiplier. Suppose that the equity multiplier is fixed at 3.5, but that the net profit margin is normally distributed with a mean of 3

> Historical data shows that the birth weight of a random pool of 3,226 newborn babies with a mean of 3.39 kg and a standard deviation of 0.55 kg per baby, is normally distributed, but never more than 6 kg. Assuming that each newborn baby is independent of

> The exponential distribution of the amount of time a car battery lasts has a mean of 4 years. Generate 20 random variates from this distribution as whole Numbers.

> The time required to play the Pandemic board game is uniformly distributed between 45 and 60 minutes. Use formula to obtain a sample of 50 outcomes and compute the mean, minimum, maximum, and standard deviation.

> Construct PivotTables showing the counts of region versus social media platform market share, and tablet versus mobile device usage in Asia in the Excel file Social Media Market share. What might you conclude from this analysis?

> In many queueing situations, the time between arrivals and service times are assumed to have exponential distributions. Modify the car wash model to simulate a queueing system with an exponential arrival rate of l = 2 customers/minute (that is, a time be

> The Miller-Orr model in finance addresses a firm’s problem of managing its cash position by purchasing or selling securities at a transaction cost in order to lower or raise its cash position. That is, the firm needs to have enough cash on hand to meet i

> E-Globex is a moneychanger headquartered in Kuala Lumpur, Malaysia. It quotes the current US Dollar to Malaysian Ringgit exchange rate to be RM4.1740 for every 1 US Dollar. The daily price changes over the last 30 days are analyzed, resulting in the foll

> A front office receptionist of a given company answers the incoming calls on multi-line telephones. The number of calls successfully attended by the receptionist within each 5-minute period is recorded, resulting in the following frequency distribution:

> In Jennifer Bellin’s leadership conference project, suppose that the activity times are uncertain. Estimated ranges for these times are shown in the table below. Develop a spreadsheet simulation model to find the distribution of the pro

> DemiGod Shipping Company forecasts a 10% increase in its sales over the year 2019. Its assets and liabilities, at the end of 2018, amount to $20 billion and $7 billion respectively. Sales for this period were $25 billion, earning a 3% profit margin. The

> The following table shows the number and frequency of books bought per customer, on an hourly basis, at a bookstore from 10am to 9pm on a specific day. Use VLOOKUP to generate 20 random variates from this distribution.

> Develop and analyze a simulation model for Vision Clinic with the following assumptions. Assume that the demand is uniform between 110 and 160 per week and that anywhere between 10% and 20% of prospective patients fail to show up or cancel their exam at

> A bakery stall at a local supermarket bakes 100 loaves of banana bread every morning for sale. The cost of baking a loaf of banana bread is $3 and it sells for $5. The average expected sales at the stall each morning typically varies between 90 and 115 l

> The Excel file Payroll Data provides hourly salaries for a group of employees. Create an Excel template that allows the user to select an employee by employee ID, enter the number of regular hours and overtime hours worked, and display a payroll summary

> Use the Newsvendor Model spreadsheet to set up and run a Monte Carlo simulation assuming that demand is triangular with minimum value = 40, maximum value = 50, and most likely value = 47. Find the distribution of profit for order quantities between 40 an

> For the profit model developed, suppose that the demand is uniform with a minimum of 35,000 and maximum of 60,000; fixed costs are normal with a mean of $400,000 and a standard deviation of $25,000; and unit costs are triangular with a minimum of $22.00,

> A regional tax preparation firm competes with such national chains as H&R Block. It is considering expanding and needs a financial model to analyze the decision to open a new store. Key factors affecting this decision include the demographics of the prop

> Malaysia’s state water tariffs are one of the cheapest in comparison to its neighbor countries. The cost of a meter installation is RM10 per household. The daily cost of supplying water is assumed to be normally distributed, with a mean of RM10/m3 and a

> The weekly demand of a slow-moving product has the following probability mass function: Use VLOOKUP to generate 25 random variates from this distribution.

> The board of directors of Bolt Electric Vehicles (BEV) is considering replacing its original model, the BEV-Neo, with a new model, the BEV-Alpha, which they feel will appeal to the younger demographic. The company will produce the approved model for the

> O’Brien Chemicals makes three types of products: industrial cleaning, chemical treatment, and some miscellaneous products. Each is sold in 55-gallon drums. The selling price and unit manufacturing cost are shown below: Fixed costs are a

> Sturgill Manufacturing Inc. needs to predict the numbers of machines and employees required to produce its planned production for the coming year. The plant runs three shifts continuously during the workweek, for a total of 120 hours of capacity per week

> UOB Bank receives a significant number of housing loan applications each month, with an average of 5,000 and a standard deviation of 463, normally distributed. The application approval rate varies between 40% and 55%. The average monthly interest rate on

> The Oxford Theater produces plays and musicals for a regional audience. For a typical performance, the theater sells at least 250 tickets and occasionally reaches its capacity of 600 seats. Most often, it sells about 450 tickets. The fixed cost for each

> A college graduate who is living in Edinburgh, the United Kingdom, expects to earn a monthly salary of £598. The Excel file UK Cost of Living shows the comparative salaries in other cities and the adjustments for living expenses. Develop an

> Cinéma Le Méliès is a small movie theatre in Grenoble, France. After the release of a typical, widely anticipated Marvel movie, such as the Avengers: Endgame, the number of adult and children’s tickets sold at the theatre has a normal distribution with a

> A manufacturing company is considering investing in a new machine that costs €38,000. Its use is expected to generate a cash flow of about €10,000 per year for each of the next five years. However, the cash flow is uncertain, and the manager estimates th

> The manager of the extended-stay hotel believes that the number of rooms rented during any given week has a triangular distribution with minimum 32, most likely 38, and maximum 50. The weekly price is $950, and weekly operating costs follow a normal dist

> A financial consultant has an average of seven customers he consults with each day; assume a Poisson distribution. The consultant’s overhead requires that he consult with at least five customers per day for his fees to cover his expenses. Use the Excel R

> The owner of Wild World Photography believes that the average number of safari trail bookings per year can be estimated by triangular distribution with a minimum of 10, a maximum of 22, and a most likely value of 15. One of the key variables in developin

> A professional football team is preparing its budget for the next year. One component of the budget is the revenue that they can expect from ticket sales. The home venue, Dylan Stadium, has five different seating zones with different prices. Key informat

> For the Sunday bazaar model, suppose that the expected crowd is normally distributed with a mean of 4,000 and a standard deviation of 350, and the average expenditure has a triangular distribution with minimum = £20, maximum =£40, and most likely = £25.

> Suppose that the daily purchase of a stock any given day is normally distributed with a mean of 3% and a standard deviation of 0.5%. In predicting the long run market share, a research study shows an increment of 28% of buying the stock any given day and

> The Excel file Outsourcing Decision Model is a spreadsheet implementation of the model. The model calculates the total cost for manufacturing and outsourcing. The key outputs in the model are the difference in these costs and the decision that results in

> Use the profit model developed to implement a financial simulation model for a new product proposal and determine a distribution of profits using the discrete distributions below for the unit cost, demand, and fixed costs. Price is fixed at â‚

> Develop an Excel template for computing the IQ scores obtained by males and females based on the brain size (in count obtained from MRI scans, count/10,000), height (in inches) and weight (in pounds). Use the following formulas. For a male, the IQ score

> A research study on the duration of two-month-old babies’ smile was carried out. Analysts created the following distribution, which were assumed to be uniform over various intervals, each with a discrete probability (all in seconds). De

> In the Olympic bid proposal discussed, ticket sales revenue was estimated to be a triangular distribution with minimum= $560 million, maximum= $600 million, and most likely = $600 million. Generate a random variate from this distribution.

> A metal pistons manufacturer conducts a marketing research and finds that for every 10 pistons made, an average of 12% of its pistons are rejected because they are not correctly sized. Generate 20 random variates for the number of pistons that would be r

> Use the RAND function to generate 100 exponential random variates with the mean 1.5, and create a frequency distribution and a histogram with bins of width 0.5. Apply the chi-square goodness of fit test to test the hypothesis that the data are exponentia

> Construct an influence diagram for the staffing model in Example 11.7. Data from Example 11.7: Suppose that the manager of a loan-processing department wants to know how many employees will be needed over the next several months to process a certain

> Construct an influence diagram for the net revenue in the overbooking decision model discussed in this chapter. Use Excel’s Formula Auditing capability to demonstrate the relationship between the spreadsheet model and the influence diagram.

> Construct an influence diagram for profit in the single-period purchase decision (Newsvendor Model) discussed in this chapter. Use Excel’s Formula Auditing capability to demonstrate the relationship between the spreadsheet model and the influence diagram

> A manufacturing company make their sales by visiting the customers personally to market their products. They want to determine the impact of these sales visits on the total profit earned by their sales persons. The cost for the company depends on the bas

> For the ballet company, use the Goal Seek tool to find the number of solicitations required to achieve $150,000 in total donations.

> For the stockbroker, use the Goal Seek tool to find the number of calls needed to achieve a broker commission of $5,000.

> Suppose that an electricity supplier in your country offers specific rates to domestic consumers. For the first 2,000 units of electricity consumed, it charges €0.14 per unit; and if more than 2,000 units are consumed, it charges €0.11 per unit consumed.

> For the gasoline usage, apply the Goal Seek tool to find the fuel economy needed to consume 20 gallons per month, with all other data being constant.

> Think of any retailer that operates many stores throughout the country, such as Old Navy, Hallmark Cards, or Vineyard Vines, to name just a few. The retailer is often seeking to open new stores and needs to evaluate the profitability of a proposed locati

> For the Sunday bazaar model that you developed, use the Scenario Manager to evaluate profitability for the following scenarios:

> A company is trying to predict the long-run market share of a new men’s deodorant.10 Based on initial marketing studies, they believe that 40% of new purchasers in this market will ultimately try this brand, and of these, about 65% will purchase it in th

> Vision Clinic in Brussels, Belgium, specializes in laser-assisted corrective eye surgery. Prospective patients make appointments for prescreening exams to determine their candidacy for the surgery. If they qualify, a €275 charge is applied as a deposit f

> For the engineering admissions, apply two-way data tables to analyze the impact on extra funds needed and the number of students who accept scholarships as the acceptance rate and number of offers vary.

> A local supermarket orders 27 copies of a monthly magazine. Depending on the cover story, demand for the magazine varies. The supermarket purchases the magazines for $1.73 and sells them for $4.03. Any magazines left over at the end of the month are dona

> For the Schoch Museum, use data tables to investigate the impacts of the percentage assumptions used in the model on the cumulative funds raised by the fifth year.

> Implement the model you developed in Problem 1 on a spreadsheet and construct a one-way data table to estimate the price for which profit is maximized.