Q: Pastureland Dairy makes cheese, which it sells at local supermarkets.
Pastureland Dairy makes cheese, which it sells at local supermarkets. The fixed monthly cost of production is $4,000, and the variable cost per pound of cheese is $0.21. The cheese sells for $0.75 per...
See AnswerQ: The College of Business at Tech is planning to begin an online
The College of Business at Tech is planning to begin an online MBA program. The initial start-up cost for computing equipment, facilities, course development, and staff recruitment and development is...
See AnswerQ: Solve the following linear programming model graphically: minimize Z =
Solve the following linear programming model graphically: minimize Z = 3x1 + 6x2 subject to 3x1 + 2x2 … 18 x1 + x2 Ú 5 x1 … 4 x2 … 7 x2∙x1 … 7/8 x1, x2 Ú 0
See AnswerQ: In Problem 25, what would be the effect on the solution
In Problem 25, what would be the effect on the solution if the constraint x2 ≤ 7 were changed to x2 ≥7?
See AnswerQ: Solve the following linear programming model graphically: minimize Z =
Solve the following linear programming model graphically: minimize Z = 5x1 + x2 subject to 3x1 + 4x2 = 24 x1 … 6 x1 + 3x2 … 12 x1, x2 Ú 0
See AnswerQ: Solve the following linear programming model graphically: /
Solve the following linear programming model graphically:
See AnswerQ: Solve the following linear programming model graphically: /
Solve the following linear programming model graphically:
See AnswerQ: What would be the effect on the optimal solution in Problem 2
What would be the effect on the optimal solution in Problem 2 if the cost of rice increased from $0.03 per ounce to $0.06 per ounce?
See AnswerQ: Gillian’s Restaurant has an ice-cream counter where it sells two
Gillian’s Restaurant has an ice-cream counter where it sells two main products, ice cream and frozen yogurt, each in a variety of flavors. The restaurant makes one order for ice cream and yogurt each...
See AnswerQ: In Problem 30, how much additional profit would the restaurant realize
In Problem 30, how much additional profit would the restaurant realize each week if it increased its freezer capacity to accommodate 20 extra gallons total of ice cream and yogurt?
See AnswerQ: Copperfield Mining Company owns two mines, each of which produces three
Copperfield Mining Company owns two mines, each of which produces three grades of ore— high, medium, and low. The company has a contract to supply a smelting company with at least 12 tons of high-grad...
See AnswerQ: A canning company produces two sizes of cans—regular and large
A canning company produces two sizes of cans—regular and large. The cans are produced in 10,000-can lots. The cans are processed through a stamping operation and a coating operation. The company has 3...
See AnswerQ: The Youth Cricket Club of a small city has a team of
The Youth Cricket Club of a small city has a team of 20 members. The club provides professional coaching to its members. The club needs a budget of $75,000 every year to support its team and to pay th...
See AnswerQ: A manufacturing firm produces two products. Each product must undergo an
A manufacturing firm produces two products. Each product must undergo an assembly process and a finishing process. It is then transferred to the warehouse, which has space for only a limited number of...
See AnswerQ: Assume that the objective function in Problem 34 has been changed from
Assume that the objective function in Problem 34 has been changed from Z = 30x1 + 70x2 to Z = 90x1 + 70x2. Determine the slope of each objective function, and discuss what effect these slopes have on...
See AnswerQ: On the UAE national day, children wear new clothes with the
On the UAE national day, children wear new clothes with the national flag embroidered on them. A tailor has three weeks before the national day and plans to work for up to 40 hours per week for the ne...
See AnswerQ: In Problem 36, a. How many hours are left
In Problem 36, a. How many hours are left unused at the optimal solution? b. What would be the effect on the optimal solution of increasing the available cloth from 90 to 100 meters?
See AnswerQ: Kroeger supermarket sells its own brand of canned peas as well as
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 bran...
See AnswerQ: In Problem 38, if Kroeger discounts the price of its own
In Problem 38, 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 w...
See AnswerQ: The Kalo Fertilizer Company makes a fertilizer using two chemicals that provide
The Kalo Fertilizer Company makes a fertilizer using two chemicals that provide nitrogen, phosphate, and potassium. A pound of ingredient 1 contributes 10 ounces of nitrogen and 6 ounces of phosphate,...
See AnswerQ: Shirtstop makes T-shirts with logos and sells them in its
Shirtstop makes T-shirts with logos and sells them in its chain of retail stores. It contracts with two different plants—one in Puerto Rico and one in The Bahamas. The shirts from the plant in Puerto...
See AnswerQ: In Problem 40: a. Suppose Shirtstop decided it wanted
In Problem 40: a. Suppose Shirtstop decided it wanted to minimize the defective shirts while keeping costs below $2,000. Reformulate the problem with these changes and solve graphically. b. How many f...
See AnswerQ: Angela and Bob Ray keep a large garden in which they grow
Angela and Bob Ray keep a large garden in which they grow cabbage, tomatoes, and onions to make two kinds of relish—chow-chow and tomato. The chow-chow is made primarily of cabbage, whereas the tomato...
See AnswerQ: A group of developers is opening a health club near a new
A group of developers is opening a health club near a new housing development. The health club— which will have exercise and workout equipment, basketball courts, swimming pools, an indoor walking/run...
See AnswerQ: A metal shop fabricates windows and doors to construction companies. To
A metal shop fabricates windows and doors to construction companies. To fabricate these, the shop uses iron, glass, and labor. The company has 80 units of standard size iron, 60 square feet of glass,...
See AnswerQ: Refer to Problem 5. a. How much iron and
Refer to Problem 5. a. How much iron and labor will be unused if the optimal number of windows and doors are produced? b. Explain the effect on the optimal solution of changing the profit on a window...
See AnswerQ: The Crumb and Custard Bakery makes coffee cakes and Danish pastries in
The Crumb and Custard Bakery makes coffee cakes and Danish pastries in large pans. The main ingredients are flour and sugar. There are 25 pounds of flour and 16 pounds of sugar available, and the dema...
See AnswerQ: In Problem 7, how much flour and sugar will be left
In Problem 7, how much flour and sugar will be left unused if the optimal numbers of cakes and Danish are baked?
See AnswerQ: Solve the following linear programming model graphically: maximize Z =
Solve the following linear programming model graphically: maximize Z = 3x1 + 6x2 subject to 3x1 + 2x2 … 18 x1 + x2 Ú 5 x1 … 4 x1, x2 Ú 0
See AnswerQ: Given the following QM for Windows computer solution of a linear programming
Given the following QM for Windows computer solution of a linear programming model, graph the problem and identify the solution point, including variable values and slack, from the computer output:
See AnswerQ: Solve Problem 9 graphically. a. How many hours of
Solve Problem 9 graphically. a. How many hours of the cutter’s time are used? Does it have any leftover time? b. If the fitter is able to reduce the cost of product A from €8 to €6 and product B from...
See AnswerQ: Solve the linear programming model formulation in Problem 9 for the fitter
Solve the linear programming model formulation in Problem 9 for the fitter by using the computer. a. If the fitter can obtain additional hours either to cutter or grinder (but not both), which should...
See AnswerQ: United Aluminum Company of Cincinnati produces three grades (high, medium
United Aluminum Company of Cincinnati produces three grades (high, medium, and low) of aluminum at two mills. Each mill has a different production capacity (in tons per day) for each grade, as follows...
See AnswerQ: Solve the linear programming model formulated in Problem 12 for United Aluminum
Solve the linear programming model formulated in Problem 12 for United Aluminum Company graphically. a. How much extra (i.e., surplus) high-, medium-, and low-grade aluminum does the company produce a...
See AnswerQ: The Tech Student Government Association (SGA) has several campus projects
The Tech Student Government Association (SGA) has several campus projects it undertakes each year, and its primary source of funding to support these projects is a T-shirt sale in the fall for what is...
See AnswerQ: Solve the linear programming model formulated in Problem 12 for United Aluminum
Solve the linear programming model formulated in Problem 12 for United Aluminum Company by using the computer. a. Identify and explain the shadow prices for each of the aluminum grade contract require...
See AnswerQ: Patel brothers have 50 acres of farmland on the banks of River
Patel brothers have 50 acres of farmland on the banks of River Ganges. They plan to grow tomatoes and onions. Since onions requires less water, the irrigation authority wants the brothers to cultivate...
See AnswerQ: Solve the linear programming model formulation in Problem 15 for the Patel
Solve the linear programming model formulation in Problem 15 for the Patel brothers graphically. a. How many acres of land was cultivated at the optimal solution? Did they use all the land? b. If they...
See AnswerQ: Solve the linear programming model formulation in Problem 15 for the Patel
Solve the linear programming model formulation in Problem 15 for the Patel brothers using the computer. a. If the authorities allow the brothers to plant a minimum of 20 acres with onion, should they...
See AnswerQ: The manager of a fast food restaurant at the Heathrow Airport wants
The manager of a fast food restaurant at the Heathrow Airport wants to determine how many sandwiches and bread-omelettes to prepare for customers. These foods require the following ingredients. The re...
See AnswerQ: Solve the linear programming model formulation in Problem 18 for the fast
Solve the linear programming model formulation in Problem 18 for the fast food restaurant graphically. a. How many extra breads and eggs are leftover at the optimal solution? Is there any idle labor t...
See AnswerQ: Formulate a linear programming model for Problem 37 in Chapter 1 and
Formulate a linear programming model for Problem 37 in Chapter 1 and solve using the computer. How does this solution differ from the solution to Problem 33 in Chapter 1?
See AnswerQ: Solve the linear programming model formulation in Problem 18 for the fast
Solve the linear programming model formulation in Problem 18 for the fast food restaurant using computer. a. Identify and explain the shadow prices for each of the resource constraints. b. Which of th...
See AnswerQ: London Fashions specializes in the design and delivery of apparels. To
London Fashions specializes in the design and delivery of apparels. To improve its sales, the company puts ads on TV and print media. TV channels play the video clip of an ad for 60 seconds and charge...
See AnswerQ: Solve the linear programming model formulation in Problem 21 for London Fashions
Solve the linear programming model formulation in Problem 21 for London Fashions graphically. a. Determine the sensitivity ranges for the cost of TV. b. Does the company give any more print media ads...
See AnswerQ: The owners of Backstreets Italian Restaurant are considering starting a delivery service
The owners of Backstreets Italian Restaurant are considering starting a delivery service for pizza and their other Italian dishes in the small college town where they are located. They can purchase a...
See AnswerQ: Solve the linear programming model formulation in Problem 21 for the for
Solve the linear programming model formulation in Problem 21 for the for London Fashions using computer. a. If the firm could reduce the minimum ad requirements for TV or print media, which should it...
See AnswerQ: Indians drink lassi during the summer because of its cooling properties.
Indians drink lassi during the summer because of its cooling properties. It is made from yogurt, and fruit juices are added to have different flavors. Strawberry lassi consists of yogurt and strawberr...
See AnswerQ: Solve the linear programming model formulation in Problem 24 for strawberry lassi
Solve the linear programming model formulation in Problem 24 for strawberry lassi graphically. a. Indicate the slack and surplus available at the optimal solution point and explain their meanings. b....
See AnswerQ: Solve the linear programming model formulation in Problem 24 for strawberry lassi
Solve the linear programming model formulation in Problem 24 for strawberry lassi using computer. a. Identify the sensitivity ranges for the objective function coefficient and explain what the upper a...
See AnswerQ: A farmer plans to cultivate rice and wheat in his 200 acres
A farmer plans to cultivate rice and wheat in his 200 acres of land. To get a decent profit, he has to use at least 150 acres of land. Per the environmental agency’s recommendation, for each acre of r...
See AnswerQ: Solve the linear programming model formulation in Problem 27 for the farmer
Solve the linear programming model formulation in Problem 27 for the farmer using computer. a. If the farmer has access to additional 50 acres of land, would it be beneficial for him to use the land?...
See AnswerQ: Xara Stores in the United States stocks a particular type of designer
Xara Stores in the United States stocks a particular type of designer denim jeans that is manufactured in China and Brazil and imported to the Xara distribution center in the United States. It orders...
See AnswerQ: Given the following Excel spreadsheet for a linear programming model and Solver
Given the following Excel spreadsheet for a linear programming model and Solver Parameters window, indicate the formula for cell B13 and fill in the Solver Parameters window with the appropriate infor...
See AnswerQ: Solve the linear programming model formulated in Problem 29 for Xara Stores
Solve the linear programming model formulated in Problem 29 for Xara Stores graphically and by using the computer. a. If the Chinese supplier were able to reduce its percentage of defective pairs of j...
See AnswerQ: Alexis Harrington received an inheritance of $95,000, and
Alexis Harrington received an inheritance of $95,000, and she is considering two speculative investments—the purchase of land and the purchase of cattle. Each investment would be for 1 year. Under the...
See AnswerQ: Kathleen Taylor is a high school student who has been investigating the
Kathleen Taylor is a high school student who has been investigating the possibility of mowing lawns for a summer job. She has a couple of friends she thinks she could hire on an hourly basis per job....
See AnswerQ: Solve the linear programming model formulated in Problem 31 for Alexis Harrington
Solve the linear programming model formulated in Problem 31 for Alexis Harrington graphically. a. How much would the return for cattle have to increase for Alexis to invest only in cattle? b. Should a...
See AnswerQ: Solve the linear programming model formulated in Problem 31 for Alexis Harrington
Solve the linear programming model formulated in Problem 31 for Alexis Harrington by using the computer. a. If Alexis decided to invest some of her own savings along with the money from her inheritanc...
See AnswerQ: Use the computer to solve Problem 56 from Chapter 2 to determine
Use the computer to solve Problem 56 from Chapter 2 to determine how many slices of pizza and hot dogs the fraternity must sell to break even on their project to open a food booth at the football stad...
See AnswerQ: Angie Xu has converted her garage into a greenhouse with long tables
Angie Xu has converted her garage into a greenhouse with long tables where she plans to grow flower plants from seeds to sell in the spring at the downtown market. She will plant two types of flowers...
See AnswerQ: Transform the following linear programming model into standard form and solve by
Transform the following linear programming model into standard form and solve by using the computer:
See AnswerQ: Chemco Corporation produces a chemical mixture for a specific customer in 1
Chemco Corporation produces a chemical mixture for a specific customer in 1,000-pound batches. The mixture contains three ingredients—zinc, mercury, and potassium. The mixture must conform to formula...
See AnswerQ: The following linear programming model formulation is used for the production of
The following linear programming model formulation is used for the production of four different products, with two different manufacturing processes and two different material requirements: a. Solve t...
See AnswerQ: Island Publishing Company publishes two types of magazines on a monthly basis
Island Publishing Company publishes two types of magazines on a monthly basis: a restaurant and entertainment guide and a real estate guide. The company distributes the magazines free to businesses, h...
See AnswerQ: Solve the following model from Chapter 2 (Problem 9) using
Solve the following model from Chapter 2 (Problem 9) using Excel: maximize Z = 3x1 + 6x2 (+, profit) subject to 3x1 + 2x2 … 18 (units, resource 1) x1 + x2 Ú 5 (units, resource 2) x1 … 4 (units, resour...
See AnswerQ: Solve the linear programming model formulation in Problem 39 for Island Publishing
Solve the linear programming model formulation in Problem 39 for Island Publishing Company graphically. a. Determine the sensitivity range for the advertising revenue generated by the real estate guid...
See AnswerQ: Ahmed wants to earn some extra pocket money while on his summer
Ahmed wants to earn some extra pocket money while on his summer break, which is 5 weeks long. He plans to work for three days a week and enjoy his vacation the rest of the week. He has identified that...
See AnswerQ: Solve the linear programming model formulated in Problem 39 for Island Publishing
Solve the linear programming model formulated in Problem 39 for Island Publishing Company by using the computer. a. How much would it be worth to Island Publishing Company to obtain enough additional...
See AnswerQ: The college of business of a large university offers six major programs
The college of business of a large university offers six major programs and set the tuition as tabulated. The college plans to admit a total of 3,000 students in all the six majors with at least 200 s...
See AnswerQ: a. In Problem 42, the capacity of the college is
a. In Problem 42, the capacity of the college is 3,000 students. If the university plans to increase the capacity of the college to 3,500, should the college accept this expansion? Explain. b. Analyze...
See AnswerQ: The Food Max grocery store sells three brands of milk in half
The Food Max grocery store sells three brands of milk in half-gallon cartons—its own brand, a local dairy brand, and a national brand. The profit from its own brand is $0.97 per carton, the profit fro...
See AnswerQ: a. If Food Max in Problem 44 could increase its shelf
a. If Food Max in Problem 44 could increase its shelf space for half-gallon cartons of milk, how much would profit increase per carton? b. If Food Max could get the local dairy to increase the amount...
See AnswerQ: John Hoke owns Hoke’s Spokes, a bicycle shop. Most of
John Hoke owns Hoke’s Spokes, a bicycle shop. Most of John’s bicycle sales are customer orders; however, he also stocks bicycles for walk-in customers. He stocks three types of bicycles—road-racing, c...
See AnswerQ: Solve the linear programming model formulated in Problem 46 for Hoke’s Spokes
Solve the linear programming model formulated in Problem 46 for Hoke’s Spokes by using the computer. a. Should John Hoke try to increase his budget for purchasing bikes, increase space to stock bikes,...
See AnswerQ: Metro Food Services Company delivers fresh sandwiches each morning to vending machines
Metro Food Services Company delivers fresh sandwiches each morning to vending machines throughout the city. The company makes three kinds of sandwiches—ham and cheese, bologna, and chicken salad. A ha...
See AnswerQ: Solve the linear programming model formulated in Problem 48 for Metro Food
Solve the linear programming model formulated in Problem 48 for Metro Food Services Company by using the computer. a. If Metro Food Services could hire another worker and increase its available assemb...
See AnswerQ: The following model was solved graphically in Chapter 2 (Problem 18
The following model was solved graphically in Chapter 2 (Problem 18): maximize Z = 5x1 + 8x2 (+, profit) subject to 3x1 + 5x2 ⦠50 (units, resource 1) 2x1 + 4x2 â&brvba...
See AnswerQ: Whitney Eggleston has quit her job in retail sales and has moved
Whitney Eggleston has quit her job in retail sales and has moved back into her parent’s house with the idea of starting an online home decor business. She plans to purchase items like decorative pillo...
See AnswerQ: a. In Problem 50, if the pottery company determines that
a. In Problem 50, if the pottery company determines that the profit from dining ware was £15 instead of £10, how does that affect the optimal solution? b. If the pottery company could secure additiona...
See AnswerQ: Exeter Mines produces iron ore at four different mines; however,
Exeter Mines produces iron ore at four different mines; however, the ores extracted at each mine are different in their iron content. Mine 1 produces magnetite ore, which has a 70% iron content; mine...
See AnswerQ: Solve the linear programming model formulated in Problem 52 for Exeter Mines
Solve the linear programming model formulated in Problem 52 for Exeter Mines by using the computer. a. Do any of the mines have slack capacity? If yes, which one(s)? b. If Exeter Mines could increase...
See AnswerQ: Given the following linear programming model: / transform the
Given the following linear programming model: transform the model into standard form and solve by using the computer.
See AnswerQ: Tracy McCoy has committed to the local PTA to make some items
Tracy McCoy has committed to the local PTA to make some items for a bake sale on Saturday. She has decided to make some combination of chocolate cakes, loaves of white bread, custard pies, and sugar c...
See AnswerQ: Solve the linear programming model formulated in Problem 55 for Tracy McCoy
Solve the linear programming model formulated in Problem 55 for Tracy McCoy. a. Are any of the ingredients left over? b. If Tracy could get more of any ingredient, which should it be? Why? c. If Tracy...
See AnswerQ: A manufacturer produces stationeries—binder clips, pencils, erasers,
A manufacturer produces stationeriesâbinder clips, pencils, erasers, and sharpenersâand packs them in boxes. A box of binder clips will have 12 pieces of binding cl...
See AnswerQ: Solve the linear programming model formulation in Problem 57 using computer.
Solve the linear programming model formulation in Problem 57 using computer. a. Are there any extra (slack) resources available? b. If the manufacturer could obtain additional resources, which one wou...
See AnswerQ: Guanming wants to paint houses and commercial buildings during his summer vacation
Guanming wants to paint houses and commercial buildings during his summer vacation. He has two types of customers—residential and commercial. The profit from a residential property is HKD500 and from...
See AnswerQ: Formulate homework Problem 38 in Chapter 1 as a linear programming model
Formulate homework Problem 38 in Chapter 1 as a linear programming model, and solve using the computer.
See AnswerQ: A bakery specializes in cupcakes and chocolate cookies. The bakery estimates
A bakery specializes in cupcakes and chocolate cookies. The bakery estimates that cupcakes will account for 75% of its total sales, whereas chocolate cookies will account for 25% of its total sales. T...
See AnswerQ: Solve the linear programming model in Problem 59 using the computer.
Solve the linear programming model in Problem 59 using the computer. a. Which resources constrain how many jobs Guanming can contract for? b. Guanming wants for increase either his working hours per w...
See AnswerQ: A company produces two products, A and B, which have
A company produces two products, A and B, which have profits of $9 and $7, respectively. Each unit of product requires two resources are as follows: a. Formulate a linear programming model to determin...
See AnswerQ: A fitter produces two types of fitting products—product A and
A fitter produces two types of fitting products—product A and product B—using a cutting machine (cutter) and a grinding machine (grinder). Product A requires 4 hours of the cutter and 8 hours of the g...
See AnswerQ: In the product mix example in this chapter, Quick-Screen
In the product mix example in this chapter, Quick-Screen is considering adding some extra operators who would reduce processing times for each of the four clothing items by 10%. This would also increa...
See AnswerQ: Grafton Metalworks Company produces metal alloys from six different ores it mines
Grafton Metalworks Company produces metal alloys from six different ores it mines. The company has an order from a customer to produce an alloy that contains four metals accord- ing to the following s...
See AnswerQ: The Roadnet Transport Company expanded its shipping capacity by purchasing 90 trailer
The Roadnet Transport Company expanded its shipping capacity by purchasing 90 trailer trucks from a bankrupt competitor. The company subsequently located 30 of the purchased trucks at each of its ship...
See AnswerQ: A greenhouse farmer plans to grow three crops—cucumber, potato
A greenhouse farmer plans to grow three cropsâcucumber, potato, and tomatoâin the forth- coming season in his farm, which spans 60 hectares. Each crop requires nitr...
See AnswerQ: Lawns Unlimited is a lawn care and maintenance company. One of
Lawns Unlimited is a lawn care and maintenance company. One of its services is to seed new lawns as well as bare or damaged areas in established lawns. The company uses three basic grass seed mixes it...
See AnswerQ: Alexandra Bergson has subdivided her 2,000-acre farm into
Alexandra Bergson has subdivided her 2,000-acre farm into three plots and has contracted with three local farm families to operate the plots. She has instructed each sharecropper to plant three crops:...
See AnswerQ: The Willow Furniture Company produces tables. The fixed monthly cost of
The Willow Furniture Company produces tables. The fixed monthly cost of production is $8,000, and the variable cost per table is $65. The tables sell for $180 apiece. a. For a monthly volume of 300 ta...
See AnswerQ: As a result of a recently passed bill, a congressman’s district
As a result of a recently passed bill, a congressmanâs district has been allocated $4 million for programs and projects. It is up to the congressman to decide how to distribute the m...
See AnswerQ: Anna Broderick is the dietitian for the State University football team,
Anna Broderick is the dietitian for the State University football team, and she is attempting to determine a nutritious lunch menu for the team. She has set the following nutritional guidelines for ea...
See AnswerQ: The Midland Tool Shop has four heavy presses it uses to stamp
The Midland Tool Shop has four heavy presses it uses to stamp out prefabricated metal covers and housings for electronic consumer products. All four presses operate differently and are of different si...
See AnswerQ: A fast food restaurant in Dubai needs white and dark meat to
A fast food restaurant in Dubai needs white and dark meat to produce patties and burgers. Cost of a kg of white meat is AED10 and dark meat is AED7. Patties must contain exactly 60% white meat and 40%...
See AnswerQ: Ampco is a manufacturing company that has a contract to supply a
Ampco is a manufacturing company that has a contract to supply a customer with parts from April through September. However, Ampco does not have enough storage space to store the parts during this peri...
See AnswerQ: In the diet example in this chapter, what would be the
In the diet example in this chapter, what would be the effect on the optimal solution of increasing the minimum calorie requirement for the breakfast to 500 calories? To 600 calories? Increase the bre...
See AnswerQ: Brooks City has three consolidated high schools, each with a capacity
Brooks City has three consolidated high schools, each with a capacity of 1,200 students. The school board has partitioned the city into five busing districtsânorth, south, east, west...
See AnswerQ: The head of the Department of Business Analytics at Tech is determining
The head of the Department of Business Analytics at Tech is determining faculty teaching schedules for the departmentâs 10 faculty members for next semester. There are 20 course sect...
See AnswerQ: The Southfork Feed Company makes a feed mix from four ingredients—
The Southfork Feed Company makes a feed mix from four ingredients—oats, corn, soybeans, and a vitamin supplement. The company has 300 pounds of oats, 400 pounds of corn, 200 pounds of soybeans, and 10...
See AnswerQ: The United Charities annual fund-raising drive is scheduled to take
The United Charities annual fund-raising drive is scheduled to take place next week. Donations are collected during the day and night, by telephone, and through personal contact. The average donation...
See AnswerQ: David wants to be an entrepreneur after his graduation. He is
David wants to be an entrepreneur after his graduation. He is interested in toy manufacturing. After conducting market research, he estimates that his initial investment to buy brand-new toy productio...
See AnswerQ: Gobblecakes is a bakery that specializes in cupcakes. The annual fixed
Gobblecakes is a bakery that specializes in cupcakes. The annual fixed cost to make cupcakes is $18,000. The variable cost including ingredients and labor to make a cupcake is $0.90. The bakery sells...
See AnswerQ: Alexis is in the first year of her undergraduate program. Her
Alexis is in the first year of her undergraduate program. Her father has contributed £25,000 toward her education. From this amount she must pay her tuition for the first three years and she expects a...
See AnswerQ: The honorary business fraternity at Tech is planning an all-day
The honorary business fraternity at Tech is planning an all-day bake sale on Saturday of a home football game as a charity fund-raising project. The members will bake cakes, cup- cakes, and cookies in...
See AnswerQ: A furniture company produces tables, chairs, and sofas. The
A furniture company produces tables, chairs, and sofas. The company uses lumber, fabric, and glass to produce these products. Labor performs the cutting, sanding, and assembly operations. The followin...
See AnswerQ: An apparel company wants to popularize its products by contacting its prospective
An apparel company wants to popularize its products by contacting its prospective customers. The company sets a target of contacting at least 500 men, 400 women, 300 children, and 420 schools. The com...
See AnswerQ: The Mill Mountain Coffee Shop blends coffee on the premises for its
The Mill Mountain Coffee Shop blends coffee on the premises for its customers. It sells three basic blends in 1-pound bags: Special, Mountain Dark, and Mill Regular. It uses four different types of co...
See AnswerQ: Toyz is a large discount toy store in Valley Wood Mall.
Toyz is a large discount toy store in Valley Wood Mall. The store typically has slow sales in the summer months that increase dramatically and rise to a peak at Christmas. During the summer and fall,...
See AnswerQ: In the investment example in this chapter, how would the solution
In the investment example in this chapter, how would the solution be affected if the requirement that the entire $70,000 be invested was relaxed such that it is the maximum amount available for invest...
See AnswerQ: The Skimmer Boat Company manufactures the Water Skimmer bass fishing boat.
The Skimmer Boat Company manufactures the Water Skimmer bass fishing boat. The company purchases the engines it installs in its boats from the Mar-gine Company, which specializes in marine engines. Sk...
See AnswerQ: A confectionary store is producing two types of candies: Bulk chocolate
A confectionary store is producing two types of candies: Bulk chocolate and Mini sticks candies. Both of these candies use chocolate liquor, butter, and sugar. Currently the store has 25 lb of chocola...
See AnswerQ: Joe Henderson runs a small metal parts shop. The shop contains
Joe Henderson runs a small metal parts shop. The shop contains three machinesâa drill press, a lathe, and a grinder. Joe has three operators, each certified to work on all three mach...
See AnswerQ: Melissa Beadle is a student at Tech, and she wants to
Melissa Beadle is a student at Tech, and she wants to decide how many hours each day to allocate to the following activities: class; studying; leisure and fun stuff; personal activities such as eating...
See AnswerQ: Green Valley Mills produces carpet at plants in St. Louis and
Green Valley Mills produces carpet at plants in St. Louis and Richmond. The plants ship the carpet to two outlets in Chicago and Atlanta. The cost per ton of shipping carpet from each of the two plant...
See AnswerQ: Dr. Maureen Becker, the head administrator at Jefferson County Regional
Dr. Maureen Becker, the head administrator at Jefferson County Regional Hospital, must determine a schedule for nurses to make sure there are enough of them on duty throughout the day. During the day,...
See AnswerQ: A manufacturer of bathroom fixtures produces fiberglass bathtubs in an assembly operation
A manufacturer of bathroom fixtures produces fiberglass bathtubs in an assembly operation that consists of three processesâmolding, smoothing, and painting. The number of units that...
See AnswerQ: The admissions office at State University wants to develop a planning model
The admissions office at State University wants to develop a planning model for next yearâs entering freshman class. The university has 4,500 available openings for freshmen. Tuition...
See AnswerQ: Suzuki Motors is a leading car manufacturer in India manufacturing cars at
Suzuki Motors is a leading car manufacturer in India manufacturing cars at its Gurgaon facility. Suzuki Motors has manufactured 500 cars. These cars are to be transported to its customers in Vizag an...
See AnswerQ: A refinery blends four petroleum components into three grades of gasoline—
A refinery blends four petroleum components into three grades of gasolineâregular, premium, and diesel. The maximum quantities available of each component and the cost per barrel are...
See AnswerQ: For the marketing example in this chapter, if the budget is
For the marketing example in this chapter, if the budget is increased by $20,000, how much will audience exposures be increased? If Biggs Department Store wanted the same total number of people expose...
See AnswerQ: A maintenance section of a leading property company installs appliances for free
A maintenance section of a leading property company installs appliances for free in its residential and commercial properties. Whoever rents the properties can avail the free service only once at the...
See AnswerQ: The Cash and Carry Building Supply Company has received the following order
The Cash and Carry Building Supply Company has received the following order for boards in three lengths: The company has 25-foot standard-length boards in stock. Therefore, the standard-length boards...
See AnswerQ: An investment firm has $1 million to invest in stocks,
An investment firm has $1 million to invest in stocks, bonds, certificates of deposit, and real estate. The firm wishes to determine the mix of investments that will maximize the cash value at the end...
See AnswerQ: A pottery company produces three types of products from clay: dining
A pottery company produces three types of products from clay: dining ware, sanitary ware, and floor tiles. The company has a stock of 500 kg of clay. A dining ware needs 2 kg of clay, sanitary ware, 4...
See AnswerQ: The Jones, Jones, Smith, and Rodman commodities trading firm
The Jones, Jones, Smith, and Rodman commodities trading firm knows the prices at which it will be able to buy and sell a certain commodity during the next 4 months. The buying price (ci) and selling p...
See AnswerQ: The production manager of Videotechnics Company is attempting to determine the upcoming
The production manager of Videotechnics Company is attempting to determine the upcoming 5-month production schedule for video recorders. Past production records indicate that 2,000 recorders can be pr...
See AnswerQ: The manager of the Ewing and Barnes Department Store has four employees
The manager of the Ewing and Barnes Department Store has four employees available to assign to three departments in the storeâlamps, sporting goods, and linens. The manager wants eac...
See AnswerQ: Tidewater City Bank has four branches with the following inputs and outputs
Tidewater City Bank has four branches with the following inputs and outputs: The monthly output and input values for each bank are as follows: Using data envelopment analysis (DEA), determine which b...
See AnswerQ: Carillon Health Systems owns three hospitals, and it wants to determine
Carillon Health Systems owns three hospitals, and it wants to determine which, if any, of the hospitals are inefficient. The hospital inputs each month are (1) hospital beds (100s), (2) non- physician...
See AnswerQ: Managers at the Transcontinent Shipping and Supply Company want to know the
Managers at the Transcontinent Shipping and Supply Company want to know the maximum tonnage of goods they can transport from city A to city F. The firm can contract for railroad cars on different rail...
See AnswerQ: The law firm of Smith, Smith, Smith, and Jones
The law firm of Smith, Smith, Smith, and Jones is recruiting at law schools for new lawyers for the coming year. The firm has developed the following estimate of the number of hours of casework it wil...
See AnswerQ: For the transportation example in this chapter, suppose that televisions not
For the transportation example in this chapter, suppose that televisions not shipped were to incur storage costs of $9 at Cincinnati, $6 at Atlanta, and $7 at Pittsburgh. How would these storage costs...
See AnswerQ: In Problem 49, the optimal solution results in a fractional (
In Problem 49, the optimal solution results in a fractional (i.e., noninteger) number of lawyers being hired. Explain how you would go about logically determining a new solution with a whole (integer)...
See AnswerQ: The Goliath Tool and Machine Shop produces a single product that consists
The Goliath Tool and Machine Shop produces a single product that consists of three subcomponents that are assembled to form the product. The three components are manufactured in an operation that invo...
See AnswerQ: When Molly Lai purchased the Clean Clothes Corner Laundry, she thought
When Molly Lai purchased the Clean Clothes Corner Laundry, she thought that because it was in a good location near several high-income neighborhoods, she would automatically generate good business if...
See AnswerQ: A ship has two cargo holds, one fore and one aft
A ship has two cargo holds, one fore and one aft. The fore cargo hold has a weight capacity of 70,000 pounds and a volume capacity of 30,000 cubic feet. The aft hold has a weight capacity of 90,000 po...
See AnswerQ: Eyewitness News is shown on channel 5 Monday through Friday evenings from
Eyewitness News is shown on channel 5 Monday through Friday evenings from 5:00 p.M. to 6:00 p.M. During the hour-long broadcast, 18 minutes are allocated to commercials. The remaining 42 minutes of ai...
See AnswerQ: Ahmed owns camels and sells camel milk in cans. A can
Ahmed owns camels and sells camel milk in cans. A can will hold 3 liters of milk. To market his products, he brands his products as High-Vitamin and Low-Fat. Camel milk is processed with liquid-based...
See AnswerQ: The White Horse Apple Products Company purchases apples from local growers and
The White Horse Apple Products Company purchases apples from local growers and makes applesauce and apple juice. It costs $0.60 to produce a jar of applesauce and $0.85 to produce a bottle of apple ju...
See AnswerQ: Mazy’s Department Store has decided to stay open on a 24-
Mazyâs Department Store has decided to stay open on a 24-hour basis. The store manager has divided the 24-hour day into six 4-hour periods and determined the following minimum person...
See AnswerQ: Venture Systems is a consulting firm that develops e-commerce systems
Venture Systems is a consulting firm that develops e-commerce systems and Web sites for its clients. It has six available consultants and eight client projects under contract. The consultants have dif...
See AnswerQ: Great Northwoods Outfitters is a retail phone-catalog company that specializes
Great Northwoods Outfitters is a retail phone-catalog company that specializes in outdoor clothing and equipment. A phone station at the company will be staffed with either full-time operators or temp...
See AnswerQ: In Problem 58, Great Northwoods Outfitters is going to alter its
In Problem 58, Great Northwoods Outfitters is going to alter its staffing policy. Instead of hiring a constant group of full-time operators for the entire 8-week planning period, it has decided to hir...
See AnswerQ: For the blend example in this chapter, if the requirement that
For the blend example in this chapter, if the requirement that “at least 3,000 barrels of each grade of motor oil” was changed to exactly 3,000 barrels of each grade, how would this affect the optimal...
See AnswerQ: Blue Ridge Power and Light Company generates electrical power at four coal
Blue Ridge Power and Light Company generates electrical power at four coal-fired power plants along the eastern seaboard in Virginia, North Carolina, Maryland, and Delaware. The company purchases coal...
See AnswerQ: Vicki Smith, Penny Miller, and Darryl Davis are students at
Vicki Smith, Penny Miller, and Darryl Davis are students at State University. In the summer, they often go rafting with other students down the Ocobee River in the nearby Blue Ridge Mountain foothills...
See AnswerQ: A water theme park plays seven games depending on the demand during
A water theme park plays seven games depending on the demand during weekdays and weekends. The park earns revenues (in thousands of euros) from playing these games and the revenue varies with the days...
See AnswerQ: The city of Salem has four police stations, with the following
The city of Salem has four police stations, with the following inputs and outputs: The monthly output and input data for each station are Help the city council determine which of the police stations a...
See AnswerQ: Air Jet operates flights between Delhi and Darjeeling, a tourist destination
Air Jet operates flights between Delhi and Darjeeling, a tourist destination, which takes approximately 2 hours. Pilots report to duty based on where they were hired. For example, if a pilot, David, w...
See AnswerQ: The National Cereal Company produces a Light-Snak cereal package with
The National Cereal Company produces a Light-Snak cereal package with a selection of small pouches of four different cerealsâCrunchies, Toasties, Snakmix, and Granolies. Each cereal...
See AnswerQ: A car manufacturer has production plants in Germany, the United Kingdom
A car manufacturer has production plants in Germany, the United Kingdom, and France, and it exports cars to several other countries. The manufacturerâs supply chain includes manufact...
See AnswerQ: In the event of a disaster situation at Tech from weather,
In the event of a disaster situation at Tech from weather, an accident, or terrorism, victims will be transported by emergency vehicles to three area hospitals: Montgomery Regional, Radford Memorial,...
See AnswerQ: Two coffee house chains, Startrak and Mill Mountain, dominate the
Two coffee house chains, Startrak and Mill Mountain, dominate the Columbus market. Startrak has developed three new marketing strategies, 1, 2, and 3, for the fall season, which include various combin...
See AnswerQ: On their farm, the Friendly family grows apples that they harvest
On their farm, the Friendly family grows apples that they harvest each fall and make into three products—apple butter, applesauce, and apple jelly. They sell these three items at several local grocery...
See AnswerQ: A hospital dietitian prepares breakfast menus every morning for the hospital patients
A hospital dietitian prepares breakfast menus every morning for the hospital patients. Part of the dietitianâs responsibility is to make sure that minimum daily requirements for vita...
See AnswerQ: Lakeside Boatworks is planning to manufacture three types of molded fiberglass recreational
Lakeside Boatworks is planning to manufacture three types of molded fiberglass recreational boatsâa fishing (bass) boat, a ski boat, and a small speedboat. The estimated selling pric...
See AnswerQ: The town of Draper, with a population of 20,000
The town of Draper, with a population of 20,000, sits adjacent to State University, which has an enrollment of 27,000 students. Downtown Draper merchants have long complained about the lack of parking...
See AnswerQ: An interior design and construction company produces two types of tiles—
An interior design and construction company produces two types of tiles—floor tiles and wall tiles. Floor tiles are made with slightly rough surface to make it nonslippery, whereas wall tiles are give...
See AnswerQ: Lauren Moore has sold her business for $500,000 and
Lauren Moore has sold her business for $500,000 and wants to invest in condominium units (which she intends to rent) and land (which she will lease to a farmer). She estimates that she will receive an...
See AnswerQ: The owner of the Consolidated Machine Shop has $10,000
The owner of the Consolidated Machine Shop has $10,000 available to purchase a lathe, a press, a grinder, or some combination thereof. The following 0â1 integer linear programming mo...
See AnswerQ: A jewelry store makes necklaces and bracelets from gold and platinum.
A jewelry store makes necklaces and bracelets from gold and platinum. The store has 20 ounces of gold and 20 ounces of platinum. Each necklace requires 5 ounces of gold and 2 ounces of platinum, where...
See AnswerQ: In the example problem solution for this chapter on page 232,
In the example problem solution for this chapter on page 232, a textbook company was attempting to determine how many sales representatives to assign to each of two new regions. The company has now de...
See AnswerQ: Working part-time in a restaurant near his university, Sabastian
Working part-time in a restaurant near his university, Sabastian expects to earn â¬2,000 during his three-month summer vacation. He plans to invest his hard-earned money in the availab...
See AnswerQ: Mazy’s Department Store has decided to stay open for business on a
Mazyâs Department Store has decided to stay open for business on a 24-hour basis. The store manager has divided the 24-hour day into six 4-hour periods and has determined the followi...
See AnswerQ: The athletic boosters club for Beaconville has planned a 2-day
The athletic boosters club for Beaconville has planned a 2-day fund-raising drive to purchase uniforms for all the local high schools and to improve facilities. Donations will be solicited during the...
See AnswerQ: The Metropolitan Arts Council (MAC) wants to advertise its upcoming
The Metropolitan Arts Council (MAC) wants to advertise its upcoming season of plays, concerts, and ballets. A television commercial that costs $25,000 will supposedly reach 53,000 potential arts custo...
See AnswerQ: Juan Hernandez, a Cuban athlete who visits the United States and
Juan Hernandez, a Cuban athlete who visits the United States and Europe frequently, is allowed to return with a limited number of consumer items not generally available in Cuba. The items, which are c...
See AnswerQ: Draper, where Tech is located, does not have a commercial
Draper, where Tech is located, does not have a commercial airport; instead residents who are flying on an airline must travel to the airport in Roanoke 40 miles away. The town council is considering a...
See AnswerQ: A political party wants to campaign for the forthcoming elections. The
A political party wants to campaign for the forthcoming elections. The party has planned to allocate party volunteers to the four constituencies the party plans to contest in. Each volunteer visits hi...
See AnswerQ: A family has some rose plants in its garden. The family
A family has some rose plants in its garden. The family wants to use a fertilizer in their garden. To prepare the fertilizer, the family needs to blend two chemicals (1 and 2). These chemicals provide...
See AnswerQ: The Terraco Motor Company has produced a lightweight, all-terrain
The Terraco Motor Company has produced a lightweight, all-terrain vehicle code-named âJ99 Terraâ for the military. The company is now planning to sell the Terra to...
See AnswerQ: A farmer owns 150 acres of land and plans to sow wheat
A farmer owns 150 acres of land and plans to sow wheat, rice, and corn. He can use the storage facility of the government but must reserve the space before planting crops. He receives water free from...
See AnswerQ: Brenda Last, an undergraduate business major at State University, is
Brenda Last, an undergraduate business major at State University, is attempting to determine her course schedule for the fall semester. She is considering seven 3-credit-hour courses, which are shown...
See AnswerQ: A welder fabricates steel doors, gates, and tables using cutting
A welder fabricates steel doors, gates, and tables using cutting and welding machines. He has 200 units of steel, 630 processing hours of cutting machine, and 600 hours of welding machine. He earns a...
See AnswerQ: Harry and Melissa Jacobson produce handcrafted furniture in a workshop on their
Harry and Melissa Jacobson produce handcrafted furniture in a workshop on their farm. They have obtained a load of 600 board feet of birch from a neighbor and are planning to produce round kitchen tab...
See AnswerQ: The Jacobsons in Problem 24 have been approached by a home furnishings
The Jacobsons in Problem 24 have been approached by a home furnishings company that needs a wooden stool for its catalog. The company has asked the Jacobsons to produce a batch of 20 wooden stools, an...
See AnswerQ: The Suntrek Company is a global apparel retailer with stores around the
The Suntrek Company is a global apparel retailer with stores around the world. It manufactures many of its clothing items in China and transports them by rail and truck to four ports on the coast&acir...
See AnswerQ: Six Sigma is a well-recognized quality management system that employs
Six Sigma is a well-recognized quality management system that employs improvement projects to improve business processes to reduce product and service defects, reduce costs, and increase profits. Each...
See AnswerQ: The Metropolitan Police Department was recently criticized in the local media for
The Metropolitan Police Department was recently criticized in the local media for not responding to police calls in the downtown area rapidly enough. In several recent cases, alarms had sounded for br...
See AnswerQ: The Skimmer Boat Company manufactures three kinds of molded fiberglass recreational boats
The Skimmer Boat Company manufactures three kinds of molded fiberglass recreational boats— a bass fishing boat, a ski boat, and a speedboat. The profit for a bass boat is $20,500, the profit for a ski...
See AnswerQ: The Reliance Manufacturing Company produces an aircraft part. The company can
The Reliance Manufacturing Company produces an aircraft part. The company can produce the part entirely at a flexible work center with multiple computerized machines. The company has four work centers...
See AnswerQ: Solve Problem 55 in Chapter 3 as an integer programming model using
Solve Problem 55 in Chapter 3 as an integer programming model using the computer.
See AnswerQ: Customers call an airline call center to book seats. There are
Customers call an airline call center to book seats. There are three divisions in the airline call center, one for booking first class seats, one for booking business class seats, and one for booking...
See AnswerQ: A truck manufacturer has three manufacturing plants and four retail outlets.
A truck manufacturer has three manufacturing plants and four retail outlets. The details of the demand at outlets, supply at plants, and the cost to transport between plants and outlets in lakhs (a la...
See AnswerQ: A carpenter makes tables and chairs from wood and steel. His
A carpenter makes tables and chairs from wood and steel. His store has 200 units of wood and 200 units of steel. Each table requires 5 units of wood and 2 units of steel, whereas each chair requires 2...
See AnswerQ: Sobha Real Estate Company constructs residential apartments in several countries. It
Sobha Real Estate Company constructs residential apartments in several countries. It plans to evaluate the worthiness of five potential construction sites over the next three years and choose the ones...
See AnswerQ: A petroleum refinery in Dubai wants to expand its refinery and stock
A petroleum refinery in Dubai wants to expand its refinery and stock-yard for the expected surge in the oil prices in the coming years. The company has four distinct activities in its strategic plan&a...
See AnswerQ: Tech offers a number of off-campus courses in its professional
Tech offers a number of off-campus courses in its professional and executive masters of information technology (MIT) programs at various locations around the state. The courses are taught by a group o...
See AnswerQ: Rowntown Cab Company has 70 drivers that it must schedule in three
Rowntown Cab Company has 70 drivers that it must schedule in three 8-hour shifts. However, the demand for cabs in the metropolitan area varies dramatically according to the time of day. The slowest pe...
See AnswerQ: Angela Fox and Zooey Caulfield were food and nutrition majors at State
Angela Fox and Zooey Caulfield were food and nutrition majors at State University, as well as close friends and roommates. Upon graduation Angela and Zooey decided to open a French restaurant in Drape...
See AnswerQ: A healthcare company plans to open its new chain of clinics in
A healthcare company plans to open its new chain of clinics in seven cities (1 to 7) within its earmarked budget. The population size (in thousands) in cities and associated investment budgets are tab...
See AnswerQ: Wins above replacement,” or WAR, is a complex statistical measure
Wins above replacement,â or WAR, is a complex statistical measure of a major league baseball playerâs performance that sums up a playerâs total co...
See AnswerQ: Globex Investment Capital Corporation owns six companies that have the following estimated
Globex Investment Capital Corporation owns six companies that have the following estimated returns (in millions of dollars) if sold in one of the next 3 years: To operating funds, the company must sel...
See AnswerQ: An industrial machinery manufacturer produces shapers and drill presses. The manufacturer
An industrial machinery manufacturer produces shapers and drill presses. The manufacturer fore- casts that the demand for shapers for the next month will be at least 5 and the demand for drill presses...
See AnswerQ: An oil refinery pumps thousands of barrels of crude and refines it
An oil refinery pumps thousands of barrels of crude and refines it to produce fuels. The refinery must plan its production for the next four months to meet its expected demand. The monthly production...
See AnswerQ: The Kreeger Grocery Store chain has bought out a competing grocery store
The Kreeger Grocery Store chain has bought out a competing grocery store chain. However, it now has too many stores in close proximity to each other in certain cities. In Roanoke the chain has 10 stor...
See AnswerQ: An investment firm received R120,000 from a client for investment
An investment firm received R120,000 from a client for investment. The firm has identified six options and their expected returns are as given in the following table. Each option needs a mini- mum ent...
See AnswerQ: The Tech Software School contracts to train employees of companies in the
The Tech Software School contracts to train employees of companies in the use of various soft- ware products and packages. The training programs are all delivered on three consecutive days but require...
See AnswerQ: A car manufacturer produces cars in five colors: Red, Green
A car manufacturer produces cars in five colors: Red, Green, Blue, White, and Yellow. Only one painting machine is available now for painting cars. The machine must be stopped if the machine is requir...
See AnswerQ: HTM Realty has a storefront rental property in downtown Draperton, a
HTM Realty has a storefront rental property in downtown Draperton, a small college town next to the Tech campus. The property encompasses four business spaces that open onto College Avenue. HTM has a...
See AnswerQ: Annabelle Sizemore has cashed in some treasury bonds and a life insurance
Annabelle Sizemore has cashed in some treasury bonds and a life insurance policy that her parents had accumulated over the years for her. She has also saved some money in certificates of deposit and s...
See AnswerQ: The Valley Times and World News publish and deliver a morning newspaper
The Valley Times and World News publish and deliver a morning newspaper 7 days a week. The bundled papers are delivered by trucks to a number of area communities where they are picked up by carriers a...
See AnswerQ: The BigRig Trucking Company participates in an Internet transportation exchange where customers
The BigRig Trucking Company participates in an Internet transportation exchange where customers advertise their shipments including load weight and volume, and trip origin and destination. BigRig then...
See AnswerQ: A state government plans to set up new police stations for the
A state government plans to set up new police stations for the public. The state has seven districts (A through G). Each police station can serve a radius of 30 miles. A district may receive service f...
See AnswerQ: A business undergraduate student must register for the next semester on or
A business undergraduate student must register for the next semester on or before the drop date. The student meets instructors and assesses potential grades and study-hour requirements. There are eigh...
See AnswerQ: A tailor makes wool tweed sport coats and wool slacks. He
A tailor makes wool tweed sport coats and wool slacks. He is able to get a shipment of 150 square yards of wool cloth from Scotland each month to make coats and slacks, and he has 200 hours of his own...
See AnswerQ: A jeweler and her apprentice make silver pins and necklaces by hand
A jeweler and her apprentice make silver pins and necklaces by hand. Each week they have 80 hours of labor and 36 ounces of silver available. It requires 8 hours of labor and 2 ounces of silver to mak...
See AnswerQ: A glassblower makes glass decanters and glass trays on a weekly basis
A glassblower makes glass decanters and glass trays on a weekly basis. Each item requires 1 pound of glass, and the glassblower has 15 pounds of glass available each week. A glass decanter requires 4...
See AnswerQ: Samsung sells its four flagship products—cell phones, TVs,
Samsung sells its four flagship products—cell phones, TVs, computing devices, and memory storage devices—through its exclusive showroom in a city. To support sales, it has hired 20 per- sons and train...
See AnswerQ: Helen Holmes makes pottery by hand in her basement. She has
Helen Holmes makes pottery by hand in her basement. She has 20 hours available each week to make bowls and vases. A bowl requires 3 hours of labor, and a vase requires 2 hours of labor. It requires 2...
See AnswerQ: A transportation problem involves the following costs, supply, and demand
A transportation problem involves the following costs, supply, and demand: Solve this problem by using the computer.
See AnswerQ: David from Problem 16 is now concerned as the market demand does
David from Problem 16 is now concerned as the market demand does not look very promising, and he may not be able to sell more than the breakeven volume. Therefore, instead of buying brand- new equipme...
See AnswerQ: Gilbert Moss and Angela Pasaic spent several summers during their college years
Gilbert Moss and Angela Pasaic spent several summers during their college years working at archaeological sites in the Southwest. While at those digs, they learned how to make ceramic tiles from local...
See AnswerQ: Essex Energy Company has a contract to deliver 400 tons of coal
Essex Energy Company has a contract to deliver 400 tons of coal to China. The company has mines in the following regionsâAppalachia (WV, KY, and VA), Mississippi (IL and IN), and Mid...
See AnswerQ: IP-computers assembles computers in three countries (the US,
IP-computers assembles computers in three countries (the US, China, and Malaysia). The production capacities of the three assembly plants are: The company exports the computers to three other countrie...
See AnswerQ: A severe winter ice storm has swept across North Carolina and Virginia
A severe winter ice storm has swept across North Carolina and Virginia, followed by over a foot of snow and frigid, single-digit temperatures. These weather conditions have resulted in numerous downed...
See AnswerQ: A large manufacturing company is closing three of its existing plants and
A large manufacturing company is closing three of its existing plants and intends to transfer some of its more skilled employees to three plants that will remain open. The number of employees availabl...
See AnswerQ: A national grain trader procures wheat in standard bags of 50 kg
A national grain trader procures wheat in standard bags of 50 kg from several farmers and sends the wheat bags to different retail outlets. The supply from the different farmers are given in the follo...
See AnswerQ: Bayville has built a new elementary school, increasing the town’s total
Bayville has built a new elementary school, increasing the townâs total to four schoolsâ Addison, Beeks, Canfield, and Daley. Each has a capacity of 400 students. T...
See AnswerQ: In Problem 15, the school board determined that it does not
In Problem 15, the school board determined that it does not want any of the schools to be overly crowded compared with the other schools. It would like to assign students from each district to each sc...
See AnswerQ: Johnson Dairy procures milk from several areas, mainly from milk producers
Johnson Dairy procures milk from several areas, mainly from milk producers in villages, processes milk at their facilities and sells milk in packets in different cities with different prices. Since di...
See AnswerQ: A private taxi company in the UAE has recently procured 300 taxicabs
A private taxi company in the UAE has recently procured 300 taxicabs to meet the rising demands in three citiesâDubai, Abu Dhabi, and Sharjah. Of these taxicabs, 100 are 4-seaters, 1...
See AnswerQ: During U.S. military action in the Middle East,
During U.S. military action in the Middle East, large amounts of military matériel and supplies had to be shipped daily from supply depots in the United States. The critical factor in the...
See AnswerQ: In “The Possibility” Restaurant case problem in Chapter 2,
In “The Possibility” Restaurant case problem in Chapter 2, Angela Fox and Zooey Caulfield opened a French restaurant called “The Possibility.” Initially, Angela and Zooey could not offer a full, varie...
See AnswerQ: Solve the following linear programming problem: minimize Z = 3x11
Solve the following linear programming problem: minimize Z = 3x11 + 12x12 + 8x13 + 10x21 + 5x22 + 6x23 + 6x31 + 7x32 + 10x33 subject to
See AnswerQ: Suntrek, based in China, is a global supplier of denim
Suntrek, based in China, is a global supplier of denim jeans for apparel companies around the world. They purchase raw cotton from producers in Arkansas, Mississippi, and Texas, where it is picked, gi...
See AnswerQ: Suntrek in Problem 20 ships the cotton it has purchased from the
Suntrek in Problem 20 ships the cotton it has purchased from the U.S. ports to overseas ports in Shanghai, Karachi, and Saigon, where its denim fabric factories are also located. The shipping and hand...
See AnswerQ: Suntrek in Problem 21 manufactures denim fabric at its factories in Shanghai
Suntrek in Problem 21 manufactures denim fabric at its factories in Shanghai, Karachi, and Saigon and ships it to its denim jeans manufacturing facilities in China, India, Japan, Turkey, and Italy. A...
See AnswerQ: Suntrek in Problem 22 supplies its finished denim jeans to its customers’
Suntrek in Problem 22 supplies its finished denim jeans to its customersâ distribution centers in the United States in New York and New Orleans, and in Europe in Bristol and Marseill...
See AnswerQ: PM Computer Services produces personal computers from component parts it buys on
PM Computer Services produces personal computers from component parts it buys on the open market. The company can produce a maximum of 300 personal computers per month. PM wants to determine its produ...
See AnswerQ: Mohammed owns two trucks and accepts shipments from Dubai and transports them
Mohammed owns two trucks and accepts shipments from Dubai and transports them to Abu Dhabi. His trucks can hold up to certain load and have certain space. The following table pro- vides the capacity l...
See AnswerQ: Orient Express is a global distribution company that transports its clients’ products
Orient Express is a global distribution company that transports its clientsâ products to customers in Hong Kong, Singapore, and Taipei. All the products Orient Express ships are stor...
See AnswerQ: Binford Tools manufactures garden tools. It uses inventory, overtime,
Binford Tools manufactures garden tools. It uses inventory, overtime, and subcontracting to absorb demand fluctuations. Expected demand, regular and overtime production capacity, and subcontracting ca...
See AnswerQ: The National Western Railroad’s rail network covers most of the U.
The National Western Railroadâs rail network covers most of the U.S. West and Midwest. On a daily basis it sends empty freight cars from various locations in its rail network to its...
See AnswerQ: Julia Robertson is a senior at Tech, and she’s investigating different
Julia Robertson is a senior at Tech, and she’s investigating different ways to finance her final year at school. She is considering leasing a food booth outside the Tech stadium at home football games...
See AnswerQ: Four students Ahmed, Bob, Chandni, and David answered a
Four students Ahmed, Bob, Chandni, and David answered a survey about their preferred mobiles. Ten mobiles were demonstrated, and students were asked to rank the mobiles from 1 to 10, 10 being their hi...
See AnswerQ: Consider the following transportation problem: / Formulate this problem
Consider the following transportation problem: Formulate this problem as a linear programming model, and solve it using the computer.
See AnswerQ: World Foods, Inc., imports food products such as meats,
World Foods, Inc., imports food products such as meats, cheese, and pastries to the United States from warehouses at ports in Hamburg, Marseilles, and Liverpool. Ships from these ports deliver the pro...
See AnswerQ: A sports apparel company has received an order for a college basketball
A sports apparel company has received an order for a college basketball teamâs national championship T-shirt. The company can purchase the T-shirts from textile factories in Mexico,...
See AnswerQ: A computer manufacturer plans to enter new markets in three African countries
A computer manufacturer plans to enter new markets in three African countriesâSenegal, Ghana, and Ethiopia. The company has two manufacturing facilities in China and Vietnam that can...
See AnswerQ: A national catalog and Internet retailer has three warehouses and three major
A national catalog and Internet retailer has three warehouses and three major distribution centers located around the country. Normally, items are shipped directly from the warehouses to the distribut...
See AnswerQ: Horizon Computers manufactures laptops in Germany, Belgium, and Italy.
Horizon Computers manufactures laptops in Germany, Belgium, and Italy. Because of high tariffs between international trade groups, it is sometimes cheaper to ship partially completed laptops to factor...
See AnswerQ: A mango-processing unit produces mango juice only during the four
A mango-processing unit produces mango juice only during the four months mangoes are harvested. The following diagram shows the production capacities in liters, demand for juice in liters, production...
See AnswerQ: KanTech Corporation is a global distributor of electrical parts and components.
KanTech Corporation is a global distributor of electrical parts and components. Its customers are electronics companies in the United States, including computer manufacturers and audio/visual product...
See AnswerQ: In Problem 36, KanTech Corporation is just as concerned that its
In Problem 36, KanTech Corporation is just as concerned that its U.S. distributors receive shipments in the minimum amount of time as they are about minimizing their shipping costs. Suppose that each...
See AnswerQ: Mary Kelly is a scholarship soccer player at State University. During
Mary Kelly is a scholarship soccer player at State University. During the summer, she works at a youth all-sports camp that several of the universityâs coaches operate. The sports ca...
See AnswerQ: Blue Mountain Coffee Company produces various blends of Free Trade, organic
Blue Mountain Coffee Company produces various blends of Free Trade, organic specialty coffees that it sells to wholesale customers. The company imports 25 million pounds of coffee beans annually from...
See AnswerQ: The Pinnacle Company is a U.S.-based manufacturer of
The Pinnacle Company is a U.S.-based manufacturer of furniture and appliances that offshored all of its actual manufacturing operations to Asia about a decade ago. It then set up distribution centers...
See AnswerQ: Steel mills in three cities produce the following amounts of steel:
Steel mills in three cities produce the following amounts of steel: These mills supply steel to four cities, where manufacturing plants have the following demand: Shipping costs per ton of steel are a...
See AnswerQ: Formulate and solve a transshipment model for the shipments of cottons from
Formulate and solve a transshipment model for the shipments of cottons from the cotton processing facilities to the U.S. ports and to the overseas ports and Suntrek’s fabric factories as described in...
See AnswerQ: Solve problem 32 from Chapter 4 using the computer.
Solve problem 32 from Chapter 4 using the computer.
See AnswerQ: A plant has four operators to be assigned to four machines.
A plant has four operators to be assigned to four machines. The time (minutes) required by each worker to produce a product on each machine is shown in the following table: Determine the optimal assig...
See AnswerQ: A shop has four machinists to be assigned to four machines.
A shop has four machinists to be assigned to four machines. The hourly cost of having each machine operated by each machinist is as follows: However, because he does not have enough experience, machin...
See AnswerQ: The Omega pharmaceutical firm has five salespersons, whom the firm wants
The Omega pharmaceutical firm has five salespersons, whom the firm wants to assign to five sales regions. Given their various previous contacts, the salespersons are able to cover the regions in diffe...
See AnswerQ: The Bunker Manufacturing firm has five employees and six machines and wants
The Bunker Manufacturing firm has five employees and six machines and wants to assign the employees to the machines to minimize cost. A cost table showing the cost incurred by each employee on each ma...
See AnswerQ: Given the following cost table for an assignment problem, determine the
Given the following cost table for an assignment problem, determine the optimal assignment and compute total minimum cost:
See AnswerQ: The Spring family has owned and operated a garden tool and implements
The Spring family has owned and operated a garden tool and implements manufacturing company since 1952. The company sells garden tools to distributors and also directly to hardware stores and home imp...
See AnswerQ: An electronics firm produces electronic components, which it supplies to various
An electronics firm produces electronic components, which it supplies to various electrical manufacturers. Quality control records indicate that different employees produce different numbers of defect...
See AnswerQ: A dispatcher for Citywide Taxi Company has six taxicabs at different locations
A dispatcher for Citywide Taxi Company has six taxicabs at different locations and five customers who have called for service. The mileage from each taxiâs present location to each c...
See AnswerQ: The Southeastern Conference has nine basketball officials who must be assigned to
The Southeastern Conference has nine basketball officials who must be assigned to three conference games, three to each game. The conference office wants to assign the officials so that the total dist...
See AnswerQ: South Africa is one of the largest coal producing and exporting countries
South Africa is one of the largest coal producing and exporting countries in the world. A company dealing with coal sources coal from four coalfieldsâHighveld, Emalehleni, Ermelo, an...
See AnswerQ: In Problem 49, officials 2 and 8 recently had a confrontation
In Problem 49, officials 2 and 8 recently had a confrontation with one of the coaches in the game in Athens. They were forced to eject the coach after several technical fouls. The conference office de...
See AnswerQ: State University has planned six special catered events for the Saturday of
State University has planned six special catered events for the Saturday of its homecoming football game. The events include an alumni brunch, a parentsâ brunch, a booster club lunch...
See AnswerQ: A university department head has five instructors to be assigned to four
A university department head has five instructors to be assigned to four different courses. All the instructors have taught the courses in the past and have been evaluated by the students. The rating...
See AnswerQ: The coach of the women’s swim team at State University is preparing
The coach of the womenâs swim team at State University is preparing for the conference swim meet and must choose the four swimmers she will assign to the 800-meter medley relay team....
See AnswerQ: Biggio’s Department Store has six employees available to assign to four departments
Biggioâs Department Store has six employees available to assign to four departments in the storeâ home furnishings, china, appliances, and jewelry. Most of the six...
See AnswerQ: The Vanguard Publishing Company wants to hire seven of the eight college
The Vanguard Publishing Company wants to hire seven of the eight college students who have applied as salespeople to sell encyclopedias during the summer. The company desires to allocate them to three...
See AnswerQ: After Susan Wong graduated from State University with a degree in management
After Susan Wong graduated from State University with a degree in management science, she went to work for a computer systems development firm in the Washington, DC, area. As a student at State, S...
See AnswerQ: A mobile manufacturer must produce five types of microprocessors. Currently five
A mobile manufacturer must produce five types of microprocessors. Currently five work centers are available for production. Each work center can produce each type of microprocessor; however, the time...
See AnswerQ: A travel company in Dubai owns four passenger cars with different seating
A travel company in Dubai owns four passenger cars with different seating capacities. The profit per trip depends on several factors like the season of the year, tourist requirements, the time of the...
See AnswerQ: Kathleen Taylor is a freshman at Roanoke College, and she wants
Kathleen Taylor is a freshman at Roanoke College, and she wants to develop her schedule for the spring semester. Courses are offered with class periods either on Monday and Wednesday or Tuesday and Th...
See AnswerQ: CareMed, an HMO health care provider, operates a 24-
CareMed, an HMO health care provider, operates a 24-hour outpatient clinic in Draperton, near the Tech campus. The facility has a medical staff with doctors and nurses who see regular local patients a...
See AnswerQ: Onions are considered an indispensable ingredient in most of Indian cooking.
Onions are considered an indispensable ingredient in most of Indian cooking. Maximum onion production takes place in the state of Maharashtra (4.90 million tons) followed by Karnataka (2.59 million to...
See AnswerQ: A company wants to assign ten salesmen to eight different sales zones
A company wants to assign ten salesmen to eight different sales zones. The expected profit from each salesman differs from one zone to another based on their experience with the different customers in...
See AnswerQ: Refer to the data given in Problem 60 and assume that one
Refer to the data given in Problem 60 and assume that one salesman should be assigned to only one zone. a. Determine the optimal assignment. b. What is the effect on the expected revenue?
See AnswerQ: The Hilton Island Tennis Club is hosting its annual professional tennis tournament
The Hilton Island Tennis Club is hosting its annual professional tennis tournament. One of the tournament committeeâs scheduling activities is to assign chair umpires to the various...
See AnswerQ: The National Collegiate Lacrosse Association is planning its annual national championship tournament
The National Collegiate Lacrosse Association is planning its annual national championship tournament. It selects 16 teams from conference champions and the highest ranked at-large teams to play in the...
See AnswerQ: A tire manufacturer supplies tires to three vehicle manufacturers—Hyundai,
A tire manufacturer supplies tires to three vehicle manufacturersâHyundai, Honda, and Toyota. Vehicle manufacturers buy tires for their cars in multiples of five from the different p...
See AnswerQ: Walsh’s Juice Company produces three products from unprocessed grape juice—bottled
Walshâs Juice Company produces three products from unprocessed grape juiceâbottled juice, frozen juice con- centrate, and jelly. It purchases grape juice from three...
See AnswerQ: The Interstate Truck Rental firm has accumulated extra trucks at three of
The Interstate Truck Rental firm has accumulated extra trucks at three of its truck leasing outlets, as shown in the following table: The firm also has four outlets with shortages of rental trucks, as...
See AnswerQ: Coca-Cola Great Britain offers more than 80 drinks across 20
Coca-Cola Great Britain offers more than 80 drinks across 20 different brands. The company distributes its drinks to four regionsâWest Midlands, East Midlands, South East, and South...
See AnswerQ: The Rolling Creek Textile Mill produces denim. The fixed monthly cost
The Rolling Creek Textile Mill produces denim. The fixed monthly cost is $21,000, and the variable cost per yard of denim is $0.45. The mill sells a yard of denim for $1.30. a. For a monthly volume of...
See AnswerQ: Evergreen Fertilizer Company produces fertilizer. The company’s fixed monthly cost is
Evergreen Fertilizer Company produces fertilizer. The company’s fixed monthly cost is $25,000, and its variable cost per pound of fertilizer is $0.15. Evergreen sells the fertilizer for $0.40 per poun...
See AnswerQ: Graphically illustrate the break-even volume for the Gobblecakes bakery determined
Graphically illustrate the break-even volume for the Gobblecakes bakery determined in Problem 2.
See AnswerQ: Graphically illustrate the break-even volume for the Evergreen Fertilizer Company
Graphically illustrate the break-even volume for the Evergreen Fertilizer Company determined in Problem 4.
See AnswerQ: Andy Mendoza makes handcrafted dolls, which he sells at craft fairs
Andy Mendoza makes handcrafted dolls, which he sells at craft fairs. He is considering mass- producing the dolls to sell in stores. He estimates that the initial investment for plant and equipment wil...
See AnswerQ: If the maximum operating capacity of the Gobblecakes bakery described in Problem
If the maximum operating capacity of the Gobblecakes bakery described in Problem 2 is 12,000 cupcakes annually, determine the break-even volume as a percentage of that capacity.
See AnswerQ: If the maximum operating capacity of the Rolling Creek Textile Mill described
If the maximum operating capacity of the Rolling Creek Textile Mill described in Problem 3 is 25,000 yards of denim per month, determine the break-even volume as a percentage of capacity.
See AnswerQ: If the maximum operating capacity of Evergreen Fertilizer Company described in Problem
If the maximum operating capacity of Evergreen Fertilizer Company described in Problem 4 is 120,000 pounds of fertilizer per month, determine the break-even volume as a percentage of capacity.
See AnswerQ: King’s Landing is a large amusement theme park located in Virginia.
King’s Landing is a large amusement theme park located in Virginia. The park hires high school and college students to work during the summer months of May, June, July, August, and September. The stud...
See AnswerQ: If the Gobblecakes bakery in Problem 2 changes the selling price for
If the Gobblecakes bakery in Problem 2 changes the selling price for a cupcake from $3.20 to $2.75, what effect will the change have on the break-even volume?
See AnswerQ: If Evergreen Fertilizer Company in Problem 4 changes the price of its
If Evergreen Fertilizer Company in Problem 4 changes the price of its fertilizer from $0.40 per pound to $0.60 per pound, what effect will the change have on the break-even volume?
See AnswerQ: If Evergreen Fertilizer Company changes its production process to add a weed
If Evergreen Fertilizer Company changes its production process to add a weed killer to the fertilizer to increase sales, the variable cost per pound will increase from $0.15 to $0.22. What effect will...
See AnswerQ: If Evergreen Fertilizer Company increases its advertising expenditures by $14,
If Evergreen Fertilizer Company increases its advertising expenditures by $14,000 per year, what effect will the increase have on the break-even volume computed in Problem 13?
See AnswerQ: Paulette Smith and Maureen Becker are seniors in engineering and business,
Paulette Smith and Maureen Becker are seniors in engineering and business, respectively, at State University. They have set up a company, PM Computer Services, to assemble and sell their own brand of...
See AnswerQ: The Tennessee Pterodactyls is a new professional basket- ball franchise in
The Tennessee Pterodactyls is a new professional basket- ball franchise in Nashville. The teamâs general manager, Jerry East, and coach, Phil Riley, are trying to develop a roster of...
See AnswerQ: The General Store at State University is an auxiliary bookstore located near
The General Store at State University is an auxiliary bookstore located near the dormitories that sells academic supplies, toiletries, sweatshirts and T-shirts, magazines, packaged food items, and can...
See AnswerQ: Atlantic Management Systems is a consulting firm that specializes in developing computerized
Atlantic Management Systems is a consulting firm that specializes in developing computerized decision support systems for computer manufacturing companies. The fir currently has offices in Chicago, Ch...
See AnswerQ: The United Broadcast Network (UBN) sells to advertisers commercial advertising
The United Broadcast Network (UBN) sells to advertisers commercial advertising slots on its television shows. The network announces its new fall television schedule during the previous spring and shor...
See AnswerQ: Each fall the Draperton Parks and Recreation Department holds a series of
Each fall the Draperton Parks and Recreation Department holds a series of tryouts for its boysâ and girlsâ youth basketball leagues. All leagues are formed by age g...
See AnswerQ: All students in the College of Business at State University are required
All students in the College of Business at State University are required to take a capstone course, Management 4394, the last semester of their senior year. This course consists primarily of a semeste...
See AnswerQ: The Lead Balloon is a popular ’80s rock band that broke up
The Lead Balloon is a popular â80s rock band that broke up in the 1990s but recently got back together to publish a new CD and go on tour. They want to schedule a summer tour that wi...
See AnswerQ: Kathleen Taylor has been working for a government contractor, Summit Solutions
Kathleen Taylor has been working for a government contractor, Summit Solutions, in Washington, DC, for over a year. She is now eligible to participate in the companyâs 401(k) retirem...
See AnswerQ: Chuck and his daughter Kathleen want to go on a trip in
Chuck and his daughter Kathleen want to go on a trip in July to visit as many major league baseball parks for games as they can during Chuck’s week-long vacation from work. They would like to visit as...
See AnswerQ: The management science and information technology department at Tech offers between 36
The management science and information technology department at Tech offers between 36 and 40 three-hour course sections each semester. Some of the courses are taught by graduate student instructors,...
See AnswerQ: Rachel Sundusky is the manager of the South-Atlantic office of
Rachel Sundusky is the manager of the South-Atlantic office of the Stateline Shipping and Transport Company. She is in the process of negotiating a new shipping contract with Polychem, a company that...
See AnswerQ: Brenda Last is the personnel director at the Burlingham Textile Company.
Brenda Last is the personnel director at the Burlingham Textile Company. The companyâs plant is expanding, and Brenda must fill five new supervisory positions in carding, spinning, w...
See AnswerQ: Kim Davis has decided to purchase a cellular phone, but she
Kim Davis has decided to purchase a cellular phone, but she is unsure about which rate plan to select. The “regular” plan charges a fixed fee of $55 per month for 1,000 minutes of airtime plus $0.33 p...
See AnswerQ: The Graphic Palette is a firm in Charleston, South Carolina,
The Graphic Palette is a firm in Charleston, South Carolina, that does graphic artwork and produces color and black-and- white posters, lithographs, and banners. The firmâs owners, K...
See AnswerQ: Jim Huang and Roderick Wheeler were sales representatives in a computer store
Jim Huang and Roderick Wheeler were sales representatives in a computer store at a shopping mall in Arlington, Virginia, when they got the idea of going into business in the burgeoning and highly comp...
See AnswerQ: Each spring the Tech Student Government Association (SGA) organizes an
Each spring the Tech Student Government Association (SGA) organizes an event called âGive-Back Weekends.â The SGA solicits student teams to work on projects for res...
See AnswerQ: Erken Apparel International manufactures clothing items around the world. It has
Erken Apparel International manufactures clothing items around the world. It has currently contracted with a U.S. retail clothing wholesale distributor for menâs goatskin and lambski...
See AnswerQ: WeeMow Lawn Service provides lawn service, including mowing lawns and lawn
WeeMow Lawn Service provides lawn service, including mowing lawns and lawn care, landscaping, and lawn maintenance, to residential and commercial customers in the Draper town community. In the summer...
See AnswerQ: Although Annie Russell (in problem 22) has been told by
Although Annie Russell (in problem 22) has been told by the athletic department at Tech that all the games will likely be sellouts, she is aware that the weather will affect how many fans will actuall...
See AnswerQ: In Problem 33, Annie has used historical weather data to determine
In Problem 33, Annie has used historical weather data to determine that next season there is a 60% chance that the weather will be good and a 40% chance the weather will be bad. Given this additional...
See AnswerQ: In the example used to demonstrate model construction in this chapter,
In the example used to demonstrate model construction in this chapter, a firm sells a product, x, for $20 that costs $5 to make, it has 100 pounds of steel to make the product, and it takes 4 pounds o...
See AnswerQ: Consider a model in which two products, x and y,
Consider a model in which two products, x and y, are produced. There are 100 pounds of material and 80 hours of labor available. It requires 2 pounds of material and 1 hour of labor to produce a unit...
See AnswerQ: Maria Eagle is a Native American artisan. She works part-
Maria Eagle is a Native American artisan. She works part-time making bowls and mugs by hand from special pottery clay and then sells her items to the Beaver Creek Pottery Company, a Native American cr...
See AnswerQ: A university student, Benny Orsini, is planning to open a
A university student, Benny Orsini, is planning to open a walk-in pizza restaurant near campus that he will call Benny’s Big Slice Pizza. He will have limited seating and will sell two kinds of oversi...
See AnswerQ: A car manufacturing company has its manufacturing plants in Chennai and Mumbai
A car manufacturing company has its manufacturing plants in Chennai and Mumbai in India. The company transports its cars from these manufacturing plants to its distribution centers located in Bangalor...
See AnswerQ: Ed Norris has developed a Web site for his used textbook business
Ed Norris has developed a Web site for his used textbook business at State University. To sell advertising, he needs to forecast the number of site visits he expects in the future. For the past 6 mont...
See AnswerQ: When Tracy McCoy wakes up on Saturday morning, she remembers that
When Tracy McCoy wakes up on Saturday morning, she remembers that she promised the PTA she would make some cakes and/or homemade bread for its bake sale that afternoon. However, she does not have time...
See AnswerQ: The local Food King grocery store has eight possible checkout stations with
The local Food King grocery store has eight possible checkout stations with registers. On Saturday mornings customer traffic is relatively steady from 8 A.M. to noon. The store man- ager would like to...
See AnswerQ: A furniture manufacturer in Roanoke, Virginia, must deliver a tractor
A furniture manufacturer in Roanoke, Virginia, must deliver a tractor trailer load of furniture to a retail store in Washington, DC. There are a number of different routes the truck can take from Roan...
See AnswerQ: In Problem 42, the Rays have checked their sales records for
In Problem 42, the Rays have checked their sales records for the past 5 years and have found that they sell at least 50% more chow-chow than tomato relish. How will this additional information affect...
See AnswerQ: IREA multinational group designs and sells ready-to-assemble furniture
IREA multinational group designs and sells ready-to-assemble furniture, kitchen appliances, and home accessories. It has multiple sections, each section focusing on different home areas such as bedroo...
See AnswerQ: In Problem 44, if the labor hours required for each chair
In Problem 44, if the labor hours required for each chair were determined to be 2 hours instead of 1 hour, what would be the effect on the optimal solution?
See AnswerQ: The admissions office at Tech wants to determine how many in-
The admissions office at Tech wants to determine how many in-state and how many out-of-state students to accept for next fall’s entering freshman class. Tuition for an in-state student is $7,600 per y...
See AnswerQ: The Robinsons are planning a wedding and reception for their daughter,
The Robinsons are planning a wedding and reception for their daughter, Rachel. Some of the most expensive items served at the reception and dinner are wine and beer. The Robinsons are planning on 200...
See AnswerQ: In problem 20, the production process for making pizzas that Benny’s
In problem 20, the production process for making pizzas that Benny’s Big Slice Pizza uses is very labor intensive. Benny is considering a more automated process design that requires the purchase of ad...
See AnswerQ: Suppose that in Problem 47, it turns out that twice as
Suppose that in Problem 47, it turns out that twice as many guests prefer wine as beer. Will the Robinsons have enough wine with the amount they ordered in the Problem 47 solution? How much waste will...
See AnswerQ: Xara Stores in the United States imports the designer-inspired clothes
Xara Stores in the United States imports the designer-inspired clothes it sells from suppliers in China and Brazil. Xara estimates that it will have 45 orders in a year, and it must arrange to transpo...
See AnswerQ: In Problem 49, the Chinese shipper would like to gain more
In Problem 49, the Chinese shipper would like to gain more shipping orders from Xara because it’s a prestigious company and would enhance the shipper’s reputation. It has therefore made the following...
See AnswerQ: Janet Lopez is establishing an investment portfolio that will include stock and
Janet Lopez is establishing an investment portfolio that will include stock and bond funds. She has $720,000 to invest, and she does not want the portfolio to include more than 65% stocks. The average...
See AnswerQ: Professor Smith teaches two sections of business statistics, which combined will
Professor Smith teaches two sections of business statistics, which combined will result in 120 final exams to be graded. Professor Smith has two graduate assistants, Brad and Sarah, who will grade the...
See AnswerQ: In Problem 52, if Professor Smith could hire Brad or Sarah
In Problem 52, if Professor Smith could hire Brad or Sarah to work 1 additional hour, which should she choose? What would be the effect of hiring the selected graduate assistant for 1 additional hour?...
See AnswerQ: Starbright Coffee Shop at the Galleria Mall serves two coffee blends it
Starbright Coffee Shop at the Galleria Mall serves two coffee blends it brews on a daily basis, Pomona and Coastal. Each is a blend of three high-quality coffees from Colombia, Kenya, and Indonesia. T...
See AnswerQ: In Problem 54: a. If Starbright Coffee Shop could
In Problem 54: a. If Starbright Coffee Shop could get 1 more pound of coffee, which one should it be? What would be the effect on sales of getting 1 more pound of this coffee? Would it benefit the sho...
See AnswerQ: The Beta Upsilon Sigma honorary business fraternity at Tech wants to open
The Beta Upsilon Sigma honorary business fraternity at Tech wants to open a food booth at the football stadium for the upcoming season as a project to raise money to tutor students in management scien...
See AnswerQ: In Problem 56: a. If the fraternity buys a
In Problem 56: a. If the fraternity buys a larger warming oven that has 25 shelves with the same shelf dimensions, for an additional $2,000, how much would they increase profit? b. If they could incre...
See AnswerQ: Annie Russell, a student at Tech, plans to open a
Annie Russell, a student at Tech, plans to open a hot dog stand inside Tech’s football stadium during home games. There are seven home games scheduled for the upcoming season. She must pay the Tech at...
See AnswerQ: Solve the following linear programming model graphically and explain the solution result
Solve the following linear programming model graphically and explain the solution result: minimize Z = +3,000x1 + 1,000x2 subject to 60x1 + 20x2 Ú 1,200 10x1 + 10x2 Ú 400 40x1 + 160x2 Ú 2,400 x1, x2...
See AnswerQ: Solve the following linear programming model graphically and explain the solution result
Solve the following linear programming model graphically and explain the solution result: maximize Z = 60x1 + 90x2 subject to 60x1 + 30x2 … 1,500 100x1 + 100x2 Ú 6,000 x2 Ú 30 x1, x2 Ú 0
See AnswerQ: Solve the following linear programming model graphically and explain the solution result
Solve the following linear programming model graphically and explain the solution result:
See AnswerQ: In Problem 40 in Chapter 1, when Tracy McCoy wakes up
In Problem 40 in Chapter 1, when Tracy McCoy wakes up Saturday morning, she remembers that she promised the PTA she would make some cakes and/or homemade bread for its bake sale that afternoon. Howeve...
See AnswerQ: The Elixer Drug Company produces a drug from two ingredients. Each
The Elixer Drug Company produces a drug from two ingredients. Each ingredient contains the same three antibiotics, in different proportions. One gram of ingredient 1 contributes 3 units, and 1 gram of...
See AnswerQ: A jewelry store makes necklaces and bracelets from gold and platinum.
A jewelry store makes necklaces and bracelets from gold and platinum. The store has 18 ounces of gold and 20 ounces of platinum. Each necklace requires 3 ounces of gold and 2 ounces of platinum, where...
See AnswerQ: In Problem 11, explain the effect on the optimal solution of
In Problem 11, explain the effect on the optimal solution of increasing the profit on a bracelet from $400 to $600. What will be the effect of changing the platinum requirement for a necklace from 2 o...
See AnswerQ: In Problem 11: a. The maximum demand for bracelets
In Problem 11: a. The maximum demand for bracelets is 4. If the store produces the optimal number of bracelets and necklaces, will the maximum demand for bracelets be met? If not, by how much will it...
See AnswerQ: A clothier makes coats and slacks. The two resources required are
A clothier makes coats and slacks. The two resources required are wool cloth and labor. The clothier has 150 square yards of wool and 200 hours of labor available. Each coat requires 3 square yards of...
See AnswerQ: In Problem 14, what would be the effect on the optimal
In Problem 14, what would be the effect on the optimal solution if the available labor were increased from 200 to 240 hours?
See AnswerQ: Hannah Byers and Kathleen Taylor are considering the possibility of teaching swimming
Hannah Byers and Kathleen Taylor are considering the possibility of teaching swimming to kids during the summer. A local swim club opens its pool at noon each day, so it is available to rent during th...
See AnswerQ: Amelia wants to do a part time job during her spring break
Amelia wants to do a part time job during her spring break. She has two jobs now—one in an admissions office and the other in a nearby restaurant. She does not want to work for more than 40 hours per...
See AnswerQ: In Problem 16: a. If Amelia works 35 hours
In Problem 16: a. If Amelia works 35 hours weekly, will she make more money? b. If the admissions office reduces Amelia’s wage to £8 per hour, and restaurant raises the wage to £9 per hour, and Amelia...
See AnswerQ: Solve the following linear programming model graphically: /
Solve the following linear programming model graphically:
See AnswerQ: Transform the model in Problem 18 into standard form, and indicate
Transform the model in Problem 18 into standard form, and indicate the value of the slack variables at each corner point solution.
See AnswerQ: The Munchies Cereal Company makes a cereal from several ingredients. Two
The Munchies Cereal Company makes a cereal from several ingredients. Two of the ingredients, oats and rice, provide vitamins A and B. The company wants to know how many ounces of oats and rice it shou...
See AnswerQ: Solve the following linear programming model graphically: maximize Z =
Solve the following linear programming model graphically: maximize Z = 6.5x1 + 10x2 subject to 2x1 + 4x2 … 40 x1 + x2 … 15 x1 Ú 8 x1, x2 Ú 0
See AnswerQ: InProblem20, if the constraint x1≥8 is changed to x1
InProblem20, if the constraint x1≥8 is changed to x1≤8, what effect does this have on the feasible solution space and the optimal solution?
See AnswerQ: Universal Claims Processors processes insurance claims for large national insurance companies.
Universal Claims Processors processes insurance claims for large national insurance companies. Most claim processing is done by a large pool of computer operators, some of whom are permanent and some...
See AnswerQ: For Problem 22, a. Explain the effect on the
For Problem 22, a. Explain the effect on the optimal solution of changing the daily pay for a permanent claims processor from $64 to $54. b. Explain the effect of changing the daily pay for a temporar...
See AnswerQ: Solve the following linear programming model graphically: minimize Z =
Solve the following linear programming model graphically: minimize Z = 8x1 + 6x2 subject to 4x1 + 2x2 Ú 20 - 6x1 + 4x2 … 12 x1 + x2 Ú 6 x1, x2 Ú 0
See AnswerQ: The Pearlsburg (West Virginia) Rescue Squad serves a mountainous,
The Pearlsburg (West Virginia) Rescue Squad serves a mountainous, rural area in southern West Virginia. The only access to the homes, farms, and small crossroad communities and villages is a network o...
See AnswerQ: Broderick Crawford is the district commander for the Catawba Valley highway patrol
Broderick Crawford is the district commander for the Catawba Valley highway patrol district in western Pennsylvania. He is attempting to assign highway patrol cars to different road segments in his di...
See AnswerQ: Whitney Eggleston operates a computerized dating service for students at Tech.
Whitney Eggleston operates a computerized dating service for students at Tech. She uses AHP to help match her clients. Whitney is attempting to match Chris with Robin, Terry, or Kelly. She evaluates h...
See AnswerQ: Rockingham Systems is considering three R&D projects it has identified
Rockingham Systems is considering three R&D projects it has identified as A, B, and C. Rockingham is not sure it will undertake all three projects, so it wants to rank them in terms of preferabili...
See AnswerQ: Professor Rakes is selecting a new graduate assistant from a pool of
Professor Rakes is selecting a new graduate assistant from a pool of second-year MBA students. He will make his selection based on the studentâs grade point average (GPA) to date, th...
See AnswerQ: The Bay City Parks and Recreation Department is considering building several new
The Bay City Parks and Recreation Department is considering building several new facilities, including a gym, an athletic field, a tennis pavilion, and a pool. It will base its decision on which facil...
See AnswerQ: The Bay City Parks and Recreation Department has received a federal grant
The Bay City Parks and Recreation Department has received a federal grant of $600,000 to expand its public recreation facilities. City council representatives have demanded four different types of fac...
See AnswerQ: Pearson plans a surprise summer vacation gift to its employees. When
Pearson plans a surprise summer vacation gift to its employees. When the publisher revealed the idea, the excited employees explored three perfect destinations for their summer getaway: Isle of Skye,...
See AnswerQ: Check the pairwise comparison in Problem 30 for consistency.
Check the pairwise comparison in Problem 30 for consistency.
See AnswerQ: The management science and information technology majors at Tech select one of
The management science and information technology majors at Tech select one of two available options within the majorâdecision support systems (DSS) or operations management (OM). St...
See AnswerQ: General elections are due to be held in a country to constitute
General elections are due to be held in a country to constitute the next government. A voter who recently became eligible is anxious to vote for the first time. The voter evaluates the performance of...
See AnswerQ: The town of Blacksburg needs a larger modern middle school. The
The town of Blacksburg needs a larger modern middle school. The current middle school is in the center of town and is over 40 years old. There are two proposals for a new schoolâreno...
See AnswerQ: Katherine Miller is a senior in the department of informa- tion
Katherine Miller is a senior in the department of informa- tion technology at Tech. For the past few months she has been involved in the job search process. She has an excellent résumé, with a high gr...
See AnswerQ: Given the following pairwise comparisons, indicate your preferences according to the
Given the following pairwise comparisons, indicate your preferences according to the preference scale in Table 9.1. a. Steak to chicken b. Hot dogs to hamburgers c. Republicans to Democrats d. Soccer...
See AnswerQ: Federated Health Care has contracted to be Tech’s primary health care provider
Federated Health Care has contracted to be Techâs primary health care provider for faculty and staff. There are three major hospitals in the area (within 35 miles)â...
See AnswerQ: Suntrek, based in China, is a global supplier of denim
Suntrek, based in China, is a global supplier of denim jeans for apparel companies around the world. It purchases baled raw cotton from producers in the United States and then transports it to East Co...
See AnswerQ: Ben Cheery, the Sox general manager, wants to sign at
Ben Cheery, the Sox general manager, wants to sign at least one free agent player for the coming baseball season. He is considering four playersâJoe Aaron, Mike Bass, Carlos Cabrera,...
See AnswerQ: In Problem 38 check the general manager’s pairwise comparisons for consistency.
In Problem 38 check the general manager’s pairwise comparisons for consistency.
See AnswerQ: A farmer in the Midwest has 1,000 acres of land
A farmer in the Midwest has 1,000 acres of land on which she intends to plant corn, wheat, and soybeans. Each acre of corn costs $100 for preparation, requires 7 worker-days of labor, and yields a pro...
See AnswerQ: For Problem 19, develop your own pairwise comparisons for the criteria
For Problem 19, develop your own pairwise comparisons for the criteria you might use to select an apartment complex or other dwelling in your college community, and develop your own AHP ranking for th...
See AnswerQ: The department of management science at Tech offers four sections of introductory
The department of management science at Tech offers four sections of introductory quantitative methods in the fall semester, each taught by a different teacher. A group of students have developed the...
See AnswerQ: A faculty committee in the department of Business Analytics at Tech is
A faculty committee in the department of Business Analytics at Tech is evaluating three new text- books for its introductory management science course, which all business students are required to take...
See AnswerQ: A European oil exploration company wants to relocate its design center to
A European oil exploration company wants to relocate its design center to the UAE as part of companyâs consolidation strategy. The following pairwise matrix was developed to evaluate...
See AnswerQ: Each November the Baseball Writers’ Association of America (BBWAA) releases
Each November the Baseball Writers’ Association of America (BBWAA) releases its list of that year’s nominees for induction into the National Baseball Hall of Fame in Cooperstown, New York. There are 5...
See AnswerQ: The four most famous generals during the American Civil War were Ulysses
The four most famous generals during the American Civil War were Ulysses S. Grant, William Tecumseh Sherman, Robert E. Lee, and Stonewall Jackson. Historians have always debated who the greatest gener...
See AnswerQ: For Problem 44, develop your own pairwise comparisons for and among
For Problem 44, develop your own pairwise comparisons for and among the criteria using your own knowledge of Civil War history and any Internet research you might perform, and develop your own AHP ran...
See AnswerQ: An undergraduate student of decision sciences wants to buy a mobile.
An undergraduate student of decision sciences wants to buy a mobile. He mainly focuses on three criteria: cost, battery life, and features. He has finalized three models of phones (M1, M2, and M3). Us...
See AnswerQ: Check the pairwise comparison in Problem 46 for consistency.
Check the pairwise comparison in Problem 46 for consistency.
See AnswerQ: A state university interviewed three candidates (A, B, C
A state university interviewed three candidates (A, B, C) for a faculty position in the department of decision sciences. The university selects the best candidate based on education (Ed), experience (...
See AnswerQ: Labran Jones has played for the Cleveland professional basketball team for the
Labran Jones has played for the Cleveland professional basketball team for the past eight seasons and has established himself as one of the top players in the league. He has recently become a free age...
See AnswerQ: The Growall Fertilizer Company produces three types of fertilizer—Supergro,
The Growall Fertilizer Company produces three types of fertilizer—Supergro, Dynaplant, and Soilsaver. The company has the capacity to produce a maximum of 2,000 tons of fertilizer in a week. It costs...
See AnswerQ: For Problem 49, check the consistency of the pairwise comparison matrices
For Problem 49, check the consistency of the pairwise comparison matrices for all four criteria and the criteria.
See AnswerQ: Balston Healthcare operates three hospitals and a number of clinics in its
Balston Healthcare operates three hospitals and a number of clinics in its citywide network. It is planning to open a new wellness center and clinic facility that focuses on geriatric clients in one o...
See AnswerQ: Check the pairwise comparison in Problem 48 for consistency.
Check the pairwise comparison in Problem 48 for consistency.
See AnswerQ: Suntrek is a global denim fabric and jeans manufacturer. It purchases
Suntrek is a global denim fabric and jeans manufacturer. It purchases raw, baled cotton from locations around the world (primarily the United States and Mexico) and ships it (in containers) to various...
See AnswerQ: Select four new models of cars you might like to purchase.
Select four new models of cars you might like to purchase. Using AHP and your own preferences, rank your selections according to the following criteria: price, style/appearance, reliability/ maintenan...
See AnswerQ: Arsenal Electronics is to construct a new $1.2 billion
Arsenal Electronics is to construct a new $1.2 billion semiconductor plant and has selected four small towns in the Midwest as potential sites. The important decision criteria and grades for each town...
See AnswerQ: The Dynaco Manufacturing Company is to build a new plant to make
The Dynaco Manufacturing Company is to build a new plant to make ring bearings (used in automobiles and trucks). The site selection team is evaluating three sites, and it has graded the important weig...
See AnswerQ: In Problem 38 Ben Cheery, the Sox general manager, also
In Problem 38 Ben Cheery, the Sox general manager, also wants to use a scoring model to deter- mine which player(s) he might sign to a free agent contract for the coming baseball season. The following...
See AnswerQ: State University is to construct a new student center and athletic complex
State University is to construct a new student center and athletic complex that will include a bookstore, a post office, theaters, a market, a minimall, meeting rooms, a swimming pool, and weight and...
See AnswerQ: Following an all-star school soccer career, Kelly Williams has
Following an all-star school soccer career, Kelly Williams has been offered scholarships to five universities. She has had a difficult time making a decision and has decided to use a scoring model to...
See AnswerQ: The Carter family wants to purchase a time-share condominium for
The Carter family wants to purchase a time-share condominium for 1 week during the summer in Hilton Head, South Carolina. There are many resort complexes from which to choose, and the Carters have nar...
See AnswerQ: The Barrett Textile Mill was checked by inspectors enforcing Occupational Safety and
The Barrett Textile Mill was checked by inspectors enforcing Occupational Safety and Health Administration (OSHA) codes. The inspectors found violations in four categories: hazardous materials, fire p...
See AnswerQ: Robin Dillon has recently accepted a new job in the Washington,
Robin Dillon has recently accepted a new job in the Washington, DC, area and has been hunting for a condominium to purchase. From friends and coworkers she has compiled a list of five possible condomi...
See AnswerQ: A study conducted on four brands of computers resulted in the following
A study conducted on four brands of computers resulted in the following comparison matrix. The factors considered are the speed of processing (1), storage capacity (2), after sales service (3), and co...
See AnswerQ: State University has increased its tuition for in-state and out
State University has increased its tuition for in-state and out-of-state students in each of the past 5 years to offset cuts in its budget allocation from the state legislature. The university adminis...
See AnswerQ: As part of an aggressive expansion plan, StarTrack Coffee is planning
As part of an aggressive expansion plan, StarTrack Coffee is planning to open three new retail stores in the city. The following table shows the location factors it considers to be important indicator...
See AnswerQ: Suntrek manufactures denim jeans, which it sells to clothing retailers around
Suntrek manufactures denim jeans, which it sells to clothing retailers around the world. It wants to construct a new warehouse and distribution center in Asia to serve emerging markets there. It has i...
See AnswerQ: Select four fast-food restaurants (e.g., McDonald’s
Select four fast-food restaurants (e.g., McDonald’s, Burger King, Wendy’s, Domino’s, or local restaurants) in your area, and develop a scoring model that includes decision criteria, weights, and grade...
See AnswerQ: Solve the following goal programming model graphically and by using the computer
Solve the following goal programming model graphically and by using the computer:
See AnswerQ: Solve the following goal programming model graphically and by using the computer
Solve the following goal programming model graphically and by using the computer:
See AnswerQ: Solve the following goal programming model by using the computer:
Solve the following goal programming model by using the computer:
See AnswerQ: The Hickory Cabinet and Furniture Company makes chairs. The fixed cost
The Hickory Cabinet and Furniture Company makes chairs. The fixed cost per month of making chairs is $7,500, and the variable cost per chair is $40. Price is related to demand, according to the follow...
See AnswerQ: The Rolling Creek Textile Mill produces denim and brushed cotton cloth.
The Rolling Creek Textile Mill produces denim and brushed cotton cloth. The company has developed the following nonlinear programming model to determine the optimal number of yards of denim (x1) and b...
See AnswerQ: In the investment portfolio selection model in this chapter, what if
In the investment portfolio selection model in this chapter, what if Jessica Todd decided that she wanted to maximize her return while incurring a portfolio variance of no more than 0.020? Analyze thi...
See AnswerQ: The Riverwood Paneling Company makes two kinds of wood paneling: Colonial
The Riverwood Paneling Company makes two kinds of wood paneling: Colonial and Western. The company has developed the following nonlinear programming model to determine the optimal number of sheets of...
See AnswerQ: American International Automotive Industries (AIAI) manufactures engine, transmission,
American International Automotive Industries (AIAI) manufactures engine, transmission, and chassis parts for manufacturers and repair companies in the United States, South America, Canada, Mexico, Asi...
See AnswerQ: Interpret the meaning of the Lagrange multiplier in Problem 12.
Interpret the meaning of the Lagrange multiplier in Problem 12.
See AnswerQ: Metro Telcom Systems develops, sells, and installs computer systems.
Metro Telcom Systems develops, sells, and installs computer systems. The company has divided its customer base into five regions, and it has 15 representatives who sell and install the companyâ&...
See AnswerQ: A turbine is designed for generating electricity. During electricity generation,
A turbine is designed for generating electricity. During electricity generation, the turbine is subject to very high temperature. This high temperature and the speed of the turbine affects the sealing...
See AnswerQ: The Metro Police Department has partitioned the city into four quadrants.
The Metro Police Department has partitioned the city into four quadrants. The department has 20 police patrol cars available for each shift per day to assign to the quadrants. The department wants to...
See AnswerQ: A farmer prepares his land for plantation during the rainy season.
A farmer prepares his land for plantation during the rainy season. He has right-angled triangle shaped land with length (b) and width (w). Since his land is close to a forest, forest animals some- tim...
See AnswerQ: A company specializing in air conditioners wants to setup a distribution center
A company specializing in air conditioners wants to setup a distribution center in India. The company sells its products through six retail outlets located in the following cities in India: Chennai, M...
See AnswerQ: Tech wants to locate the best site for a new student center
Tech wants to locate the best site for a new student center and athletic complex. The university administration would like to know what the best location is relative to the four main concentrations of...
See AnswerQ: Graphically illustrate the profit curve developed in Problem 1. Indicate the
Graphically illustrate the profit curve developed in Problem 1. Indicate the optimal price and the maximum profit per month.
See AnswerQ: An investment adviser is helping a couple plan a retirement portfolio.
An investment adviser is helping a couple plan a retirement portfolio. The adviser has recommended three stocksâAllied Electronics, Bank United, and Consolidated Computers. Following...
See AnswerQ: Mark Decker has identified four stocks for his portfolio, and he
Mark Decker has identified four stocks for his portfolio, and he wants to determine the percent- age of his total available funds he should invest in each stock. The alternative stocks include an Inte...
See AnswerQ: The Valley Swim Club has 300 stockholders, each holding one share
The Valley Swim Club has 300 stockholders, each holding one share of stock in the club. A share of club stock allows the shareholderâs family to use the clubâs heat...
See AnswerQ: The Accentuate Consulting Firm has eight projects for which it has contracted
The Accentuate Consulting Firm has eight projects for which it has contracted with clients to develop computer systems and software. The firm has 35 team members it can assign to the projects. The fir...
See AnswerQ: The Rainwater Brewery produces beer. The annual fixed cost is $
The Rainwater Brewery produces beer. The annual fixed cost is $150,000, and the variable cost per barrel is $16. Price is related to demand, according to the following linear equation: v = 75,000 - 1,...
See AnswerQ: The Rolling Creek Textile Mill makes denim. The monthly fixed cost
The Rolling Creek Textile Mill makes denim. The monthly fixed cost is $8,000, and the variable cost per yard of denim is $0.35. Price is related to demand, according to the following linear equation:...
See AnswerQ: The Grady Tire Company recaps tires. The weekly fixed cost is
The Grady Tire Company recaps tires. The weekly fixed cost is $2,500, and the variable cost per tire is $9. Price is related to demand, according to the following linear equation: v = 200 - 4.75 p Dev...
See AnswerQ: Andy Mendoza makes handcrafted dolls, which he sells at craft fairs
Andy Mendoza makes handcrafted dolls, which he sells at craft fairs. He is considering mass- producing the dolls to sell in stores. He estimates that the initial investment for plant and equipment wil...
See AnswerQ: The Rainwater Brewery produces beer, which it sells to distributors in
The Rainwater Brewery produces beer, which it sells to distributors in barrels. The brewery incurs a monthly fixed cost of $12,000, and the variable cost per barrel is $17. The brewery has developed t...
See AnswerQ: The Beaver Creek Pottery Company has developed the following nonlinear programming model
The Beaver Creek Pottery Company has developed the following nonlinear programming model to determine the optimal number of bowls (x1) and mugs (x2) to produce each day: Determine the optimal solution...
See AnswerQ: The Evergreen Fertilizer Company produces two types of fertilizers, Fastgro and
The Evergreen Fertilizer Company produces two types of fertilizers, Fastgro and Super Two. The company has developed the following nonlinear programming model to determine the optimal number of bags o...
See AnswerQ: Indicate which of the following probabilities are objective and which are subjective
Indicate which of the following probabilities are objective and which are subjective. (Note that in some cases, the probabilities may not be entirely one or the other.) a. The probability of snow tomo...
See AnswerQ: A large research hospital has accumulated statistical data on its patients for
A large research hospital has accumulated statistical data on its patients for an extended period. Researchers have determined that patients who are smokers have an 18% chance of contracting a serious...
See AnswerQ: Steeley Associates, Inc., a property development firm, purchased an
Steeley Associates, Inc., a property development firm, purchased an old house near the town square in Concord Falls, where State University is located. The old house was built in the mid-1800s, and St...
See AnswerQ: Two law firms in a community handle all the cases dealing with
Two law firms in a community handle all the cases dealing with consumer suits against companies in the area. The Abercrombie firm takes 40% of all suits, and the Olson firm handles the other 60%. The...
See AnswerQ: The Senate consists of 100 senators, of whom 34 are Republicans
The Senate consists of 100 senators, of whom 34 are Republicans and 66 are Democrats. A bill to increase defense appropriations is before the Senate. Thirty-five percent of the Democrats and 70% of th...
See AnswerQ: A retail outlet receives radios from three electrical appliance companies. The
A retail outlet receives radios from three electrical appliance companies. The outlet receives 20% of its radios from A, 40% from B, and 40% from C. The probability of receiving a defective radio from...
See AnswerQ: A metropolitan school system consists of three districts—north, south
A metropolitan school system consists of three districts—north, south, and central. The north district contains 25% of all students, the south district contains 40%, and the central district contains...
See AnswerQ: A service station owner sells Goodroad tires, which are ordered from
A service station owner sells Goodroad tires, which are ordered from a local tire distributor. The distributor receives tires from two plants, A and B. When the owner of the service station receives a...
See AnswerQ: A metropolitan school system consists of two districts, east and west
A metropolitan school system consists of two districts, east and west. The east district contains 35% of all students, and the west district contains the other 65%. A vocational aptitude test was give...
See AnswerQ: The Ramshead Pub sells a large quantity of beer every Saturday.
The Ramshead Pub sells a large quantity of beer every Saturday. From past sales records, the pub has determined the following probabilities for sales: Compute the expected number of barrels that will...
See AnswerQ: The following probabilities for grades in management science have been determined based
The following probabilities for grades in management science have been determined based on past records: The grades are assigned on a 4.0 scale, where an A is a 4.0, a B a 3.0, and so on. Determine th...
See AnswerQ: A market in Boston orders oranges from Florida. The oranges are
A market in Boston orders oranges from Florida. The oranges are shipped to Boston from Florida by railroad, truck, or airplane; an order can take 1, 2, 3, or 4 days to arrive in Boston once it is plac...
See AnswerQ: A gambler in Las Vegas is cutting a deck of cards for
A gambler in Las Vegas is cutting a deck of cards for $1,000. What is the probability that the card for the gambler will be the following? a. A face card b. A queen c. A spade d. A jack of spades
See AnswerQ: Mountain States Electric Service is an electrical utility company serving several states
Mountain States Electric Service is an electrical utility company serving several states in the Rocky Mountains region. It is considering replacing some of its equipment at a generating substation and...
See AnswerQ: An investment firm is considering two alternative investments, A and B
An investment firm is considering two alternative investments, A and B, under two possible future sets of economic conditions, good and poor. There is a .60 probability of good economic conditions occ...
See AnswerQ: An investor is considering two investments, an office building and bonds
An investor is considering two investments, an office building and bonds. The possible returns from each investment and their probabilities are as follows: Using expected value and standard deviation...
See AnswerQ: The Jefferson High School Band Booster Club has organized a raffle.
The Jefferson High School Band Booster Club has organized a raffle. The prize is a $6,000 car. Two thousand tickets to the raffle are to be sold at $1 apiece. If a person purchases four tickets, what...
See AnswerQ: The time interval between machine breakdowns in a manufacturing firm is defined
The time interval between machine breakdowns in a manufacturing firm is defined according to the following probability distribution: Determine the cumulative probability distribution and compute the e...
See AnswerQ: The life of an electronic transistor is normally distributed, with a
The life of an electronic transistor is normally distributed, with a mean of 500 hours and a standard deviation of 80 hours. Determine the probability that a transistor will last for more than 400 hou...
See AnswerQ: The grade point average of students at a university is normally distributed
The grade point average of students at a university is normally distributed, with a mean of 2.6 and a standard deviation of 0.6. A recruiter for a company is interviewing students for summer employmen...
See AnswerQ: The weight of bags of fertilizer is normally distributed, with a
The weight of bags of fertilizer is normally distributed, with a mean of 50 pounds and a standard deviation of 6 pounds. What is the probability that a bag of fertilizer will weigh between 45 and 55 p...
See AnswerQ: The monthly demand for a product is normally distributed, with a
The monthly demand for a product is normally distributed, with a mean of 700 units and a standard deviation of 200 units. What is the probability that demand will be greater than 900 units in a given...
See AnswerQ: The Polo Development Firm is building a shopping center. It has
The Polo Development Firm is building a shopping center. It has informed renters that their rental spaces will be ready for occupancy in 19 months. If the expected time until the shopping center is co...
See AnswerQ: A warehouse distributor of carpet keeps 6,000 yards of deluxe
A warehouse distributor of carpet keeps 6,000 yards of deluxe shag carpet in stock during a month. The average demand for carpet from the stores that purchase from the distributor is 4,500 yards per m...
See AnswerQ: The Carolina Cougars is a major league baseball expan- sion team
The Carolina Cougars is a major league baseball expan- sion team beginning its third year of operation. The team had losing records in each of its first 2 years and finished near the bottom of its div...
See AnswerQ: Downhill Ski Resort in Colorado has accumulated information from records of the
Downhill Ski Resort in Colorado has accumulated information from records of the past 30 winters regarding the measurable snowfall. This information is as follows: a. Determine the probability of each...
See AnswerQ: The manager of the local National Video Store sells videocassette recorders at
The manager of the local National Video Store sells videocassette recorders at discount prices. If the store does not have a video recorder in stock when a customer wants to buy one, it will lose the...
See AnswerQ: The owner of Western Clothing Company has determined that the company must
The owner of Western Clothing Company has determined that the company must sell 670 pairs of denim jeans each month to break even (i.e., to reach the point where total revenue equals total cost). The...
See AnswerQ: Lauren Moore, a professor in management science, is computing her
Lauren Moore, a professor in management science, is computing her final grades for her introductory management science class. The average final grade is a 63, with a standard deviation of 10. Professo...
See AnswerQ: Students admitted in the decision science major of a public university are
Students admitted in the decision science major of a public university are normally distributed with a mean of 150 and standard deviation of 15 in the quantitative section of GRE. The university admit...
See AnswerQ: Erin Richards is a junior at Central High School, and she
Erin Richards is a junior at Central High School, and she has talked to her guidance counselor about her chances of being admitted to Tech after her graduation. The guidance counselor has told her tha...
See AnswerQ: The associate dean in the college of business at Tech is going
The associate dean in the college of business at Tech is going to purchase a new copying machine for the college. One model he is considering is the Zerox X10. The sales representative has told him th...
See AnswerQ: The Palace Hotel believes its customers may be waiting too long for
The Palace Hotel believes its customers may be waiting too long for room service. The hotel operations manager knows that the time for room service orders is normally distributed, and he sampled 10 ro...
See AnswerQ: Agnes Hammer is a senior majoring in management science. She has
Agnes Hammer is a senior majoring in management science. She has been interviewing with several companies for a job when she graduates, and she is curious about what starting salary offers she might r...
See AnswerQ: The owner of Gilley’s Ice Cream Parlor has noticed that she sells
The owner of Gilleyâs Ice Cream Parlor has noticed that she sells more ice cream on hotter days during the summer, especially on days when the temperature is 85°F or highe...
See AnswerQ: In the novel Around the World in 80 Days by Jules Verne
In the novel Around the World in 80 Days by Jules Verne, Phileas T. Fogg wagered four of his fellow members of the Reform Club in London £5,000 apiece that he could travel around the worl...
See AnswerQ: WestCom Systems Products Company develops computer systems and software products for commercial
WestCom Systems Products Company develops computer systems and software products for commercial sale. Each year it considers and evaluates a number of different R&D projects to undertake. It...
See AnswerQ: The state of Virginia has implemented a Standards of Learning (SOL
The state of Virginia has implemented a Standards of Learning (SOL) test that all public school students must pass before they can graduate from high school. A passing grade is 75. Montgomery County H...
See AnswerQ: Employees in the textile industry can be segmented as follows:
Employees in the textile industry can be segmented as follows: a. Determine the probability of each event in this distribution. b. Are the events in this distribution mutually exclusive? Explain. c. W...
See AnswerQ: The department of management science at Tech has sampled 250 of its
The department of management science at Tech has sampled 250 of its majors and compiled the following frequency distribution of grade point averages (on a 4.0 scale) for the previous semester: The sam...
See AnswerQ: Geo-net, a cellular phone company, has collected the
Geo-net, a cellular phone company, has collected the following frequency distribution for the length of calls outside its normal customer roaming area: The sample mean (x) for this distribution is 14....
See AnswerQ: The quality control process at a manufacturing plant requires that each lot
The quality control process at a manufacturing plant requires that each lot of finished units be sampled for defective items. Twenty units from each lot are inspected. If five or more defective units...
See AnswerQ: A manufacturing company has 10 machines in continuous operation during a workday
A manufacturing company has 10 machines in continuous operation during a workday. The probability that an individual machine will break down during the day is .10. Determine the probability that durin...
See AnswerQ: A polling firm is taking a survey regarding a proposed new law
A polling firm is taking a survey regarding a proposed new law. Of the voters polled, 30% are in favor of the law. If 10 people are surveyed, what is the probability that four will indicate that they...
See AnswerQ: An automobile manufacturer has discovered that 20% of all the transmissions
An automobile manufacturer has discovered that 20% of all the transmissions it installed in a particular style of truck 1 year are defective. It has contacted the owners of these vehicles and asked th...
See AnswerQ: A new county hospital is attempting to determine whether it needs to
A new county hospital is attempting to determine whether it needs to add a particular specialist to its staff. Five percent of the general hospital population in the county contracts the illness the s...
See AnswerQ: A farmer in Iowa is considering either leasing some extra land or
A farmer in Iowa is considering either leasing some extra land or investing in savings certificates at the local bank. If weather conditions are good next year, the extra land will give the farmer an...
See AnswerQ: The copy center at the college of business at State University has
The copy center at the college of business at State University has become an increasingly contentious item among the college administrators. The department heads have complained to the associate dean...
See AnswerQ: Ann Tyler has come into an inheritance from her grandparents. She
Ann Tyler has come into an inheritance from her grandparents. She is attempting to decide among several investment alternatives. The return after 1 year is primarily dependent on the interest rate dur...
See AnswerQ: The Tech football coaching staff has six basic offensive plays it runs
The Tech football coaching staff has six basic offensive plays it runs every game. Tech has an upcoming game against State on Saturday, and the Tech coaches know that State employs five different defe...
See AnswerQ: Microcomp is a U.S.-based manufacturer of personal computers
Microcomp is a U.S.-based manufacturer of personal computers. It is planning to build a new manufacturing and distribution facility in either South Korea, China, Taiwan, the Philippines, or Mexico. It...
See AnswerQ: Place-Plus, a real estate development firm, is considering
Place-Plus, a real estate development firm, is considering several alternative development projects. These include building and leasing an office park, purchasing a parcel of land and building an offi...
See AnswerQ: The Oakland Bombers professional basketball team just missed making the playoffs last
The Oakland Bombers professional basketball team just missed making the playoffs last season and believes it needs to sign only one very good free agent to make the playoffs next season. The team is c...
See AnswerQ: Two coffee house chains, Startrak and Mill Mountain, dominate the
Two coffee house chains, Startrak and Mill Mountain, dominate the Columbus market. Startrak has developed three new marketing strategies, 1, 2, and 3, for the fall season, which include various combin...
See AnswerQ: In problem 15, if the probabilities that Mill Mountain coffee house
In problem 15, if the probabilities that Mill Mountain coffee house will use marketing strategies A, B, and C are 0.25, 0.45, and 0.30, respectively, compute the expected value for each of Startrak’s...
See AnswerQ: A machine shop owner is attempting to decide whether to purchase a
A machine shop owner is attempting to decide whether to purchase a new drill press, a lathe, or a grinder. The return from each will be determined by whether the company succeeds in getting a governme...
See AnswerQ: A concessions manager at the Tech versus A&M football game
A concessions manager at the Tech versus A&M football game must decide whether to have the vendors sell sun visors or umbrellas. There is a 30% chance of rain, a 15% chance of overcast skies, and...
See AnswerQ: Allen Abbott has a wide-curving, uphill driveway leading to
Allen Abbott has a wide-curving, uphill driveway leading to his garage. When there is a heavy snow, Allen hires a local carpenter, who shovels snow on the side in the winter, to shovel his drive- way....
See AnswerQ: Bob and Carol Packer operate a successful outdoor-wear store in
Bob and Carol Packer operate a successful outdoor-wear store in Vermont called Northwoods Backpackers. They stock mostly cold weather outdoor items such as hiking and backpacking clothes, gear, and ac...
See AnswerQ: The owner of the Burger Doodle Restaurant is considering two ways to
The owner of the Burger Doodle Restaurant is considering two ways to expand operations: open a drive-up window or serve breakfast. The increase in profits resulting from these proposed expansions depe...
See AnswerQ: The Miramar Company is going to introduce one of three new products
The Miramar Company is going to introduce one of three new products: a widget, a hummer, or a nimnot. The market conditions (favorable, stable, or unfavorable) will determine the profit or loss the co...
See AnswerQ: The financial success of the Downhill Ski Resort in the Blue Ridge
The financial success of the Downhill Ski Resort in the Blue Ridge Mountains is dependent on the amount of snowfall during the winter months. If the snowfall averages more than 40 inches, the resort w...
See AnswerQ: An investor must decide between two alternative investments—stocks and bonds
An investor must decide between two alternative investmentsâstocks and bonds. The return for each investment, given two future economic conditions, is shown in the following payoff t...
See AnswerQ: In Problem 10, Ann Tyler, with the help of a
In Problem 10, Ann Tyler, with the help of a financial newsletter and some library research, has been able to assign probabilities to each of the possible interest rates during the next year, as follo...
See AnswerQ: In Problem 11, the Tech coaches have reviewed game films and
In Problem 11, the Tech coaches have reviewed game films and have determined the following probabilities that State will use each of its defenses: a. Using expected value, rank Techâ...
See AnswerQ: A global economist hired by Microcomp, the U.S.-
A global economist hired by Microcomp, the U.S.-based computer manufacturer in Problem 12, estimates that the probability that the economic and political climate overseas and in Mexico will decline du...
See AnswerQ: In Problem 13, the Place-Plus real estate development firm
In Problem 13, the Place-Plus real estate development firm has hired an economist to assign a probability to each direction interest rates may take over the next 5 years. The economist has determined...
See AnswerQ: Fenton and Farrah Friendly, husband-and-wife car dealers
Fenton and Farrah Friendly, husband-and-wife car dealers, are soon going to open a new dealership. They have three offers: from a foreign compact car company, from a U.S. producer of full-sized cars,...
See AnswerQ: The Steak and Chop Butcher Shop purchases steak from a local meatpacking
The Steak and Chop Butcher Shop purchases steak from a local meatpacking house. The meat is purchased on Monday at $2.00 per pound, and the shop sells the steak for $3.00 per pound. Any steak left ove...
See AnswerQ: Two area hospitals have jointly initiated several planning projects to determine how
Two area hospitals have jointly initiated several planning projects to determine how effectively their emergency facilities can handle disaster-related situations at nearby Tech University. These disa...
See AnswerQ: The Loebuck Grocery must decide how many cases of milk to stock
The Loebuck Grocery must decide how many cases of milk to stock each week to meet demand. The probability distribution of demand during a week is shown in the following table: Each case costs the groc...
See AnswerQ: Stevie Stone, a bellhop at the Royal Sundown Hotel in Atlanta
Stevie Stone, a bellhop at the Royal Sundown Hotel in Atlanta, has been offered a management position. Although accepting the offer would assure him a job if there was a recession, if good economic co...
See AnswerQ: The manager of the greeting card section of Mazey’s department store is
The manager of the greeting card section of Mazeyâs department store is considering her order for a particular line of Christmas cards. The cost of each box of cards is $3; each box...
See AnswerQ: The Palm Garden Greenhouse specializes in raising carnations that are sold to
The Palm Garden Greenhouse specializes in raising carnations that are sold to florists. Carnations are sold for $3.00 per dozen; the cost of growing the carnations and distributing them to the florist...
See AnswerQ: Assume that the probabilities of demand in Problem 30 are no longer
Assume that the probabilities of demand in Problem 30 are no longer valid; the decision situation is now one without probabilities. Determine the best number of boxes of cards to stock, using the foll...
See AnswerQ: Foxcomp, an electronics and computer manufacturer with a global supply chain
Foxcomp, an electronics and computer manufacturer with a global supply chain, wants to add a new supplier for some of its component parts, and the suppliers itâs considering are in T...
See AnswerQ: Foxcomp in Problem 33 estimates that the probabilities of the severity of
Foxcomp in Problem 33 estimates that the probabilities of the severity of events in each of the countries are as follows: Determine the best decision for Foxcomp using expected value.
See AnswerQ: Suntrek, a global apparel company, is adding a new supplier
Suntrek, a global apparel company, is adding a new supplier for denim fabric that it uses to manufacture denim jeans, and the suppliers itâs considering are located near the ports of...
See AnswerQ: Suntrek in Problem 35 estimates that the probabilities of future changes in
Suntrek in Problem 35 estimates that the probabilities of future changes in global logistics costs are 0.09 that they will decrease, 0.27 that they will remain the same, and 0.64 that they will increa...
See AnswerQ: Federated Electronics, Ltd., manufactures display screens and monitors for computers
Federated Electronics, Ltd., manufactures display screens and monitors for computers and televisions, which it sells to companies around the world. It wants to construct a new ware- house and distribu...
See AnswerQ: In the “Forecasting Airport Passenger Arrivals” case problem in Chapter
In the “Forecasting Airport Passenger Arrivals” case problem in Chapter 15, the objective is to develop a forecasting model to predict daily airline passenger arrivals for 2-hour time segments from 4:...
See AnswerQ: In Problem 37, Federated Electronics, Ltd., has hired a
In Problem 37, Federated Electronics, Ltd., has hired a Washington, DCâbased global trade research firm to assess the probabilities of each combination of port and government conditi...
See AnswerQ: In Problem 14, the Bombers’ management has determined the following probabilities
In Problem 14, the Bombersâ management has determined the following probabilities of the occurrence of each future season outcome for each player: Compute the expected value for each...
See AnswerQ: Brooke Bentley, a student in business administration, is trying to
Brooke Bentley, a student in business administration, is trying to decide which management science course to take next quarterâI, II, or III. âSteamboatâ...
See AnswerQ: The director of career advising at Orange Community College wants to use
The director of career advising at Orange Community College wants to use decision analysis to provide information to help students decide which 2-year degree program they should pursue. The director h...
See AnswerQ: In Problem 40, the director of career advising at Orange Community
In Problem 40, the director of career advising at Orange Community College has paid a small fee to a local investment firm to indicate a probability for each future economic condition over the next 5...
See AnswerQ: The Blue Sox American League baseball team is going to enter the
The Blue Sox American League baseball team is going to enter the free-agent market over the winter to sign a new starting pitcher. They are considering five prospects who will enter the free- agent ma...
See AnswerQ: Volkswagen Germany plans to manufacture six of its models for the next
Volkswagen Germany plans to manufacture six of its models for the next near. Its manufacturing facility can produce Polo, Vento, Ameo, GTI, Tiguan, and Passat. Though it produces all these models, it...
See AnswerQ: Construct a decision tree for the decision situation of Volkswagen in Problem
Construct a decision tree for the decision situation of Volkswagen in Problem 43 and indicate the best decision.
See AnswerQ: Given the following sequential decision tree, determine which is the optimal
Given the following sequential decision tree, determine which is the optimal investment, A or B:
See AnswerQ: The management of First American Bank was concerned about the potential loss
The management of First American Bank was concerned about the potential loss that might occur in the event of a physical catastrophe such as a power failure or a fire. The bank estimated that the loss...
See AnswerQ: James Banks was standing in line next to Robin Cole at Klecko’s
James Banks was standing in line next to Robin Cole at Kleckoâs Copy Center, waiting to use one of the copy machines. âGee, Robin, I hate this,â h...
See AnswerQ: The Americo Oil Company is considering making a bid for a shale
The Americo Oil Company is considering making a bid for a shale oil development contract to be awarded by the federal government. The company has decided to bid $112 million. The company estimates tha...
See AnswerQ: The machine shop owner in Problem 17 is considering hiring a military
The machine shop owner in Problem 17 is considering hiring a military consultant to ascertain whether the shop will get the government contract. The consultant is a former military officer who uses va...
See AnswerQ: The Miramar Company in Problem 20 is considering contracting with a market
The Miramar Company in Problem 20 is considering contracting with a market research firm to do a survey to determine future market conditions. The results of the survey will indicate either positive o...
See AnswerQ: A farmer in Georgia must decide which crop to plant next year
A farmer in Georgia must decide which crop to plant next year on his land: corn, peanuts, or soybeans. The return from each crop will be determined by whether a new trade bill with Russia passes the S...
See AnswerQ: Refer to Problem 43. Volkswagen considers hiring a consultant. If
Refer to Problem 43. Volkswagen considers hiring a consultant. If a consultant helps Volkswagen by giving perfect information, what is the expected value of perfect information?
See AnswerQ: Jeffrey Mogul is a Hollywood film producer, and he is currently
Jeffrey Mogul is a Hollywood film producer, and he is currently evaluating a script by a new screenwriter and director, Betty Jo Thurston. Jeffrey knows that the probability of a film by a new directo...
See AnswerQ: In Problems 10 and 23, Ann Tyler is considering hiring a
In Problems 10 and 23, Ann Tyler is considering hiring a financial analyst to help her determine the best investment. What is the maximum amount she should pay an analyst?
See AnswerQ: If Suntrek, in Problem 36, wants to hire a supply
If Suntrek, in Problem 36, wants to hire a supply chain analyst to help it determine more accurately what future logistics costs will be, what is the maximum amount they should pay the analyst?
See AnswerQ: Tech is playing State in the last conference game of the season
Tech is playing State in the last conference game of the season. Tech is trailing State 21 to 14, with 7 seconds left in the game, when Tech scores a touchdown. Still trailing 21 to 20, Tech can eithe...
See AnswerQ: Jay Seago is suing the manufacturer of his car for $3
Jay Seago is suing the manufacturer of his car for $3.5 million because of a defect that he believes caused him to have an accident. The accident kept him out of work for a year. The company has offer...
See AnswerQ: The U.S. Army Corps of Engineers has historically constructed
The U.S. Army Corps of Engineers has historically constructed dams on various rivers in the southeastern United States. Its primary instrument for evaluating and selecting among many projects under co...
See AnswerQ: Tech has three health care plans for its faculty and staff to
Tech has three health care plans for its faculty and staff to choose from, as follows: Plan 1âmonthly cost of $32, with a $500 deductible; the participants pay the first $500 of medi...
See AnswerQ: A car manufacturer buys fasteners such as bolts and nuts for its
A car manufacturer buys fasteners such as bolts and nuts for its cars. On an average, the company buys 1 million such pairs per month. The company inspects the arriving lots and transfers the lots to...
See AnswerQ: Kroft Food Products is attempting to decide whether it should introduce a
Kroft Food Products is attempting to decide whether it should introduce a new line of salad dressings called Special Choices. The company can test market the salad dressings in selected geographic are...
See AnswerQ: In Problem 58, determine the expected value of sample information (
In Problem 58, determine the expected value of sample information (EVSI; i.e., the test market value) and the expected value of perfect information (EVPI).
See AnswerQ: A company must decide now which of three products to make next
A company must decide now which of three products to make next year to plan and order proper materials. The cost per unit of producing each product will be determined by whether a new union labor cont...
See AnswerQ: Ellie Daniels has $200,000 and is considering three mutual
Ellie Daniels has $200,000 and is considering three mutual funds for investmentâa global fund, an index fund, and an Internet stock fund. During the first year of investment, Ellie e...
See AnswerQ: Blue Ridge Power and Light is an electric utility company with a
Blue Ridge Power and Light is an electric utility company with a large fleet of vehicles, including automobiles, light trucks, and construction equipment. The company is evaluating four alternative st...
See AnswerQ: In Problem 61, the decision analysis is for automobiles and light
In Problem 61, the decision analysis is for automobiles and light trucks. Blue Ridge Power and Light would like to reformulate the problem for its heavy construction equipment. Emergency maintenance i...
See AnswerQ: In Problem 14, the management of the Oakland Bombers is considering
In Problem 14, the management of the Oakland Bombers is considering hiring superscout Jerry McGuire to evaluate the team’s chances for the coming season. McGuire will evaluate the team, assuming that...
See AnswerQ: The Place-Plus real estate development firm in Problem 26 is
The Place-Plus real estate development firm in Problem 26 is dissatisfied with the economist’s estimate of the probabilities of future interest rate movement, so it is considering having a financial c...
See AnswerQ: Concerned about recent weather-related disasters, fires, and other
Concerned about recent weather-related disasters, fires, and other calamities at universities around the country, university administrators at Tech have initiated several planning projects to determin...
See AnswerQ: A young couple has $5,000 to invest in either
A young couple has $5,000 to invest in either savings bonds or a real estate deal. The expected return on each investment, given good and bad economic conditions, is shown in the following payoff tabl...
See AnswerQ: Annie Hays recently sold a condominium she had bought and lived in
Annie Hays recently sold a condominium she had bought and lived in while she was a college student over 15 years ago. She received $150,000 for the condominium and is considering two investment altern...
See AnswerQ: Labran Jones has played for the Cleveland professional basketball team for the
Labran Jones has played for the Cleveland professional basketball team for the past eight seasons and has established himself as one of the top players in the league. He has recently become a free age...
See AnswerQ: The owner of the Columbia Construction Company must decide between building a
The owner of the Columbia Construction Company must decide between building a housing development, constructing a shopping center, and leasing all the companyâs equipment to another...
See AnswerQ: A local real estate investor in Orlando is considering three alternative investments
A local real estate investor in Orlando is considering three alternative investments: a motel, a restaurant, or a theater. Profits from the motel or restaurant will be affected by the availability of...
See AnswerQ: A television network is attempting to decide during the summer which of
A television network is attempting to decide during the summer which of the following three football games to televise on the Saturday following Thanksgiving Day: Alabama versus Auburn, Georgia versus...
See AnswerQ: For each of the following queuing systems, indicate whether it is
For each of the following queuing systems, indicate whether it is a single- or multiple-server model, the queue discipline, and whether its calling population is infinite or finite. a. Hair salon b. B...
See AnswerQ: During registration at State University every semester, students in the college
During registration at State University every semester, students in the college of business must have their courses approved by the college adviser. It takes the adviser an average of 2 minutes to app...
See AnswerQ: All trucks traveling on Interstate 40 between Albuquerque and Amarillo are required
All trucks traveling on Interstate 40 between Albuquerque and Amarillo are required to stop at a weigh station. Trucks arrive at the weigh station at a rate of 200 per 8-hour day, and the station can...
See AnswerQ: In Problem 11, suppose passing truck drivers look to see how
In Problem 11, suppose passing truck drivers look to see how many trucks are waiting to be weighed at the weigh station. If they see four or more trucks in line, they will pass by the station and risk...
See AnswerQ: During the past few years, the legislature has severely reduced funding
During the past few years, the legislature has severely reduced funding for State University. In reaction, the administration at State has significantly raised tuition each year for the past 5 years....
See AnswerQ: In Problem 10, the dean of the college of business at
In Problem 10, the dean of the college of business at State University is considering the addition of a second adviser in the college advising office to serve students waiting to have their schedules...
See AnswerQ: The Dynaco Manufacturing Company has an assembly line that feeds two drill
The Dynaco Manufacturing Company has an assembly line that feeds two drill presses. As partially completed products come off the line, they are lined up to be worked on as drill presses become availab...
See AnswerQ: The Acme Machine Shop has five machines that periodically break down and
The Acme Machine Shop has five machines that periodically break down and require service. The average time between breakdowns is 4 days, distributed according to an exponential distribution. The avera...
See AnswerQ: McBurger’s fast-food restaurant has a drive-through window with
McBurger’s fast-food restaurant has a drive-through window with a single server who takes orders from an intercom and also is the cashier. The window operator is assisted by other employees who prepar...
See AnswerQ: Game World, a video game arcade at Tanglewood Mall, has
Game World, a video game arcade at Tanglewood Mall, has just installed a new virtual reality battle game. It requires exactly 2.7 minutes to play. Customers arrive, on average, every 2.9 minutes (Pois...
See AnswerQ: An ATM at a busy airport disburses money or accepts deposits from
An ATM at a busy airport disburses money or accepts deposits from customers. The ATM takes a constant time of 2 minutes to accept instructions and complete a transaction. If customers arrive at the ra...
See AnswerQ: A vending machine at City Airport dispenses hot coffee, hot chocolate
A vending machine at City Airport dispenses hot coffee, hot chocolate, or hot tea, in a constant service time of 20 seconds. Customers arrive at the vending machine at a mean rate of 60 per hour (Pois...
See AnswerQ: In the Fast Shop Market example in this chapter, Alternative II
In the Fast Shop Market example in this chapter, Alternative II was to add a new checkout counter at the market. This alternative was analyzed using the single-server model. Why was the multiple- serv...
See AnswerQ: NesCafé has installed a coffee vending machine at an airport. The
NesCafé has installed a coffee vending machine at an airport. The installed vending machine has the capacity to dispense 25 cups of coffee per hour. Currently, the demand for coffee on average is 22 c...
See AnswerQ: The Bay City Police Department has eight patrol cars that are on
The Bay City Police Department has eight patrol cars that are on constant call 24 hours per day. A patrol car requires repairs every 20 days, on average, according to an exponential distribution. When...
See AnswerQ: The University Bookstore is owned and operated by State University through an
The University Bookstore is owned and operated by State University through an independent corporation with its own board of directors. The bookstore has three locations on or near the State University...
See AnswerQ: The Rowntown Cab Company has four cabs that are on duty during
The Rowntown Cab Company has four cabs that are on duty during normal business hours. The cab company dispatcher receives requests for service every 8 minutes, on average, according to an exponential...
See AnswerQ: In Problem 10, in addition to course approvals, suppose that
In Problem 10, in addition to course approvals, suppose that the advisor also answers questions and provides course counseling, such that the service time can no longer be assumed to be exponentially...
See AnswerQ: The College Avenue Sub Shop is located in a small college town
The College Avenue Sub Shop is located in a small college town. Virtually all of its phone delivery orders are in the evening, between 5:00 p.M. and 1:00 A.M., so the shop has a delivery person for th...
See AnswerQ: The Riverton Post Office has four stations for service. Customers line
The Riverton Post Office has four stations for service. Customers line up in single file for service on a FIFO basis. The mean arrival rate is 40 per hour, Poisson distributed, and the mean service ti...
See AnswerQ: In Problem14 , the Dynaco Company has found that if more than
In Problem14 , the Dynaco Company has found that if more than three units (average) are waiting to be processed at any one workstation, then too much money is being tied up in work-in-process inventor...
See AnswerQ: Cakes baked by the Freshfood Bakery are transported from the ovens to
Cakes baked by the Freshfood Bakery are transported from the ovens to be packaged by one of three wrappers. Each wrapper can wrap an average of 200 cakes per hour. The cakes are brought to the wrapper...
See AnswerQ: The associate dean of the college of business at Tech is determining
The associate dean of the college of business at Tech is determining which of two copiers he should lease for the college’s administrative suite. A regular copier leases for $8 per hour, and it takes...
See AnswerQ: A company has 20 computers in its office in Johannesburg. Though
A company has 20 computers in its office in Johannesburg. Though the computers are brand new, they do fail and this affects the company’s work. A computer crashes every 25 days. The company estimates...
See AnswerQ: A single-server queuing system with an infinite calling population and
A single-server queuing system with an infinite calling population and a first-come, first-served queue discipline has the following arrival and service rates (Poisson distributed): = 16 customers p...
See AnswerQ: The Regency Hotel has enough space at its entrance for six taxicabs
The Regency Hotel has enough space at its entrance for six taxicabs to line up, wait for guests, and then load passengers. Cabs arrive at the hotel every 8 minutes; if a taxi drives by the hotel and t...
See AnswerQ: On December 16, 1944, in the last year of World
On December 16, 1944, in the last year of World War II, two German panzer armies, supported by a third army of infantry, together totaling more than 250,000 men, staged a massive counteroffensive in n...
See AnswerQ: The Valley Swim Club has 300 stockholders, each holding one share
The Valley Swim Club has 300 stockholders, each holding one share of stock in the club. A share of club stock allows the shareholderâs family to use the clubâs heat...
See AnswerQ: The local Burger Doodle fast-food restaurant has a drive-
The local Burger Doodle fast-food restaurant has a drive-through window. Customers in cars arrive at the window at the rate of 10 per hour (Poisson distributed). It requires an average of 4 minutes (e...
See AnswerQ: From 3:00 p.M. to 8:00
From 3:00 p.M. to 8:00 p.M. the local K-Star Supermarket has a steady stream of customers. Customers finish shopping and arrive at the checkout area at a rate of 70 per hour (Poisson distributed). It...
See AnswerQ: Customers arrive to check in at the exclusive and expensive Regency Hotel’s
Customers arrive to check in at the exclusive and expensive Regency Hotel’s lobby at a rate of 40 per hour (Poisson distributed). The hotel normally has three clerks available at the desk to check in...
See AnswerQ: The Riverview Clinic has two general practitioners who see patients daily.
The Riverview Clinic has two general practitioners who see patients daily. An average of six patients arrive at the clinic per hour. Each doctor spends an average of 15 minutes with a patient. The pat...
See AnswerQ: The Footrite Shoe Company is going to open a new branch at
The Footrite Shoe Company is going to open a new branch at a mall, and company managers are attempting to determine how many salespeople to hire. Based on an analysis of mall traffic, the company esti...
See AnswerQ: When customers arrive at Gilley’s Ice Cream Shop, they take a
When customers arrive at Gilley’s Ice Cream Shop, they take a number and wait to be called to purchase ice cream from one of the counter servers. From experience in past summers, the store’s staff kno...
See AnswerQ: Moore’s television repair service receives an average of six TV sets per
Moore’s television repair service receives an average of six TV sets per 8-hour day to be repaired. The service manager would like to be able to tell customers that they can expect 1-day service. What...
See AnswerQ: In Problem 37, suppose that Moore’s television repair service cannot accommodate
In Problem 37, suppose that Moore’s television repair service cannot accommodate more than 30 TV sets at a time. What is the probability that the number of TV sets on hand (under repair and waiting fo...
See AnswerQ: Maggie Attaberry is a nurse on the evening shift from 10:
Maggie Attaberry is a nurse on the evening shift from 10:00 p.M. to 6:00 A.M. at Community Hospital. She has 15 patients for whom she is responsible in her area. She averages two calls from each of he...
See AnswerQ: The ticket booth on the Tech campus is operated by one person
The ticket booth on the Tech campus is operated by one person, who is selling tickets for the annual Tech versus State football game on Saturday. The ticket seller can serve an average of 12 customers...
See AnswerQ: Since the terrorist attacks of 9/11 and because of the
Since the terrorist attacks of 9/11 and because of the ensu- ing measures to increase airline security, airports have faced the problem of long waiting lines and waiting times at secu- rity gates. Wai...
See AnswerQ: The Escargot is a small French restaurant with six waiters and waitresses
The Escargot is a small French restaurant with six waiters and waitresses. The average service time at the restaurant for a table (of any size) is 85 minutes (Poisson distributed). The restaurant does...
See AnswerQ: Hudson Valley Books is a small, independent publisher of fiction and
Hudson Valley Books is a small, independent publisher of fiction and nonfiction books. Each week the publisher receives an average of seven unsolicited manuscripts to review (Poisson distributed). The...
See AnswerQ: Amanda Fall is starting up a new house painting business, Fall
Amanda Fall is starting up a new house painting business, Fall Colors. She has been advertising in the local newspaper for several months. Based on inquiries and informal surveys of the local housing...
See AnswerQ: Partially completed products arrive at a workstation in a manufacturing operation at
Partially completed products arrive at a workstation in a manufacturing operation at a mean rate of 40 per hour (Poisson distributed). The processing time at the workstation averages 1.2 minutes per u...
See AnswerQ: Dubai airport has three immigration officers that inspect arriving tourists’ travel documents
Dubai airport has three immigration officers that inspect arriving tourists’ travel documents and permit them to enter the country if their visa is genuine. Each officer can check 20 tourists per hour...
See AnswerQ: The Waterfall Buffet in the lower level of the National Art Gallery
The Waterfall Buffet in the lower level of the National Art Gallery serves food cafeteria-style daily to visitors and employees. The buffet is self-service. From 7:00 A.M. to 9:00 A.M. customers arriv...
See AnswerQ: The Clip Joint is a hairstyling salon at University Mall. Four
The Clip Joint is a hairstyling salon at University Mall. Four stylists are always available to serve customers on a first-come, first-served basis. Customers arrive at an average rate of 5 per hour,...
See AnswerQ: Ships arrive at the port of Savannah at the rate of 40
Ships arrive at the port of Savannah at the rate of 40 per 30-day month (Poisson distributed), generally with a full cargo of containers. It takes an average of 12 hours (exponentially distributed) to...
See AnswerQ: The Delacroix Inn in Alexandria is a small, exclusive hotel with
The Delacroix Inn in Alexandria is a small, exclusive hotel with 20 rooms. Guests can call house- keeping from 8:00 A.M. to midnight for any of their service needs. Housekeeping keeps one person on du...
See AnswerQ: Jim Carter builds custom furniture, primarily cabinets, bookcases, small
Jim Carter builds custom furniture, primarily cabinets, bookcases, small tables, and chairs. He works on only one piece of furniture for a customer at a time. It takes him an average of 5 weeks (expon...
See AnswerQ: The Northwoods General Store in Vermont sells a variety of outdoor clothing
The Northwoods General Store in Vermont sells a variety of outdoor clothing items and equipment and several food products at its modern but rustic-looking retail store. Its food products include salmo...
See AnswerQ: Starbucks Café at the cafeteria of a university has a single attendant
Starbucks Café at the cafeteria of a university has a single attendant who receives orders from the arriving students and passes the orders to its serviceman who prepares and delivers the ordered item...
See AnswerQ: Judith Lewis is a doctoral student at State University, and she
Judith Lewis is a doctoral student at State University, and she also works full-time as an academic tutor for 10 scholarship student athletes. She took the job, hoping it would leave her free time bet...
See AnswerQ: TSA security agents at the security gate at the Tri-Cities
TSA security agents at the security gate at the Tri-Cities Regional Airport are able to check passengers and process them through the security gate at a rate of 50 per hour (Poisson distributed). Pass...
See AnswerQ: A renowned healthcare provider, Mediclinic, has a branch in Marina
A renowned healthcare provider, Mediclinic, has a branch in Marina, Dubai. The clinic remains open for 8 hours a day. At present, three doctors are available to attend arriving patients. Each doctor c...
See AnswerQ: Refer to Problem 52. The clinic does not want to add
Refer to Problem 52. The clinic does not want to add a fourth doctor but plans to increase the efficiency of the existing doctors. By proper training and innovative adoption of technologies, doctors c...
See AnswerQ: In Problem 24, when the students come back for fall semester
In Problem 24, when the students come back for fall semester, the Sub Shop experiences a large increase in demand for about a month before it begins to level off again, such that the number of phone o...
See AnswerQ: In Problem 51, the passenger traffic arriving at the airport security
In Problem 51, the passenger traffic arriving at the airport security gate varies significantly during the day. At times close to flight takeoffs, the traffic is very heavy, while at other times there...
See AnswerQ: A laundry machine at a laundromat operates for 8 hours a day
A laundry machine at a laundromat operates for 8 hours a day. The time between customer arrivals on average is 25 minutes. Each machine takes an average of 60 minutes (exponentially distributed) to wa...
See AnswerQ: The Hampton County emergency medical service (EMS) covers an area
The Hampton County emergency medical service (EMS) covers an area of 500 square miles with a population of over 100,000. In addition to ambulances and fire engines, the EMS is considering purchased th...
See AnswerQ: The Old Colony theme park has a new ride, the Double
The Old Colony theme park has a new ride, the Double Cyclone. The ride holds 30 people in double roller coaster cars, and it takes 3.8 minutes to complete the ride circuit. It also takes the ride atte...
See AnswerQ: The Fort Worth Texans have won three Super Bowls in the past
The Fort Worth Texans have won three Super Bowls in the past 5 years, including two in a row the past 2 years. As a result, sportswear such as hats, sweatshirts, sweatpants, and jackets with the Texan...
See AnswerQ: The Dynaco Manufacturing Company produces a particular product in an assembly line
The Dynaco Manufacturing Company produces a particular product in an assembly line operation. One of the machines on the line is a drill press that has a single assembly line feeding into it. A partia...
See AnswerQ: The management of Dynaco Manufacturing Company (see Problem 6) likes
The management of Dynaco Manufacturing Company (see Problem 6) likes to have its operators working 90% of the time. What must the assembly line arrival rate be for the operators to be as busy as manag...
See AnswerQ: A gas station at a busy highway offers free air service for
A gas station at a busy highway offers free air service for tires of cars that use the pump. The attendant checks tire pressure and inflates or deflates to the recommeded level. On an average, the att...
See AnswerQ: A small grocery market has one checkout counter. The counter clerk
A small grocery market has one checkout counter. The counter clerk takes an average of 3 minutes to serve a customer. Customers arrive at the counter at the rate of 15 per hour. The manager of the sto...
See AnswerQ: The Hoylake Rescue Squad receives an emergency call every 1, 2
The Hoylake Rescue Squad receives an emergency call every 1, 2, 3, 4, 5, or 6 hours, according to the following probability distribution. The squad is on duty 24 hours per day, 7 days per week: a. Sim...
See AnswerQ: A hypermarket sells a specific brand of mobile phones and earns a
A hypermarket sells a specific brand of mobile phones and earns a profit of AED100 per mobile. It incurs a holding cost of AED40 per mobile per month if a stocked mobile is not sold. Holding cost is a...
See AnswerQ: University is playing Tech in their annual football game on Saturday.
University is playing Tech in their annual football game on Saturday. A sportswriter has scouted each team all season and accumulated the following data: State runs four basic playsâ...
See AnswerQ: Each semester, the students in the college of business at State
Each semester, the students in the college of business at State University must have their course schedules approved by the college adviser. The students line up in the hallway outside the adviser&aci...
See AnswerQ: A city is served by two newspapers—the Tribune and the
A city is served by two newspapersâthe Tribune and the Daily News. Each Sunday readers purchase one of the newspapers at a stand. The following matrix contains the probabilities of a...
See AnswerQ: Loebuck Grocery orders milk from a dairy on a weekly basis.
Loebuck Grocery orders milk from a dairy on a weekly basis. The manager of the store has developed the following probability distribution for demand per week (in cases): The milk costs the grocery $10...
See AnswerQ: Christine Yamaguchi is the manager of the A-to-Z
Christine Yamaguchi is the manager of the A-to-Z Office Supply Company in Charlotte. The company attempts to gain an advantage over its competitors by providing quality customer service, which include...
See AnswerQ: The Paymore Rental Car Agency rents cars in a small town.
The Paymore Rental Car Agency rents cars in a small town. It wants to determine how many rental cars it should maintain. Based on market projections and historical data, the manager has determined pro...
See AnswerQ: A robbery has just been committed at the Corner Market in the
A robbery has just been committed at the Corner Market in the downtown area of the city. The market owner was able to activate the alarm, and the robber fled on foot. Police officers arrived a few min...
See AnswerQ: Compcomm, Inc., is an international communications and information technology company
Compcomm, Inc., is an international communications and information technology company that has seen the value of its common stock appreciate substantially in recent years. A stock analyst would like t...
See AnswerQ: The emergency room of the community hospital in Farmburg has one receptionist
The emergency room of the community hospital in Farmburg has one receptionist, one doctor, and one nurse. The emergency room opens at time zero, and patients begin to arrive some time later. Patients...
See AnswerQ: The time between arrivals of cars at the Petroco Service Station is
The time between arrivals of cars at the Petroco Service Station is defined by the following probability distribution: a. Simulate the arrival of cars at the service station for 20 arrivals, and compu...
See AnswerQ: The Western Outfitters Store specializes in denim jeans. The variable cost
The Western Outfitters Store specializes in denim jeans. The variable cost of the jeans varies according to several factors, including the cost of the jeans from the distributor, labor costs, handling...
See AnswerQ: Randolph College and Salem College are within 20 miles of each other
Randolph College and Salem College are within 20 miles of each other, and the students at each college frequently date each other. The students at Randolph College are debating how good their dates ar...
See AnswerQ: In Problem 21, discuss how you might assess the accuracy of
In Problem 21, discuss how you might assess the accuracy of the average rating for Salem College students based on only 20 simulated dates.
See AnswerQ: Burlingham Mills produces denim cloth that it sells to jeans manufacturers.
Burlingham Mills produces denim cloth that it sells to jeans manufacturers. It is negotiating a contract with Troy Clothing Company to provide denim cloth on a weekly basis. Burlingham has established...
See AnswerQ: A baseball game consists of plays that can be described as follows
A baseball game consists of plays that can be described as follows: Distributions for these plays for two teams, the White Sox (visitors) and the Yankees (home), are as follows: Simulate a nine-inning...
See AnswerQ: Diamant Foods Company produces a variety of food prod- ucts,
Diamant Foods Company produces a variety of food prod- ucts, including a line of candies. One of its most popular candy items is Divine Diamonds, a bag of a dozen individually wrapped diamond-shaped c...
See AnswerQ: For the ComputerWorld example in this chapter, recreate the simulation shown
For the ComputerWorld example in this chapter, recreate the simulation shown in Exhibit 14.2 using Crystal Ball. Assume that demand is normally distributed with a mean of 1.5 laptops and a standard de...
See AnswerQ: Perform the Crystal Ball simulation in Problem 25, assuming that demand
Perform the Crystal Ball simulation in Problem 25, assuming that demand is normally distributed with a mean of 2.5 and a standard deviation of 1.2 laptops.
See AnswerQ: For the Bigelow Manufacturing example in this chapter, re-create
For the Bigelow Manufacturing example in this chapter, re-create the simulation shown in Table 14.10 and Exhibit 14.7 using Crystal Ball. Assume that the repair time is normally distributed with a mea...
See AnswerQ: For the Bigelow Manufacturing example in this chapter, re-create
For the Bigelow Manufacturing example in this chapter, re-create the simulation for the improved maintenance program shown in Table 14.11 and Exhibit 14.8 using Crystal Ball. For the improved program...
See AnswerQ: Tracy McCoy is shopping for a new car. She has identified
Tracy McCoy is shopping for a new car. She has identified a particular sports utility vehicle she likes but has heard that it has high maintenance costs. Tracy has decided to develop a simulation mode...
See AnswerQ: The Dynaco Manufacturing Company produces a product in a process consisting of
The Dynaco Manufacturing Company produces a product in a process consisting of operations of five machines. The probability distribution of the number of machines that will break down in a week follow...
See AnswerQ: In Problem 20, assume that the sales volume for Western Outfitters
In Problem 20, assume that the sales volume for Western Outfitters Store is normally distributed, with a mean of 600 pairs of jeans and a standard deviation of 200; the price is uniformly distributed,...
See AnswerQ: In Problem 21, assume that the students at Randolph College have
In Problem 21, assume that the students at Randolph College have redefined the probability distributions of their dates at Salem College as follows: Physical attractiveness is uniformly distributed fr...
See AnswerQ: In Problem 23, assume that production capacity at Burlingham Mills for
In Problem 23, assume that production capacity at Burlingham Mills for the Troy Clothing Company contract is normally distributed, with a mean of 320 yards per month and a standard deviation of 120 ya...
See AnswerQ: Erin Jones has $100,000 and, to diversify,
Erin Jones has $100,000 and, to diversify, she wants to invest equal amounts of $50,000 each in two mutual funds selected from a list of four possible mutual funds. She wants to invest for a 3-year pe...
See AnswerQ: Suppose in Problem 35 that the processing cost per unit at each
Suppose in Problem 35 that the processing cost per unit at each plant is different because of different machinery, workersâ abilities, overhead, and so on, according to the following...
See AnswerQ: In Chapter 16, the formula for the optimal order quantity of
In Chapter 16, the formula for the optimal order quantity of an item, Q, given its demand, D, ordering cost, Co, and the cost of holding, or carrying, an item in inventory, Cc, is as follows: The tota...
See AnswerQ: The Management Science Association (MSA) has arranged to hold its
The Management Science Association (MSA) has arranged to hold its annual conference at the Riverside Hotel in Orlando next year. Based on historical data, the MSA believes the number of rooms it will...
See AnswerQ: In Chapter 8, Figure 8.6 shows a simplified project
In Chapter 8, Figure 8.6 shows a simplified project network for building a house, as follows: There are four paths through this network: The time parameters (in weeks) defining a triangular probabilit...
See AnswerQ: Solve Problem 21 at the end of Chapter 12 by using simulation
Solve Problem 21 at the end of Chapter 12 by using simulation.
See AnswerQ: Simulate the decision situation described in Problem 18(a) at
Simulate the decision situation described in Problem 18(a) at the end of Chapter 12 for 20 weeks, and recommend the best decision.
See AnswerQ: Every time a machine breaks down at the Dynaco Manufacturing Company (
Every time a machine breaks down at the Dynaco Manufacturing Company (Problem 3), 1, 2, or 3 hours are required to fix it, according to the following probability distribution: a. Simulate the repair t...
See AnswerQ: Sound Warehouse in Georgetown sells CD players (with speakers), which
Sound Warehouse in Georgetown sells CD players (with speakers), which it orders from Fuji Electronics in Japan. Because of shipping and handling costs, each order must be for five CD players. Because...
See AnswerQ: First American Bank is trying to determine whether it should install one
First American Bank is trying to determine whether it should install one or two drive-through teller windows. The following probability distributions for arrival intervals and service times have been...
See AnswerQ: The time between arrivals of oil tankers at a loading dock at
The time between arrivals of oil tankers at a loading dock at Prudhoe Bay is given by the following probability distribution: The time required to fill a tanker with oil and prepare it for sea is give...
See AnswerQ: A banana growers’ society grows banana in a region. After planting
A banana growersâ society grows banana in a region. After planting saplings, it takes around 10 months to harvest stalks of bananas. Since the production cycle is long and strong win...
See AnswerQ: Given the following network, with the indicated flow capacities along each
Given the following network, with the indicated flow capacities along each branch, determine the maximum flow from source node 1 to destination node 10 and the flow along each path:
See AnswerQ: The Whistle Stop Cafe in Weems, Georgia, is well known
The Whistle Stop Cafe in Weems, Georgia, is well known for its popular homemade ice cream, made in a small plant in back of the cafe. People drive all the way from Atlanta and Macon to buy the ice cre...
See AnswerQ: Develop a seasonally adjusted forecast for the demand data for fertilizer found
Develop a seasonally adjusted forecast for the demand data for fertilizer found in Problem 3. Then use a linear trend line model to compute a forecast estimate for demand in year 4.
See AnswerQ: Monaghan’s Pizza delivery service has randomly selected 8 weekdays during the past
Monaghanâs Pizza delivery service has randomly selected 8 weekdays during the past month and recorded orders for pizza at four different time periods per day: Develop a seasonally ad...
See AnswerQ: The Cat Creek Mining Company mines and ships coal. It has
The Cat Creek Mining Company mines and ships coal. It has experienced the following demand for coal during the past 8 years: Develop an adjusted exponential smoothing model (a = .30, b = .20) and a li...
See AnswerQ: The River is a literary magazine published by the English Department at
The River is a literary magazine published by the English Department at Tech. It has a 70-year history and enjoys an excellent reputation for providing a literary outlet for aspiring Appalachian write...
See AnswerQ: The Beaver Creek Pottery Company sells bowls and mugs, hand-
The Beaver Creek Pottery Company sells bowls and mugs, hand-made by Native American artisans, at a craft store and through a Web site. Making these items requires a special type of clay and a large am...
See AnswerQ: The Northwoods Outdoor Company is a catalog sales operation that specializes in
The Northwoods Outdoor Company is a catalog sales operation that specializes in outdoor recreational clothing. Demand for its items is very seasonal, peaking during the Christmas season and during the...
See AnswerQ: Metro Food Vending operates vending machines in office buildings, the airport
Metro Food Vending operates vending machines in office buildings, the airport, bus stations, colleges, and other businesses and agencies around town, and it operates vending trucks for building and co...
See AnswerQ: Dubai-fly airline operates flights from Dubai to Milan. The
Dubai-fly airline operates flights from Dubai to Milan. The demand for airline seats varies from month to month. There are few peak seasonal demands, for instance, just before and after Christmas and...
See AnswerQ: LT manufactures smartphone components, which are dependent on the global demand
LT manufactures smartphone components, which are dependent on the global demand for smart- phones. Following are the yearly global sales (in million units) for the past 8 years. Develop a linear trend...
See AnswerQ: A manufacturing company produces different variations of a product at different work
A manufacturing company produces different variations of a product at different work centers in its plant on a daily basis. Following is a network showing the various work centers in the plant, the da...
See AnswerQ: The McDonald’s store at a busy mall has collected its last 10
The McDonaldâs store at a busy mall has collected its last 10 monthsâ sales (in thousands of meal) data for its fast selling a la carte mealâThe F...
See AnswerQ: The emergency room at the new Community Hospital selected every other week
The emergency room at the new Community Hospital selected every other week during the past 5 months to observe the number of patients during two parts of each weekâthe weekend (Frida...
See AnswerQ: Aztec Industries has developed a forecasting model that was used to forecast
Aztec Industries has developed a forecasting model that was used to forecast during a 10-month period. The forecasts and actual demand were as follows: Measure the accuracy of the forecast by using MA...
See AnswerQ: RAP Computers assembles personal computers from generic parts it purchases at a
RAP Computers assembles personal computers from generic parts it purchases at a discount, and it sells the units by phone orders it receives from customers responding to the companyâ...
See AnswerQ: Develop an exponential smoothing forecast with a = .20 for the
Develop an exponential smoothing forecast with a = .20 for the demand data in Problem 1. Compare this forecast with the 3-month moving average computed in part (a) of Problem 1, using MAD, and indicat...
See AnswerQ: The Jersey Dairy Products Company produces cheese, which it sells to
The Jersey Dairy Products Company produces cheese, which it sells to supermarkets and food- processing companies. Because of concerns about cholesterol and fat in cheese, the company has seen demand f...
See AnswerQ: The manager of the Ramona Inn Hotel near Cloverleaf Stadium believes that
The manager of the Ramona Inn Hotel near Cloverleaf Stadium believes that how well the local Blue Sox professional baseball team is playing has an impact on the occupancy rate at the hotel during the...
See AnswerQ: Carpet City wants to develop a means to forecast its carpet sales
Carpet City wants to develop a means to forecast its carpet sales. The store manager believes that the storeâs sales are directly related to the number of new housing starts in town....
See AnswerQ: A group of business students at Tech organized a student club called
A group of business students at Tech organized a student club called Prism to develop and disseminate content about business majors through a Web site they created and social media sites. Prism would...
See AnswerQ: Bernice’s Pizza Restaurant opened the previous year, and in addition to
Berniceâs Pizza Restaurant opened the previous year, and in addition to sit-down restaurant service they filled take-out orders (picked up by customers) and some delivery orders usin...
See AnswerQ: A water station (1) is planned to supply a new
A water station (1) is planned to supply a new city (13) with water through the current network of pipes and substations. The diagram below shows the water flow capacity of the different pipes of the...
See AnswerQ: Suntrek is a global manufacturer and supplier of denim jeans to apparel
Suntrek is a global manufacturer and supplier of denim jeans to apparel retailers around the world. It purchases baled cotton around the world, ships it to its denim fabric factories, then to its deni...
See AnswerQ: The Fastgro Fertilizer Company distributes fertilizer to various lawn and garden shops
The Fastgro Fertilizer Company distributes fertilizer to various lawn and garden shops. The company must base its quarterly production schedule on a forecast of how many tons of fertilizer will be dem...
See AnswerQ: The Tech power plant burns coal and natural gas to generate steam
The Tech power plant burns coal and natural gas to generate steam and electricity for all campus buildings. The annual coal consumption at the plant has increased annually for the past 8 years due to...
See AnswerQ: The DirectCast cable TV company is a national chain that services the
The DirectCast cable TV company is a national chain that services the small college town that is home to Tech, with a student population of almost 30,000. The company has generally been able to handle...
See AnswerQ: Bell Inc. is a computer company that gets most of its
Bell Inc. is a computer company that gets most of its component parts from suppliers in Southeast Asia, who ship to small warehouses called ârevolversâ (for revolvi...
See AnswerQ: The manager of Gilley’s Ice Cream Parlor needs an accurate forecast of
The manager of Gilleyâs Ice Cream Parlor needs an accurate forecast of the demand for ice cream. The store orders ice cream from a distributor a week ahead; if the store orders too l...
See AnswerQ: Compute the coefficient of determination for the data in Problem 33,
Compute the coefficient of determination for the data in Problem 33, and explain its meaning.
See AnswerQ: Administrators at State University believe that decreases in the number of freshman
Administrators at State University believe that decreases in the number of freshman applications that they have experienced are directly related to tuition increases. They have collected the following...
See AnswerQ: Develop a linear trend line model for the freshman applications data at
Develop a linear trend line model for the freshman applications data at State University in Problem 35. a. Does this forecast appear to be more or less accurate than the linear regression forecast dev...
See AnswerQ: Explain the numerical value of the slope of the linear regression equation
Explain the numerical value of the slope of the linear regression equation in Problem 33.
See AnswerQ: PAWV Power and Light has contracted with a –waste- disposal
PAWV Power and Light has contracted with a âwaste- disposal firm to have nuclear waste from its nuclear power plants in Pennsylvania disposed of at aâgovernment&aci...
See AnswerQ: In Problem 36 in Chapter 6, KanTech Corporation ships electronic components
In Problem 36 in Chapter 6, KanTech Corporation ships electronic components in containers from seaports in Europe to U.S. ports, from which the containers are transported by truck or rail to inland po...
See AnswerQ: Some members of management of the Fairface Cosmetics Firm believe that demand
Some members of management of the Fairface Cosmetics Firm believe that demand for its products is related to the promotional activities of local department stores where the cosmetics are sold. However...
See AnswerQ: Employees at Precision Engine Parts Company produce parts according to exact design
Employees at Precision Engine Parts Company produce parts according to exact design specifications. The employees are paid according to a piece-rate system, wherein the faster they work and the more p...
See AnswerQ: The chairperson of the department of management at State University wants to
The chairperson of the department of management at State University wants to forecast the number of students who will enroll in production and operations management (POM) next semester to determine ho...
See AnswerQ: Apperson and Fitz is a chain of clothing stores that caters to
Apperson and Fitz is a chain of clothing stores that caters to high school and college students. It publishes a quarterly catalog and operates a Web site that features provocatively attired males and...
See AnswerQ: The Gametime Hat Company manufactures baseball caps that have various team logos
The Gametime Hat Company manufactures baseball caps that have various team logos in an assortment of designs and colors. The company has had monthly sales for the past 24 months as follows: Develop a...
See AnswerQ: Infoworks is a large computer discount store that sells computers and ancillary
Infoworks is a large computer discount store that sells computers and ancillary equipment and software in the town where State University is located. Infoworks has collected historical data on compute...
See AnswerQ: Develop an exponential smoothing model with a = .30 for the
Develop an exponential smoothing model with a = .30 for the data in Problem 42 to forecast printer demand in year 11 and compare its accuracy to the linear trend line forecast developed in (a).
See AnswerQ: Arrow Air is a regional East Coast airline that has collected data
Arrow Air is a regional East Coast airline that has collected data for the percentage of avail- able seats occupied on its flights for four quartersâ(1) JanuaryâMar...
See AnswerQ: Develop an adjusted exponential smoothing forecast model (a = .40
Develop an adjusted exponential smoothing forecast model (a = .40 and b = .40) for the data in Problem 44 to forecast seat occupancy and compare its accuracy with the seasonally adjusted model develop...
See AnswerQ: The consumer loan department at Central Union Bank and Trust wants to
The consumer loan department at Central Union Bank and Trust wants to develop a forecasting model to help determine its potential loan application volume for the coming year. Because adjust- able-rate...
See AnswerQ: Liu and Fong is a global supplier of denim jeans for apparel
Liu and Fong is a global supplier of denim jeans for apparel companies around the world. Its supply chain includes cotton production in the United States, fabric manufacturing in Southeast Asia and th...
See AnswerQ: The busiest time of the day at the Taco Town fast-
The busiest time of the day at the Taco Town fast-food restaurant is between 11:00 A.M. and 2:00 p.M. Taco Townâs service is very labor dependent, and a critical factor for providing...
See AnswerQ: To take advantage of the burgeoning public interest in sustainability, Klorax
To take advantage of the burgeoning public interest in sustainability, Klorax has developed a non- synthetic line of natural cleaning products called GreenClean. One of the first sustainable products...
See AnswerQ: In Problem 48, one of the new products in the GreenClean
In Problem 48, one of the new products in the GreenClean line that Klorax is ready to introduce is an all-purpose cleaner, and Klorax is attempting to forecast what demand might be like 5 years into t...
See AnswerQ: A cooking oil distributor distributes oil to major supermarkets in the region
A cooking oil distributor distributes oil to major supermarkets in the region. Though a personâs daily consumption of oil seems to be almost the same, the distributorâ...
See AnswerQ: The Wellton Fund is a balanced mutual fund that includes a mix
The Wellton Fund is a balanced mutual fund that includes a mix of stocks and bonds. Following are the year-end share prices of the fund and Dow Jones Industrial Average (DJIA) for a 20-year period: De...
See AnswerQ: The Valley United Soccer Club has boys’ and girls’ travel soccer teams
The Valley United Soccer Club has boysâ and girlsâ travel soccer teams at all age levels up to 18 years. The club has been successful and grown in popularity over t...
See AnswerQ: The Port of Savannah is considering an expansion of its container terminal
The Port of Savannah is considering an expansion of its container terminal. The port has experienced the following container throughput during the past 12 years, expressed as TEUs (i.e., 20-foot equiv...
See AnswerQ: The admission data for freshmen at Tech during the past 10 years
The admission data for freshmen at Tech during the past 10 years are as follows: Techâs admission objective is a class of 5,000 entering freshmen, and Tech wants to forecast the perc...
See AnswerQ: The State of Virginia has instituted a series of standards of learning
The State of Virginia has instituted a series of standards of learning (SOL) tests in math, history, English, and science that all high school students must pass with a grade of 70 before they are all...
See AnswerQ: Tech administrators believe their freshman applications are influenced by two variables:
Tech administrators believe their freshman applications are influenced by two variables: tuition and the size of the applicant pool of eligible high school seniors in the state. The following data for...
See AnswerQ: Construct a Gantt chart for the following set of activities, and
Construct a Gantt chart for the following set of activities, and indicate the project completion time:
See AnswerQ: In Problem 42, Infoworks believes its printer sales are also related
In Problem 42, Infoworks believes its printer sales are also related to the average price of its printers. It has collected historical data on average printer prices for the past 10 years, as follows:...
See AnswerQ: The manager of the Bayville police department motor pool wants to develop
The manager of the Bayville police department motor pool wants to develop a forecast model for annual maintenance on police cars, based on mileage in the past year and age of the cars. The following d...
See AnswerQ: The dean of the college of business at Tech has initiated a
The dean of the college of business at Tech has initiated a fund-raising campaign. One of the selling points he plans to use with potential donors is that increasing the collegeâs pr...
See AnswerQ: The Victory Plus Mutual Fund of growth stocks has had the following
The Victory Plus Mutual Fund of growth stocks has had the following average monthly price for the past 10 months: Compute the exponentially smoothed forecast with a = .40, the adjusted exponential smo...
See AnswerQ: The Bayside Fountain Hotel is adjacent to County Coliseum, a 24
The Bayside Fountain Hotel is adjacent to County Coliseum, a 24,000-seat arena that is home to the cityâs professional basketball and ice hockey teams and that hosts a variety of con...
See AnswerQ: Emily Andrews has invested in a science and technology mutual fund.
Emily Andrews has invested in a science and technology mutual fund. Now she is considering liquidating and investing in another fund. She would like to forecast the price of the science and technology...
See AnswerQ: Eurotronics manufactures components for use in small electronic products such as computers
Eurotronics manufactures components for use in small electronic products such as computers, CD players, and radios at plants in Belgium, Germany, and France. The parts are transported by truck to Hamb...
See AnswerQ: Hayes Electronics stocks and sells a particular brand of personal computer.
Hayes Electronics stocks and sells a particular brand of personal computer. It costs the firm $450 each time it places an order with the manufacturer for the personal computers. The cost of carrying o...
See AnswerQ: The Wood Valley Dairy makes cheese to supply to stores in its
The Wood Valley Dairy makes cheese to supply to stores in its area. The dairy can make 250 pounds of cheese per day (365 days per year), and the demand at area stores is 180 pounds per day. Each time...
See AnswerQ: A furniture store produces tables and doors and sells them through its
A furniture store produces tables and doors and sells them through its outlets across the country. The wood working machines are first set for producing tables and the produced tables are stocked for...
See AnswerQ: A farm owner is going to erect a maintenance building with a
A farm owner is going to erect a maintenance building with a connecting electrical generator and water tank. The activities, activity descriptions, and estimated durations are given in the following t...
See AnswerQ: The purchasing manager for the Atlantic Steel Company must determine a policy
The purchasing manager for the Atlantic Steel Company must determine a policy for ordering coal to operate 12 converters. Each converter requires exactly 5 tons of coal per day to operate, and the fir...
See AnswerQ: The Honda dealership at your city forecasted that it could sell around
The Honda dealership at your city forecasted that it could sell around 500 cars in the next year. The annual carrying cost of a car is ¥500,000, and the ordering cost which involves order processing a...
See AnswerQ: Tara, an apparel store, has forecasted a sale of 100
Tara, an apparel store, has forecasted a sale of 100,000 meters of dress material for the next year. Its spinning mill can produce 500 meters of materials per day. The cost of setup per production run...
See AnswerQ: In Problem 32 in Chapter 15, the supplier receives shipments of
In Problem 32 in Chapter 15, the supplier receives shipments of partially completed laptops from its manufacturing facility in Southeast Asia, which has maximum production rate of 200 units per day. U...
See AnswerQ: Craftwood Furniture Company is a U.S.-based furniture manufacturer
Craftwood Furniture Company is a U.S.-based furniture manufacturer that offshored all of its actual manufacturing operations to China about a decade ago. It set up a distribution center in Hong Kong,...
See AnswerQ: The Pacific Lumber Company and Mill processes 10,000 logs annually
The Pacific Lumber Company and Mill processes 10,000 logs annually, operating 250 days per year. Immediately upon receiving an order, the logging company’s supplier begins delivery to the lumber mill,...
See AnswerQ: The Road King Tire store sells a brand of tires called the
The Road King Tire store sells a brand of tires called the Roadrunner. The annual demand from the store’s customers for Roadrunner tires is 3,700. The cost to order tires from the tire manufacturer is...
See AnswerQ: The Laurel Creek Lawn Shop sells Fastgro Fertilizer. The annual demand
The Laurel Creek Lawn Shop sells Fastgro Fertilizer. The annual demand for the fertilizer is 270,000 pounds. The cost to order the fertilizer from the Fastgro Company is $105 per order. The annual car...
See AnswerQ: Hayes Electronics in Problem 1 assumed with certainty that the ordering cost
Hayes Electronics in Problem 1 assumed with certainty that the ordering cost is $450 per order and the inventory carrying cost is $170 per unit per year. However, the inventory model parameters are fr...
See AnswerQ: Videoworld is a discount store that sells color televisions. The annual
Videoworld is a discount store that sells color televisions. The annual demand for color television sets is 400. The cost per order from the manufacturer is $650. The carrying cost is $45 per set each...
See AnswerQ: Seth and Levi Taylor are planning an anniversary party for their parents
Seth and Levi Taylor are planning an anniversary party for their parents in December, and they want it to have a holiday theme. They have identified the following planning activities and time estimate...
See AnswerQ: The University Bookstore at Tech stocks the required textbook for Management Science
The University Bookstore at Tech stocks the required textbook for Management Science 2405. The demand for this text is 1,200 copies per year. The cost of placing an order is $350, and the annual carry...
See AnswerQ: The A-to-Z Office Supply Company is open from
The A-to-Z Office Supply Company is open from 8:00 A.M. to 6:00 p.M., and it receives 200 calls per day for delivery orders. It costs A-to-Z $20 to send out its trucks to make deliveries. The company...
See AnswerQ: The Union Street Microbrewery makes 1220 Union beer, which it bottles
The Union Street Microbrewery makes 1220 Union beer, which it bottles and sells in its adjoining restaurant and by the case. It costs $1,700 to set up, brew, and bottle a batch of the beer. The annual...
See AnswerQ: Eurotronics is a European manufacturer of electronic components. During the course
Eurotronics is a European manufacturer of electronic components. During the course of a year, it requires container cargo space on ships leaving Hamburg bound for the United States, Mexico, South Amer...
See AnswerQ: Suntrek is a global manufacturer and supplier of denim jeans to apparel
Suntrek is a global manufacturer and supplier of denim jeans to apparel retailers around the world. It purchases baled cotton from its cotton producers in Arkansas, Texas, Georgia, and Mississippi and...
See AnswerQ: For homework Problem 30 in Chapter 15, the Tech power plant
For homework Problem 30 in Chapter 15, the Tech power plant wants to keep a 7- to 10-day sup- ply of coal on hand at all times. It takes 3 days to transport coal by railroad from the coalfields, and t...
See AnswerQ: The Summer Outdoor Furniture Company produces wooden lawn chairs. The annual
The Summer Outdoor Furniture Company produces wooden lawn chairs. The annual demand from its store customers is 17,400 chairs per year. The transport and handling costs are $2,600 each time a shipment...
See AnswerQ: The Spruce Creek Vegetable Farm produces organically grown greenhouse tomatoes that are
The Spruce Creek Vegetable Farm produces organically grown greenhouse tomatoes that are sold to area grocery stores. The annual demand for Spruce Creek’s tomatoes is 270,000 pounds. The farm is able t...
See AnswerQ: The Uptown Kiln is an importer of ceramics from overseas. It
The Uptown Kiln is an importer of ceramics from overseas. It has arranged to purchase a particular type of ceramic pottery from a Korean artisan. The artisan makes the pottery in 120-unit batches and...
See AnswerQ: A firm is faced with the attractive situation in which it can
A firm is faced with the attractive situation in which it can obtain immediate delivery of an item it stocks for retail sale. The firm has therefore not bothered to order the item in any systematic wa...
See AnswerQ: Lindsey Brinton is moving into a rental house near campus at the
Lindsey Brinton is moving into a rental house near campus at the beginning of the new fall semester at Tech with three friends. Each of the four friends will have a bedroom that they can redecorate as...
See AnswerQ: The I-75 Carpet Discount Store has an annual demand of
The I-75 Carpet Discount Store has an annual demand of 10,000 yards of Super Shag carpet. The annual carrying cost for a yard of this carpet is $0.75, and the ordering cost is $150. Thecarpet manufact...
See AnswerQ: The Fifth Quarter Bar buys Old World draft beer by the barrel
The Fifth Quarter Bar buys Old World draft beer by the barrel from a local distributor. The bar has an annual demand of 900 barrels, which it purchases at a price of $205 per barrel. The annual carryi...
See AnswerQ: The bookstore at State University purchases from a vendor sweatshirts emblazoned with
The bookstore at State University purchases from a vendor sweatshirts emblazoned with the school name and logo. The vendor sells the sweatshirts to the store for $38 apiece. The cost to the bookstore...
See AnswerQ: The office manager for the Gotham Life Insurance Company orders letterhead stationery
The office manager for the Gotham Life Insurance Company orders letterhead stationery from an office products firm in boxes of 500 sheets. The company uses 6,500 boxes per year. Annual carrying costs...
See AnswerQ: The 23,000-seat City Coliseum houses the local professional
The 23,000-seat City Coliseum houses the local professional ice hockey, basketball, indoor soccer, and arena football teams, as well as various trade shows, wrestling and boxing matches, tractor pulls...
See AnswerQ: Community Hospital orders latex sanitary gloves from a hospital supply firm.
Community Hospital orders latex sanitary gloves from a hospital supply firm. The hospital expects to use 40,000 pairs of gloves per year. The cost to order and to have the gloves delivered is $180. Th...
See AnswerQ: Tracy McCoy is the office administrator for the department of management science
Tracy McCoy is the office administrator for the department of management science at Tech. The faculty uses a lot of printer paper, and although Tracy is constantly reordering, paper frequently runs ou...
See AnswerQ: The amount of denim used daily by the Western Jeans Company in
The amount of denim used daily by the Western Jeans Company in its manufacturing process to make jeans is normally distributed, with an average of 3,000 yards of denim and a standard deviation of 600...
See AnswerQ: The Atlantic Paper Company produces paper from wood pulp ordered from a
The Atlantic Paper Company produces paper from wood pulp ordered from a lumber products firm. The paper company’s daily demand for wood pulp is a constant 8,000 pounds. Lead time is normally distribut...
See AnswerQ: The Uptown Bar and Grill serves Rainwater draft beer to its customers
The Uptown Bar and Grill serves Rainwater draft beer to its customers. The daily demand for beer is normally distributed, with an average of 18 gallons and a standard deviation of 4 gallons. The lead...
See AnswerQ: The Columbus Civic Club is planning to put on a 5K race
The Columbus Civic Club is planning to put on a 5K race to raise money to build childrenâs playgrounds. The club has identified the following planning activities and time estimates:...
See AnswerQ: The Western Jeans Company purchases denim from Cumberland Textile Mills. The
The Western Jeans Company purchases denim from Cumberland Textile Mills. The Western Jeans Company uses 35,000 yards of denim per year to make jeans. The cost of ordering denim from the textile compan...
See AnswerQ: In Problem 39, the manager of the Uptown Bar and Grill
In Problem 39, the manager of the Uptown Bar and Grill has negotiated with the beer distributor for the lead time to receive orders to be a constant 3 days. What effect does this have on the reorder p...
See AnswerQ: The daily demand for Sunlight paint at the Rainbow Paint Store in
The daily demand for Sunlight paint at the Rainbow Paint Store in East Ridge is normally distributed, with a mean of 26 gallons and a standard deviation of 10 gallons. The lead time for receiving an o...
See AnswerQ: PM Computers assembles personal computers from generic components. It purchases its
PM Computers assembles personal computers from generic components. It purchases its color monitors from a manufacturer in Taiwan; thus, there is a long and uncertain lead time for receiving orders. Le...
See AnswerQ: PM Computers in Problem 42 is considering purchasing monitors from an American
PM Computers in Problem 42 is considering purchasing monitors from an American manufacturer that would guarantee a lead time of 8 days, instead of the Taiwanese company. Determine the new reorder poin...
See AnswerQ: The Corner Drug Store fills prescriptions for a popular children’s antibiotic,
The Corner Drug Store fills prescriptions for a popular children’s antibiotic, amoxicillin. The daily demand for amoxicillin is normally distributed, with a mean of 200 ounces and a standard deviation...
See AnswerQ: The Fast Service Food Mart stocks frozen pizzas in a refrigerated display
The Fast Service Food Mart stocks frozen pizzas in a refrigerated display case. The average daily demand for the pizzas is normally distributed, with a mean of 8 pizzas and a standard deviation of 2.5...
See AnswerQ: The Impanema Restaurant stocks a red Brazilian table wine it purchases from
The Impanema Restaurant stocks a red Brazilian table wine it purchases from a wine merchant in a nearby city. The daily demand for the wine at the restaurant is normally distributed, with a mean of 18...
See AnswerQ: The concession stand at the Blacksburg High School stadium sells slices of
The concession stand at the Blacksburg High School stadium sells slices of pizza during soccer games. Concession stand sales are a primary source of revenue for high school athletic programs, so the a...
See AnswerQ: The Metropolitan Book Company purchases paper from the Atlantic Paper Company.
The Metropolitan Book Company purchases paper from the Atlantic Paper Company. Metropolitan produces magazines and paperbacks that require 1,215,000 pounds of paper per year. The cost per order for th...
See AnswerQ: Given the following network and activity time estimates, determine the expected
Given the following network and activity time estimates, determine the expected time and variance for each activity, and indicate the critical path:
See AnswerQ: The Simple Simon Bakery produces fruit pies for freezing and subsequent sale
The Simple Simon Bakery produces fruit pies for freezing and subsequent sale. The bakery, which operates 5 days per week, 52 weeks per year, can produce pies at the rate of 64 pies per day. The bakery...
See AnswerQ: The Pedal Pusher Bicycle Shop operates 7 days per week, closing
The Pedal Pusher Bicycle Shop operates 7 days per week, closing only on Christmas Day. The shop pays $300 for a particular bicycle purchased from the manufacturer. The annual holding cost per bicycle...
See AnswerQ: The Petroco Company uses a highly toxic chemical in one of its
The Petroco Company uses a highly toxic chemical in one of its manufacturing processes. It must have the product delivered by special cargo trucks designed for safe shipment of chemicals. As such, ord...
See AnswerQ: The Big Buy Supermarket stocks Munchies Cereal. Demand for Munchies is
The Big Buy Supermarket stocks Munchies Cereal. Demand for Munchies is 4,000 boxes per year (365 days). It costs the store $60 per order of Munchies, and it costs $0.80 per box per year to keep the ce...
See AnswerQ: The Burger Doodle restaurant franchises in Los Angeles are supplied from a
The Burger Doodle restaurant franchises in Los Angeles are supplied from a central warehouse in Inglewood. The location of the warehouse and its proximity, in minutes of travel time, to the franchises...
See AnswerQ: The Petroco gasoline distributor in Jackson, Mississippi, supplies service stations
The Petroco gasoline distributor in Jackson, Mississippi, supplies service stations in nine other southeastern cities, as shown in the following network: The distance, in miles, is shown on each branc...
See AnswerQ: The Hylton Hotel has a limousine van that transports guests to various
The Hylton Hotel has a limousine van that transports guests to various business and tourist locations around the city. The following network indicates the different routes the limousine could follow f...
See AnswerQ: A steel mill in Gary, Indiana, supplies steel to manufacturers
A steel mill in Gary, Indiana, supplies steel to manufacturers in eight other midwestern cities by truck, as shown in the following network: The travel time between cities, in hours, is shown along ea...
See AnswerQ: Determine the shortest route from node 1 (origin) to node
Determine the shortest route from node 1 (origin) to node 12 (destination) for the following net- work. Distances are given along the network branches:
See AnswerQ: A furniture manufacturer supplies furniture to nine different outlets in Dubai from
A furniture manufacturer supplies furniture to nine different outlets in Dubai from its warehouse in Jebel Ali. The distance between the warehouse and the different outlets in kilometers based on the...
See AnswerQ: The Farmer’s American Bank of Leesburg is planning to install a new
The Farmerâs American Bank of Leesburg is planning to install a new computerized accounts system. Bank management has determined the activities required to complete the project, the...
See AnswerQ: A community celebration is to be conducted at City 1 for republic
A community celebration is to be conducted at City 1 for republic day. The public transport authorities plan to operate buses from all other cities (2 through 6) to the celebration venue. The followin...
See AnswerQ: George is camped deep in the jungle, and he wants to
George is camped deep in the jungle, and he wants to make his way back to the coast and civilization. Each of the paths he can take through the jungle has obstacles that can delay him, including hosti...
See AnswerQ: In 1862, during the second year of the Civil War,
In 1862, during the second year of the Civil War, General Thomas J. âStonewallâ Jackson fought a brilliant military campaign in the Shenandoah Valley in Virginia. O...
See AnswerQ: The Voyager spacecraft has been transported by an alien being to the
The Voyager spacecraft has been transported by an alien being to the Delta Quadrant of space, millions of light-years from Earth. Captain Janeway and her crew are attempting to plot the shortest cours...
See AnswerQ: John Clooney, a bush pilot in Alaska, makes regular charter
John Clooney, a bush pilot in Alaska, makes regular charter flights in his floatplane to various towns and cities in western Alaska. His passengers include hunters, fishermen, backpackers and campers,...
See AnswerQ: A disaster response agency serves seven regions from its central warehouse (
A disaster response agency serves seven regions from its central warehouse (1). Due to the recent storm, many roads to the regions are closed. Only the available roads for transportation are depicted...
See AnswerQ: A new police car costs the Bay City Police Department $26
A new police car costs the Bay City Police Department $26,000. The annual maintenance cost for a car depends on the age of the car at the beginning of the year. (All cars accumulate approximately the...
See AnswerQ: An airline company operates a fleet of airplanes. If it buys
An airline company operates a fleet of airplanes. If it buys an airplane, it can be run up to three years. For safety reasons, the plane should be replaced at the end of the third year. The airline ev...
See AnswerQ: A developer is planning a development that includes subdivisions of houses,
A developer is planning a development that includes subdivisions of houses, cluster houses, townhouses, apartment complexes, shopping areas, a daycare center and playground, a community center, and a...
See AnswerQ: One of the opposing forces in a simulated army battle wishes to
One of the opposing forces in a simulated army battle wishes to set up a communications system that will connect the eight camps in its command. The following network indicates the distances (in hundr...
See AnswerQ: Consider the network in Problem 6, but with the following new
Consider the network in Problem 6, but with the following new time estimates for each activity: Determine the following: a. Expected activity times b. Earliest activity times c. Latest activity times...
See AnswerQ: The management of the Dynaco manufacturing plant wants to connect the eight
The management of the Dynaco manufacturing plant wants to connect the eight major manufacturing areas of its plant with a forklift route. Because the construction of such a route will take a considera...
See AnswerQ: Etisalat provides e-life home entertainment services to residents of Dubai
Etisalat provides e-life home entertainment services to residents of Dubai through high-speed underground cables. Assume that the current network shows the distance between neighborhoods in kilometers...
See AnswerQ: As part of Dubai Development Plan, Roads and Transport Authority (
As part of Dubai Development Plan, Roads and Transport Authority (RTA) plans to connect malls and recreational places through public transport. It has identified 10 such places whose locations are dep...
See AnswerQ: The Barrett Textile Mill is remodeling its plant and installing a new
The Barrett Textile Mill is remodeling its plant and installing a new ventilation system. The possible ducts connecting the different rooms and buildings at the plant, with the length (in feet) along...
See AnswerQ: The town council of Whitesville has decided to construct a bicycle path
The town council of Whitesville has decided to construct a bicycle path that will connect the various suburbs of the town with the shopping center, the downtown area, and the local college. The counci...
See AnswerQ: Determine the minimal spanning tree for the network in Problem 7.
Determine the minimal spanning tree for the network in Problem 7.
See AnswerQ: State University has decided to reconstruct the sidewalks throughout the east side
State University has decided to reconstruct the sidewalks throughout the east side of its campus to provide wheelchair access. However, upgrading sidewalks is a very expensive undertaking, so for the...
See AnswerQ: Tech wants to develop an area network that will connect its server
Tech wants to develop an area network that will connect its server at its computer and satellite center with the main campus buildings to improve Internet service. The cable will be laid primarily thr...
See AnswerQ: FedEx has its main office in City 1. It has six
FedEx has its main office in City 1. It has six offices in different commercial areas. FedEx advises its local pick up agents not to visit its central collection office to drop the picked-up parcels i...
See AnswerQ: Given the following network, with the indicated flow capacities of each
Given the following network, with the indicated flow capacities of each branch, determine the maximum flow from source node 1 to destination node 6 and the flow along each branch:
See AnswerQ: Kathleen Taylor, a student at Tech, is planning to visit
Kathleen Taylor, a student at Tech, is planning to visit her sister, Lindsey, who is living in Toulouse, France, over the summer break. She is going to fly from Dulles Airport in Washington to Charles...
See AnswerQ: A project has eight activities with their associated predecessors as given in
A project has eight activities with their associated predecessors as given in the following table. Construct the CPM/PERT network for this project and determine the project schedule. Identify the crit...
See AnswerQ: Given the following network, with the indicated flow capacities along each
Given the following network, with the indicated flow capacities along each branch, determine the maximum flow from source node 1 to destination node 7 and the flow along each branch:
See AnswerQ: Given the following network, with the indicated flow capacities along each
Given the following network, with the indicated flow capacities along each branch, determine the maximum flow from source node 1 to destination node 6 and the flow along each branch:
See AnswerQ: An oil well in Abu Dhabi (source) must pump oil
An oil well in Abu Dhabi (source) must pump oil from Abu Dhabi to Al Ain (Destination) through existing pipelines passing through several cities along its way. Since these pipelines are constructed in...
See AnswerQ: The FAA has granted a license to a new airline, Omniair
The FAA has granted a license to a new airline, Omniair, and awarded it several routes between Los Angeles and Chicago. The f lights per day for each route are shown in the following network: Determin...
See AnswerQ: The National Express Parcel Service has established various truck and air routes
The National Express Parcel Service has established various truck and air routes around the country over which it ships parcels. The holiday season is approaching, which means a dramatic increase in t...
See AnswerQ: The traffic management office in Richmond is attempting to analyze the potential
The traffic management office in Richmond is attempting to analyze the potential traffic flow from a new office complex under construction to an interstate highway interchange during the evening rush...
See AnswerQ: The Dynaco Company manufactures a product in five stages. Each stage
The Dynaco Company manufactures a product in five stages. Each stage of the manufacturing process is conducted at a different plant. The following network shows the five different stages and the route...
See AnswerQ: Given the following network with the indicated distances between nodes (in
Given the following network with the indicated distances between nodes (in miles), determine the shortest route from node 1 to each of the other six nodes (2, 3, 4, 5, 6, and 7):
See AnswerQ: The plant engineer for the Bitco manufacturing plant is designing an overhead
The plant engineer for the Bitco manufacturing plant is designing an overhead conveyor system that will connect the distribution/inventory center to all areas of the plant. The network of possible con...
See AnswerQ: The Matsusaki Company near Nashville, Tennessee, is a direct auto
The Matsusaki Company near Nashville, Tennessee, is a direct auto parts supplier for the nearby Neptune auto manufacturing plant. To gain a competitive advantage and meet quality requirements of its c...
See AnswerQ: Consider the network in Problem 8, but with the following new
Consider the network in Problem 8, but with the following new time estimates for each activity: Determine the following: a. Expected activity times b. Earliest activity times c. Latest activity times...
See AnswerQ: Construct a Gantt chart for the following set of activities, and
Construct a Gantt chart for the following set of activities, and indicate the project completion time and slack for each activity:
See AnswerQ: For the CPM/PERT network in Problem 16, determine the
For the CPM/PERT network in Problem 16, determine the probability that the network duration will exceed 50 months.
See AnswerQ: The Center for Information Technology at State University has outgrown its office
The Center for Information Technology at State University has outgrown its office in Bates (B) Hall and is moving to Allen (A) Hall, which has more space. The move will take place during the 3-week br...
See AnswerQ: Jane and Jim Smith are going to give a dinner party on
Jane and Jim Smith are going to give a dinner party on Friday evening at 7:00 p.M. Their two children, Jerry and Judy, are going to help them get ready. The Smiths will all get home from work and scho...
See AnswerQ: The Stone River Textile Mill was inspected by OSHA and found to
The Stone River Textile Mill was inspected by OSHA and found to be in violation of a number of safety regulations. The OSHA inspectors ordered the mill to alter some existing machinery to make it safe...
See AnswerQ: In the Third Battle of Bull Run, for which a CPM
In the Third Battle of Bull Run, for which a CPM/PERT network was developed in Problem 19, General Beauregard would have won if his preparations had been completed in 15 days. What would the probabili...
See AnswerQ: County General Hospital discovered a problem in the turnaround time required to
County General Hospital discovered a problem in the turnaround time required to discharge a patient from a bed and admit a new patient, which in turn causes delays in the hospital operating room resul...
See AnswerQ: Suntrek, based in China, is a global supplier of denim
Suntrek, based in China, is a global supplier of denim jeans for apparel companies around the world. It purchases raw cotton from producers in Arkansas, Mississippi, and Texas, where it is picked, gin...
See AnswerQ: On May 21, 1927, Charles Lindbergh landed at Le Bourget
On May 21, 1927, Charles Lindbergh landed at Le Bourget Field in Paris, completing his famous transatlantic solo flight. The preparation period prior to his flight was quite hectic, and time was very...
See AnswerQ: RusTech Tooling is a large job shop operation that builds machine tools
RusTech Tooling is a large job shop operation that builds machine tools and dies to manufacture parts for specialized items. The company primarily bids on government-related contracts to produce parts...
See AnswerQ: PM Computers is an international manufacturer of computer equipment and software.
PM Computers is an international manufacturer of computer equipment and software. It is going to introduce a number of new products in the coming year, and it wants to develop marketing programs to ac...
See AnswerQ: A marketing firm is planning to conduct a survey of a segment
A marketing firm is planning to conduct a survey of a segment of the potential product audience for one of its customers. The planning process for preparing to conduct the survey consists of six activ...
See AnswerQ: Construct a Gantt chart and project network for the following set of
Construct a Gantt chart and project network for the following set of activities, compute the length of each path in the network, and indicate the critical path:
See AnswerQ: Lakeland-Bering Aircraft Company is preparing a contract proposal to submit
Lakeland-Bering Aircraft Company is preparing a contract proposal to submit to the Defense Department for a new military aircraft, the X-300J jet fighter. Part of the proposal is a development and pro...
See AnswerQ: The Valley United Soccer Club is planning a soccer tournament for the
The Valley United Soccer Club is planning a soccer tournament for the weekend of April 29 and 30. The clubâs officers know that by March 30 they must send out acceptances to teams th...
See AnswerQ: During a violent thunderstorm with very high wind gusts in the third
During a violent thunderstorm with very high wind gusts in the third week of March, the broadcast tower for the public radio station WVPR, atop Poor Mountain in Roanoke, collapsed. This greatly reduce...
See AnswerQ: The following table contains the activities for planning a wedding and the
The following table contains the activities for planning a wedding and the activity time estimates; however, the precedence relationships between activities are not included: Using your best judgment,...
See AnswerQ: The following table provides the information necessary to construct a project network
The following table provides the information necessary to construct a project network and project crash data: a. Construct the project network. b. Compute the total allowable crash time per activity a...
See AnswerQ: John Aaron called the meeting of the Programs and Arts Committee of
John Aaron called the meeting of the Programs and Arts Committee of the Student Government Association to order. “Okay, okay, everybody, quiet down. I have an important announcement to make,” he shout...
See AnswerQ: The following table provides the information necessary to construct a project network
The following table provides the information necessary to construct a project network and project crash data: a. Construct the project network. b. Manually crash the network to 28 weeks. c. Formulate...
See AnswerQ: A project has six activities on arcs as shown in the diagram
A project has six activities on arcs as shown in the diagram. The values on the arcs are the duration of activities in days. a. Formulate a linear programming model for this project. b. Find the criti...
See AnswerQ: Formulate the general linear programming model for the project network for installing
Formulate the general linear programming model for the project network for installing an order processing system shown in Figure 8.14 and solve it.
See AnswerQ: Reconstruct the example problem at the end of this chapter as an
Reconstruct the example problem at the end of this chapter as an AOA network. Assume that the most likely times (m) are the normal activity times and that the optimistic times (a) are the activity cra...
See AnswerQ: The following table provides the crash data for the network project described
The following table provides the crash data for the network project described in Problem 15: The normal activity times are considered to be deterministic and not probabilistic. Using the computer, cra...
See AnswerQ: Identify all the paths in the following network, compute the length
Identify all the paths in the following network, compute the length of each, and indicate the critical path (activity times are in weeks):
See AnswerQ: The following table provides the crash data for the network project described
The following table provides the crash data for the network project described in Problem 6: Using the computer, crash the network to 32 months. Indicate the first critical path activities and then the...
See AnswerQ: For the network in Problem 4, determine the earliest and latest
For the network in Problem 4, determine the earliest and latest activity times and the slack for each activity. Indicate how the critical path would be determined from this information.
See AnswerQ: Given the following network, with activity times in months, determine
Given the following network, with activity times in months, determine the earliest and latest activity times and slack for each activity. Indicate the critical path and the project duration.
See AnswerQ: Given the following network, with activity times in weeks, determine
Given the following network, with activity times in weeks, determine the earliest and latest activity times and the slack for each activity. Indicate the critical path and the project duration:
See AnswerQ: Moore Housing Contractors is negotiating a deal with Countryside Realtors to build
Moore Housing Contractors is negotiating a deal with Countryside Realtors to build six houses in a new development. Countryside wants Moore Contractors to start in late winter or early spring, when th...
See AnswerQ: In one of the little-known battles of the Civil War
In one of the little-known battles of the Civil War, General Tecumseh Beauregard lost the Third Battle of Bull Run because his preparations were not complete when the enemy attacked. If the critical p...
See AnswerQ: A group of developers is building a new shopping center. A
A group of developers is building a new shopping center. A consultant for the developers has constructed the following project network and assigned activity times, in weeks. Determine the earliest and...
See AnswerQ: A manufacturing company produces products 1, 2, and 3.
A manufacturing company produces products 1, 2, and 3. The three products have the following resource requirements and produce the following profit: At present, the firm has a daily labor capacity of...
See AnswerQ: The Wearever Carpet Company manufactures two brands of carpet—shag and
The Wearever Carpet Company manufactures two brands of carpet—shag and sculptured—in 100-yard lots. It requires 8 hours to produce one lot of shag carpet and 6 hours to produce one lot of sculptured c...
See AnswerQ: The East Midvale Textile Company produces denim and brushed-cotton cloth
The East Midvale Textile Company produces denim and brushed-cotton cloth. The average production rate for both types of cloth is 1,000 yards per hour, and the normal weekly production capacity (runnin...
See AnswerQ: A company wants to produce two products, A and B,
A company wants to produce two products, A and B, using three resourcesâmachine hours, raw material, and assembly timeâas given in the table below. The company want...
See AnswerQ: A rural clinic hires its staff from nearby cities and towns on
A rural clinic hires its staff from nearby cities and towns on a part-time basis. The clinic attempts to have a general practitioner (GP), a nurse, and an internist on duty during at least a portion o...
See AnswerQ: The Eaststate Manufacturing Company produces four different airplane parts from fabricated sheet
The Eaststate Manufacturing Company produces four different airplane parts from fabricated sheet metal for several major aircraft companies. The manufacturing process consists of four operationsâ...
See AnswerQ: Mac’s Warehouse is a large discount store that operates 7 days per
Macâs Warehouse is a large discount store that operates 7 days per week. The store needs the following number of full-time employees working each day of the week: Each employee must...
See AnswerQ: Infocomp Systems Lab is a research and development (R&D
Infocomp Systems Lab is a research and development (R&D) company that develops computer systems and software primarily for the medical industry. The lab has proposals from its own researchers for...
See AnswerQ: The Oakdale County School Board was meeting in special session. A
The Oakdale County School Board was meeting in special session. A federal judge had ordered the board to present an acceptable busing plan for racially balancing the four high schools in Oakdale Count...
See AnswerQ: An interior design and construction company produces two types of tiles—
An interior design and construction company produces two types of tiles—floor tiles and wall tiles. Floor tiles are made with slightly rough surface to make it nonslippery; whereas wall tiles are made...
See AnswerQ: A Non-Resident Indian (NRI) wants to buy an
A Non-Resident Indian (NRI) wants to buy an apartment in India to use it when he returns home. He considers four factorsâclimate, infrastructure, resale value, and servicesâ...
See AnswerQ: Katnis Evergreen, a junior at Tech, is moving out of
Katnis Evergreen, a junior at Tech, is moving out of the dorms where she has lived for 2 years into an apartment in town. She is considering three apartment complexesâthe Terraces, t...
See AnswerQ: In Problem 13 in Chapter 6, Computers Unlimited sells microcomputers and
In Problem 13 in Chapter 6, Computers Unlimited sells microcomputers and distributes them from three warehouses to four universities. The available supply at the three warehouses, demand at the four u...
See AnswerQ: Megan Moppett is a sales representative for Technical Software Systems (TSS
Megan Moppett is a sales representative for Technical Software Systems (TSS), and she receives a commission for every new system installation she sells to a client. Her earnings during the past few ye...
See AnswerQ: In Problem 22, if Megan Moppett has $85,000
In Problem 22, if Megan Moppett has $85,000 to invest and she wants to diversify by investing in all three funds, how much should she invest in each?
See AnswerQ: Alex Wall is shopping for a new four-wheel-drive
Alex Wall is shopping for a new four-wheel-drive utility vehicle and has identified three models from which she will chooseâan Explorer, a Trooper, and a Passport. She will make her...
See AnswerQ: Station WRCH in Richmond, Virginia, is interviewing candidates for the
Station WRCH in Richmond, Virginia, is interviewing candidates for the job of news anchor on its 6:00 p.M. Eyewitness News show. There are three final candidates for the jobâJune Paw...
See AnswerQ: Carol Latta is visiting hotels in Los Angeles to decide where to
Carol Latta is visiting hotels in Los Angeles to decide where to hold a convention for a national organization of college business school teachers she represents. There are three hotels from which to...
See AnswerQ: Aaron Zeitel is a high school senior deciding which college to attend
Aaron Zeitel is a high school senior deciding which college to attend in the fall. He has narrowed his choices to three liberal arts schools: Arrington, Barton, and Claiborne. His criteria for selecti...
See AnswerQ: Explain how entrepreneurs control organizations for growth, downturns, and exiting
Explain how entrepreneurs control organizations for growth, downturns, and exiting the venture.
See AnswerQ: Describe six key elements in organizational design.
Describe six key elements in organizational design.
See AnswerQ: Identify the contingency factors that favor either the mechanistic model or the
Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.
See AnswerQ: Compare and contrast traditional and contemporary organizational designs.
Compare and contrast traditional and contemporary organizational designs.
See AnswerQ: Discuss the design challenges faced by today’s organizations.
Discuss the design challenges faced by today’s organizations.
See AnswerQ: Describe the key components of the human resource management process and the
Describe the key components of the human resource management process and the important influences on that process.
See AnswerQ: Discuss the tasks associated with identifying and selecting competent employees.
Discuss the tasks associated with identifying and selecting competent employees.
See AnswerQ: Explain how employees are provided with needed skills and knowledge.
Explain how employees are provided with needed skills and knowledge.
See AnswerQ: Describe strategies for retaining competent, high-performing employees.
Describe strategies for retaining competent, high-performing employees.
See AnswerQ: Discuss contemporary issues in managing human resources.
Discuss contemporary issues in managing human resources.
See AnswerQ: Explain what workforce diversity and inclusion are and how they affect the
Explain what workforce diversity and inclusion are and how they affect the HRM process.
See AnswerQ: Define group and describe the stages of group development.
Define group and describe the stages of group development.
See AnswerQ: Describe the major concepts of group behavior.
Describe the major concepts of group behavior.
See AnswerQ: Discuss how groups are turned into effective teams.
Discuss how groups are turned into effective teams.
See AnswerQ: Discuss contemporary issues in managing teams.
Discuss contemporary issues in managing teams.
See AnswerQ: Identify the focus and goals of organizational behavior (OB).
Identify the focus and goals of organizational behavior (OB).
See AnswerQ: Explain the role that attitudes play in job performance.
Explain the role that attitudes play in job performance.
See AnswerQ: Describe perception and the factors that influence it.
Describe perception and the factors that influence it.
See AnswerQ: Discuss learning theories and their relevance in shaping behavior.
Discuss learning theories and their relevance in shaping behavior.
See AnswerQ: Compare and contrast early theories of motivation.
Compare and contrast early theories of motivation.
See AnswerQ: Compare and contrast contemporary theories of motivation.
Compare and contrast contemporary theories of motivation.
See AnswerQ: Discuss current issues in motivating employees.
Discuss current issues in motivating employees.
See AnswerQ: Compare and contrast early leadership theories.
Compare and contrast early leadership theories.
See AnswerQ: Describe the four major contingency leadership theories.
Describe the four major contingency leadership theories.
See AnswerQ: Describe modern views of leadership and the issues facing today’s leaders.
Describe modern views of leadership and the issues facing today’s leaders.
See AnswerQ: Discuss trust as the essence of leadership.
Discuss trust as the essence of leadership.
See AnswerQ: Explain why it’s important to study management.
Explain why it’s important to study management.
See AnswerQ: Is information technology helping managers communicate more efficiently and effectively? Explain
Is information technology helping managers communicate more efficiently and effectively? Explain your answer.
See AnswerQ: How might a manager use the grapevine to his or her advantage
How might a manager use the grapevine to his or her advantage? Support your response.
See AnswerQ: Research the characteristics of a good communicator. Write up your findings
Research the characteristics of a good communicator. Write up your findings in a bulleted list report. Be sure to cite your sources.
See AnswerQ: Discuss the seven contemporary communication issues facing managers.
Discuss the seven contemporary communication issues facing managers.
See AnswerQ: For one day, track nonverbal communication that you notice in others
For one day, track nonverbal communication that you notice in others. What types did you observe? Was the nonverbal communication always consistent with the verbal communication taking place? Describe...
See AnswerQ: How could you use the concept of control in your personal life
How could you use the concept of control in your personal life? Be specific. (Think in terms of feed forward, concurrent, and feedback controls as well as specific controls for the different aspects o...
See AnswerQ: Describe four methods managers can use to acquire information about actual work
Describe four methods managers can use to acquire information about actual work performance.
See AnswerQ: How are planning and control linked? Is the control function linked
How are planning and control linked? Is the control function linked to the organizing and leading functions of management? Explain.
See AnswerQ: Contrast feed forward, concurrent, and feedback controls.
Contrast feed forward, concurrent, and feedback controls.
See AnswerQ: Why do you think feedback control is the most popular type of
Why do you think feedback control is the most popular type of control? Justify your response.
See AnswerQ: In Chapter 6 we discussed the “white-water rapids”
In Chapter 6 we discussed the “white-water rapids” view of change. Do you think it’s possible to establish and maintain effective standards and controls in this type of environment? Discuss.
See AnswerQ: Why is it that what is measured is more critical to the
Why is it that what is measured is more critical to the control process than how it is measured?
See AnswerQ: Every individual employee in an organization plays a role in controlling work
Every individual employee in an organization plays a role in controlling work activities.” Do you agree with this statement, or do you think control is something that only managers are responsible for...
See AnswerQ: What are some work activities in which the acceptable range of variation
What are some work activities in which the acceptable range of variation might be higher than average? What about lower than average? (Hint: Think in terms of the output from the work activities, whom...
See AnswerQ: Can business management be called a profession? Why or why not
Can business management be called a profession? Why or why not? Do some external research in answering this question.
See AnswerQ: Is there one best “style” of management? Why or
Is there one best “style” of management? Why or why not?
See AnswerQ: In what ways can managers at each of the four levels of
In what ways can managers at each of the four levels of management contribute to efficiency and effectiveness?
See AnswerQ: Pick one of the five current issues in organizational culture and tell
Pick one of the five current issues in organizational culture and tell in which dimension(s) of organizational culture (Exhibit 2- 4 ) you think it would most likely be found. Explain your thinking. A...
See AnswerQ: How much impact do managers actually have on an organization’s success or
How much impact do managers actually have on an organization’s success or failure?
See AnswerQ: What are the six external environment components and why is it important
What are the six external environment components and why is it important for managers to understand these components?
See AnswerQ: How has the changed economy affected what managers do? Find two
How has the changed economy affected what managers do? Find two or three examples in current business periodicals of activities and practices that organizations are using. Discuss them in light of the...
See AnswerQ: Why is it important for managers to pay attention to demographic trends
Why is it important for managers to pay attention to demographic trends and shifts?
See AnswerQ: What is environmental uncertainty? What impact does it have on managers
What is environmental uncertainty? What impact does it have on managers and organizations? Find two examples in current business periodicals that illustrate how environmental uncertainty affects organ...
See AnswerQ: Businesses are built on relationships.” What do you think this statement
Businesses are built on relationships.” What do you think this statement means? What are the implications for managing the external environment?
See AnswerQ: Is organizational culture an asset to an organization? Explain. Can
Is organizational culture an asset to an organization? Explain. Can it ever be a liability? Explain.
See AnswerQ: What Contemporary Issues Do Managers Face in Managing Operations?
What Contemporary Issues Do Managers Face in Managing Operations?
See AnswerQ: How is an organization’s culture formed and maintained?
How is an organization’s culture formed and maintained?
See AnswerQ: Discuss the impact of a strong culture on organizations and managers.
Discuss the impact of a strong culture on organizations and managers.
See AnswerQ: How does the concept of a global village affect organizations and managers
How does the concept of a global village affect organizations and managers?
See AnswerQ: How can organizational leaders be good role models when it comes to
How can organizational leaders be good role models when it comes to ethical behavior?
See AnswerQ: Describe the different types of global organizations and the ways that organizations
Describe the different types of global organizations and the ways that organizations can go global.
See AnswerQ: Should managers be parochialistic? Why or why not?
Should managers be parochialistic? Why or why not?
See AnswerQ: What are the managerial implications of Hofstede’s research on cultural environments?
What are the managerial implications of Hofstede’s research on cultural environments? The GLOBE study?
See AnswerQ: How might the cultural differences in the GLOBE dimensions affect how managers
How might the cultural differences in the GLOBE dimensions affect how managers (a) use work groups, (b) develop goals/plans, (c) reward outstanding employee performance, and (d) deal with employee con...
See AnswerQ: How are social responsibility, social obligation, and social responsiveness different
How are social responsibility, social obligation, and social responsiveness different? Similar?
See AnswerQ: What Do I Need to Know About Operations Management?
What Do I Need to Know About Operations Management?
See AnswerQ: Describe how a manager would approach ethical decisions according to each of
Describe how a manager would approach ethical decisions according to each of the three views on ethics.
See AnswerQ: Discuss specific ways managers can encourage ethical behavior.
Discuss specific ways managers can encourage ethical behavior.
See AnswerQ: Why is decision making often described as the essence of a manager’s
Why is decision making often described as the essence of a manager’s job?
See AnswerQ: What is big data? How can managers effectively use big data
What is big data? How can managers effectively use big data to improve their decision making? Should managers be cautious in using big data?
See AnswerQ: Describe the eight steps in the decision-making process.
Describe the eight steps in the decision-making process.
See AnswerQ: All of us bring biases to the decisions we make. What
All of us bring biases to the decisions we make. What would be the drawbacks of having biases? Could there be any advantages to having biases? Explain. What are the implications for managerial decisio...
See AnswerQ: Because managers have so many powerful decision-making tools to use
Because managers have so many powerful decision-making tools to use, they should be able to make more rational decisions.” Do you agree or disagree with this statement? Why?
See AnswerQ: Is there a difference between wrong decisions and bad decisions? Why
Is there a difference between wrong decisions and bad decisions? Why do good managers sometimes make wrong decisions? Bad decisions? How might managers improve their decision making skills?
See AnswerQ: Describe a decision you’ve made that closely aligns with the assumptions of
Describe a decision you’ve made that closely aligns with the assumptions of perfect rationality. Compare this decision with the process you used to select your college. Did you depart from the rationa...
See AnswerQ: Explain how a manager might deal with making decisions under conditions of
Explain how a manager might deal with making decisions under conditions of uncertainty.
See AnswerQ: What Is Value Chain Management and Why Is It Important?
What Is Value Chain Management and Why Is It Important?
See AnswerQ: Why do you think organizations have increased the use of groups for
Why do you think organizations have increased the use of groups for making decisions and when would you recommend using groups to make decisions?
See AnswerQ: Why does a decision maker need to be creative? In which
Why does a decision maker need to be creative? In which steps of the decision-making process is creativity likely to be most important?
See AnswerQ: What role does, and should, technology play in planning?
What role does, and should, technology play in planning?
See AnswerQ: Describe in detail the six-step strategic management process.
Describe in detail the six-step strategic management process.
See AnswerQ: What is a SWOT analysis, and why is it important to
What is a SWOT analysis, and why is it important to managers?
See AnswerQ: “Organizations that fail to plan are planning to fail.” Agree
“Organizations that fail to plan are planning to fail.” Agree or disagree? Explain your position.
See AnswerQ: Under what circumstances do you believe MBO would be most useful?
Under what circumstances do you believe MBO would be most useful? Discuss.
See AnswerQ: Describe how managers can plan in today’s dynamic environment.
Describe how managers can plan in today’s dynamic environment.
See AnswerQ: Tweets. Twittering. Prior to 2006, the only definition we
Tweets. Twittering. Prior to 2006, the only definition we would have known for these words would have involved birds and the sounds they make. Now, practically everyone knows that Twitter is also an o...
See AnswerQ: What types of planning do you do in your personal life?
What types of planning do you do in your personal life? Describe these plans in terms of being (a) strategic or operational, (b) short term or long term, (c) specific or directional, and (d) single-us...
See AnswerQ: Do a personal SWOT analysis. Assess your personal strengths and weaknesses
Do a personal SWOT analysis. Assess your personal strengths and weaknesses (skills, talents). What are you good at? What are you not so good at? What do you enjoy doing? Not enjoy doing? Then, identif...
See AnswerQ: Why is managing change an integral part of every manager’s job?
Why is managing change an integral part of every manager’s job?
See AnswerQ: How can organizations and individuals benefit from disruptive innovation? How can
How can organizations and individuals benefit from disruptive innovation? How can they not become victims of disruptive innovation?
See AnswerQ: Contrast the calm waters and white-water rapids metaphors of change
Contrast the calm waters and white-water rapids metaphors of change. Which of these would you use to describe your current life? Why is that one your choice?
See AnswerQ: Describe Lewin’s three-step change process. How is it different
Describe Lewin’s three-step change process. How is it different from the change process needed in the white-water rapids metaphor of change?
See AnswerQ: How are opportunities, constraints, and demands related to stress?
How are opportunities, constraints, and demands related to stress? Give an example of each.
See AnswerQ: Organizations typically have limits to how much change they can absorb.
Organizations typically have limits to how much change they can absorb. As a manager, what signs would you look for that might suggest your organization has exceeded its capacity to change?
See AnswerQ: Why is organization development planned change? Explain how planned change is
Why is organization development planned change? Explain how planned change is important for organizations in today’s dynamic environment.
See AnswerQ: Does money buy happiness? Several of the 120 employees at Gravity
Does money buy happiness? Several of the 120 employees at Gravity Payments, a credit card processing company based in Seattle, are about to find out. The company’s founder, Dan Price, made the news in...
See AnswerQ: Research information on how to be a more creative person. Write
Research information on how to be a more creative person. Write down suggestions in a bulleted list format and be prepared to present your information in class.
See AnswerQ: How does an innovative culture make an organization more effective? Could
How does an innovative culture make an organization more effective? Could an innovative culture ever make an organization less effective? Why or why not?
See AnswerQ: How are entrepreneurial ventures, small businesses, and selfemployed persons similar
How are entrepreneurial ventures, small businesses, and selfemployed persons similar? Different?
See AnswerQ: Do you think a person can be taught to be an entrepreneur
Do you think a person can be taught to be an entrepreneur? Why or why not?
See AnswerQ: Why is entrepreneurship important to society?
Why is entrepreneurship important to society?
See AnswerQ: Explain what happens in the entrepreneurial process.
Explain what happens in the entrepreneurial process.
See AnswerQ: How can environmental opportunities be identified?
How can environmental opportunities be identified?
See AnswerQ: Why do you think many entrepreneurs find it hard to step aside
Why do you think many entrepreneurs find it hard to step aside and let others manage their business?
See AnswerQ: Describe some of the personality characteristics that researchers have identified about entrepreneurs
Describe some of the personality characteristics that researchers have identified about entrepreneurs.
See AnswerQ: In what ways does an entrepreneur need to be a leader?
In what ways does an entrepreneur need to be a leader?
See AnswerQ: We said in the chapter that trust is the essence of leadership
We said in the chapter that trust is the essence of leadership. Trust is an important aspect of an organization’s culture, and we already know the role that leaders/managers play in exemplifying and m...
See AnswerQ: What controlling issues does an entrepreneur need to be aware of?
What controlling issues does an entrepreneur need to be aware of?
See AnswerQ: How can entrepreneurs be successful and balance the demands of their work
How can entrepreneurs be successful and balance the demands of their work and personal lives?
See AnswerQ: Discuss what is meant by the term organization design.
Discuss what is meant by the term organization design.
See AnswerQ: Draw an organization chart of an organization with which you’re familiar (
Draw an organization chart of an organization with which you’re familiar (where you work, a student organization to which you belong, your college or university, etc.). Be very careful in showing the...
See AnswerQ: Describe the traditional and contemporary views of each of the six key
Describe the traditional and contemporary views of each of the six key elements of organizational design.
See AnswerQ: Can an organization’s structure be changed quickly? Why or why not
Can an organization’s structure be changed quickly? Why or why not? Should it be changed quickly? Why or why not?
See AnswerQ: “An organization can have no structure.” Do you agree or
“An organization can have no structure.” Do you agree or disagree with this statement? Explain.
See AnswerQ: Contrast mechanistic and organic organizations.
Contrast mechanistic and organic organizations.
See AnswerQ: Explain the contingency factors that affect organizational design.
Explain the contingency factors that affect organizational design.
See AnswerQ: With the availability of information technology that allows employees to work anywhere
With the availability of information technology that allows employees to work anywhere, anytime, is organizing still an important managerial function? Why or why not?
See AnswerQ: Non-GMO, organic, locally sourced … these terms are
Non-GMO, organic, locally sourced … these terms are now a common part of our food vocabulary, although not typically associated with fast food. Chipotle entered the fast-food scene in the early 1990s...
See AnswerQ: Researchers are now saying that efforts to simplify work tasks actually have
Researchers are now saying that efforts to simplify work tasks actually have negative results for both companies and their employees. Do you agree? Why or why not?
See AnswerQ: The boundary less organization has the potential to create a major shift
The boundary less organization has the potential to create a major shift in the way we work.” Do you agree or disagree with this statement? Explain.
See AnswerQ: Describe the six types of diversity found in organizations and how organizations
Describe the six types of diversity found in organizations and how organizations should approach HR activities with a diverse workforce.
See AnswerQ: Discuss the external environmental factors that most directly affect the HRM process
Discuss the external environmental factors that most directly affect the HRM process.
See AnswerQ: Some critics claim that corporate HR departments have outlived their usefulness and
Some critics claim that corporate HR departments have outlived their usefulness and are not there to help employees but to shield the organization from legal problems. What do you think? What benefits...
See AnswerQ: Do you think it’s ethical for a prospective employer to delve into
Do you think it’s ethical for a prospective employer to delve into an applicant’s life by means of interviews, tests, and background investigations? What if those investigations involved looking at yo...
See AnswerQ: Discuss the advantages and drawbacks of the various recruiting sources.
Discuss the advantages and drawbacks of the various recruiting sources.
See AnswerQ: Discuss the advantages and drawbacks of the various selection devices.
Discuss the advantages and drawbacks of the various selection devices.
See AnswerQ: What are the benefits and drawbacks of realistic job previews? (
What are the benefits and drawbacks of realistic job previews? (Consider this question from both the perspective of the organization and the perspective of a potential employee.)
See AnswerQ: As the number-one company on Fortune’s Best Company to Work
As the number-one company on Fortune’s Best Company to Work For list for six straight years, Google must be doing something right! Actually, it does many things right! One thing that you might be surp...
See AnswerQ: List the factors that influence employee compensation and benefits.
List the factors that influence employee compensation and benefits.
See AnswerQ: What, in your view, constitutes sexual harassment? Describe how
What, in your view, constitutes sexual harassment? Describe how companies can minimize sexual harassment in the workplace.
See AnswerQ: Think of a group to which you belong (or have belonged
Think of a group to which you belong (or have belonged). Trace its development through the stages of group development as shown in Exhibit 10–2 . How closely did its development parallel the group dev...
See AnswerQ: What challenges do managers face in managing global teams? How should
What challenges do managers face in managing global teams? How should those challenges be handled?
See AnswerQ: Contrast (a) self-managed and cross-functional teams
Contrast (a) self-managed and cross-functional teams, and (b) virtual and face-to-face teams.
See AnswerQ: How do you explain the popularity of work teams in countries such
How do you explain the popularity of work teams in countries such as the United States and Canada, whose national cultures place a high value on individualism?
See AnswerQ: All work teams are work groups, but not all work groups
All work teams are work groups, but not all work groups are work teams.” Do you agree or disagree with this statement? Discuss.
See AnswerQ: Would you prefer to work alone or as part of a team
Would you prefer to work alone or as part of a team? Why?
See AnswerQ: To have a successful team, first find a great leader.”
To have a successful team, first find a great leader.” What do you think of this statement? Do you agree? Why or why not?
See AnswerQ: What traits do you think good team players have? Do some
What traits do you think good team players have? Do some research to answer this question and write a short report detailing your findings using a bulleted list format.
See AnswerQ: How important are excellent leaders to organizations? Well, the answer
How important are excellent leaders to organizations? Well, the answer, in theory of course, would be very important. However, the answer as practiced by countless organizations might indicate otherwi...
See AnswerQ: Contrast the pros and cons of diverse teams.
Contrast the pros and cons of diverse teams.
See AnswerQ: How do you think scientific management theorists would react to the increased
How do you think scientific management theorists would react to the increased use of teams in organizations? How would behavioral science theorists react?
See AnswerQ: How is an organization like an iceberg? Use the iceberg metaphor
How is an organization like an iceberg? Use the iceberg metaphor to describe the field of organizational behavior.
See AnswerQ: Write down three attitudes you have. Identify the cognitive, affective
Write down three attitudes you have. Identify the cognitive, affective, and behavioral components of those attitudes.
See AnswerQ: Does the importance of knowledge of OB differ based on a manager’s
Does the importance of knowledge of OB differ based on a manager’s level in the organization? If so, how? If not, why not? Be specific.
See AnswerQ: Define the six important employee behaviors.
Define the six important employee behaviors.
See AnswerQ: Clarify how individuals reconcile inconsistencies between attitudes and behaviors.
Clarify how individuals reconcile inconsistencies between attitudes and behaviors.
See AnswerQ: Describe what is meant by the term emotional intelligence. Provide an
Describe what is meant by the term emotional intelligence. Provide an example of how it’s used in contemporary organizations.
See AnswerQ: Instead of worrying about job satisfaction, companies should be trying to
Instead of worrying about job satisfaction, companies should be trying to create environments where performance is enabled.” What do you think this statement means? Explain. What’s your reaction to th...
See AnswerQ: How might a manager use personality traits to improve employee selection in
How might a manager use personality traits to improve employee selection in his or her department? Emotional intelligence? Discuss.
See AnswerQ: It’s estimated that the average corporate user sends and receives some 112
It’s estimated that the average corporate user sends and receives some 112 e-mails daily. That’s about 14 e-mails per hour, and even if half of those don’t require a lot of time and concentration, tha...
See AnswerQ: Describe the implications of social learning theory for managing people at work
Describe the implications of social learning theory for managing people at work.
See AnswerQ: A Gallup Organization survey shows that most workers rate having a caring
A Gallup Organization survey shows that most workers rate having a caring boss even higher than they value money or fringe benefits. How should managers interpret this information? What are the implic...
See AnswerQ: Most of us have to work for a living, and a
Most of us have to work for a living, and a job is a central part of our lives. So why do managers have to worry so much about employee motivation issues?
See AnswerQ: What challenges do managers face in motivating today’s workforce?
What challenges do managers face in motivating today’s workforce?
See AnswerQ: What is motivation? Explain the three key elements of motivation.
What is motivation? Explain the three key elements of motivation.
See AnswerQ: Contrast lower-order and higher-order needs in Maslow’s needs
Contrast lower-order and higher-order needs in Maslow’s needs hierarchy.
See AnswerQ: What role would money play in (a) the hierarchy of
What role would money play in (a) the hierarchy of needs theory, (b) two-factor theory, (c) equity theory, (d) expectancy theory, and (e) motivating employees with a high nAch?
See AnswerQ: What are some of the possible consequences of employees perceiving an inequity
What are some of the possible consequences of employees perceiving an inequity between their inputs and outcomes and those of others?
See AnswerQ: What are some advantages of using pay-for-performance programs
What are some advantages of using pay-for-performance programs to motivate employee performance? Are there drawbacks? Explain.
See AnswerQ: Many job design experts who have studied the changing nature of work
Many job design experts who have studied the changing nature of work say that people do their best work when they’re motivated by a sense of purpose rather than by the pursuit of money. Do you agree?...
See AnswerQ: Controlling employee performance is a vitally important responsibility of managers. After
Controlling employee performance is a vitally important responsibility of managers. After all, it’s your employees who are working to accomplish established goals, and you want to see that those goals...
See AnswerQ: As a manager, what will you need to know about goal
As a manager, what will you need to know about goal-setting theory as a motivation tool?
See AnswerQ: Can an individual be too motivated? Discuss.
Can an individual be too motivated? Discuss.
See AnswerQ: Define leader and leadership, and discuss why managers should be leaders
Define leader and leadership, and discuss why managers should be leaders.
See AnswerQ: Discuss the strengths and weaknesses of the trait theory.
Discuss the strengths and weaknesses of the trait theory.
See AnswerQ: What does each of the behavioral leadership theories say about leadership?
What does each of the behavioral leadership theories say about leadership?
See AnswerQ: What would a manager need to know to use Fiedler’s contingency model
What would a manager need to know to use Fiedler’s contingency model? Be specific.
See AnswerQ: Do you think that most managers in real life use a contingency
Do you think that most managers in real life use a contingency approach to increase their leadership effectiveness? Discuss.
See AnswerQ: All managers should be leaders, but not all leaders should be
All managers should be leaders, but not all leaders should be managers.” Do you agree or disagree with this statement? Support your position.
See AnswerQ: Do you think trust evolves out of an individual’s personal characteristics or
Do you think trust evolves out of an individual’s personal characteristics or out of specific situations? Explain.
See AnswerQ: The Virgin Group Ltd. has succeeded with a simple plan—
The Virgin Group Ltd. has succeeded with a simple plan—don’t put customers first! The British multinational holding company that has businesses ranging from an airline to a media company follows found...
See AnswerQ: Do followers make a difference in whether a leader is effective?
Do followers make a difference in whether a leader is effective? Discuss.
See AnswerQ: How can organizations develop effective leaders?
How can organizations develop effective leaders?
See AnswerQ: Which type of communication do you think is most effective in a
Which type of communication do you think is most effective in a work setting? Why?
See AnswerQ: Why isn’t effective communication synonymous with agreement?
Why isn’t effective communication synonymous with agreement?
See AnswerQ: Which do you think is more important for a manager: speaking
Which do you think is more important for a manager: speaking accurately or listening actively? Why?
See AnswerQ: Ineffective communication is the fault of the sender.” Do you agree
Ineffective communication is the fault of the sender.” Do you agree or disagree with this statement? Discuss.
See AnswerQ: What is an organization and what characteristics do organizations share?
What is an organization and what characteristics do organizations share?
See AnswerQ: How do managers differ from non managerial employees?
How do managers differ from non managerial employees?
See AnswerQ: In today’s environment, which is more important to organizations—efficiency
In today’s environment, which is more important to organizations—efficiency or effectiveness? Explain your choice.
See AnswerQ: What similarities and differences do you see among the four management functions
What similarities and differences do you see among the four management functions?
See AnswerQ: Would unlimited vacation time offered by an organization be important to you
Would unlimited vacation time offered by an organization be important to you? Would it be an appealing enough benefit to attract you to an organization you might not have considered? Would it motivate...
See AnswerQ: Using any of the popular business periodicals (such as Bloomberg Businessweek
Using any of the popular business periodicals (such as Bloomberg Businessweek, Fortune, Wall Street Journal, Fast Company), find examples of managers doing each of the four management functions. Write...
See AnswerQ: Is your course instructor a manager? Discuss in terms of planning
Is your course instructor a manager? Discuss in terms of planning, organizing, leading, and controlling. Also discuss using Mintzberg’s managerial roles approach.
See AnswerQ: Today’s world is chaotic and fast-paced. How does time
Today’s world is chaotic and fast-paced. How does time pressure affect managerial decision making? What can managers do to still be good decision makers under such conditions?
See AnswerQ: Discuss the pros and cons of managers using technology to help make
Discuss the pros and cons of managers using technology to help make decisions.
See AnswerQ: Will planning become more or less important to managers in the future
Will planning become more or less important to managers in the future? Why?
See AnswerQ: How could the Internet be helpful to managers as they follow the
How could the Internet be helpful to managers as they follow the steps in the strategic management process?
See AnswerQ: Planned change is often thought to be the best approach to take
Planned change is often thought to be the best approach to take in organizations. Can unplanned change ever be effective? Explain.
See AnswerQ: Describe the structural, cultural, and human resources variables that are
Describe the structural, cultural, and human resources variables that are necessary for innovation.
See AnswerQ: Is it necessary for an entrepreneur to do a feasibility study?
Is it necessary for an entrepreneur to do a feasibility study? Explain.
See AnswerQ: Would a good manager be a good entrepreneur? Discuss.
Would a good manager be a good entrepreneur? Discuss.
See AnswerQ: Jean Paul Agon, the president and CEO of L’Oreal, joined
Jean Paul Agon, the president and CEO of L’Oreal, joined the company right after his university graduation in 1978 and has continued to grow as a leader over his more than 40 years with the company. H...
See AnswerQ: It’s stated in the chapter that contemporary organization design should be lean
It’s stated in the chapter that contemporary organization design should be lean, flexible, and innovative. What are the implications of those requirements?
See AnswerQ: If organizing is about getting work done efficiently and effectively, what
If organizing is about getting work done efficiently and effectively, what organizing challenges might lower-level managers have to address? (Hint: Think in terms of the six key elements of organizati...
See AnswerQ: How is technology changing how HRM is done?
How is technology changing how HRM is done?
See AnswerQ: How does HRM help achieve the goal of having the “the
How does HRM help achieve the goal of having the “the right numbers of the right people in the right place at the right time”?
See AnswerQ: Why is it important for managers to know about the stages of
Why is it important for managers to know about the stages of group development?
See AnswerQ: What characteristics do effective teams need?
What characteristics do effective teams need?
See AnswerQ: Why is it important for managers to have an understanding of organizational
Why is it important for managers to have an understanding of organizational behavior?
See AnswerQ: Describe the key elements of attribution theory. Discuss how the fundamental
Describe the key elements of attribution theory. Discuss how the fundamental attribution error and self-serving bias play a role.
See AnswerQ: What economic and cross-cultural challenges face managers when motivating employees
What economic and cross-cultural challenges face managers when motivating employees?
See AnswerQ: What are the three variables in expectancy theory and how do they
What are the three variables in expectancy theory and how do they explain motivation?
See AnswerQ: Founded by Jeff Bezos in 1994, Amazon is the world’s largest
Founded by Jeff Bezos in 1994, Amazon is the world’s largest retailer based on market value. Many credit the organization’s work environment and culture for motivating employees to create innovations...
See AnswerQ: What is the difference between trait theories and behavioral theories of leadership
What is the difference between trait theories and behavioral theories of leadership?
See AnswerQ: Describe three barriers to communication and how managers can overcome those barriers
Describe three barriers to communication and how managers can overcome those barriers.
See AnswerQ: Why is it important for managers to understand the control process?
Why is it important for managers to understand the control process?
See AnswerQ: Discuss the various types of tools used to monitor and measure organizational
Discuss the various types of tools used to monitor and measure organizational performance.
See AnswerQ: Do all organizations need managers? Explain.
Do all organizations need managers? Explain.
See AnswerQ: Explain how the 4 functions approach is better than the roles approach
Explain how the 4 functions approach is better than the roles approach and the skills and competencies approach for describing what managers do.
See AnswerQ: How can managers best deal with environmental uncertainty?
How can managers best deal with environmental uncertainty?
See AnswerQ: Explain how an organization’s culture can help it be successful AND how
Explain how an organization’s culture can help it be successful AND how it can keep it from being successful.
See AnswerQ: Tesla. Elon Musk. You’ve probably heard of both. Tesla
Tesla. Elon Musk. You’ve probably heard of both. Tesla was founded in 2003 by a group of engineers who wanted to prove that buyers didn’t need to compromise looks and performance to drive electric—tha...
See AnswerQ: Is globalization good for business? For consumers? Discuss.
Is globalization good for business? For consumers? Discuss.
See AnswerQ: Which do you think would be a manager’s best choice for shaping
Which do you think would be a manager’s best choice for shaping long-term ethical behavior: a written code of ethics combined with ethics training OR strong ethical leadership? Support your position....
See AnswerQ: Adobe Systems is one of the largest and most diversified software companies
Adobe Systems is one of the largest and most diversified software companies in the world. It is headquartered in San Jose, California, in the heart of Silicon Valley. Its 18,000 plus employees are a c...
See AnswerQ: At its headquarters in Ventura, California, Patagonia’s office space feels
At its headquarters in Ventura, California, Patagonia’s office space feels more like a national park lodge than the main office of a $600 million retailer. It has a Douglas fir staircase and a portrai...
See AnswerQ: It’s the world’s largest package delivery company with the instantly recognizable trucks
It’s the world’s largest package delivery company with the instantly recognizable trucks. Every day, United Parcel Service (UPS) transports more than 20 million packages and documents throughout the U...
See AnswerQ: When Amancio Ortega, a former Spanish bathrobe maker, opened his
When Amancio Ortega, a former Spanish bathrobe maker, opened his first Zara clothing store, his business model was simple: sell high-fashion look-alikes to price-conscious Europeans. After succeeding...
See AnswerQ: In one of the worst business ethics scandals in history, the
In one of the worst business ethics scandals in history, the world learned in 2015 that Volkswagen (VW) intentionally circumvented government exhaust emission tests for years by installing so-called d...
See AnswerQ: When you walk into Edwins, you assume it is just an
When you walk into Edwins, you assume it is just an upscale dining location serving classic and contemporary French cuisine. But the restaurant also serves as a nonprofit rehabilitation center for tho...
See AnswerQ: 2017 was a public relations nightmare for United Airlines. Several incidents
2017 was a public relations nightmare for United Airlines. Several incidents involving United Air employees enforcing a variety of rules, regulations, and protocols in interactions with customers caus...
See AnswerQ: After decades of affirmative action, diversity training, and inclusion practices
After decades of affirmative action, diversity training, and inclusion practices, you’d think that bias (racial, gender, age, you-name it) wouldn’t be an issue. But almost everyone has observed bias i...
See AnswerQ: The health-care industry is the fastest growing sector of the
The health-care industry is the fastest growing sector of the U.S. economy, with annual revenues projected at over $1.6 trillion (that’s 12 zeroes!). And health care has surpassed manufacturing and re...
See AnswerQ: Walmart, the world’s largest retailer, is a mega-business
Walmart, the world’s largest retailer, is a mega-business with more than 11,700 retail units in 28 countries and approximately 2.3 million associates around the world. That’s a lot of employees to man...
See AnswerQ: You could say the beginning of the end for Uber founder and
You could say the beginning of the end for Uber founder and CEO Travis Kalanick was the February 2017 blog post by former Uber engineer Susan Fowler that outlined a toxic work culture hostile to women...
See AnswerQ: You’re starting to see them everywhere... charging stations for electric vehicles
You’re starting to see them everywhere... charging stations for electric vehicles (EVs). That’s a sure sign that the global auto industry is going through a massive change. You shouldn’t be surprised,...
See AnswerQ: It’s got to be one of the most convenient products ever—
It’s got to be one of the most convenient products ever—especially for consumers who want their coffee (or tea or other hot beverage) efficiently delivered without much hassle. The Keurig K Cups were...
See AnswerQ: Baseball has long been called “America’s national pastime” (although
Baseball has long been called “America’s national pastime” (although according to a Harris Interactive survey, the NFL has been, hands down, the favorite sport of Americans). Now, the game of baseball...
See AnswerQ: Ford Motor Company, a global company based in Dearborn, Michigan
Ford Motor Company, a global company based in Dearborn, Michigan, employs approximately 203,000 people worldwide. Its 2017 revenue topped $145.7 billion. Ford is well into its second century...over 11...
See AnswerQ: It all started with a simple plan to make a superior T
It all started with a simple plan to make a superior T-shirt. As special teams captain during the mid-1990s for the University of Maryland football team, Kevin Plank hated having to repeatedly change...
See AnswerQ: In today’s business climate, entrepreneurial activity is strong. It’s a
In today’s business climate, entrepreneurial activity is strong. It’s a great time to be an entrepreneur. More than ever, the people seizing entrepreneurial opportunities are women. But while it may b...
See AnswerQ: Over the years, NASA (National Aeronautics and Space Administration)
Over the years, NASA (National Aeronautics and Space Administration) has provided us with some spectacular moments—from Neil Armstrong’s first steps on the moon to the Hubble Telescope’s mesmerizing p...
See AnswerQ: Human resource (HR) managers say that 53 percent of résumés
Human resource (HR) managers say that 53 percent of résumés and job applications contain falsification, and 21 percent of résumé falsification state a fraudulent degree. Another review of standard rés...
See AnswerQ: Microsoft Corp, quite often considered the granddaddy of the computer software
Microsoft Corp, quite often considered the granddaddy of the computer software industry, was founded in 1975 by childhood friends Bill Gates and Paul Allen. (Fun fact: The company was originally based...
See AnswerQ: Holacracy.” That’s the word of the day at Zappos, the
Holacracy.” That’s the word of the day at Zappos, the Nevada-based online shoe and apparel retailer. During a four-hour, year-end employee meeting some five years ago, CEO Tony Hsieh announced that he...
See AnswerQ: Competitors in the movie theater industry had hoped that they were through
Competitors in the movie theater industry had hoped that they were through the challenges they’d faced during the economic downturn. Box office revenue (the amount of money generated through movie tic...
See AnswerQ: Since 2008, Domino’s Pizza has fanatically pursued any and every possible
Since 2008, Domino’s Pizza has fanatically pursued any and every possible “digital doodad” to sell pizza. Here’s a brief timeline showing the company’s progressive investment in technology: 2008 Pizza...
See AnswerQ: How many of you wear a watch on your wrist? Not
How many of you wear a watch on your wrist? Not a “smartwatch” or fitness tracker, but an actual watch. Our guess is not many of you. And that’s the problem the Swiss watch industry is facing. It’s fi...
See AnswerQ: Fanatically focusing on execution and brand. That’s how analysts describe the
Fanatically focusing on execution and brand. That’s how analysts describe the strategic approach of Warby Parker, a New York City eyewear startup that’s quickly disrupting the old fashioned eyewear bu...
See AnswerQ: Admit it. Sometimes the projects you’re working on (school,
Admit it. Sometimes the projects you’re working on (school, work, or both) can get pretty boring and monotonous. Wouldn’t it be great to have a magic button you could push to get someone else to do th...
See AnswerQ: Attracting and selecting the right talent is critical to a company’s success
Attracting and selecting the right talent is critical to a company’s success. For tech companies, the process is even more critical since it’s the knowledge, skills, and abilities of their employees t...
See AnswerQ: Can employees really manage themselves? At W. L. Gore
Can employees really manage themselves? At W. L. Gore and Associates, self-managed teams have helped create a a thriving business that has operated profitably for more than 50 years. Gore is a manufac...
See AnswerQ: You used to be able to tell who the bad guys were
You used to be able to tell who the bad guys were. But in our increasingly digital online world, those days are long gone. Now, the bad guys are faceless and anonymous. And they can and do inflict all...
See AnswerQ: Social media is altering the way employee salaries are negotiated and changed
Social media is altering the way employee salaries are negotiated and changed. It used to be that how much you were paid at your job was something you never talked about, especially with others outsid...
See AnswerQ: The dark underbelly of college basketball.” College basketball is big business
The dark underbelly of college basketball.” College basketball is big business for the NCAA (National Collegiate Athletic Association). The annual tournament to crown the national champion of college...
See AnswerQ: Panera Bread Company is an American chain of bakery-café fast
Panera Bread Company is an American chain of bakery-café fast casual restaurants based out of St. Louis, Missouri. Founded more than 35 years ago, Panera is now an enterprise with more than 2,000 bake...
See AnswerQ: Describe what managers need to know about communicating effectively.
Describe what managers need to know about communicating effectively.
See AnswerQ: Explain how technology affects managerial communication.
Explain how technology affects managerial communication.
See AnswerQ: Discuss contemporary issues in communication.
Discuss contemporary issues in communication.
See AnswerQ: Explain the nature and importance of control.
Explain the nature and importance of control.
See AnswerQ: Describe the three steps in the control process.
Describe the three steps in the control process.
See AnswerQ: Discuss the types of controls organizations and managers use.
Discuss the types of controls organizations and managers use.
See AnswerQ: Describe the factors that are reshaping and redefining management.
Describe the factors that are reshaping and redefining management.
See AnswerQ: Describe the key employability skills gained from studying management that are applicable
Describe the key employability skills gained from studying management that are applicable to your future career, regardless of your major.
See AnswerQ: Explain what the external environment is and why it’s important.
Explain what the external environment is and why it’s important.
See AnswerQ: Discuss how the external environment affects managers.
Discuss how the external environment affects managers.
See AnswerQ: Define organizational culture and explain why it’s important.
Define organizational culture and explain why it’s important.
See AnswerQ: Describe how organizational culture affects managers.
Describe how organizational culture affects managers.
See AnswerQ: Describe current issues in organizational culture.
Describe current issues in organizational culture.
See AnswerQ: Explain globalization and its impact on organizations.
Explain globalization and its impact on organizations.
See AnswerQ: Describe what managers need to know about managing in a global organization
Describe what managers need to know about managing in a global organization.
See AnswerQ: Discuss how society’s expectations are influencing managers and organizations.
Discuss how society’s expectations are influencing managers and organizations.
See AnswerQ: Discuss the factors that lead to ethical and unethical behavior in organizations
Discuss the factors that lead to ethical and unethical behavior in organizations.
See AnswerQ: Explain the three approaches managers can use to make decisions.
Explain the three approaches managers can use to make decisions.
See AnswerQ: Describe the types of decisions and decision-making conditions managers face
Describe the types of decisions and decision-making conditions managers face.
See AnswerQ: Discuss contemporary issues in managerial decision making.
Discuss contemporary issues in managerial decision making.
See AnswerQ: Discuss the nature and purposes of planning.
Discuss the nature and purposes of planning.
See AnswerQ: Explain what managers do in the strategic management process.
Explain what managers do in the strategic management process.
See AnswerQ: Compare and contrast approaches to goal setting and planning.
Compare and contrast approaches to goal setting and planning.
See AnswerQ: Define organizational change and compare and contrast views on the change process
Define organizational change and compare and contrast views on the change process.
See AnswerQ: Explain how to manage resistance to change.
Explain how to manage resistance to change.
See AnswerQ: Describe what managers need to know about employee stress.
Describe what managers need to know about employee stress.
See AnswerQ: Discuss techniques for stimulating innovation.
Discuss techniques for stimulating innovation.
See AnswerQ: Explain what disruptive innovation is and why managing it is important.
Explain what disruptive innovation is and why managing it is important.
See AnswerQ: Define entrepreneurship and explain why it’s important.
Define entrepreneurship and explain why it’s important.
See AnswerQ: Explain what entrepreneurs do in the planning process for new ventures.
Explain what entrepreneurs do in the planning process for new ventures.
See AnswerQ: Describe the six legal forms of organization and the choice of appropriate
Describe the six legal forms of organization and the choice of appropriate organizational structure.
See AnswerQ: Describe how entrepreneurs lead organizations.
Describe how entrepreneurs lead organizations.
See AnswerQ: Mintzberg suggests that managerial roles should encompass interpersonal, decisional, and
Mintzberg suggests that managerial roles should encompass interpersonal, decisional, and informational roles. Clearly, this is an idealized vision of the manager. They are encouraged to encompass all...
See AnswerQ: In 2013, a clothing factory in Bangladesh collapsed, killing 1
In 2013, a clothing factory in Bangladesh collapsed, killing 1,138 people.25 Some 27 global brands, including Walmart and Benetton, were using the factory. One year on, these two corporations were amo...
See AnswerQ: Describe the different types of training. How do organizations provide each
Describe the different types of training. How do organizations provide each type of training?
See AnswerQ: Distinguish between MBO and BARS as appraisal strategies.
Distinguish between MBO and BARS as appraisal strategies.
See AnswerQ: List the factors that influence employee compensation and benefits.
List the factors that influence employee compensation and benefits.
See AnswerQ: What do you understand by the term family-friendly benefits?
What do you understand by the term family-friendly benefits? Give some examples of such benefits in action.
See AnswerQ: How does knowing the five stages of group development help you as
How does knowing the five stages of group development help you as the manager?
See AnswerQ: What is an informal group and can informal groups form within an
What is an informal group and can informal groups form within an organization?
See AnswerQ: Discuss how group structure, group processes, and group tasks influence
Discuss how group structure, group processes, and group tasks influence group performance and satisfaction.
See AnswerQ: Why are virtual teams not suitable for all situations?
Why are virtual teams not suitable for all situations?
See AnswerQ: Discuss how having clear goals can make a team more effective.
Discuss how having clear goals can make a team more effective.
See AnswerQ: Although 44 countries have signed up for the Organization for Economic Cooperation
Although 44 countries have signed up for the Organization for Economic Cooperation and Development (OECD) Anti-Bribery Convention to outlaw bribery and corruption, the problem is still present. Let us...
See AnswerQ: What is communication and how can a manager ensure proper communication exists
What is communication and how can a manager ensure proper communication exists in the organization?
See AnswerQ: Discuss whether men and women communicate differently.
Discuss whether men and women communicate differently.
See AnswerQ: Thanks a lot.” Can this phrase mean more than one thing
Thanks a lot.” Can this phrase mean more than one thing? Explain why.
See AnswerQ: What are barriers to communication? What can managers do to reduce
What are barriers to communication? What can managers do to reduce the chances of barriers to communication from occurring?
See AnswerQ: How can changes in the physical work environment have a direct impact
How can changes in the physical work environment have a direct impact on communication systems?
See AnswerQ: Discuss the role of communication in customer service.
Discuss the role of communication in customer service.
See AnswerQ: Ethical communication includes all information, is true in every sense,
Ethical communication includes all information, is true in every sense, and is not deceptive in any way.” Discuss
See AnswerQ: Everyone has a different personality. How would an organization make a
Everyone has a different personality. How would an organization make a diverse group of individuals work together harmoniously and effectively?
See AnswerQ: How do you successfully manage a growing international company? Co-
How do you successfully manage a growing international company? Co-founder and chairperson of the Singaporean BreadTalk group, George Quek believes in a hands-on approach and believes that being physi...
See AnswerQ: Which employee behaviors are more critical to organizational success?
Which employee behaviors are more critical to organizational success?
See AnswerQ: What are the goals of organizational behavior?
What are the goals of organizational behavior?
See AnswerQ: Satisfied and happy employees make for better productivity, lower absenteeism and
Satisfied and happy employees make for better productivity, lower absenteeism and turnover rate. Discuss.
See AnswerQ: How does the cognitive dissonance theory seek to explain the relationships between
How does the cognitive dissonance theory seek to explain the relationships between attitudes and behavior?
See AnswerQ: Discuss the impact of self-esteem on employee performance and job
Discuss the impact of self-esteem on employee performance and job satisfaction.
See AnswerQ: On what basis does the attribution theory attempt to explain how we
On what basis does the attribution theory attempt to explain how we judge people differently?
See AnswerQ: Explain the relevance of managers using shaping behavior
Explain the relevance of managers using shaping behavior
See AnswerQ: What is motivation? Explain the three key elements of motivation.
What is motivation? Explain the three key elements of motivation.
See AnswerQ: Describe each of the four early theories of motivation.
Describe each of the four early theories of motivation.
See AnswerQ: How do goal-setting, reinforcement, and equity theories explain
How do goal-setting, reinforcement, and equity theories explain employee motivation?
See AnswerQ: An unexpected ethical issue arose when Hungary, Romania, and Bulgaria
An unexpected ethical issue arose when Hungary, Romania, and Bulgaria joined the European Union (EU). The start of the free movement of workers across the EU meant that workers from these countries co...
See AnswerQ: What are the different job design approaches to motivation?
What are the different job design approaches to motivation?
See AnswerQ: Briefly explain equity theory and what happens if there are iniquities at
Briefly explain equity theory and what happens if there are iniquities at work.
See AnswerQ: What do you understand by the term open-book management?
What do you understand by the term open-book management? Is it effective?
See AnswerQ: Identify examples of pay-for-performance programs used by some
Identify examples of pay-for-performance programs used by some organizations.
See AnswerQ: Can an individual be too motivated? Discuss.
Can an individual be too motivated? Discuss.
See AnswerQ: What are the ten traits of effective leaders?
What are the ten traits of effective leaders?
See AnswerQ: Explain Hersey and Blanchard’s situational leadership styles and the two key behaviors
Explain Hersey and Blanchard’s situational leadership styles and the two key behaviors associated with it.
See AnswerQ: What is the purpose of a charismatic leader’s enthusiasm and self-
What is the purpose of a charismatic leader’s enthusiasm and self-confidence?
See AnswerQ: You are a team leader. What are your daily priorities for
You are a team leader. What are your daily priorities for your team?
See AnswerQ: One company that appears to be getting it right on the diversity
One company that appears to be getting it right on the diversity front is L’Oréal, a popular French cosmetics organization founded in 1909, with over 86,000 employees operating across 130 countries. I...
See AnswerQ: Discuss whether a leader can get power from multiple sources.
Discuss whether a leader can get power from multiple sources.
See AnswerQ: Do you think most managers in real life use a contingency approach
Do you think most managers in real life use a contingency approach to increase their leadership effectiveness? Explain.
See AnswerQ: Do the followers make a difference in whether a leader is effective
Do the followers make a difference in whether a leader is effective? Discuss.
See AnswerQ: Why is control an essential managerial function in all types of organizations
Why is control an essential managerial function in all types of organizations?
See AnswerQ: State the information sources for measuring performance.
State the information sources for measuring performance.
See AnswerQ: Discuss the four main workplace discipline problems related to controlling employee performance
Discuss the four main workplace discipline problems related to controlling employee performance.
See AnswerQ: What do the two liquidity ratios, current and acid, measure
What do the two liquidity ratios, current and acid, measure and reveal?
See AnswerQ: Explain the balanced scorecard approach to evaluating organizational performance.
Explain the balanced scorecard approach to evaluating organizational performance.
See AnswerQ: Why is control important to customer interactions?
Why is control important to customer interactions?
See AnswerQ: In Chapter 7 we discussed the white-water rapids view of
In Chapter 7 we discussed the white-water rapids view of change, which refers to situations in which unpredictable change is normal and expected and managing it is a continual process. Do you think it...
See AnswerQ: The 2019 Women’s FIFA World Cup saw viewer ratings soar with over
The 2019 Women’s FIFA World Cup saw viewer ratings soar with over 750 million viewers across the world; a 20 percent increase on the men’s World Cup in 2018. The coverage of the games have inspired a...
See AnswerQ: Every individual employee in an organization plays a role in controlling work
Every individual employee in an organization plays a role in controlling work activities.” Do you agree with this statement, or do you think control is something that only managers are responsible for...
See AnswerQ: Describe the different approaches to assessing the environment.
Describe the different approaches to assessing the environment.
See AnswerQ: What might be some early warning signs of (a) a
What might be some early warning signs of (a) a new competitor coming into your market, (b) an employee work stoppage, or (c) a new technology that could change demand for your product?
See AnswerQ: Describe the four techniques for allocating resources.
Describe the four techniques for allocating resources.
See AnswerQ: Why is flexibility so important to today’s planning techniques?
Why is flexibility so important to today’s planning techniques?
See AnswerQ: What is project management, and what are the steps managers use
What is project management, and what are the steps managers use in planning projects?
See AnswerQ: It’s a waste of time and other resources to develop a set
It’s a waste of time and other resources to develop a set of sophisticated scenarios for situations that may never occur.” Do you agree or disagree? Support your position.
See AnswerQ: Do intuition and creativity have any relevance in quantitative planning tools and
Do intuition and creativity have any relevance in quantitative planning tools and techniques? Explain.
See AnswerQ: The Wall Street Journal and other business periodicals often carry reports of
The Wall Street Journal and other business periodicals often carry reports of companies that have not met their sales or profit forecasts. What are some reasons a company might not meet its forecast?...
See AnswerQ: A coworker takes credit for the excellent job you’ve performed. Frustrating
A coworker takes credit for the excellent job you’ve performed. Frustrating! It’s probably happened to you or someone you know. How did it happen? Perhaps you shared an idea with a coworker and then h...
See AnswerQ: In what ways is managing a project different from managing a department
In what ways is managing a project different from managing a department or other structured work area? In what ways are they the same?
See AnswerQ: Do you think that manufacturing or service organizations have the greater need
Do you think that manufacturing or service organizations have the greater need for operations management? Explain.
See AnswerQ: What is a value chain, and what is value chain management
What is a value chain, and what is value chain management? What is the goal of value chain management? What are the benefits of value chain management?
See AnswerQ: What is required for successful value chain management? What obstacles exist
What is required for successful value chain management? What obstacles exist to successful value chain management?
See AnswerQ: How could you use value chain management in your everyday life?
How could you use value chain management in your everyday life?
See AnswerQ: How does technology play a role in manufacturing?
How does technology play a role in manufacturing?
See AnswerQ: Describe lean management and explain why it’s important
Describe lean management and explain why it’s important
See AnswerQ: How might operations management apply to other managerial functions besides control?
How might operations management apply to other managerial functions besides control?
See AnswerQ: The 1,000-year-old Latin saying mens sana
The 1,000-year-old Latin saying mens sana in corpore sano stands for a healthy mind in a healthy body in English language represents the core idea of The Wellness Foundation, launched by Nerio Alessan...
See AnswerQ: Is the task of seeking innovative processes really a manager’s job?
Is the task of seeking innovative processes really a manager’s job?
See AnswerQ: Discuss how managers define organizational purpose. How would the managerial functions
Discuss how managers define organizational purpose. How would the managerial functions help in achieving that purpose?
See AnswerQ: Henri Fayol suggested that all managers perform the five functions of planning
Henri Fayol suggested that all managers perform the five functions of planning, organizing, commanding, coordinating, and controlling. Was he correct?
See AnswerQ: Is there one best “style” of management? Why or
Is there one best “style” of management? Why or why not?
See AnswerQ: Researchers at Harvard Business School found that the most important managerial behaviors
Researchers at Harvard Business School found that the most important managerial behaviors involve two fundamental things: enabling people to move forward in their work and treating them decently as hu...
See AnswerQ: Explain why studying management history is important.
Explain why studying management history is important.
See AnswerQ: How do societal trends influence the practice of management? What are
How do societal trends influence the practice of management? What are the implications for someone studying management
See AnswerQ: What is the significance of the industrial revolution?
What is the significance of the industrial revolution?
See AnswerQ: What is a bureaucracy? Do bureaucracies still exist today?
What is a bureaucracy? Do bureaucracies still exist today?
See AnswerQ: What did the early advocates of OB contribute to our understanding of
What did the early advocates of OB contribute to our understanding of management?
See AnswerQ: Headquartered in Boulogne-Billancourt, France, the automotive manufacturer Renault
Headquartered in Boulogne-Billancourt, France, the automotive manufacturer Renault was established 120 years ago in 1899, and Japanese automotive manufacturer, Nissan, was founded in 1933, headquarter...
See AnswerQ: Why were the Hawthorne Studies so critical to management history?
Why were the Hawthorne Studies so critical to management history?
See AnswerQ: Explain what the quantitative approach has contributed to the field of management
Explain what the quantitative approach has contributed to the field of management.
See AnswerQ: How has technology impacted how managers use the quantitative approach in today’s
How has technology impacted how managers use the quantitative approach in today’s workplace?
See AnswerQ: How do systems theory and the contingency approach make managers better at
How do systems theory and the contingency approach make managers better at what they do?
See AnswerQ: Explain how good decision making is a skill that can be learned
Explain how good decision making is a skill that can be learned and improved
See AnswerQ: Where in the eight-step decision-making process are the
Where in the eight-step decision-making process are the likely problem areas for managers?
See AnswerQ: What role does intuition play in decision making?
What role does intuition play in decision making?
See AnswerQ: Is satisficing a desirable way of making managerial decisions?
Is satisficing a desirable way of making managerial decisions?
See AnswerQ: Most managers adopt particular styles to simplify their decision making. This
Most managers adopt particular styles to simplify their decision making. This helps them make sense of information. Why do you think these styles are unreliable?
See AnswerQ: Change usually involves some kind of modification of the way in which
Change usually involves some kind of modification of the way in which a business does things. Invariably, it means alterations in products or services, and processes. Research seems to suggest that or...
See AnswerQ: What should a good manager do if it becomes apparent that a
What should a good manager do if it becomes apparent that a decision that has already been made is clearly not working or solving the situation?
See AnswerQ: What do you understand by personalization technologies? How does big data
What do you understand by personalization technologies? How does big data fit into decision-making processes?
See AnswerQ: Is there a real difference between an omnipotent manager and a “
Is there a real difference between an omnipotent manager and a “good” manager? Explain.
See AnswerQ: What does the term external environment mean? Which external environmental factors
What does the term external environment mean? Which external environmental factors are more important for a manager to pay attention to?
See AnswerQ: Would a manager’s job be fundamentally different if the same person were
Would a manager’s job be fundamentally different if the same person were to work in different companies in the same industry?
See AnswerQ: How is a shareholder different from a stakeholder? If a stakeholder
How is a shareholder different from a stakeholder? If a stakeholder can hold no shares or any ownership inthe organization, why then would the managers care about stakeholder relationships?
See AnswerQ: Distinguish between people and team orientation as dimensions of organizational culture
Distinguish between people and team orientation as dimensions of organizational culture
See AnswerQ: Why is strong culture likely to have a greater influence on employees
Why is strong culture likely to have a greater influence on employees compared to weak culture?
See AnswerQ: What are the four ways an organization communicates its culture to employees
What are the four ways an organization communicates its culture to employees?
See AnswerQ: A monolingual, parochial, and ethnocentric organization is bound to fail
A monolingual, parochial, and ethnocentric organization is bound to fail. Discuss.
See AnswerQ: For most people, artificial intelligence brings to mind replacing jobs with
For most people, artificial intelligence brings to mind replacing jobs with robots. However, 1,500 companies studied by the management consulting firm Accenture found that the largest performance gain...
See AnswerQ: In October 2018, the media reported that technology giant Google responded
In October 2018, the media reported that technology giant Google responded to what were deemed credible sexual assault claims against a former executive by paying him $90 million and praising him as h...
See AnswerQ: The European Union (EU) is an economic and political partnership
The European Union (EU) is an economic and political partnership of countries. What are the practical implications of this union?
See AnswerQ: Discuss the role of the World Trade Organization (WTO)
Discuss the role of the World Trade Organization (WTO)
See AnswerQ: What are the characteristics of a multi-domestic corporation?
What are the characteristics of a multi-domestic corporation?
See AnswerQ: What are the benefits of managers knowing foreign languages?
What are the benefits of managers knowing foreign languages?
See AnswerQ: What clarity of perspective would the GLOBE framework, as presented in
What clarity of perspective would the GLOBE framework, as presented in this chapter, offer to local managers to help them understand their employees better?
See AnswerQ: What makes the Association of Southeast Asian Nations (ASEAN) different
What makes the Association of Southeast Asian Nations (ASEAN) different from the European Union (EU) as a trade alliance? Can those differences impair ASEAN’s effectiveness as a trade alliance compare...
See AnswerQ: Describe how an organization can become a global entity. Why would
Describe how an organization can become a global entity. Why would it choose to do so?
See AnswerQ: How has workforce diversity changed since the 1960s, particularly in the
How has workforce diversity changed since the 1960s, particularly in the West?
See AnswerQ: What are the benefits and challenges of having workforce diversity in an
What are the benefits and challenges of having workforce diversity in an organization?
See AnswerQ: In developing countries like Africa, Asia, and Latin America,
In developing countries like Africa, Asia, and Latin America, birth rates are likely to remain high. Are there any benefits of this and is it sustainable?
See AnswerQ: Scott Emmons was working for Neiman Marcus, the luxury retailer,
Scott Emmons was working for Neiman Marcus, the luxury retailer, as an enterprise architect when he realized a big gap in how their stores were handling technology. “Customers were showing up with sma...
See AnswerQ: Do you think religion can affect work behaviors?
Do you think religion can affect work behaviors?
See AnswerQ: Look around you and summarize the different forms of diversity you can
Look around you and summarize the different forms of diversity you can find at your university or workplace.
See AnswerQ: Different ethnicities cause problems associated with diversity management. Discuss.
Different ethnicities cause problems associated with diversity management. Discuss.
See AnswerQ: Are laws, federal or otherwise, necessary for supporting diversity initiatives
Are laws, federal or otherwise, necessary for supporting diversity initiatives? Use an example from your country to illustrate.
See AnswerQ: Who is responsible for doing more to break the glass ceiling barrier
Who is responsible for doing more to break the glass ceiling barrier for women and minorities?
See AnswerQ: Why do you think an organization might not value social responsibility?
Why do you think an organization might not value social responsibility?
See AnswerQ: Many organizations around the world claim they are green. What criteria
Many organizations around the world claim they are green. What criteria would you consider if you had to evaluate their green credentials objectively?
See AnswerQ: How might the moral development of an employee affect their ethical stance
How might the moral development of an employee affect their ethical stance?
See AnswerQ: How can internal and external locus of control influence work behaviors?
How can internal and external locus of control influence work behaviors?
See AnswerQ: In April 2010, the Deepwater Horizon oil spill in the Gulf
In April 2010, the Deepwater Horizon oil spill in the Gulf of Mexico caused the largest oil spill in history. BP (British Petroleum) and the NOAA (National Oceanic and Atmospheric Administration) igno...
See AnswerQ: While important, rules may sometimes create more problems than they resolve
While important, rules may sometimes create more problems than they resolve. Websites like TripAdvisor are valuable for tourism, providing businesses with greater exposure. The problem is not all revi...
See AnswerQ: What kind of protection can be afforded to whistleblowers? Are these
What kind of protection can be afforded to whistleblowers? Are these protective steps sufficient to encourage such actions in future?
See AnswerQ: Ethical leaders are honest, share their values, stress important shared
Ethical leaders are honest, share their values, stress important shared values, and use the reward system appropriately.” Observe your college professors. Would you consider them to be ethical leaders...
See AnswerQ: What can an organization do to encourage ethical behavior?
What can an organization do to encourage ethical behavior?
See AnswerQ: Why is a change agent needed for organizational change? Can a
Why is a change agent needed for organizational change? Can a low-level employee be a change agent? Explain your answer.
See AnswerQ: Contrast the calm waters and white-water rapids metaphors of change
Contrast the calm waters and white-water rapids metaphors of change.
See AnswerQ: What are the three main roles performed by a manager?
What are the three main roles performed by a manager?
See AnswerQ: Why are managers important to organizations? What are their key responsibilities
Why are managers important to organizations? What are their key responsibilities in an organization?
See AnswerQ: Mintzberg suggested that specific actions or behaviors expected of and exhibited by
Mintzberg suggested that specific actions or behaviors expected of and exhibited by a manager comprise of three specific roles. Briefly explain them.
See AnswerQ: Do you think management is a relevant course for study today?
Do you think management is a relevant course for study today? Explain using examples.
See AnswerQ: It is sometimes said that management is a tough and thankless job
It is sometimes said that management is a tough and thankless job. Do you think this is true?
See AnswerQ: Hermes, not to be confused with Hermes the French luxury goods
Hermes, not to be confused with Hermes the French luxury goods manufacturer, is a pan-European courier company with over 40 years’ experience in the parcel delivery and courier business. It operates p...
See AnswerQ: Tesla Inc. has generated a lot of excitement about producing its
Tesla Inc. has generated a lot of excitement about producing its Model 3 sedan, its electric car “for the masses.” The Model 3 begins at $35,000, while other luxury models Tesla produces cost $80,000-...
See AnswerQ: The luxury goods market is incredibly lucrative. Most studies on counterfeiting
The luxury goods market is incredibly lucrative. Most studies on counterfeiting have tended to focus on the supply side. In recent years, however, there has been greater interest in studies pertaining...
See AnswerQ: When Will Shu, a former investment banker, spent long hours
When Will Shu, a former investment banker, spent long hours working in London’s Canary Wharf offices, he was forced to live off grocery store sandwiches for lack of an equally convenient option, he wa...
See AnswerQ: What began as a humble suburban-neighborhood grocery store in Essen
What began as a humble suburban-neighborhood grocery store in Essen, Germany, is today one of the most successful discount supermarket chains in the world. Aldi has been operating with the motto “the...
See AnswerQ: Everyone can make mistakes, but sometimes these can have severe consequences
Everyone can make mistakes, but sometimes these can have severe consequences. The employees of the insurance company Aviva Investor’s asset management division simultaneously received an email from th...
See AnswerQ: Many college students pull all-nighters to study for midterms and
Many college students pull all-nighters to study for midterms and finals. What Andrew Kozlovski noticed when he was a freshman at the University of Southern California was how many students were using...
See AnswerQ: It’s one thing to ensure that customers feel that their concerns are
It’s one thing to ensure that customers feel that their concerns are resolved quickly. It’s something else to revamp how a company reaches customers. That’s what Nike has been up to lately. This appro...
See AnswerQ: In 2002, British restaurateur and television celebrity-chef, James
In 2002, British restaurateur and television celebrity-chef, James Trevor “Jamie” Oliver opened Fifteen, a nonprofit restaurant and bar in London. As a social enterprise, this restaurant would later o...
See AnswerQ: Thomas Lopez, a lifeguard in the Miami area, was fired
Thomas Lopez, a lifeguard in the Miami area, was fired for leaving his assigned area to save a drowning man. His employer, Jeff Ellis and Associates, which has a contract with the Florida city of Hall...
See AnswerQ: If you get a job at Punchkick Interactive—a digital agency
If you get a job at Punchkick Interactive—a digital agency that designs and builds software in Chicago—you won’t have a boss. You’ll not be shown an organizational chart of who reports to whom because...
See AnswerQ: Imagine being at all-company meetings where trays of hors d’oeuvres
Imagine being at all-company meetings where trays of hors d’oeuvres and drinks are being served, but you and the others who aren’t wearing white badges are asked to return to your desks. That has been...
See AnswerQ: Though it might be a challenge, employing individuals with autism is
Though it might be a challenge, employing individuals with autism is beneficial. According to Britain’s National Autistic Society, only 15 percent of adults with autism have fulltime employment, while...
See AnswerQ: One of the world’s biggest shipping companies, Danish company Maersk is
One of the world’s biggest shipping companies, Danish company Maersk is concerned about the future of its presence in the Chinese market. In an interview with the Wall Street Journal, Søren Skou, the...
See AnswerQ: Despite being a world-renowned business, BAE Systems Naval Ships
Despite being a world-renowned business, BAE Systems Naval Ships has hardly changed its working arrangement over the past years at its Glasgow sites on the River Clyde, explains Chris Westcott, who is...
See AnswerQ: When coworkers work closely on a team project, is there such
When coworkers work closely on a team project, is there such a thing as becoming too close? Not everyone thinks so. A recent survey revealed that 51 percent of employees said they have had an office r...
See AnswerQ: In India, only about 20 cities out of 87 have organized
In India, only about 20 cities out of 87 have organized transport and fewer can lay claim to a mass rapid transit system. A collaboration between India’s Tata Motors and Brazil’s Marcopolo, it special...
See AnswerQ: With greater global expansion, more organizations are collaborating on projects with
With greater global expansion, more organizations are collaborating on projects with teams consisting of people who are based in dispersed geographical locations, having different cultural backgrounds...
See AnswerQ: The UK’s National Health Service employs 1.7 million people.
The UK’s National Health Service employs 1.7 million people.45 It is the world’s largest publicly funded health service. There are cases when employees have found themselves “victimized” by management...
See AnswerQ: Forty-six percent of employees worry about being judged by coworkers
Forty-six percent of employees worry about being judged by coworkers for something they have posted on social media.38 Social networking websites can be fun. Staying in touch with old friends or famil...
See AnswerQ: Founded in 1972, the German software business SAP (Systems,
Founded in 1972, the German software business SAP (Systems, Applications, and Products in Data Processing) is known as one of the world leaders in enterprise resource planning software, employing over...
See AnswerQ: On January 13, 2012, 32 people died after the Costa
On January 13, 2012, 32 people died after the Costa Concordia, the lead ship of Concordia-class cruise ships, ran aground with more than 4,000 passengers and crew a few hours after leaving the Italian...
See AnswerQ: A new business analyst needs to be hired to work at the
A new business analyst needs to be hired to work at the corporate headquarters of a retail firm. Jared and Amanda are managers in charge of the hiring decision. The candidates have been narrowed down...
See AnswerQ: In the same league as Amazon Inc., Microsoft, and Alphabet
In the same league as Amazon Inc., Microsoft, and Alphabet Inc., the Chinese multinational investment holding Tencent is considered one of the world’s biggest companies in the gaming industry. Founded...
See AnswerQ: Employees first” is the most important cultural value that former HCL
Employees first” is the most important cultural value that former HCL Technologies’ CEO Vineet Nayar believed would help the company to grow. While most managers think a customer’s satisfaction should...
See AnswerQ: Advocates of open-book management point to the advantages of getting
Advocates of open-book management point to the advantages of getting employees to think like owners and to be motivated to make better decisions about how they do their work once they see how their de...
See AnswerQ: Is having a caring employer important to you when looking for a
Is having a caring employer important to you when looking for a new job? Today, many organizations consider well-being initiatives as a way of keeping employees happy and motivated. Research has demon...
See AnswerQ: Flexible working schemes have been around for many years, and are
Flexible working schemes have been around for many years, and are generally expected to be found in any organization that wants to retain its staff. The standard 9-to-5 business hours structure is an...
See AnswerQ: Have you ever watched the show Undercover Boss? It features a
Have you ever watched the show Undercover Boss? It features a company’s “boss” working undercover in his or her own company to find out how the organization really works. Typically, the executive work...
See AnswerQ: Card Connection is one of the UK’s largest card publishers and a
Card Connection is one of the UK’s largest card publishers and a market leader in the franchise distribution of greeting cards in the UK and the Republic of Ireland (ROI). Established in 1992, it is r...
See AnswerQ: PepsiCo, Inc., is regarded as the second largest food and
PepsiCo, Inc., is regarded as the second largest food and beverage business in the world, and a large part of its success can be attributed to its leader. Indra Nooyi, who served as the chairperson an...
See AnswerQ: When Steve Kerr first became the coach of the Golden State Warriors
When Steve Kerr first became the coach of the Golden State Warriors basketball team, he saw the need for some changes. He wanted to steer away from the tendency for new leaders to announce that they w...
See AnswerQ: Cyber Monday falls on the first Monday following the Thanksgiving holiday.
Cyber Monday falls on the first Monday following the Thanksgiving holiday. During Cyber Monday, employers find that a significant number of employees are surfing the web for holiday deals. A recent su...
See AnswerQ: When General Motors (GM) decided to start a bug bounty
When General Motors (GM) decided to start a bug bounty program—paying hackers to find computer bugs in the company’s information systems—they purposely tried to avoid other companies’ mistakes with su...
See AnswerQ: It is not surprising that employers are keen on knowing what their
It is not surprising that employers are keen on knowing what their employees are up to. In some cases, they can be a little too keen. In 2015, British Airways was accused of illegally monitoring the p...
See AnswerQ: One of the biggest fears of a food service company manager has
One of the biggest fears of a food service company manager has to be the hepatitis A virus, a highly contagious virus transmitted by sharing food, utensils, cigarettes, or drug paraphernalia with an i...
See AnswerQ: Alan Naiman was a frugal social worker who used duct tape to
Alan Naiman was a frugal social worker who used duct tape to repair his shoes, looked for deals at the supermarket, and chose fast-food restaurants when it was his turn to treat friends to lunch. When...
See AnswerQ: Management theory suggests that compared to an individual, a diverse group
Management theory suggests that compared to an individual, a diverse group of people will be more creative because team members will bring a variety of ideas, perspectives, and approaches to the group...
See AnswerQ: How would you feel as a new employee if your boss asked
How would you feel as a new employee if your boss asked you to do something and you had to admit that you didn’t know how to do it? Most of us would probably feel pretty inadequate and incompetent. No...
See AnswerQ: What comes to mind when you think of IKEA? You might
What comes to mind when you think of IKEA? You might have memories of following your parents through an IKEA maze-like store with the promise of Swedish meatballs at the end of the trip. The Swedish-b...
See AnswerQ: Manchester City Football Club follows a different locker room pep-talk
Manchester City Football Club follows a different locker room pep-talk ritual: The players spend time with the performance analyst team, discussing what they had done well or wrong in previous matches...
See AnswerQ: Selina Lo loves her job as the manager of a toy store
Selina Lo loves her job as the manager of a toy store in San Francisco. She loves the chaos and the excitement of kids as they wander around the store searching for their favorite toys. Teddy bears pu...
See AnswerQ: What is organizational development? How do organizational development techniques support organizational
What is organizational development? How do organizational development techniques support organizational change?
See AnswerQ: Why do people in organizations resist change? Provide examples an organization
Why do people in organizations resist change? Provide examples an organization can take to reduce resistance to change.
See AnswerQ: While changes must continually occur in every industry, one of the
While changes must continually occur in every industry, one of the most baffling problems thatbusiness executives face is employee resistance to change. What are the common techniques to minimize resi...
See AnswerQ: Why do people resist change, even though they may carry the
Why do people resist change, even though they may carry the potential for a better tomorrow?
See AnswerQ: Job stress is a major problem for employees working in many organizations
Job stress is a major problem for employees working in many organizations today. Discuss some of the job stressors. What can a manager do to reduce stressors for employees?
See AnswerQ: Discuss whether it is possible for managers to spot the warning signs
Discuss whether it is possible for managers to spot the warning signs of stress among their employees.
See AnswerQ: Explain what studies have shown about the relationship between planning and performance
Explain what studies have shown about the relationship between planning and performance.
See AnswerQ: Planning takes a lot of effort. Why do you think people
Planning takes a lot of effort. Why do you think people should engage in it?
See AnswerQ: Define the term goal and explain how planning fits into an organization’s
Define the term goal and explain how planning fits into an organization’s goal.
See AnswerQ: Technological developments deskill the global workforce. For example, factory-
Technological developments deskill the global workforce. For example, factory-built, flat-pack furniture cut out the role of experienced carpenters. Similarly, with some vehicles having on-board softw...
See AnswerQ: What are the different types of organizational plans? Are they independent
What are the different types of organizational plans? Are they independent of each other?
See AnswerQ: Outline the five steps required for setting goals in an organization.
Outline the five steps required for setting goals in an organization. Explain how they work.
See AnswerQ: What is the fastest-growing area of environmental scanning? What
What is the fastest-growing area of environmental scanning? What does it provide to an organization?
See AnswerQ: Setting organizational goals is an important step in planning. What are
Setting organizational goals is an important step in planning. What are the approaches to setting organizational goals? Which do you consider the best?
See AnswerQ: Hyundai’s Global Command and Control Center (GCCC) have cameras strategically
Hyundai’s Global Command and Control Center (GCCC) have cameras strategically placed across its centres to monitor assembly lines. This helps identify problems and respond quickly. What drives Hyundai...
See AnswerQ: Why is strategic management important to managers?
Why is strategic management important to managers?
See AnswerQ: Distinguish between an organization’s external opportunities and its threats.
Distinguish between an organization’s external opportunities and its threats.
See AnswerQ: There are three different types of corporate strategies. Do you think
There are three different types of corporate strategies. Do you think all corporate strategies revolve around growth? Why?
See AnswerQ: Explain how managers can use a BCG Matrix to manage strategies by
Explain how managers can use a BCG Matrix to manage strategies by analyzing a corporate portfolio.
See AnswerQ: In how many ways can managers create a competitive advantage so that
In how many ways can managers create a competitive advantage so that they can compete against their industry rivals?
See AnswerQ: Founded in 1919, Tesco has grown from a market-stall
Founded in 1919, Tesco has grown from a market-stall in the East End of London into the largest supermarket in the UK by market share, and one of the largest globally in just under a century. In 2018–...
See AnswerQ: Describe the role of competitive advantage and how Porter’s competitive strategies help
Describe the role of competitive advantage and how Porter’s competitive strategies help an organization develop competitive advantage.
See AnswerQ: Creating a competitive advantage over rivals is advantageous, but it’s only
Creating a competitive advantage over rivals is advantageous, but it’s only a matter of time before they catch up, or changes in the industry nullifies the advantage. How does an organization sustain...
See AnswerQ: Are there any disadvantages to be a first-mover? Provide
Are there any disadvantages to be a first-mover? Provide examples.
See AnswerQ: What do you think would be the hardest thing about being an
What do you think would be the hardest thing about being an entrepreneur? What do you think would be the most fun?
See AnswerQ: How many options are there for a new entrepreneur to start up
How many options are there for a new entrepreneur to start up their business venture?
See AnswerQ: Would a good manager be a good entrepreneur? Discuss.
Would a good manager be a good entrepreneur? Discuss.
See AnswerQ: Why do you think many entrepreneurs find it hard to step aside
Why do you think many entrepreneurs find it hard to step aside and let others manage their business?
See AnswerQ: Do you think a person can be taught to be an entrepreneur
Do you think a person can be taught to be an entrepreneur? Why or why not?
See AnswerQ: Organizational design has traditionally had a chain of command. How does
Organizational design has traditionally had a chain of command. How does a chain of command work?
See AnswerQ: Contrast mechanistic and organic organizations.
Contrast mechanistic and organic organizations.
See AnswerQ: Internet sales comprise about 20 percent of all retail sales in the
Internet sales comprise about 20 percent of all retail sales in the UK, with a record of £1.9 billion in online sales in December 2018. And for advancements in online sales, December 7, 2016, is a spe...
See AnswerQ: Discuss why you think an organization might be keen to increase its
Discuss why you think an organization might be keen to increase its managers’ span of control.
See AnswerQ: Why is structure important? Why does an organization need a clear
Why is structure important? Why does an organization need a clear structure? Are there any other reasons for organizational structures beyond the formal arrangement of jobs, roles, and responsibilitie...
See AnswerQ: In terms of organizational designs, what is a simple structure?
In terms of organizational designs, what is a simple structure?
See AnswerQ: There is evidence that an organization’s size will affect its structure.
There is evidence that an organization’s size will affect its structure. The larger the number of employees, the more mechanistic the organization will tend to become. Can this problem be overcome?
See AnswerQ: How could a job-sharing arrangement be made effective? What
How could a job-sharing arrangement be made effective? What would a job sharer need to do to make the arrangement work?
See AnswerQ: What are the main challenges facing organizational designs today?
What are the main challenges facing organizational designs today?
See AnswerQ: Can a labor union help prevent employees from being unfairly terminated?
Can a labor union help prevent employees from being unfairly terminated?
See AnswerQ: In Malaysia, certain industries like IT and customer services, are
In Malaysia, certain industries like IT and customer services, are increasingly dependent on specialist human resource providers as a common source of trained manpower. Companies like the US-based Man...
See AnswerQ: Organizations use different selection devices to recruit new employees. Are all
Organizations use different selection devices to recruit new employees. Are all methods equally good for all jobs?
See AnswerQ: As a result of organizational cost-cutting, new-hire
As a result of organizational cost-cutting, new-hire orientation is cut short to a few days. Describe how this will affect retention.
See AnswerQ: The sensitivity analysis in the Quality Sweaters example was on the response
The sensitivity analysis in the Quality Sweaters example was on the response rate. Suppose now that the response rate is known to be 8%, and the company wants to perform a sensitivity analysis on the...
See AnswerQ: Suppose you have an extra six months of data on demands and
Suppose you have an extra six months of data on demands and prices, in addition to the data in the example. These extra data points are (350,84), (385,72), (410,67), (400,62), (330,92), and (480,53)....
See AnswerQ: You are a CFA (chartered financial analyst). An overextended client
You are a CFA (chartered financial analyst). An overextended client has come to you because she needs help paying off her credit card bills. She owes the amounts on her credit cards listed in the file...
See AnswerQ: Aluminaca produces 100-foot-long, 200-foot-
Aluminaca produces 100-foot-long, 200-foot-long, and 300-foot-long ingots for customers. This week’s demand for ingots is listed in the file. Aluminaca has four furnaces in which ingots can be produce...
See AnswerQ: Each day, Eastinghouse produces capacitors during three shifts: 8 a
Each day, Eastinghouse produces capacitors during three shifts: 8 a.m. to 4 p.m., 4 p.m. to 12 a.m., and 12 a.m. to 8 a.m. The hourly salary paid to the employees on each shift, the price charged for...
See AnswerQ: During the next three months, a heating and cooling company must
During the next three months, a heating and cooling company must meet (on time) the following demands for air conditioners: month 1, 600; month 2, 400; and month 3, 300. Air conditioners can be produc...
See AnswerQ: Gotham City National Bank is open Monday through Friday from 9 a
Gotham City National Bank is open Monday through Friday from 9 a.m. to 5 p.m. From past experience, the bank knows that it needs the numbers of tellers listed in the file P04_104.xlsx. Gotham City Ban...
See AnswerQ: Based on Rothstein (1973). The Springfield City Police Department employs
Based on Rothstein (1973). The Springfield City Police Department employs 30 police officers. Each officer works five days per week. The crime rate fluctuates with the day of the week, so the number o...
See AnswerQ: Based on Charnes and Cooper (1955). Alex Cornby makes his
Based on Charnes and Cooper (1955). Alex Cornby makes his living buying and selling corn. On January 1, he has 6000 bushels of corn and $16,000 in cash. On the first day of each month, Alex can buy co...
See AnswerQ: City 1 produces 500 tons of waste per day, and city
City 1 produces 500 tons of waste per day, and city 2 produces 400 tons of waste per day. Waste must be incinerated at incinerator 1 or 2, and each incinerator can process up to 500 tons of waste per...
See AnswerQ: Based on Smith (1965). Silicon Valley Corporation (Silvco)
Based on Smith (1965). Silicon Valley Corporation (Silvco) manufactures transistors. An important aspect of the manufacture of transistors is the melting of the element germanium (a major component of...
See AnswerQ: The Fresh Turkey Company produces two types of turkey cutlets for sale
The Fresh Turkey Company produces two types of turkey cutlets for sale to fast-food restaurants. Each type of cutlet consists of white meat and dark meat. Cutlet 1 sells for $2.97 per pound and must c...
See AnswerQ: Consider the power curve y = 10000x-2.35.
Consider the power curve y = 10000x-2.35. Calculate y when x = 5; when x = 10; and when x = 20. For each of these values of x, find the percentage change in y when x increases by 1%. That is, find the...
See AnswerQ: The production line employees at Grummins Engine work four days per week
The production line employees at Grummins Engine work four days per week, 10 hours per day. Each day of the week, the following minimum numbers of line employees are needed: Monday through Friday, 70...
See AnswerQ: Based on Lanzenauer et al. (1987). To process income
Based on Lanzenauer et al. (1987). To process income tax forms, the IRS first sends each form through the data preparation (DP) department, where information is coded for computer entry. Then the form...
See AnswerQ: Based on Robichek et al. (1965). The Korvair Department
Based on Robichek et al. (1965). The Korvair Department Store has $100,000 in available cash. At the beginning of each of the next six months, Korvair will receive revenues and pay bills as listed in...
See AnswerQ: Mackk Engine produces diesel trucks. New government emission standards have dictated
Mackk Engine produces diesel trucks. New government emission standards have dictated that the average pollution emissions of all trucks produced in the next three years cannot exceed 12 grams per truc...
See AnswerQ: Each hour from 10 a.m. to 7 p.
Each hour from 10 a.m. to 7 p.m., Bank One receives checks and must process them. Its goal is to process all checks the same day they are received. The bank has 5 check processing machines, each of wh...
See AnswerQ: Owens-Wheat uses two production lines to produce three types of
Owens-Wheat uses two production lines to produce three types of fiberglass mat. The demand requirements (in tons) for each of the next four months are shown in the file P04_115.xlsx. If it were dedica...
See AnswerQ: Rylon Corporation manufactures Brute cologne and Chanelle perfume. The raw material
Rylon Corporation manufactures Brute cologne and Chanelle perfume. The raw material needed to manufacture each type of fragrance can be purchased for $60 per pound. Processing 1 pound of raw material...
See AnswerQ: Sunco Oil has three different processes that can be used to manufacture
Sunco Oil has three different processes that can be used to manufacture various types of gasoline. Each process involves blending oils in the company’s catalytic cracker. Running process 1 for an hour...
See AnswerQ: Flexco produces six products in the following manner. Each unit of
Flexco produces six products in the following manner. Each unit of raw material purchased yields 4 units of product 1, 2 units of product 2, and 1 unit of product 3. Up to 1200 units of product 1 can...
See AnswerQ: Each week, Chemco can purchase unlimited quantities of raw material at
Each week, Chemco can purchase unlimited quantities of raw material at $6 per pound. Each pound of purchased raw material can be used to produce either input 1 or input 2. Each pound of raw material c...
See AnswerQ: Consider the exponential curve y = 1000e-0.014x.
Consider the exponential curve y = 1000e-0.014x. Calculate y when x = 5; when x = 10; and when x = 20. For each of these values of x, find the percentage change in y when x increases by one unit. That...
See AnswerQ: Bexter Labs produces three products: A, B, and C
Bexter Labs produces three products: A, B, and C. Bexter can sell up to 2000 units of product A, up to 2500 units of product B, and up to 800 units of product C. Each unit of product C uses two units...
See AnswerQ: Based on Franklin and Koenigsberg (1973). The city of Busville
Based on Franklin and Koenigsberg (1973). The city of Busville contains three school districts. The numbers of minority and nonminority students in each district are given in the file P04_121.xlsx. Th...
See AnswerQ: Based on Carino and Lenoir (1988). Brady Corporation produces cabinets
Based on Carino and Lenoir (1988). Brady Corporation produces cabinets. Each week, Brady requires 90,000 cubic feet of processed lumber. The company can obtain lumber in two ways. First, it can purcha...
See AnswerQ: Based on Dobson and Kalish (1988). Chandler Enterprises produces two
Based on Dobson and Kalish (1988). Chandler Enterprises produces two competing products, A and B. The company wants to sell these products to two groups of customers. The values each customer places o...
See AnswerQ: Based on Robichek et al. (1965). At the beginning
Based on Robichek et al. (1965). At the beginning of month 1, Finco has $35,000 in cash. At the beginning of months 1, 2, 3, and 4, Finco receives certain revenues, after which it pays bills. (See the...
See AnswerQ: During each six-hour period of the day, the Bloomington
During each six-hour period of the day, the Bloomington Police Department needs at least the number of police officers shown in the file P04_125.xlsx. Police officers can be hired to work either 12 co...
See AnswerQ: Based on Glassey and Gupta (1978). A paper recycling plant
Based on Glassey and Gupta (1978). A paper recycling plant processes box board, tissue paper, newsprint, and book paper into pulp that can be used to produce three grades of recycled paper. The prices...
See AnswerQ: Three bonds, as listed in the file, are currently for
Three bonds, as listed in the file, are currently for sale. Each bond has a face value of $100. Every six months, starting six months from the current date and ending at the expiration date, each bond...
See AnswerQ: You have been assigned to develop a model that can be used
You have been assigned to develop a model that can be used to schedule employees at a local fast food restaurant. Assume that computer technology has advanced to the point where very large problems ca...
See AnswerQ: You have been assigned to develop a model that can be used
You have been assigned to develop a model that can be used to schedule the nurses working in a maternity ward. a. What data would you collect as inputs to your model? b. Describe in words several appr...
See AnswerQ: In the profit model in this section, we used the power
In the profit model in this section, we used the power curve to relate demand and price because it has the lowest MAPE (as well as the lowest RMSE and MAE). However, the exponential curve was not far...
See AnswerQ: Keefer Paper produces recycled paper from paper purchased from local offices and
Keefer Paper produces recycled paper from paper purchased from local offices and universities. The company sells three grades of paper: high brightness paper, medium-brightness paper, and low-brightne...
See AnswerQ: In this chapter, we give you the cost of producing a
In this chapter, we give you the cost of producing a product and other inputs that are used in the analysis. Do you think most companies find it easy to determine the cost of producing a product? What...
See AnswerQ: Discuss how the aggregate planning model could be extended to handle a
Discuss how the aggregate planning model could be extended to handle a company that produces several products on several types of machines. What information would you need to model this type of proble...
See AnswerQ: A large CPA firm currently has 100 junior staff members and 20
A large CPA firm currently has 100 junior staff members and 20 partners. In the long run—say, 20 years from now—the firm would like to consist of 130 junior staff members and 20 partners. During a giv...
See AnswerQ: The employee scheduling model in this chapter was purposely made small (
The employee scheduling model in this chapter was purposely made small (only seven decision variable cells). What would make a similar problem for a company like McDonald’s much more difficult? What t...
See AnswerQ: Explain why it is problematic to include a constraint such as the
Explain why it is problematic to include a constraint such as the following in an LP model for a blending problem: Total octane in gasoline 1 blend / Barrels of gasoline 1 blended daily ≥ 0
See AnswerQ: In addition to the constraints already in the (original) advertising
In addition to the constraints already in the (original) advertising model, suppose General Flakes also wants to obtain at least 180 million exposures to men and at least 160 million exposures to wome...
See AnswerQ: In the employee scheduling example, suppose the employees want more flexibility
In the employee scheduling example, suppose the employees want more flexibility in their schedules. They want to be allowed to work five consecutive days followed by two days off or to work three cons...
See AnswerQ: In the employee scheduling example, suppose the company has 25 full
In the employee scheduling example, suppose the company has 25 full-time employees and is not allowed to hire or fire any of them. Determine a schedule that maximizes the number of weekend days off re...
See AnswerQ: In the employee scheduling example, suppose that the company can require
In the employee scheduling example, suppose that the company can require the employees to work one day of overtime each week on the day immediately following this five-day shift. For example, an emplo...
See AnswerQ: Modify Acron’s model so that development lasts for an extra year.
Modify Acron’s model so that development lasts for an extra year. Specifically, assume that development costs of $7.2 million and $2.1 million are incurred at the beginnings of years 1 and 2, and then...
See AnswerQ: Extend SureStep’s original no-backlogging aggregate planning model from four to
Extend SureStep’s original no-backlogging aggregate planning model from four to six months. Try several different values for demands in months 5 and 6, and run Solver for each. Is your optimal solutio...
See AnswerQ: SureStep is currently getting 160 regular-time hours from each worker
SureStep is currently getting 160 regular-time hours from each worker per month. This is actually calculated from 8 hours per day times 20 days per month. For this, they are paid $9.375 per hour (5150...
See AnswerQ: The current solution to SureStep’s no-backlogging aggregate planning model requires
The current solution to SureStep’s no-backlogging aggregate planning model requires a lot of firing. Run a one-way SolverTable with the firing cost as the input variable and the numbers fired as the o...
See AnswerQ: Suppose SureStep could begin a machinery upgrade and training program to increase
Suppose SureStep could begin a machinery upgrade and training program to increase its worker productivity. This program would result in the following values of labor hours per pair of shoes over the n...
See AnswerQ: In the current no-backlogging problem, SureStep doesn’t hire any
In the current no-backlogging problem, SureStep doesn’t hire any workers and uses almost no overtime. This is evidently because of low demand. Change the demands to 6000, 8000, 5000, and 3000, and reo...
See AnswerQ: In the SureStep no-backlogging problem, change the demands so
In the SureStep no-backlogging problem, change the demands so that they become 6000, 8000, 5000, 3000. Also, change the problem slightly so that newly hired workers take six hours to produce a pair of...
See AnswerQ: We saw that the natural way to model SureStep’s backlogging model,
We saw that the natural way to model SureStep’s backlogging model, with IF functions, leads to a nonsmooth model that Solver has difficulty handling. Another version of the problem is also difficult f...
See AnswerQ: Suppose, as a matter of corporate policy, that General Flakes
Suppose, as a matter of corporate policy, that General Flakes decides not to advertise on the “Rachael Ray” show. Modify the original advertising model appropriately and find the new optimal solution....
See AnswerQ: Use SolverTable in Chandler’s blending model to see whether, by increasing
Use SolverTable in Chandler’s blending model to see whether, by increasing the selling price of gasoline, you can get an optimal solution that produces only gasoline, no heating oil. Then use SolverTa...
See AnswerQ: Use SolverTable in Chandler’s blending model to find the shadow price of
Use SolverTable in Chandler’s blending model to find the shadow price of crude oil 1—that is, the amount Chandler would be willing to spend to acquire more crude oil 1. Does this shadow price change a...
See AnswerQ: Modify Acron’s model so that sales increase, then stay steady,
Modify Acron’s model so that sales increase, then stay steady, and finally decrease. Specifically, assume that the gross margin is $1.2 million in year 1, then increases by 10% annually through year 6...
See AnswerQ: How sensitive is the optimal solution (barrels of each input and
How sensitive is the optimal solution (barrels of each input and output sold and total revenue) to the required quality levels? Answer this by running a two-way SolverTable with these five outputs. Yo...
See AnswerQ: In Chandler’s blending model, suppose a chemical ingredient called CI is
In Chandler’s blending model, suppose a chemical ingredient called CI is needed by both gasoline and heating oil. At least 3% of every barrel of gasoline must be CI, and at least 5% of every barrel of...
See AnswerQ: In the current blending model, a barrel of any input results
In the current blending model, a barrel of any input results in a barrel of output. However, in a real blending problem, there can be losses. Suppose a barrel of input results in only a fraction of a...
See AnswerQ: We warned you about clearing denominators in the quality constraints. This
We warned you about clearing denominators in the quality constraints. This problem illustrates what can happen if you don’t do so. a. Implement the quality constraints as indicated in Inequality (4.3)...
See AnswerQ: Run a one-way sensitivity analysis on the optimal solution to
Run a one-way sensitivity analysis on the optimal solution to the unit selling price of drug A in the Repco model. If this price is high enough, will Repco start selling drug A in addition to producin...
See AnswerQ: Suppose there is a fourth drug, drug D, that Repco
Suppose there is a fourth drug, drug D, that Repco can produce and sell. Each unit of drug D requires four labor hours, one unit of drug A, and one unit of drug C to produce, and it sells for $150 per...
See AnswerQ: We claimed that the Repco model could either constrain the units produced
We claimed that the Repco model could either constrain the units produced to be greater than or equal to the units used by production or constrain the units sold to be nonnegative. Modify the model to...
See AnswerQ: In a production process model such as Repco’s, certain inputs make
In a production process model such as Repco’s, certain inputs make no sense in the usage table (the range B7:D9 of the model). For example, suppose that, in addition to current usages, each unit of dr...
See AnswerQ: Suppose, in addition to the shows already listed, General Flakes
Suppose, in addition to the shows already listed, General Flakes wants to open the possibility of purchasing ads on the “Good Morning America” show on ABC. Make up any reasonable input data you need t...
See AnswerQ: In the Barney-Jones investment model, increase the maximum amount
In the Barney-Jones investment model, increase the maximum amount allowed in any investment to $150,000. Then run a one-way sensitivity analysis to the money market rate on cash. Capture one output va...
See AnswerQ: Create a one-way data table in the Acron model to
Create a one-way data table in the Acron model to see how the NPV varies with discount rate, which is allowed to vary from 8% to 18% in increments of 0.5%. Explain intuitively why the results go in th...
See AnswerQ: Modify the Barney-Jones investment model so that a minimum amount
Modify the Barney-Jones investment model so that a minimum amount must be put into any investment, although this minimum can vary by investment. For example, the minimum amount for investment A might...
See AnswerQ: We claimed that our model for Barney-Jones is generalizable.
We claimed that our model for Barney-Jones is generalizable. Try generalizing it to the case where there are two more potential investments, F and G. Investment F requires a cash outlay in year 2 and...
See AnswerQ: In the Barney-Jones investment model, we ran investments across
In the Barney-Jones investment model, we ran investments across columns and years down rows. Many financial analysts seem to prefer the opposite. Modify the spreadsheet model so that years go across c...
See AnswerQ: In the pension fund model, suppose there is an upper limit
In the pension fund model, suppose there is an upper limit of 60 on the number of bonds of any particular type that can be purchased. Modify the model to incorporate this extra constraint and then reo...
See AnswerQ: In the pension fund model, suppose there is a fourth bond
In the pension fund model, suppose there is a fourth bond, bond 4. Its unit cost in year 1 is $1020, it returns coupons of $70 in years 2 to 5 and a payment of $1070 in year 6. Modify the model to inc...
See AnswerQ: In the pension fund model, suppose James has been asked to
In the pension fund model, suppose James has been asked to see how the optimal solution changes if the required payments in years 6 to 15 all increase by the same percentage, where this percentage cou...
See AnswerQ: The pension fund model is streamlined, perhaps too much. It
The pension fund model is streamlined, perhaps too much. It does all of the calculations concerning cash flows in row 20. James decides he would like to break these out into several rows of calculatio...
See AnswerQ: Suppose the investments in the Barney-Jones model sometimes require cash
Suppose the investments in the Barney-Jones model sometimes require cash outlays in more than one year. For example, a $1 investment in investment B might require $0.25 to be spent in year 1 and $0.75...
See AnswerQ: In the pension fund model, if the amount of money initially
In the pension fund model, if the amount of money initially is less than the amount found by Solver, then James will not be able to meet all of the pension fund payments. Use the current model to demo...
See AnswerQ: Suppose that General Flakes decides that it shouldn’t place any more than
Suppose that General Flakes decides that it shouldn’t place any more than 10 ads on any given show. Modify the (original) advertising model appropriately to incorporate this constraint, and then reopt...
See AnswerQ: The NPV function automatically discounts each of the cash flows and sums
The NPV function automatically discounts each of the cash flows and sums the discounted values. Verify that it does this correctly for Acron’s model by calculating the NPV the long way. That is, disco...
See AnswerQ: Continuing the previous problem in a slightly different direction, continue to
Continuing the previous problem in a slightly different direction, continue to use the Money_allocated cell as a decision variable cell, and add a constraint that it must be less than or equal to any...
See AnswerQ: Pine Valley Bank has three branches. You have been asked to
Pine Valley Bank has three branches. You have been asked to evaluate the efficiency of each. The following inputs and outputs are to be used for the study: ■ input 1 5 labor hours used (hundreds per m...
See AnswerQ: The Salem Board of Education wants to evaluate the efficiency of the
The Salem Board of Education wants to evaluate the efficiency of the town’s four elementary schools. The three outputs of the schools are ■ output 1 5 average reading score ■ output 2 5 average mathem...
See AnswerQ: You have been asked to evaluate the efficiency of the Port Charles
You have been asked to evaluate the efficiency of the Port Charles Police Department. Three precincts are to be evaluated. The inputs and outputs for each precinct are as follows: ■ input 1 5 number o...
See AnswerQ: You have been commissioned by Indiana University to evaluate the relative efficiency
You have been commissioned by Indiana University to evaluate the relative efficiency of four degree-granting units: Business, Education, Arts and Sciences, and Health, Physical Education, and Recreati...
See AnswerQ: A bus company believes that it will need the following numbers of
A bus company believes that it will need the following numbers of bus drivers during each of the next five years: 60 drivers in year 1; 70 drivers in year 2; 50 drivers in year 3; 65 drivers in year 4...
See AnswerQ: During each four-hour period, the Smalltown police force requires
During each four-hour period, the Smalltown police force requires the following number of on-duty police officers: four from midnight to 4 a.m.; four from 4 a.m. to 8 a.m.; seven from 8 a.m. to noon;...
See AnswerQ: Shoemakers of America forecasts the following demand for the next six months
Shoemakers of America forecasts the following demand for the next six months: 5000 pairs in month 1; 6000 pairs in month 2; 7000 pairs in month 3; 9000 pairs in month 4; 6000 pairs in month 5; 5000 pa...
See AnswerQ: NewAge Pharmaceuticals produces the drug NasaMist from four chemicals. Today,
NewAge Pharmaceuticals produces the drug NasaMist from four chemicals. Today, the company must produce 5000 pounds of the drug. The three active ingredients in NasaMist are A, B, and C. By weight, at...
See AnswerQ: You have decided to enter the candy business. You are considering
You have decided to enter the candy business. You are considering producing two types of candies: Slugger candy and Easy Out candy, both of which consist solely of sugar, nuts, and chocolate. At prese...
See AnswerQ: In a situation such as Acron’s, where a one-time
In a situation such as Acron’s, where a one-time cost is followed by a sequence of cash flows, the internal rate of return (IRR) is the discount rate that makes the NPV equal to 0. The idea is that if...
See AnswerQ: In the dual-objective advertising model, we put a budget
In the dual-objective advertising model, we put a budget constraint on the total advertising cost and then maximized the total number of excess exposures. Do it the opposite way, reversing the roles o...
See AnswerQ: Sunblessed Juice Company sells bags of oranges and cartons of orange juice
Sunblessed Juice Company sells bags of oranges and cartons of orange juice. Sunblessed grades oranges on a scale of 1 (poor) to 10 (excellent). At present, Sunblessed has 220,000 pounds of grade 6 ora...
See AnswerQ: A bank is attempting to determine where its assets should be invested
A bank is attempting to determine where its assets should be invested during the current year. At present, $500,000 is available for investment in bonds, home loans, auto loans, and personal loans. Th...
See AnswerQ: Young MBA Erica Cudahy can invest up to $20,000
Young MBA Erica Cudahy can invest up to $20,000 in stocks and loans. Each dollar invested in stocks yields $0.08 profit, and each dollar invested in a loan yields $0.13 profit. At least 40% of all mon...
See AnswerQ: A fertilizer company blends silicon and nitrogen to produce two types of
A fertilizer company blends silicon and nitrogen to produce two types of fertilizers. Fertilizer 1 must be at least 40% nitrogen and sells for $70 per pound. Fertilizer 2 must be at least 70% silicon...
See AnswerQ: A chemical manufacturer uses chemicals 1 and 2 to produce two drugs
A chemical manufacturer uses chemicals 1 and 2 to produce two drugs. Drug 1 must be at least 80% chemical 1, and drug 2 must be at least 50% chemical 2. Up to 70,000 ounces of drug 1 can be sold at $4...
See AnswerQ: Hiland’s Appliances stocks laptops, TVs, refrigerators, microwave ovens,
Hiland’s Appliances stocks laptops, TVs, refrigerators, microwave ovens, and ranges. These products compete for floor space, tie up different amounts of capital, and have different profit margins. The...
See AnswerQ: Many Wall Street firms use LP models to select a desirable bond
Many Wall Street firms use LP models to select a desirable bond portfolio. The following is a simplified version of such a model. Solodrex is considering investing in four bonds; $1 million is availa...
See AnswerQ: A coal company produces coal at three mines and ships it to
A coal company produces coal at three mines and ships it to four customers. The cost per ton of producing coal, the ash and sulfur content (per ton) of the coal, and the production capacity (in tons)...
See AnswerQ: A furniture company manufactures tables and chairs. A table requires 45
A furniture company manufactures tables and chairs. A table requires 45 board-feet of wood, and a chair requires 20 board-feet of wood. Wood can be purchased at a cost of $1.90 per board-foot, and 25,...
See AnswerQ: The XNPV function can calculate NPV for any (possibly irregular)
The XNPV function can calculate NPV for any (possibly irregular) series of cash flows. Look this function up in Excel’s online help. Then use it to develop a spreadsheet model that finds the NPV of th...
See AnswerQ: A chemical company produces three products, A, B, and
A chemical company produces three products, A, B, and C, and can sell these products in unlimited quantities at the following unit prices: A, $10; B, $55; and C, $100. Producing a unit of A requires o...
See AnswerQ: Suppose there are three objectives, not just two: the total
Suppose there are three objectives, not just two: the total advertising cost, the total number of excess exposures to men, and the total number of excess exposures to women. Continuing the approach su...
See AnswerQ: Abotte Products produces three products, A, B, and C
Abotte Products produces three products, A, B, and C. The company can sell up to 500 pounds of each product at the following prices (per pound): product A, $10; product B, $15; and product C, $25. Abo...
See AnswerQ: An investor has $100,000 to invest right now (
An investor has $100,000 to invest right now (the beginning of year 1). The cash flows associated with five available investments are listed in the file. For example, every dollar invested in A in yea...
See AnswerQ: At the beginning of year 1, you have $100,
At the beginning of year 1, you have $100,000. Investments A and B are available; their cash flows are shown in the file. Assume that any money not invested in A or B earns interest at an annual rate...
See AnswerQ: You now have $10,000, and the following investment
You now have $10,000, and the following investment plans are available to you during the next three years: ■ Investment A: Every dollar invested now yields $0.10 a year from now and $1.30 three years...
See AnswerQ: An oil company processes oil into aviation fuel and heating oil.
An oil company processes oil into aviation fuel and heating oil. It costs $55,000 to purchase each 1000 barrels of oil, which is then distilled and yields 450 barrels of aviation fuel and 550 barrels...
See AnswerQ: All steel manufactured by Allied Steel must meet the following requirements:
All steel manufactured by Allied Steel must meet the following requirements: between 3.2% and 3.5% carbon; between 1.8% and 2.5% silicon; between 0.9% and 1.2% nickel; tensile strength of at least 45,...
See AnswerQ: United Steel manufactures two types of steel at three different steel mills
United Steel manufactures two types of steel at three different steel mills. During a given month, each steel mill has 240 hours of blast furnace time available. Because of differences in the furnaces...
See AnswerQ: Based on Heady and Egbert (1964). Walnut Orchard has two
Based on Heady and Egbert (1964). Walnut Orchard has two farms that grow wheat and corn. Because of differing soil conditions, there are differences in the yields and costs of growing crops on the two...
See AnswerQ: Continuing the previous problem, use Goal Seek for each value of
Continuing the previous problem, use Goal Seek for each value of number mailed (once for 80,000, once for 90,000, and so on). For each, find the response rate that allows the company to break even. Th...
See AnswerQ: Julie James is opening a lemonade stand. She believes the fixed
Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand is $50.00. Her best guess is that she can sell 300 cups per week at $0.50 per cup. The variable cost...
See AnswerQ: Candy Kane Cosmetics (CKC) produces Leslie Perfume, which requires
Candy Kane Cosmetics (CKC) produces Leslie Perfume, which requires chemicals and labor. Two production processes are available. Process 1 transforms 0.3 unit of labor and 0.4 unit of chemicals into an...
See AnswerQ: Federated Oil has refineries in Los Angeles and Chicago. The Los
Federated Oil has refineries in Los Angeles and Chicago. The Los Angeles refinery can refine up to two million barrels of oil per year, and the Chicago refinery up to three million. After the oil is r...
See AnswerQ: Modify the employee scheduling model so that employees are paid $10
Modify the employee scheduling model so that employees are paid $10 per hour on weekdays and $15 per hour on weekends. Change the objective so that you now minimize the weekly payroll. (You can assume...
See AnswerQ: A feed company produces two types of cattle feed, both consisting
A feed company produces two types of cattle feed, both consisting totally of wheat and alfalfa. Feed 1 must contain at least 75% wheat, and feed 2 must contain at least 65% alfalfa. Feed 1 sells for $...
See AnswerQ: Carrington Oil produces gas 1 and gas 2 from two types of
Carrington Oil produces gas 1 and gas 2 from two types of crude oil: crude 1 and crude 2. Gas 1 is allowed to contain up to 4% impurities, and gas 2 is allowed to contain up to 3% impurities. Gas 1 se...
See AnswerQ: Based on Thomas (1971). A toy company produces toys at
Based on Thomas (1971). A toy company produces toys at two plants and sells them in three regions. The current demands at these regions are given in the file. Each plant can produce up to 4500 units....
See AnswerQ: A company produces two products: A and B. Product A
A company produces two products: A and B. Product A sells for $11 per unit and product B sells for $23 per unit. Producing a unit of product A requires two hours on assembly line 1 and one unit of raw...
See AnswerQ: A bank needs exactly two employees working each hour from 9 a
A bank needs exactly two employees working each hour from 9 a.m. to 5 p.m. Workers can work the shifts and are paid the wages listed in the file. For example, a worker working 9 a.m. to 2 p.m. is paid...
See AnswerQ: Based on Gaballa and Pearce (1979). Northwest Airlines has determined
Based on Gaballa and Pearce (1979). Northwest Airlines has determined that it needs the number of ticket agents during each hour of the day listed in the file. Workers work nine-hour shifts, one hour...
See AnswerQ: A rock company uses five types of rocks to fill six orders
A rock company uses five types of rocks to fill six orders. The phosphate content, availability of each type of rock, and the production cost per pound for each rock are listed in the file, as well as...
See AnswerQ: You are thinking of opening a Broadway play, I Love You
You are thinking of opening a Broadway play, I Love You, You’re Mediocre, Now Get Better! It will cost $5 million to develop the show. There are 8 shows per week, and you project the show will run for...
See AnswerQ: An automobile manufacturer needs to plan its production for the next year
An automobile manufacturer needs to plan its production for the next year. Demands for the next 12 months are forecasted to be 940, 790, 360, 720, 270, 130, 160, 300, 990, 290, 280, and 790. Other rel...
See AnswerQ: An oil company produces gasoline from five inputs. The cost,
An oil company produces gasoline from five inputs. The cost, density, viscosity, and sulfur content, and the number of barrels available of each input are listed in the file. Gasoline sells for $75 pe...
See AnswerQ: The HiTech company produces Blu-Ray disc players. Estimated demands
The HiTech company produces Blu-Ray disc players. Estimated demands for the next four quarters are 5000, 10,000, 8000, and 2000. At the beginning of quarter 1, HiTech has 60 workers. It costs $2000 to...
See AnswerQ: How much influence can the employee requirements for one, two,
How much influence can the employee requirements for one, two, or three days have on the weekly schedule in the employee scheduling example? Explore this in the following questions: a. Let Monday’s re...
See AnswerQ: During the next two months an automobile manufacturer must meet (on
During the next two months an automobile manufacturer must meet (on time) the following demands for trucks and cars: month 1, 400 trucks and 800 cars; month 2, 300 trucks and 300 cars. During each mon...
See AnswerQ: You want to take out a $450,000 loan on
You want to take out a $450,000 loan on a 20-year mortgage with end-of-month payments. The annual rate of interest is 3%. Twenty years from now, you will need to make a $50,000 ending balloon payment....
See AnswerQ: A graduated payment mortgage (GPM) enables the borrower to have
A graduated payment mortgage (GPM) enables the borrower to have lower payments earlier in the mortgage and increased payments later on. The assumption is the borrower’s income will increase over time...
See AnswerQ: Suppose you are planning for retirement. At the beginning of this
Suppose you are planning for retirement. At the beginning of this year and each of the next 39 years, you plan to contribute some money to your retirement fund. Each year, you plan to increase your re...
See AnswerQ: Based on Brams and Taylor (2000). Suppose that Eli Lilly
Based on Brams and Taylor (2000). Suppose that Eli Lilly and Pfizer are going to merge. Merger negotiations must settle the following issues: ■ What will the name of the merged corporation be?\ ■ Will...
See AnswerQ: AdminaStar processes Medicare claims. At the beginning of month 1 they
AdminaStar processes Medicare claims. At the beginning of month 1 they have a backlog of 40,000 difficult claims and 60,000 easy claims. The predicted claim volume for months 1 through 8 is listed in...
See AnswerQ: You are thinking of opening a small copy shop. It costs
You are thinking of opening a small copy shop. It costs $5000 to rent a copier for a year, and it costs $0.03 per copy to operate the copier. Other fixed costs of running the store will amount to $400...
See AnswerQ: Based on Charnes and Cooper (1955). A small company is
Based on Charnes and Cooper (1955). A small company is trying to determine employee salary based on the following attributes: effectiveness, responsibility, initiative, experience, education, self-exp...
See AnswerQ: During the next four quarters, Dorian Auto must meet (on
During the next four quarters, Dorian Auto must meet (on time) the following demands for cars: 4000 in quarter 1; 2000 in quarter 2; 5000 in quarter 3; 1000 in quarter 4. At the beginning of quarter 1...
See AnswerQ: The Internal Revenue Service (IRS) has determined that during each
The Internal Revenue Service (IRS) has determined that during each of the next 12 months it will need the numbers of supercomputers given in the file. To meet these requirements, the IRS rents superco...
See AnswerQ: You own a wheat warehouse with a capacity of 20,000
You own a wheat warehouse with a capacity of 20,000 bushels. At the beginning of month 1, you have 6000 bushels of wheat. Each month, wheat can be bought and sold at the prices per bushel listed in th...
See AnswerQ: In the employee scheduling example, suppose that each full-time
In the employee scheduling example, suppose that each full-time employee works eight hours per day. Thus, Monday’s requirement of 17 employees can be viewed as a requirement of 8(17) 5 136 hours. The...
See AnswerQ: You can calculate the risk index of an investment by taking the
You can calculate the risk index of an investment by taking the absolute values of percentage changes in the value of the investment for each year and averaging them. Suppose you are trying to determi...
See AnswerQ: Based on Magoulas and Marinos-Kouris (1988). An oil
Based on Magoulas and Marinos-Kouris (1988). An oil company produces two products: regular and premium gasoline. Each product contains 0.15 gram of lead per liter. The two products are produced from t...
See AnswerQ: Capsule Drugs manufactures two drugs. The drugs are produced by blending
Capsule Drugs manufactures two drugs. The drugs are produced by blending two chemicals. By weight, drug 1 must contain at least 75% chemical 1, and drug 2 must contain at least 45% chemical 1. Drug 1...
See AnswerQ: Molecular Products produces three chemicals: B, C, and D
Molecular Products produces three chemicals: B, C, and D. The company begins by purchasing chemical A for a cost of $650 per 100 liters. For an additional cost of $320 and the use of three hours of sk...
See AnswerQ: Bexter Labs produces three products: A, B, and C
Bexter Labs produces three products: A, B, and C. Bexter can sell up to 2000 units of product A, up to 3000 units of product B, and up to 5000 units of product C. Each unit of product C uses two units...
See AnswerQ: Georgia McBeal is trying to save for her retirement. She believes
Georgia McBeal is trying to save for her retirement. She believes she can earn 10% on average each year on her retirement fund. Assume that at the beginning of each of the next 40 years, Georgia will...
See AnswerQ: Mondo Motorcycles is determining its production schedule for the next four quarters
Mondo Motorcycles is determining its production schedule for the next four quarters. Demands for motorcycles are forecasted to be 400 in quarter 1; 700 in quarter 2; 500 in quarter 3; and 200 in quart...
See AnswerQ: An automobile manufacturing company has a $500,000 advertising budget
An automobile manufacturing company has a $500,000 advertising budget. To increase its automobile sales, the company is considering advertising in newspapers and on television. The more the company us...
See AnswerQ: Broker Sonya Wong is currently trying to maximize her profit in the
Broker Sonya Wong is currently trying to maximize her profit in the bond market. Four bonds are available for purchase and sale at the bid and ask prices shown in the file P04_97.xlsx. Sonya can buy u...
See AnswerQ: Budget Auto produces inexpensive cars. Each car is sold for $
Budget Auto produces inexpensive cars. Each car is sold for $12,500. The raw material in a car costs $8000. Labor time and robot time are needed to produce cars. A worker can do the needed labor on, a...
See AnswerQ: In the original Grand Prix example, the total capacity of the
In the original Grand Prix example, the total capacity of the three plants is 1550, well above the total customer demand. Would it help to have 100 more units of capacity at plant 1? What is the most...
See AnswerQ: One possible solution method for the machine-to job assignment problem
One possible solution method for the machine-to job assignment problem is the following heuristic procedure. Assign the machine to job 1 that completes job 1 quickest. Then assign the machine to job 2...
See AnswerQ: Modify the machine-to-job assignment model under the assumption
Modify the machine-to-job assignment model under the assumption that only three of the four jobs must be completed. In other words, one of the four jobs does not have to be assigned to any machine. Wh...
See AnswerQ: In the machine-to-job assignment problem, the current
In the machine-to-job assignment problem, the current capacities of the machines are 1, 2, 1, 2, and 1. If you could increase one of these capacities by 1, which would you increase? Why?
See AnswerQ: Modify the bus route assignment model, assuming that company 1 decides
Modify the bus route assignment model, assuming that company 1 decides to place bids on routes 7 and 8 (in addition to its current bids on other routes). The bids on these two routes are $5200 and $33...
See AnswerQ: We modeled the bus route assignment problem with the alternative form of
We modeled the bus route assignment problem with the alternative form of the transportation model (as in Figure 5.8). Model it instead with the standard form. Discuss the pros and cons of these two ap...
See AnswerQ: A European call option on a stock earns the owner an amount
A European call option on a stock earns the owner an amount equal to the price at expiration minus the exercise price, if the price of the stock on which the call is written exceeds the exercise price...
See AnswerQ: In the optimal solution to the machine-to-job assignment
In the optimal solution to the machine-to-job assignment problem, jobs 1 and 2 are both assigned to machine 4. Suppose there is an extra restriction that jobs 1 and 2 must be assigned to different mac...
See AnswerQ: In the optimal solution to the machine-to-job assignment
In the optimal solution to the machine-to-job assignment problem, jobs 3 and 4 are assigned to different machines. Suppose there is an extra restriction that these jobs must be assigned to the same ma...
See AnswerQ: In the optimal solution to the bus route assignment problem, company
In the optimal solution to the bus route assignment problem, company 2 is assigned to bus routes 6 and 7. Suppose these two routes are far enough apart that it is infeasible for one company to service...
See AnswerQ: When we (the authors) originally developed the bus route assignment
When we (the authors) originally developed the bus route assignment model, we included an arc capacity constraint: Flow # 1. After giving this further thought, we deleted this constraint as being redu...
See AnswerQ: Modify the original RedBrand problem so that all flows must be from
Modify the original RedBrand problem so that all flows must be from plants to warehouses and from warehouses to customers. Disallow all other arcs. How much does this restriction cost RedBrand, relati...
See AnswerQ: The optimal solution to the original Grand Prix problem indicates that with
The optimal solution to the original Grand Prix problem indicates that with a unit shipping cost of $132, the route from plant 3 to region 2 is evidently too expensive—no autos are shipped along this...
See AnswerQ: In the original RedBrand problem, suppose the plants cannot ship to
In the original RedBrand problem, suppose the plants cannot ship to each other and the customers cannot ship to each other. Modify the model appropriately and reoptimize. How much does the total cost...
See AnswerQ: In the original RedBrand problem, the costs for shipping from plants
In the original RedBrand problem, the costs for shipping from plants or warehouses to customer 2 were purposely made high so that it would be optimal to ship to customer 1 and then let customer 1 ship...
See AnswerQ: In the original RedBrand problem, we assume a constant arc capacity
In the original RedBrand problem, we assume a constant arc capacity, the same for all allowable arcs. Modify the model so that each arc has its own arc capacity. You can make up the required arc capac...
See AnswerQ: Continuing the previous problem, make the problem even more general by
Continuing the previous problem, make the problem even more general by allowing upper bounds (arc capacities) and lower bounds for the flows on the allowable arcs. Some of the upper bounds can be very...
See AnswerQ: Repeat parts a–d of the problem 24 for a six
Repeat parts a–d of the problem 24 for a six-month European put option with exercise price $40. Again, assume a current stock price of $35, a risk-free rate of 5%, and an annual volatility of 40%. Da...
See AnswerQ: Expand the RedBrand two-product spreadsheet model so that there are
Expand the RedBrand two-product spreadsheet model so that there are now three products competing for the arc capacity. You can make up the required input data.
See AnswerQ: In the RedBrand two-product problem, we assumed that the
In the RedBrand two-product problem, we assumed that the unit shipping costs are the same for both products. Modify the spreadsheet model so that each product has its own unit shipping costs. You can...
See AnswerQ: How difficult is it to expand the original RedBrand model? Answer
How difficult is it to expand the original RedBrand model? Answer this by adding a new plant, two new warehouses, and three new customers, and modify the spreadsheet model appropriately. You can make...
See AnswerQ: In the RedBrand problem with shrinkage, change the assumptions. Now
In the RedBrand problem with shrinkage, change the assumptions. Now instead of assuming that there is some shrinkage at the warehouses, assume that there is shrinkage in delivery along each route. Spe...
See AnswerQ: Consider a modification of the original RedBrand problem where there are N
Consider a modification of the original RedBrand problem where there are N plants, M warehouses, and L customers. Assume that the only allowable arcs are from plants to warehouses and from warehouses...
See AnswerQ: Continuing the previous problem, develop and optimize a sample model with
Continuing the previous problem, develop and optimize a sample model with your own choices of N, M, and L that barely stay within Solver’s limit. You can make up any input data. The important point he...
See AnswerQ: Suppose in the original Grand Prix example that the routes from plant
Suppose in the original Grand Prix example that the routes from plant 2 to region 1 and from plant 3 to region 3 are not allowed. (Perhaps there are no railroad lines for these routes.) How would you...
See AnswerQ: In Maude’s shortest path problem, suppose all arcs in the network
In Maude’s shortest path problem, suppose all arcs in the network are double-arrowed, that is, Maude can travel along each arc (with the same distance) in either direction. Modify the spreadsheet mode...
See AnswerQ: In Maude’s shortest path problem, suppose all arcs in the current
In Maude’s shortest path problem, suppose all arcs in the current network from higher-numbered nodes to lower numbered nodes, such as from node 6 to node 5, are disallowed. Modify the spreadsheet mode...
See AnswerQ: Continuing the previous problem, suppose again that all arcs go in
Continuing the previous problem, suppose again that all arcs go in both directions, but suppose Maude’s objective is to find the shortest path from node 1 to node 7 (not node 10). Modify the spreadshe...
See AnswerQ: The file lists sales (in millions of dollars) of Dell
The file lists sales (in millions of dollars) of Dell Computer during the period 1987–1997 (where year 1 corresponds to 1987). a. Fit a power and an exponential trend curve to these data. Which fits t...
See AnswerQ: In the VanBuren machine replacement problem, we assumed that the maintenance
In the VanBuren machine replacement problem, we assumed that the maintenance cost and salvage values are linear functions of age. Suppose instead that the maintenance cost increases by 50% each quarte...
See AnswerQ: How difficult is it to add nodes and arcs to an existing
How difficult is it to add nodes and arcs to an existing shortest path model? Answer by adding a new node, node 11, to Maude’s network. Assume that node 11 is at the top of the network, geographically...
See AnswerQ: In the VanBuren machine replacement problem, the company’s current policy is
In the VanBuren machine replacement problem, the company’s current policy is to keep a machine at least 4 quarters but no more than 12 quarters. Suppose this policy is instead to keep a machine at lea...
See AnswerQ: In the VanBuren machine replacement problem, the company’s current policy is
In the VanBuren machine replacement problem, the company’s current policy is to keep a machine at least four quarters but no more than 12 quarters. Suppose instead that the company imposes no upper li...
See AnswerQ: In the VanBuren machine replacement problem, suppose the company starts with
In the VanBuren machine replacement problem, suppose the company starts with a machine that is eight quarters old at the beginning of the first quarter. Modify the model appropriately, keeping in mind...
See AnswerQ: We illustrated how a machine replacement problem can be modeled as a
We illustrated how a machine replacement problem can be modeled as a shortest path problem. This is probably not the approach most people would think of when they first see a machine replacement probl...
See AnswerQ: In the flight-scheduling model, use SolverTable to examine the
In the flight-scheduling model, use SolverTable to examine the effect of decreasing all net revenues by the same percentage, assuming that the company owns six planes. Let this percentage vary from 0%...
See AnswerQ: In the Grand Prix example with varying tax rates, the optimal
In the Grand Prix example with varying tax rates, the optimal solution more than satisfies customer demands. Modify the model so that regions have not only lower limits on the amounts they require, bu...
See AnswerQ: In the flight-scheduling model, use SolverTable to examine the
In the flight-scheduling model, use SolverTable to examine the effect of increasing both the fixed cost per plane and the overnight cost by the same percentage, assuming that the company owns eight pl...
See AnswerQ: One rather unrealistic assumption in the flight scheduling model is that a
One rather unrealistic assumption in the flight scheduling model is that a given plane can fly two consecutive flights with no downtime. For example, it could fly flight 5903 that gets into Washington...
See AnswerQ: Dataware is trying to determine whether to give a $10 rebate
Dataware is trying to determine whether to give a $10 rebate, cut the price $6, or have no price change on a software product. Currently, 40,000 units of the product are sold each week for $45 apiece....
See AnswerQ: The town of Busville has three school districts. The numbers of
The town of Busville has three school districts. The numbers of black students and white students in each district are shown in the file P05_42.xlsx. The Supreme Court requires the schools in Busville...
See AnswerQ: A truck must travel from New York to Los Angeles. As
A truck must travel from New York to Los Angeles. As shown, several routes are available. The number associated with each arc is the number of gallons of fuel required by the truck to traverse the arc...
See AnswerQ: You are trying to help the MCSCC (Monroe County School Corporation
You are trying to help the MCSCC (Monroe County School Corporation) determine the appropriate high school district for each housing development in Bloomington. For each development, you are given the...
See AnswerQ: A school system has 16 bus drivers that must cover 12 bus
A school system has 16 bus drivers that must cover 12 bus routes. Each driver can cover at most one route. The driver’s bids for the various routes are listed in the file P05_45.xlsx. Each bid indicat...
See AnswerQ: The government is auctioning off oil leases at two sites. At
The government is auctioning off oil leases at two sites. At each site, 150,000 acres of land are to be auctioned. Cliff Ewing, Blake Barnes, and Alexis Pickens are bidding for the oil. Government rul...
See AnswerQ: The 7th National Bank has two check-processing sites. Site
The 7th National Bank has two check-processing sites. Site 1 can process 10,000 checks per day, and site 2 can process 6000 checks per day. The bank processes three types of checks: vendor, salary, an...
See AnswerQ: The Amorco Oil Company controls two oil fields. Field 1 can
The Amorco Oil Company controls two oil fields. Field 1 can produce up to 22 million barrels of oil per day, and field 2 can produce up to 19 million barrels of oil per day. At field 1, it costs $42.5...
See AnswerQ: Touche Young has eight auditors. Each can work up to 160
Touche Young has eight auditors. Each can work up to 160 hours during the next month, during which time six projects must be completed. The hours required for each project and the amounts each auditor...
See AnswerQ: In the Grand Prix example with varying tax rates, the optimal
In the Grand Prix example with varying tax rates, the optimal solution uses all available plant capacity and more than satisfies customer demands. Will this always be the case? Experiment with the uni...
See AnswerQ: Five employees are available to perform four jobs. The time it
Five employees are available to perform four jobs. The time it takes each person to perform each job is given in the file P05_50.xlsx. Determine the assignment of employees to jobs that minimizes the...
See AnswerQ: The file gives the annual sales for Microsoft (in millions of
The file gives the annual sales for Microsoft (in millions of dollars) for the years 1984–1993, where 1984 = year 1. a. Fit an exponential curve to these data. b. Assuming you are back in 1993, by wha...
See AnswerQ: Based on Machol (1970). A swimming coach is putting together
Based on Machol (1970). A swimming coach is putting together a relay team for the 400-meter relay. Each swimmer must swim 100 meters of breaststroke, backstroke, butterfly, or freestyle, and each swim...
See AnswerQ: A company is taking bids on four construction jobs. Three contractors
A company is taking bids on four construction jobs. Three contractors have placed bids on the jobs. Their bids (in thousands of dollars) are given in the file P05_52.xlsx. (A blank indicates that the...
See AnswerQ: A company manufactures widgets at two factories, one in Memphis and
A company manufactures widgets at two factories, one in Memphis and one in Denver. The Memphis factory can produce up to 150 widgets per day, and the Denver factory can produce up to 200 widgets per d...
See AnswerQ: General Ford produces cars in Los Angeles and Detroit and has a
General Ford produces cars in Los Angeles and Detroit and has a warehouse in Atlanta. The company supplies cars to customers in Houston and Tampa. The costs of shipping a car between various points ar...
See AnswerQ: Sunco Oil produces oil at two wells. Well 1 can produce
Sunco Oil produces oil at two wells. Well 1 can produce up to 150,000 barrels per day, and well 2 can produce up to 200,000 barrels per day. It is possible to ship oil directly from the wells to Sunco...
See AnswerQ: Nash Auto has two plants, two warehouses, and three customers
Nash Auto has two plants, two warehouses, and three customers. The plants are in Detroit and Atlanta, the warehouses are in Denver and New York, and the customers are in Los Angeles, Chicago, and Phil...
See AnswerQ: Edsel Motors produces cars in Detroit and Dallas. The Detroit plant
Edsel Motors produces cars in Detroit and Dallas. The Detroit plant can produce up to 8500 cars, and the Dallas plant can produce up to 4000 cars. Producing a car costs $2000 in Detroit and $1800 in D...
See AnswerQ: Each year, Data Corporal produces up to 10,000 computers
Each year, Data Corporal produces up to 10,000 computers in Boston and up to 6000 computers in Charlotte. There are customers in Los Angeles, New York, and Seattle who must receive 5300, 6700, and 330...
See AnswerQ: It costs $300 to buy a lawn mower from a lawn
It costs $300 to buy a lawn mower from a lawn supply store. Assume that you can keep a lawn mower for at most five years and that the estimated maintenance cost each year of operation is as follows: y...
See AnswerQ: Here is a problem to challenge your intuition. In the original
Here is a problem to challenge your intuition. In the original Grand Prix example, reduce the capacity of plant 2 to 300. Then the total capacity is equal to the total demand. Run Solver on this model...
See AnswerQ: Assume that the number of units sold of a product is given
Assume that the number of units sold of a product is given by 100 2 0.5P 1 26√A, where P is the price (in dollars) charged for the product and A is the amount spent on advertising (in thousands of dol...
See AnswerQ: Suppose it costs $30,000 to purchase a new car
Suppose it costs $30,000 to purchase a new car. The annual operating cost and resale value of a used car are shown in the file. Assume that you presently have a new car. Determine a replacement policy...
See AnswerQ: At the beginning of year 1, a new machine must be
At the beginning of year 1, a new machine must be purchased. The cost of maintaining a machine, depending on its age, is given in the file P05_61.xlsx. The cost of purchasing a machine at the beginnin...
See AnswerQ: Delko is considering hiring people for four types of jobs. The
Delko is considering hiring people for four types of jobs. The company would like to hire the number of people listed in the file P05_62.xlsx for each type of job. Delko can hire eight types of people...
See AnswerQ: Powerhouse produces capacitors at three locations: Los Angeles, Chicago,
Powerhouse produces capacitors at three locations: Los Angeles, Chicago, and New York. Capacitors are shipped from these locations to public utilities in five regions of the country: northeast (NE), n...
See AnswerQ: Based on Hansen and Wendell (1982). During the month of
Based on Hansen and Wendell (1982). During the month of July, Pittsburgh resident Bill Fly must make four round-trip flights between Pittsburgh and Chicago. The dates of the trips are shown in the fil...
See AnswerQ: Three professors must be assigned to teach six sections of finance.
Three professors must be assigned to teach six sections of finance. Each professor must teach two sections of finance, and each has ranked the six time periods during which finance is taught, as shown...
See AnswerQ: Based on Denardo et al. (1988). Three fires have
Based on Denardo et al. (1988). Three fires have just broken out in New York. Fires 1 and 2 each require two fire engines, and fire 3 requires three fire engines. The “cost” of responding to each fire...
See AnswerQ: Allied Freight supplies goods to three customers. The company has two
Allied Freight supplies goods to three customers. The company has two warehouses. The warehouse availabilities, the customer requirements, and the unit shipping costs from warehouses to customers are...
See AnswerQ: Referring to the previous problem, suppose that Allied Freight can purchase
Referring to the previous problem, suppose that Allied Freight can purchase and ship extra units to either warehouse for a total cost of $100 per unit and that all customer demand must be met. Determi...
See AnswerQ: Based on Glover and Klingman (1977). The government has many
Based on Glover and Klingman (1977). The government has many computer files that must be merged frequently. For example, consider the Survey of Current Income (SCI) and the Consumer Price Service (CPS...
See AnswerQ: In the Quality Sweaters model, the range E9:E11 does
In the Quality Sweaters model, the range E9:E11 does not have a range name. Open your completed Excel file and name this range Costs. Then look at the formula in cell E12. It does not automatically us...
See AnswerQ: A company manufacturers a product in the United States and sells it
A company manufacturers a product in the United States and sells it in England. The unit cost of manufacturing is $50. The current exchange rate (dollars per pound) is 1.221. The demand function, whic...
See AnswerQ: Continuing the previous problem (with capacity 300 at plant 2),
Continuing the previous problem (with capacity 300 at plant 2), suppose you want to see how much extra capacity and extra demand you can add to plant 1 and region 2 (the same amount to each) before th...
See AnswerQ: There are 15 jobs that must be done by 10 employees.
There are 15 jobs that must be done by 10 employees. Each job must be done by a single employee, and each employee can do at most two jobs. The times (in minutes) for the employees to do the jobs are...
See AnswerQ: Bloomington has two hospitals. Hospital 1 has four ambulances, and
Bloomington has two hospitals. Hospital 1 has four ambulances, and hospital 2 has two ambulances. Ambulance service is deemed adequate if there is only a 10% chance that no ambulance will be available...
See AnswerQ: Assume that before being shipped to Los Angeles or New York,
Assume that before being shipped to Los Angeles or New York, all oil produced at the wells must be refined at either Galveston or Mobile. To refine 1000 barrels of oil costs $5780 at Mobile and $6250...
See AnswerQ: Rework the previous problem under the assumption that Galveston has a refinery
Rework the previous problem under the assumption that Galveston has a refinery capacity of 150,000 barrels per day and Mobile has a refinery capacity of 180,000 barrels per day.
See AnswerQ: Ewing Oil has oil fields in San Diego and Los Angeles.
Ewing Oil has oil fields in San Diego and Los Angeles. The San Diego field can produce up to 500,000 barrels per day, and the Los Angeles field can produce up to 600,000 barrels per day. Oil is sent f...
See AnswerQ: At present, 40,000 long-distance calls must be
At present, 40,000 long-distance calls must be routed from New York to Los Angeles (L.A.), and 30,000 calls must be routed from Philadelphia to L.A. On route to L.A. from Philadelphia or New York, cal...
See AnswerQ: Eight students need to be assigned to four dorm rooms at Faber
Eight students need to be assigned to four dorm rooms at Faber College. Based on incompatibility measurements, the cost incurred for any pair of students rooming together is shown in the file. How sho...
See AnswerQ: Based on Ravindran (1971). A library must build shelving to
Based on Ravindran (1971). A library must build shelving to shelve 200 4-inch-high books, 600 8-inchhigh books, and 500 12-inch-high books. Each book is 0.5 inch thick. The library has several ways to...
See AnswerQ: In the original RedBrand problem, suppose that the company could add
In the original RedBrand problem, suppose that the company could add up to 100 tons of capacity, in increments of 10 tons, to any single plant. Use SolverTable to determine the yearly savings in cost...
See AnswerQ: The yield of a chemical reaction is defined as the ratio (
The yield of a chemical reaction is defined as the ratio (expressed as a percentage) of usable output to the amount of raw material input. Suppose the yield of a chemical reaction depends on the lengt...
See AnswerQ: Based on Jacobs (1954). The Carter Caterer Company must have
Based on Jacobs (1954). The Carter Caterer Company must have the following number of clean napkins available at the beginning of each of the next four days: day 1, 1500; day 2, 1200; day 3, 1800; day...
See AnswerQ: Modify the original Grand Prix example as follows. Increase the demands
Modify the original Grand Prix example as follows. Increase the demands at the regions by 200 each, so that total demand is well above total plant capacity. However, now interpret these “demands” as “...
See AnswerQ: Kellwood, a company that produces a single product, has three
Kellwood, a company that produces a single product, has three plants and four customers. The three plants will produce 6000, 4000, and 5000 units, respectively, during the next time period. Kellwood h...
See AnswerQ: You have put four valuable paintings up for sale. Four customers
You have put four valuable paintings up for sale. Four customers are bidding for the paintings. Customer 1 is willing to buy two paintings, but each other customer is willing to purchase at most one p...
See AnswerQ: You have put four valuable paintings up for sale. Four customers
You have put four valuable paintings up for sale. Four customers are bidding for the paintings. Customer 1 is willing to buy two paintings, but each other customer is willing to purchase at most one p...
See AnswerQ: You want to start a campus business to match compatible male and
You want to start a campus business to match compatible male and female students for dating. How would you use a network model to help you run your business?
See AnswerQ: You have been assigned to ensure that each high school in the
You have been assigned to ensure that each high school in the Indianapolis area is racially balanced. Explain how you would use a network model to help attain this goal.
See AnswerQ: “It is essential to constrain all shipments in a transportation problem
“It is essential to constrain all shipments in a transportation problem to have integer values to ensure that the optimal LP solution consists entirely of integer-valued shipments.” Is this statement...
See AnswerQ: What is the relationship between transportation models and more general logistics models
What is the relationship between transportation models and more general logistics models? Explain how these two types of linear optimization models are similar and how they are different.
See AnswerQ: Unlike the small logistics models presented here, real-world logistics
Unlike the small logistics models presented here, real-world logistics problems can be huge. Imagine the global problem a company like FedEx faces each day. Describe as well as you can the types of de...
See AnswerQ: A bond is currently selling for $1040. It pays the
A bond is currently selling for $1040. It pays the amounts listed in the file at the ends of the next six years. The yield of the bond is the interest rate that would make the NPV of the bond’s paymen...
See AnswerQ: Modify the original Grand Prix example as follows. Increase the demands
Modify the original Grand Prix example as follows. Increase the demands at the regions by 200 each, so that total demand is well above total plant capacity. This means that some demands cannot be supp...
See AnswerQ: In the capital budgeting model in Figure 6.5, we
In the capital budgeting model in Figure 6.5, we supplied the NPV for each investment. Suppose instead that you are given only the streams of cash inflows from each investment. This file also shows th...
See AnswerQ: The models in this chapter are often called combinatorial models because each
The models in this chapter are often called combinatorial models because each solution is a combination of the various 0–1 values, and only a finite number of such combinations exist. For the capital...
See AnswerQ: Telco, a national telemarketing firm, usually picks a number of
Telco, a national telemarketing firm, usually picks a number of sites around the country from which it makes its calls. As a service, AD&D’s telecommunication marketing department wants to help Telco...
See AnswerQ: How difficult is it to expand the Great Threads model to accommodate
How difficult is it to expand the Great Threads model to accommodate another type of clothing? Answer by assuming that the company can also produce sweatshirts. The rental cost for sweatshirt equipmen...
See AnswerQ: Referring to the previous problem, if it is optimal for the
Referring to the previous problem, if it is optimal for the company to produce sweatshirts, use SolverTable to see how much larger the fixed cost of sweatshirt machinery would have to be before the co...
See AnswerQ: In the Great Threads model, we didn’t constrain the production quantities
In the Great Threads model, we didn’t constrain the production quantities in row 16 to be integers, arguing that any fractional values could be safely rounded to integers. See whether this is true. Co...
See AnswerQ: In the optimal solution to the Great Threads model, the labor
In the optimal solution to the Great Threads model, the labor hour and cloth constraints are both binding—the company is using all it has. a. Use SolverTable to see what happens to the optimal solutio...
See AnswerQ: In the optimal solution to the Great Threads model, no pants
In the optimal solution to the Great Threads model, no pants are produced. Suppose Great Threads has an order for 300 pairs of pants that must be produced. Modify the model appropriately and use Solve...
See AnswerQ: In the Dorian production model, the optimal solution calls for the
In the Dorian production model, the optimal solution calls for the minimum number of compact cars and midsize minivans to be produced, but for more than the minimum number of large minivans to be prod...
See AnswerQ: Assume the demand for a company’s drug Wozac during the current year
Assume the demand for a company’s drug Wozac during the current year is 50,000, and assume demand will grow at 5% a year. If the company builds a plant that can produce x units of Wozac per year, it w...
See AnswerQ: As the Dorian production model is currently stated, each vehicle type
As the Dorian production model is currently stated, each vehicle type has a minimum production level; if this type is produced at all, its production quantity must be at least this minimum. Suppose th...
See AnswerQ: The optimal solution to the Dorian production model appears to be sensitive
The optimal solution to the Dorian production model appears to be sensitive to the model inputs. For each of the following inputs, create a one-way Solver Table that captures all decision variable cel...
See AnswerQ: If Solver could handle IF functions correctly, how would you use
If Solver could handle IF functions correctly, how would you use them in the Dorian production example to create an arguably more natural model—without binary variables? Run Solver on your modified mo...
See AnswerQ: Solve the problem 1 using the input data in the file P06
Solve the problem 1 using the input data in the file P06_02.xlsx. Data from Problem 1: In the capital budgeting model in Figure 6.5, we supplied the NPV for each investment. Suppose instead that you...
See AnswerQ: In the Great Threads model, we found an upper bound on
In the Great Threads model, we found an upper bound on production of any clothing type by calculating the amount that could be produced if all of the resources were devoted to this clothing type. a. W...
See AnswerQ: In the last sheet of the file Fixed Cost Manufacturing Finished.
In the last sheet of the file Fixed Cost Manufacturing Finished.xlsx, we illustrated one way to model the Great Threads problem with IF functions that didn’t work. Try a slightly different approach he...
See AnswerQ: In the Dorian production model, suppose that the production quantity of
In the Dorian production model, suppose that the production quantity of compact cars must either be less than or equal to 100 (a small batch) or greater than or equal to 1000 (a large batch). The same...
See AnswerQ: Suppose in the Dorian production model that no minimum production limits are
Suppose in the Dorian production model that no minimum production limits are placed on the individual vehicle types. However, minimum production limits are placed on all cars and on all minivans. Spec...
See AnswerQ: In the original Western set-covering model, we used the
In the original Western set-covering model, we used the number of hubs as the objective to minimize. Suppose instead that there is a fixed cost of locating a hub in any city, where these fixed costs c...
See AnswerQ: In the original Western set-covering model, we assumed that
In the original Western set-covering model, we assumed that each city must be covered by at least one hub. Suppose that for added flexibility in flight routing, Western requires that each city must be...
See AnswerQ: Consider a project with the following cash flows: year 1,
Consider a project with the following cash flows: year 1, 2$400; year 2, $200; year 3, $600; year 4, 2$900; year 5, $1000; year 6, $250; year 7, $230. Assume a discount rate of 15% per year. a. Find t...
See AnswerQ: Set-covering models such as the original Western model often have
Set-covering models such as the original Western model often have multiple optimal solutions. See how many alternative optimal solutions you can find. Of course, each must use three hubs because this...
See AnswerQ: How hard is it to expand a set-covering model to
How hard is it to expand a set-covering model to accommodate new cities? Answer this by modifying the model. Add several cities that must be served: Memphis, Dallas, Tucson, Philadelphia, Cleveland, a...
See AnswerQ: In the United Copiers service center model, we assumed that the
In the United Copiers service center model, we assumed that the potential locations of service centers are the same as existing customer locations. Change the model so that the customer locations are...
See AnswerQ: In the United Copiers service center model, we used total distance
In the United Copiers service center model, we used total distance traveled as the objective to minimize. Suppose in addition that there is an annual fixed cost of locating a service center in any cit...
See AnswerQ: Solve Problem 1 with the extra assumption that the investments can be
Solve Problem 1 with the extra assumption that the investments can be grouped naturally as follows: 1–4, 5–8, 9–12, 13–16, and 17–20. a. Find the optimal investments when at most one investment from e...
See AnswerQ: In the Green Grass shipping model, we assumed that certain inputs
In the Green Grass shipping model, we assumed that certain inputs are the same for all plants or plant–customer combinations. Change this so that the unit production cost, the monthly fixed cost, and...
See AnswerQ: In the optimal solution to the Green Grass shipping model, the
In the optimal solution to the Green Grass shipping model, the Miami customer’s order is not satisfied. Suppose that Green Grass decides, as a matter of policy, to satisfy each customer’s order (at th...
See AnswerQ: In the Green Grass shipping model, use SolverTable to perform a
In the Green Grass shipping model, use SolverTable to perform a sensitivity analysis on the fixed cost of opening a plant, letting it vary over some reasonable range that extends below and above the c...
See AnswerQ: In the United Copiers service center model, we assumed that a
In the United Copiers service center model, we assumed that a customer is serviced totally by a single service center. Suppose a customer can be serviced partly by multiple service centers. For exampl...
See AnswerQ: In the Green Grass shipping model, we assumed that the plants
In the Green Grass shipping model, we assumed that the plants are already built, so that in each month, the only decision is whether to open particular plants (at a monthly fixed cost). Consider inste...
See AnswerQ: A software company is considering translating its program into French. Each
A software company is considering translating its program into French. Each unit of the program sells for $50 and incurs a variable cost of $10 to produce. Currently, the size of the market for the pr...
See AnswerQ: In the Green Grass shipping model, we currently assume that if
In the Green Grass shipping model, we currently assume that if a customer’s order is satisfied, it must be satisfied from a single plant. Suppose instead that it can be satisfied from more than one pl...
See AnswerQ: In the cutting stock example, we minimized the total number of
In the cutting stock example, we minimized the total number of rolls cut. Do you get the same solution if you minimize the total inches of waste? Solve the problem with this objective.
See AnswerQ: A company sells 3-foot, 5-foot, and
A company sells 3-foot, 5-foot, and 9-foot pieces of lumber. The company’s customers demand 25 3-foot boards, 20 5-foot boards, and 15 9-foot boards. The company meets its demands by cutting up 17-foo...
See AnswerQ: The Mayfree Appliance Company requires sheet metal for its appliances. The
The Mayfree Appliance Company requires sheet metal for its appliances. The company can purchase long coils of sheet metal in two different widths: 65 inches and 40 inches. The company must purchase th...
See AnswerQ: Four projects are available for investment. The projects require the cash
Four projects are available for investment. The projects require the cash flows and yield the net present values (in millions) shown in the file. If $6 million is available now for investment, find th...
See AnswerQ: Solve the following modifications of the capital budgeting model. a
Solve the following modifications of the capital budgeting model. a. Suppose that at most two of projects 3, 5, and 6 can be selected. b. Suppose that if investment 5 is selected, then investment 1 mu...
See AnswerQ: You are given a group of possible investment projects for your company’s
You are given a group of possible investment projects for your company’s capital. For each project, you are given the NPV the project would add to the firm, as well as the cash outflow required by eac...
See AnswerQ: You are moving from New Jersey to Indiana and have rented a
You are moving from New Jersey to Indiana and have rented a truck that can haul up to 1100 cubic feet of furniture. The volume and value of each item you are considering moving on the truck. Which ite...
See AnswerQ: NASA must determine how many of three types of objects to bring
NASA must determine how many of three types of objects to bring on board the space shuttle. The weight and benefit of each of the items. If the space shuttle can carry up to 2000 pounds of items 1 thr...
See AnswerQ: Coach Night is trying to choose the starting lineup for the basketball
Coach Night is trying to choose the starting lineup for the basketball team. The team consists of seven players who have been rated on a scale of 1 (poor) to 3 (excellent) according to their ball hand...
See AnswerQ: The payback of a project is the number of years it takes
The payback of a project is the number of years it takes before the project’s total cash flow is positive. Payback ignores the time value of money. It is interesting, however, to see how differing ass...
See AnswerQ: To graduate from Southeastern University with a major in operations research (
To graduate from Southeastern University with a major in operations research (OR), a student must complete at least three math courses, at least three OR courses, and at least two computer courses. So...
See AnswerQ: Based on Bean et al. (1987). Boris Milkem’s firm
Based on Bean et al. (1987). Boris Milkem’s firm owns six assets. The expected selling price (in millions of dollars) for each asset is given in the file. For example, if asset 1 is sold in year 2, th...
See AnswerQ: The Cubs are trying to determine which of the following free-
The Cubs are trying to determine which of the following free-agent pitchers should be signed: Rick Sutcliffe (RS), Bruce Sutter (BS), Dennis Eckersley (DE), Steve Trout (ST), or Tim Stoddard (TS). (Fe...
See AnswerQ: Based on Sonderman and Abrahamson (1985). In treating a brain
Based on Sonderman and Abrahamson (1985). In treating a brain tumor with radiation, physicians want the maximum amount of radiation possible to bombard the tissue containing the tumors. The constraint...
See AnswerQ: Because of excessive pollution on the Momiss River, the state of
Because of excessive pollution on the Momiss River, the state of Momiss is going to build some pollution control stations. Three sites are under consideration. Momiss is interested in controlling the...
See AnswerQ: A manufacturer can sell product 1 at a profit of $20
A manufacturer can sell product 1 at a profit of $20 per unit and product 2 at a profit of $40 per unit. Three units of raw material are needed to manufacture one unit of product 1, and six units of r...
See AnswerQ: In the capital budgeting model, investment 4 is tied for the
In the capital budgeting model, investment 4 is tied for the largest ROI, but it is not selected in the optimal solution. How much NPV will be lost if Tatham is forced to select investment 4? Answer b...
See AnswerQ: A company is considering opening warehouses in four cities: New York
A company is considering opening warehouses in four cities: New York, Los Angeles, Chicago, and Atlanta. Each warehouse can ship 15,000 units per week. The weekly fixed cost of keeping each warehouse...
See AnswerQ: The TightBond company produces three types of glue on two different production
The TightBond company produces three types of glue on two different production lines. Each line can be used by up to 20 workers at a time. Workers are paid $500 per week on production line 1 and $900...
See AnswerQ: Avion Computer produces two types of computers: Pear computers and Apricot
Avion Computer produces two types of computers: Pear computers and Apricot computers. The relevant data are given in the file P06_52.xlsx. The equipment cost is a fixed cost that is incurred if any of...
See AnswerQ: You are entering the widget business. It costs $500,
You are entering the widget business. It costs $500,000, payable in year 1, to develop a prototype. This cost can be depreciated on a straight-line basis during years 1 to 5. Each widget sells for $40...
See AnswerQ: A product can be produced on four different machines. Each machine
A product can be produced on four different machines. Each machine has a fixed setup cost, variable production cost per unit processed, and a production capacity, given in the file P06_53.xlsx. A tota...
See AnswerQ: Consider the Pigskin example. Find Pigskin’s optimal production policy if,
Consider the Pigskin example. Find Pigskin’s optimal production policy if, in addition to the given production and holding costs, there is a fixed cost of $50,000 during any month in which there is po...
See AnswerQ: McPherson Publishers is considering publishing five textbooks. The maximum number of
McPherson Publishers is considering publishing five textbooks. The maximum number of copies of each textbook that can be sold, the variable cost of producing each textbook, the selling price of each t...
See AnswerQ: Toshovo Computer owns four production plants at which computer workstations are produced
Toshovo Computer owns four production plants at which computer workstations are produced. The company can sell up to 40,000 computers per year at a price of $1500 per computer. For each plant, the pro...
See AnswerQ: Eastinghouse sells air conditioners. The annual demand for air conditioners in
Eastinghouse sells air conditioners. The annual demand for air conditioners in each region of the country is as follows: East, 100,000; South, 150,000; Midwest, 110,000; and West, 90,000. Eastinghouse...
See AnswerQ: During the next five periods, the demands listed in the file
During the next five periods, the demands listed in the file must be met on time. At the beginning of period 1, the inventory level is 0. During each period when production occurs, a setup cost of $10...
See AnswerQ: At a machine tool plant, five jobs must be completed each
At a machine tool plant, five jobs must be completed each day. The time it takes to do each job depends on the machine used to do the job. If a machine is used at all, a setup time is required. The re...
See AnswerQ: As it currently stands, investment 7 in the capital budgeting model
As it currently stands, investment 7 in the capital budgeting model has the lowest ROI. Keeping this same ROI, can you change the cash requirement and NPV for investment 7 so that it is selected in th...
See AnswerQ: Ford has four automobile plants. Each is capable of producing the
Ford has four automobile plants. Each is capable of producing the Focus, Mustang, or Taurus, but it can produce only one of these cars. The fixed cost of operating each plant for a year and the variab...
See AnswerQ: Bertallo Classic produces tomato sauce at five different plants. The tomato
Bertallo Classic produces tomato sauce at five different plants. The tomato sauce is then shipped to one of three warehouses, where it is stored until it is shipped to one of the company’s four custom...
See AnswerQ: Suppose you are borrowing $25,000 and making monthly payments
Suppose you are borrowing $25,000 and making monthly payments with 1% interest. Show that the monthly payments should equal $556.11. The key relationships are that for any month t (Ending month t bala...
See AnswerQ: Eight jobs need to be completed. Each job can be completed
Eight jobs need to be completed. Each job can be completed on any of six machines, and each machine can complete any number of jobs. If a machine is assigned to at least one job, the setup time listed...
See AnswerQ: Based on Walker (1974). The Smalltown Fire Department currently has
Based on Walker (1974). The Smalltown Fire Department currently has seven conventional ladder companies and seven alarm boxes. The two closest ladder companies to each alarm box are listed in the file...
See AnswerQ: State University must purchase 1200 computers from three vendors. Vendor 1
State University must purchase 1200 computers from three vendors. Vendor 1 charges $250 per computer plus a total delivery charge of $5000. Vendor 2 charges $300 per computer plus a total delivery cha...
See AnswerQ: At Blair General Hospital, six types of surgical operations are performed
At Blair General Hospital, six types of surgical operations are performed. The types of operations each surgeon is qualified to perform (indicated by an X) are listed in the file P06_65.xlsx. Suppose...
See AnswerQ: Spencer Electric ships 17,000 capacitors per month to its customers
Spencer Electric ships 17,000 capacitors per month to its customers. The capacitors can be produced at three different plants. The production capacity, fixed monthly cost of operation, and variable co...
See AnswerQ: Based on Liggett (1973). A court decision has stated that
Based on Liggett (1973). A court decision has stated that the enrollment of each high school in Metropolis must be at least 20% black. The numbers of black students and white students in each of the c...
See AnswerQ: Based on Westerberg, Bjorklund, and Hultman (1977). Newcor’s
Based on Westerberg, Bjorklund, and Hultman (1977). Newcor’s steel mill has received an order for 25 tons of steel. The steel must be 5% carbon and 6% molybdenum by weight. The steel is manufactured b...
See AnswerQ: Based on Boykin (1985). Thompson Chemicals produces 359 million pounds
Based on Boykin (1985). Thompson Chemicals produces 359 million pounds of the chemical maleic anhydride annually. A total of four reactors are available to produce maleic anhydride. Each reactor can b...
See AnswerQ: Change the capital budgeting model so that 80% of each cost
Change the capital budgeting model so that 80% of each cost in row 5 is incurred right now, at the beginning of year 1, and the other 20% is incurred a year from now, at the beginning of year 2. You c...
See AnswerQ: Based on Zangwill (1992). Murray Manufacturing runs a day shift
Based on Zangwill (1992). Murray Manufacturing runs a day shift and a night shift. Regardless of the number of units produced, the only production cost during a shift is a setup cost. It costs $8000 t...
See AnswerQ: You are thinking of starting Peaco, which will produce Peakbabies,
You are thinking of starting Peaco, which will produce Peakbabies, a product that competeswith Ty’s Beanie Babies. In year 0 (right now), you will incur costs of $4 million to build a plant. In year 1...
See AnswerQ: Based on Fitzsimmons and Allen (1983). The State of Texas
Based on Fitzsimmons and Allen (1983). The State of Texas frequently audits companies doing business in Texas. Because these companies often have headquarters located outside the state, auditors must...
See AnswerQ: Suppose you own 15 bronze coins worth a total of $150
Suppose you own 15 bronze coins worth a total of $150, 12 silver coins worth a total of $160, and 8 gold coins worth a total of $170. Develop a linear integer model to find a combination of coins wort...
See AnswerQ: Cousin Bruzie of radio station WABC schedules radio commercials in 60-
Cousin Bruzie of radio station WABC schedules radio commercials in 60-second blocks. This hour, the station has sold time for commercials of 15, 16, 20, 25, 30, 35, 40, and 50 seconds. Determine the m...
See AnswerQ: Based on Bean et al. (1988). Simon’s Mall has
Based on Bean et al. (1988). Simon’s Mall has 9000 square feet of space to rent and wants to determine the types of stores that should occupy the mall. The minimum number and maximum number of each ty...
See AnswerQ: Indiana University’s Business School has two rooms that seat 50 students,
Indiana University’s Business School has two rooms that seat 50 students, one room that seats 100 students, and one room that seats 150 students. Classes are held five hours a day. At present, the fou...
See AnswerQ: Based on Efroymson and Ray (1966). Stonecutters is a new
Based on Efroymson and Ray (1966). Stonecutters is a new bakery chain that sells bread to customers throughout the state of Indiana. Stonecutters is considering building bakeries in three locations: E...
See AnswerQ: On Monday morning, you have $5000 in cash on hand
On Monday morning, you have $5000 in cash on hand. For the next seven days, the following cash requirements must be met: Monday, $5000; Tuesday, $6000; Wednesday, $9000; Thursday, $2000; Friday, $7000...
See AnswerQ: Based on Eaton et al. The city of Springfield has been
Based on Eaton et al. The city of Springfield has been divided into eight districts. The time (in minutes) it takes an ambulance to travel from one district to another is shown in the file. This file...
See AnswerQ: Arthur Ross, Inc., must complete many corporate tax returns during
Arthur Ross, Inc., must complete many corporate tax returns during the period February 15 to April 15. This year, the company must begin and complete the five jobs shown in the file P06_79.xlsx during...
See AnswerQ: Expand and then solve the capital budgeting model so that 20 investments
Expand and then solve the capital budgeting model so that 20 investments are now possible. You can make up the data on cash requirements, NPVs, and the budget, but use the following guidelines: ■ The...
See AnswerQ: As the Quality Sweaters problem is now modeled, if all inputs
As the Quality Sweaters problem is now modeled, if all inputs remain fixed except for the number mailed, profit will increase indefinitely as the number mailed increases. This hardly seems realistic—t...
See AnswerQ: Suppose the demand (in thousands) for a toaster is given
Suppose the demand (in thousands) for a toaster is given by 100p22, where p is the price in dollars charged for the toaster. a. If the variable cost of producing a toaster is $10, what price maximizes...
See AnswerQ: Based on Muckstadt and Wilson (1968). PSI believes it will
Based on Muckstadt and Wilson (1968). PSI believes it will need the amounts of generating capacity (in millions of kwh) shown in the file P06_80.xlsx during the next five years. The company has a choi...
See AnswerQ: Newsome Construction is considering erecting three office buildings. The time (
Newsome Construction is considering erecting three office buildings. The time (in years) required to complete each of them and the number of workers required to be on the job at all times are shown in...
See AnswerQ: Four trucks are available to deliver milk to five grocery stores.
Four trucks are available to deliver milk to five grocery stores. The capacity and daily operating cost of each truck are shown in the file P06_82xlsx. The demand of each grocery store can be supplied...
See AnswerQ: A county is going to build two hospitals. There are nine
A county is going to build two hospitals. There are nine cities in which the hospitals can be built. The number of hospital visits per year made by people in each city and the x-y coordinates of each...
See AnswerQ: It is currently the beginning of year 1. Gotham City is
It is currently the beginning of year 1. Gotham City is trying to sell municipal bonds to support improvements in recreational facilities and highways. The face values of the bonds and the due dates a...
See AnswerQ: Based on Spencer et al. (1990). When you lease
Based on Spencer et al. (1990). When you lease 800 phone numbers from AT&T for telemarketing, AT&T uses an optimization model to tell you where you should locate calling centers to minimize your opera...
See AnswerQ: State University is scheduling 24 sections of a large computer skills course
State University is scheduling 24 sections of a large computer skills course in the Fall semester. There are eight time slots for these sections, four on Monday/ Wednesday (MW) and four on Tuesday/Thu...
See AnswerQ: Hoosier Power needs to determine a capacity expansion plan to meet Bloomington’s
Hoosier Power needs to determine a capacity expansion plan to meet Bloomington’s power needs for the next 20 years. The current capacity is 5000 kwh. The demand for the current year is 4000 kwh, and d...
See AnswerQ: Based on Angel et al. (2003). A fertilizer company
Based on Angel et al. (2003). A fertilizer company is trying to determine the cheapest fertilizer mix that provides desired amounts of nutrients. The mix is made by combining the following fertilizers...
See AnswerQ: Sam is in his final year of college and is trying to
Sam is in his final year of college and is trying to schedule his courses for the year. He has narrowed his search to 16 courses, each of which is offered in at least one time slot (out of a possible...
See AnswerQ: The file contains the cumulative number of bits (in trillions)
The file contains the cumulative number of bits (in trillions) of DRAM (a type of computer memory) produced and the price per bit (in thousandths of a cent). a. Fit a power curve that can be used to s...
See AnswerQ: Make up an example, as described, with 20 possible investments
Make up an example, as described, with 20 possible investments. However, do it so the ROIs are in a very tight range, such as from 12% to 13%. Then use Solver to find the optimal solution when the Sol...
See AnswerQ: A medical supply company has customers in eight cities. It is
A medical supply company has customers in eight cities. It is trying to decide how many salespeople it needs to service these customers. Each salesperson needs to be located in one of the eight cities...
See AnswerQ: You are scheduling company interviews at the annual university career fair.
You are scheduling company interviews at the annual university career fair. Five interview rooms are available. Interviews are conducted from 9 a.m. to 5 p.m. Each company wants all of its interviews...
See AnswerQ: The file P06_92.xlsx lists the distances between 21
The file P06_92.xlsx lists the distances between 21 U.S. cities. You want to locate liver transplant centers in a subset of these 21 cities. a. Suppose you plan to build four liver transplant centers...
See AnswerQ: This problem is based on Motorola’s online method for choosing suppliers.
This problem is based on Motorola’s online method for choosing suppliers. Suppose Motorola solicits bids from five suppliers for eight products. The list price for each product and the quantity of eac...
See AnswerQ: Specialty Software is considering 10 projects. The years each project will
Specialty Software is considering 10 projects. The years each project will be developed, the number of programmers needed each year for each project, and the revenue (exclusive of labor costs) from ea...
See AnswerQ: You are moving away from Bloomington and need to load a truck
You are moving away from Bloomington and need to load a truck. The items that will go on the truck must all be packed in boxes. The size (in cubic feet) of each item and each available box are listed...
See AnswerQ: Based on McBride and Zufryden (1988). A company is trying
Based on McBride and Zufryden (1988). A company is trying to determine which of five possible products to include in its product line. The fixed cost of producing each product and the unit profit for...
See AnswerQ: Suppose that you want to divide a state containing 12 cities into
Suppose that you want to divide a state containing 12 cities into five congressional districts. How might you use IP to assign cities to districts?
See AnswerQ: An insurance company has hired you to determine the number of sales
An insurance company has hired you to determine the number of sales divisions into which the country should be divided. Each division will need a president, a vice president, and a divisional staff. T...
See AnswerQ: A large U.S. drug company, Pharmco, has
A large U.S. drug company, Pharmco, has 100 million yen coming due in one year. Currently the yen is worth $0.01. Because the value of the yen in U.S. dollars in one year is unknown, the value of this...
See AnswerQ: Ten different types of brownies are sold. You are thinking of
Ten different types of brownies are sold. You are thinking of developing a new brownie for sale. Brownies are rated on the basis of five qualities: price, chocolate flavor, chewiness, sweetness, and e...
See AnswerQ: Two points on the demand curve were given: a.
Two points on the demand curve were given: a. Suppose three additional points are estimated by Madison: (1) demand of 460 when price is $65, (2) demand of 355 when price is $75, and (3) demand of 275...
See AnswerQ: In the complementary-product pricing model, the SolverTable results in
In the complementary-product pricing model, the SolverTable results in Figure 7.21 indicate that the company can sometimes increase overall profit by selling suits below cost. How far might this behav...
See AnswerQ: In the electricity pricing model, we assumed that the capacity level
In the electricity pricing model, we assumed that the capacity level is a decision variable. Assume now that capacity has already been set at 0.700 million of mWh. (Note that the cost of capacity is n...
See AnswerQ: In the electricity pricing model in Example 7.4, the
In the electricity pricing model in Example 7.4, the demand functions have positive and negative coefficients of prices. The negative coefficients indicate that as the price of a product increases, de...
See AnswerQ: Continuing Problem 6, suppose the company is selling in the United
Continuing Problem 6, suppose the company is selling in the United States, the United Kingdom, and Japan. Assume the unit production cost is $50, and the exchange rates are 1.22 ($/£) and 0.00965 ($/¥...
See AnswerQ: In the complementary-product pricing model in Example 7.3
In the complementary-product pricing model in Example 7.3, we have assumed that the profit per unit from shirts and ties is given. Presumably this is because the prices of these products have already...
See AnswerQ: Continuing the previous problem (the model in part a) one
Continuing the previous problem (the model in part a) one step further, assume that shirts and ties are also complementary. Specifically, assume that each time a shirt is purchased (and is not accompa...
See AnswerQ: In estimating the advertising response function, we indicated that the sum
In estimating the advertising response function, we indicated that the sum of squared prediction errors or RMSE could be used as the objective, and we used RMSE. Try using the sum of squared predictio...
See AnswerQ: The best-fitting advertising response function fits the observed data.
The best-fitting advertising response function fits the observed data. This is because we chose the observed data to fall close to a curve of the form. See what happens when one of the observed points...
See AnswerQ: The file contains a template for a car loan. Specifically,
The file contains a template for a car loan. Specifically, once values are entered in the blue cells, you need to enter formulas in the gray cells to calculate the amount financed, the monthly payment...
See AnswerQ: In judging the fit of the estimated response function, you could
In judging the fit of the estimated response function, you could use MAE (mean absolute error) instead of RMSE. MAE is the average of the absolute prediction errors. a. When you run Solver with MAE as...
See AnswerQ: Starting with the solution to the advertising selection problem, suppose the
Starting with the solution to the advertising selection problem, suppose the company, for whatever reason, cannot place ads on “SportsCenter.” Make the appropriate changes in the model and rerun Solve...
See AnswerQ: One demand function is linear and the other is called a constant
One demand function is linear and the other is called a constant elasticity demand function. Using data tables, show that the price elasticity in the linear demand function is not constant in price, a...
See AnswerQ: The preceding problem indicates how fewer alternatives can cause total cost to
The preceding problem indicates how fewer alternatives can cause total cost to increase. This problem indicates the opposite. Starting with the solution to the advertising selection problem in Example...
See AnswerQ: In the solution to the advertising selection model, we indicated that
In the solution to the advertising selection model, we indicated that the women 36 to 55 group is a bottleneck in the sense that the company needs to spend a lot more than it would otherwise have spen...
See AnswerQ: The advertising response function is only one of several nonlinear functions that
The advertising response function is only one of several nonlinear functions that could be used to get the same “increasing at a decreasing rate” behavior. Another possibility is the function f (n) =...
See AnswerQ: We implied that each of the five observations was from one period
We implied that each of the five observations was from one period of time, such as a particular week. Suppose instead that each is an average over several weeks. For example, the 4.7 million exposures...
See AnswerQ: Modify the warehouse location model so that there is an extra customer
Modify the warehouse location model so that there is an extra customer. This customer has 250 shipments per year. Try placing this new customer at various locations. For example, try placing the custo...
See AnswerQ: Modify the warehouse location model so that customers always travel in horizontal
Modify the warehouse location model so that customers always travel in horizontal or vertical directions. For example, this means that if a customer’s coordinates are (5, 10) and a warehouse is locat...
See AnswerQ: Use SolverTable in the warehouse location model to see the effect on
Use SolverTable in the warehouse location model to see the effect on the optimal solution of moving one customer farther and farther away from the others. Specifically, let customer 1’s coordinates be...
See AnswerQ: The IRR is the discount rate r that makes a project have
The IRR is the discount rate r that makes a project have an NPV of $0. You can find IRR in Excel with the built-in IRR function, using the syntax =IRR(range of cash flows). However, it can be tricky....
See AnswerQ: Modify the warehouse location model as suggested in Modeling Issue 2.
Modify the warehouse location model as suggested in Modeling Issue 2. Specifically, assume that the same four customers have the same annual shipments, but now, there are only two possible warehouse l...
See AnswerQ: The file P07_28.xlsx lists the scores of all
The file P07_28.xlsx lists the scores of all NFL games played during the 2014 season. Use this data set to rank the NFL teams from best to worst.
See AnswerQ: Carry out the suggestion in Modeling Issue 3. That is,
Carry out the suggestion in Modeling Issue 3. That is, find the ratings of the 2015 NFL teams using the sum of absolute prediction errors as the criterion to minimize. Discuss any differences in ratin...
See AnswerQ: In the pricing model with the constant elasticity demand function, the
In the pricing model with the constant elasticity demand function, the assumption is that all units demanded are sold. Suppose the company has the capacity to produce only 200 units. If demand is less...
See AnswerQ: Carry out the suggestion in Modeling Issue 2 for the 2015 NFL
Carry out the suggestion in Modeling Issue 2 for the 2015 NFL season. That is, use a weighted sum of squared prediction errors, where the weight on any game played k weeks ago is 0.95k. You can assume...
See AnswerQ: The file P07_31.xlsx contains scores on all of
The file P07_31.xlsx contains scores on all of the regular-season games in the NBA for the 2015–2016 basketball season. Use the same procedure as in Example 7.8 to rate the teams. Then sort the teams...
See AnswerQ: By the time you are reading this, the 2016 NFL season
By the time you are reading this, the 2016 NFL season will have finished, and the results should be available at www.pro-football-reference.com/years/ 2016/games.htm. Do whatever it takes to get the d...
See AnswerQ: By the time you are reading this, the 2016–2017
By the time you are reading this, the 2016–2017 NBA season will have finished, and the results should be available at www.basketball-reference.com/leagues/NBA_2017_games.html. Do whatever it takes to...
See AnswerQ: The method for rating teams is based on actual and predicted point
The method for rating teams is based on actual and predicted point spreads. This method can be biased if some teams run up the score in a few games. An alternative possibility is to base the ratings o...
See AnswerQ: For each of the following, answer whether it makes sense to
For each of the following, answer whether it makes sense to multiply the matrices of the given sizes. In each case where it makes sense, demonstrate an example in Excel, where you can make up the numb...
See AnswerQ: A project does not necessarily have a unique IRR. (Refer
A project does not necessarily have a unique IRR. (Refer to the previous problem for more information on IRR.) Show that a project with the following cash flows has two IRRs: year 1, -$20; year 2, $82...
See AnswerQ: Add a new stock, stock 4, to the model.
Add a new stock, stock 4, to the model. Assume that the estimated mean and standard deviation of return for stock 4 are 0.125 and 0.175, respectively. Also, assume the correlations between stock 4 and...
See AnswerQ: In the model, stock 2 is not in the optimal portfolio
In the model, stock 2 is not in the optimal portfolio. Use SolverTable to see whether it ever enters the optimal portfolio as its correlations with stocks 1 and 3 vary. Specifically, use a two-way Sol...
See AnswerQ: The stocks are all positively correlated. What happens when they are
The stocks are all positively correlated. What happens when they are negatively correlated? Answer for each of the following scenarios. In each case, two of the three correlations are the negatives of...
See AnswerQ: The file contains historical monthly returns for 27 companies. For each
The file contains historical monthly returns for 27 companies. For each company, calculate the estimated mean return and the estimated variance of return. Then calculate the estimated correlations bet...
See AnswerQ: Continuing the previous problem, create a two-way data table
Continuing the previous problem, create a two-way data table similar to the one-way data. This time, however, allow price to vary down a column and allow the capacity to vary across a row. Each cell o...
See AnswerQ: This problem continues using the data from the previous problem. The
This problem continues using the data from the previous problem. The file includes all of the previous data and contains investment weights in row 3 for creating a portfolio. These fractions are curre...
See AnswerQ: Continuing the previous problem, find the portfolio that achieves an expected
Continuing the previous problem, find the portfolio that achieves an expected monthly return of at least 1% and minimizes portfolio variance. Then use SolverTable to sweep out the efficient frontier....
See AnswerQ: In many cases, the portfolio return is at least approximately normally
In many cases, the portfolio return is at least approximately normally distributed. Then Excel’s NORMDIST function can be used to calculate the probability that the portfolio return is negative. The r...
See AnswerQ: Given the data in the file Stock Beta.xlsx, estimate
Given the data in the file Stock Beta.xlsx, estimate the beta (and alpha) for Microsoft (MSFT). Do this for each criterion to obtain a table analogous to that in the top right. What do you conclude ab...
See AnswerQ: Solve the previous problem, but analyze GE instead of Microsoft.
Solve the previous problem, but analyze GE instead of Microsoft.
See AnswerQ: The file contains data on prices of products for several of a
The file contains data on prices of products for several of a chain store’s locations, a discount schedule offered to customers depending on how much they spend, and commission rates of the salespeopl...
See AnswerQ: Suppose Ford currently sells 250,000 Ford Mustangs annually. The
Suppose Ford currently sells 250,000 Ford Mustangs annually. The unit cost of a Mustang, including the delivery cost to a dealer, is $16,000. The current Mustang price is $20,000, and the current elas...
See AnswerQ: Suppose the current exchange rate is 115 yen per dollar. We
Suppose the current exchange rate is 115 yen per dollar. We currently have a demand for 50 units of our product when the unit price is 800 yen. The cost of producing and shipping the product to Japan...
See AnswerQ: Another way to derive a demand function is to break the market
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 ex...
See AnswerQ: A company produces widgets at plants 1 and 2. It costs
A company produces widgets at plants 1 and 2. It costs 135x1/2 dollars to produce x units at plant 1 and 260x1/3 dollars to produce x units at plant 2. Each plant can produce up to 1000 units. Each un...
See AnswerQ: If a monopolist produces q units, she can charge 400 -
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...
See AnswerQ: Continuing Problem 3 in a slightly different direction, create a two
Continuing Problem 3 in a slightly different direction, create a two-way SolverTable where the inputs are the elasticity and the production capacity, and the outputs are the optimal price and the opti...
See AnswerQ: It costs a company $15 to purchase an hour of labor
It costs a company $15 to purchase an hour of labor and $20 to purchase an hour of capital. If L hours of labor and K units of capital are available, then 0.075L2/3K1/3 machines can be produced. Suppo...
See AnswerQ: In the previous problem, what is the minimum-cost method
In the previous problem, what is the minimum-cost method of producing 100 machines? (Ignore the $10,000 budget constraint.)
See AnswerQ: The cost per day of running a hospital is 300,000
The cost per day of running a hospital is 300,000 + 0.75x2 dollars, where x is the number of patients served per day. What number of patients served per day minimizes the cost per patient per day of r...
See AnswerQ: Two companies are producing widgets. It costs the first company q21
Two companies are producing widgets. It costs the first company q21 dollars to produce q1 widgets and the second company 0.75q22 dollars to produce q2 widgets. If a total of q widgets are produced, c...
See AnswerQ: Why is it generally necessary to add nonnegativity constraints to an optimization
Why is it generally necessary to add nonnegativity constraints to an optimization model? Wouldn’t Solver automatically choose nonnegative values for the decision variable cells?
See AnswerQ: A company manufactures two products. If it charges price pi for
A company manufactures two products. If it charges price pi for product i, it can sell qi units of product i, where q1 = 80 - 2p1 + p2 and q2 = 100 - 3p2 + p1. It costs $8 to produce a unit of product...
See AnswerQ: A brewing company has $100,000 to spend on advertising
A brewing company has $100,000 to spend on advertising in four markets. The sales revenue (in thousands of dollars) that can be created in each market by spending xi thousand dollars in market i is gi...
See AnswerQ: Q&H Company advertises during soap operas and football games.
Q&H Company advertises during soap operas and football games. Each soap opera ad costs $75,000, and each football game ad costs $130,000. If S soap opera ads are purchased, they will be seen by 4S1/2...
See AnswerQ: A beer company has divided Bloomington into two territories. If the
A beer company has divided Bloomington into two territories. If the company spends x1 dollars on promotion in territory 1, it can sell 60x1/21 cases of beer there; and if it spends x2 dollars on promo...
See AnswerQ: A company uses raw material to produce two products. For $
A company uses raw material to produce two products. For $175, a unit of raw material can be purchased and processed into 3 units of product 1 and 4 units of product 2. If x1 units of product 1 are pr...
See AnswerQ: J&J has given you $12 million to spend on
J&J has given you $12 million to spend on advertising Huggys diapers during the next 12 months. At the beginning of January, Huggys has a 30% market share. During any month, 10% of the people who purc...
See AnswerQ: In the exchange rate model, suppose the company continues to manufacture
In the exchange rate model, suppose the company continues to manufacture its product in the United States, but now it sells its product in the United States, the United Kingdom, and possibly other cou...
See AnswerQ: Based on Kolesar and Blum (1973). Suppose that a company
Based on Kolesar and Blum (1973). Suppose that a company must service customers lying in an area of A square miles with n warehouses. Kolesar and Blum showed that when the warehouse(s) are located pro...
See AnswerQ: A company has five factories. The x- and y-
A company has five factories. The x- and y-coordinates of the location of each factory are given in the file. The company wants to locate a warehouse at a point that minimizes the sum of the squared d...
See AnswerQ: Monroe County is trying to determine where to place the county fire
Monroe County is trying to determine where to place the county fire station. The locations of the countyâs four major towns are as follows: (10, 20), (60, 20), (40, 30), and (80, 60)...
See AnswerQ: Suppose you have a linear optimization model where you are trying to
Suppose you have a linear optimization model where you are trying to decide which products to produce to maximize profit. What does the additive assumption imply about the profit objective? What does...
See AnswerQ: Consider three investments. You are given the following means, standard
Consider three investments. You are given the following means, standard deviations, and correlations for the annual return on these three investments. The means are 0.12, 0.15, and 0.20. The standard...
See AnswerQ: You have $50,000 to invest in three stocks.
You have $50,000 to invest in three stocks. Let Ri be the random variable representing the annual return on $1 invested in stock i. For example, if Ri = 0.12, then $1 invested in stock i at the beginn...
See AnswerQ: An oil company must determine how many barrels of oil to extract
An oil company must determine how many barrels of oil to extract during each of the next two years. If the company extracts x1 million barrels during year 1, each barrel can be sold for 80 - x1 dollar...
See AnswerQ: Suppose that you are hiring a weather forecaster to predict the probability
Suppose that you are hiring a weather forecaster to predict the probability that next summer will be rainy or sunny. The following suggests a method that can be used to ensure that the forecaster is a...
See AnswerQ: The cost of producing x units of a product during a month
The cost of producing x units of a product during a month is x1/2 dollars. Show that the minimum cost method of producing 40 units during the next two months is to produce all 40 units during a single...
See AnswerQ: Four items are for sale in the Dollar Value store. The
Four items are for sale in the Dollar Value store. The product and sum of their prices is $7.11. What is the price of each item?
See AnswerQ: Most economies have a goal of maximizing the average consumption per period
Most economies have a goal of maximizing the average consumption per period. Assume that during each year, an economy saves the same (to be determined) percentage S of its production. During a year in...
See AnswerQ: Change the exchange rate model slightly so that the company is now
Change the exchange rate model slightly so that the company is now a UK manufacturing company producing for a U.S. market. Assume that the unit cost is now £75, the demand function has the same parame...
See AnswerQ: Each morning during rush hour, 10,000 people want to
Each morning during rush hour, 10,000 people want to travel from New Jersey to New York City. If a person takes the commuter train, the trip lasts 40 minutes. If x thousand people per morning drive to...
See AnswerQ: Based on Grossman and Hart (1983). A salesperson for Fuller
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...
See AnswerQ: In a typical product mix model, where a company must decide
In a typical product mix model, where a company must decide how much of each product to produce to maximize profit, discuss possible situations where there might not be any feasible solutions. Could t...
See AnswerQ: Kellpost Cereal Company sells four products: (1) Special L
Kellpost Cereal Company sells four products: (1) Special L (a low-calorie, high-nutrition cereal); (2) Corn Bran (another low-calorie, high-nutrition cereal); (3) Admiral Smacks (a sugary cereal pitch...
See AnswerQ: Find the minimum perimeter rectangle having area 64 square feet. Can
Find the minimum perimeter rectangle having area 64 square feet. Can you generalize this result?
See AnswerQ: You are given that the two non-hypotenuse sides of a
You are given that the two non-hypotenuse sides of a right triangle add up to 10 inches. What is the maximum area of the triangle? Can you generalize this result?
See AnswerQ: A cylindrical soda can has a volume of 20 cubic inches.
A cylindrical soda can has a volume of 20 cubic inches. What height and diameter minimize the surface area of the can? Can you generalize this result?
See AnswerQ: City B is 10 miles downstream from city A. City A
City B is 10 miles downstream from city A. City A is 5 miles south of the river, and city B is 20 miles north of the river. The river is two miles wide. Where should a bridge be built across the river...
See AnswerQ: You can swim two miles per hour and run six miles per
You can swim two miles per hour and run six miles per hour. You are walking north along South Beach and see someone drowning half a mile out in the ocean and one mile north of you. What combination of...
See AnswerQ: A triangle has a 5-inch side and a 12-
A triangle has a 5-inch side and a 12-inch side. To maximize the area of the triangle what should the third side be? Can you generalize this result?
See AnswerQ: Your company is about to market a new golf club. You
Your company is about to market a new golf club. You have convened a focus group of 100 golfers and asked them to compare your club to the clubs produced by your competitors. You have found, for examp...
See AnswerQ: In the exchange rate model, we found that the optimal unit
In the exchange rate model, we found that the optimal unit revenue, when converted to dollars, is $85.71. Now change the problem so that the company is selling in Japan, not the United Kingdom. Assume...
See AnswerQ: For the product mix examples, discuss where you think the assumptions
For the product mix examples, discuss where you think the assumptions of a linear model are most likely to break down. How might an NLP model look in this situation?
See AnswerQ: In some ordering problems, like the one for Sam’s Bookstore,
In some ordering problems, like the one for Sam’s Bookstore, whenever demand exceeds existing inventory, the excess demand is not lost but is filled by expedited orders—at a premium cost to the compan...
See AnswerQ: In a typical product mix model, where a company must decide
In a typical product mix model, where a company must decide how much of each product to produce to maximize profit, there are sometimes customer demands for the products. We used upper-bound constrain...
See AnswerQ: For the oil blending example, discuss where you think the assumptions
For the oil blending example, discuss where you think the assumptions of a linear model are most likely to break down. How might an NLP model look in this situation?
See AnswerQ: For the aggregate planning example, is it likely that the cost
For the aggregate planning example, is it likely that the cost per worker of changing the size of the workforce during a month would be constant (as we assumed)? How could an NLP model account for a s...
See AnswerQ: Consider the sports ratings model. If you were going to give
Consider the sports ratings model. If you were going to give more recent games more weight, how might you determine whether the weight given to a game from k weeks ago should be, say, (0.95)k or (0.9)...
See AnswerQ: Consider the sports ratings model. If you were going to use
Consider the sports ratings model. If you were going to use the approach used there to forecast future sports contests, what problems might you encounter early in the season? How might you resolve the...
See AnswerQ: UE is going to invest $400 million to acquire companies in
UE is going to invest $400 million to acquire companies in the auto and/or electronics industry. How would you apply portfolio optimization to determine which companies should be purchased?
See AnswerQ: Your family owns a large farm that can grow wheat, corn
Your family owns a large farm that can grow wheat, corn, cotton, alfalfa, barley, pears, and apples. Each product requires a certain amount of labor each month and a certain number of hours of machine...
See AnswerQ: In the complementary-product pricing model, the elasticity of demand
In the complementary-product pricing model, the elasticity of demand for suits is currently 22.5. Use SolverTable to see how the optimal price of suits and the optimal profit vary as the elasticity va...
See AnswerQ: Modify the function in Example 8.1 so that it becomes
Modify the function in Example 8.1 so that it becomes f(x) = (x - 1)(x - 2)(x - 3)(x - 4)(x - 5)(x - 6)(x - 7) for 1 ≤ x ≤ 7. Plot a lot of points from 1 to 7 to see what the graph of this function lo...
See AnswerQ: The file contains per capita data on annual advertising and annual unit
The file contains per capita data on annual advertising and annual unit sales in different regions of the country. Determine an S-shaped curve as described by Equation that can be used to determine ho...
See AnswerQ: The adoption level of a new product can often be modeled as
The adoption level of a new product can often be modeled as an S-shaped curve called the Pearl (or logistic) curve. The equation of this curve is Y = L / + ae-bt where Y is the adoption level, L is a...
See AnswerQ: In a typical production scheduling model like Pigskin’s, if there are
In a typical production scheduling model like Pigskin’s, if there are no production capacity constraints—the company can produce as much as it needs in any time period—but there are storage capacity c...
See AnswerQ: Sales of a product over time often follow an S-shaped
Sales of a product over time often follow an S-shaped curve. Two functions that yield S-shaped curves are the Pearl (or logistic) curve Y = L / + ae-bt and the Gompertz curve Y = Le-be-kt Here, Y is...
See AnswerQ: Visit biz.yahoo.com/r/. Under Research Tools
Visit biz.yahoo.com/r/. Under Research Tools, click on Historical Quotes, and then download the monthly returns on at least four stocks for the preceding 60 months. Use this data to determine the port...
See AnswerQ: Continuing the previous problem, determine the portfolio that minimizes the chance
Continuing the previous problem, determine the portfolio that minimizes the chance that you will lose money during any month, subject to a lower bound constraint on your expected monthly return. (The...
See AnswerQ: An important problem in operations management is the job sequencing problem.
An important problem in operations management is the job sequencing problem. Actually, there are many versions of this problem, but they all basically attempt to find the proper sequencing of jobs on...
See AnswerQ: The traveling salesperson problem is notoriously difficult when the number of cities
The traveling salesperson problem is notoriously difficult when the number of cities is even of moderate size. The file contains two sheets, one with a distance matrix for a 30-city problem and the ot...
See AnswerQ: Repeat Problem 15, but now assume there is a setup time
Repeat Problem 15, but now assume there is a setup time for changing from any job to another job, and this setup time can depend on the jobs. For example, the setup time when changing from job 2 to jo...
See AnswerQ: You are operating a Web site to match up sellers and buyers
You are operating a Web site to match up sellers and buyers of a product. 35 sellers and 35 buyers have input their reservation prices, as listed in the file. For example, buyer 1 is willing to pay up...
See AnswerQ: The 30 teams in the NBA are each assigned to one of
The 30 teams in the NBA are each assigned to one of six divisions, where each division has five teams. Suppose the goal is to assign the teams to divisions so that the average distance among teams in...
See AnswerQ: Modify the function in Example 8.1 so that it becomes
Modify the function in Example 8.1 so that it becomes f(x) = x sin(x) for 0 ≤ x ≤ 30. (Here, sin(x) is the sine function from trigonometry. You can evaluate it with Excel’s SIN function.) Plot a lot o...
See AnswerQ: Fourteen jobs must be assigned to one of three identical machines.
Fourteen jobs must be assigned to one of three identical machines. The goal is to minimize the total time needed to complete all 14 jobs. The machine capacities and times needed for the jobs are given...
See AnswerQ: In a production scheduling problem like Pigskin’s, suppose the company must
In a production scheduling problem like Pigskin’s, suppose the company must produce several products to meet customer demands. Would it suffice to solve a separate model for each product, as we did fo...
See AnswerQ: Nine jobs need to be completed within eight weeks. The number
Nine jobs need to be completed within eight weeks. The number of weeks required to complete each job is given in the file P08_21.xlsx. For example, job 2 requires five weeks. Each job requires 40 hour...
See AnswerQ: Eight students need to be assigned to four dorm rooms (two
Eight students need to be assigned to four dorm rooms (two students to a room) at State University. Based on incompatibility measures, the “cost” incurred if two students room together is shown in the...
See AnswerQ: The costs of producing product A, product B, or products
The costs of producing product A, product B, or products A and B bundled together are $50, $90, and $140, respectively. The file P08_23.xlsx lists the sizes of the three market segments for these prod...
See AnswerQ: Cook County needs to build two hospitals. There are nine cities
Cook County needs to build two hospitals. There are nine cities where the hospitals can be built. The number of hospital visits made annually by the inhabitants of each city and the x and y coordinate...
See AnswerQ: The file contains quarterly revenue for a sporting goods company over an
The file contains quarterly revenue for a sporting goods company over an 8-year period. It also contains quarterly “indicator” variables Q1, Q2, and Q3. Here Q1 is 1 for the first quarter of a fiscal...
See AnswerQ: Music radio WABC has commercials of the following lengths (in seconds
Music radio WABC has commercials of the following lengths (in seconds): 15, 15, 20, 25, 30, 35, 40, 57. The commercials must be assigned to 60-second breaks. What is the fewest number of breaks that a...
See AnswerQ: A Wall Street firm is trying to package nine mortgages for sale
A Wall Street firm is trying to package nine mortgages for sale. The sizes of the mortgages (in thousands of dollars) are listed in the file. To be sold, each package must consist of at least $1,000,0...
See AnswerQ: During the next 12 months, the amounts of electric power needed
During the next 12 months, the amounts of electric power needed (in thousands of kwh) are listed in the file. This power can be supplied using four generators. The generating capacity (in thousands of...
See AnswerQ: Bus 99 serves towns 1 through 10. We assume that town
Bus 99 serves towns 1 through 10. We assume that town k is |k – j| miles from town j. The numbers of people in the towns who want to take the bus each hour are listed in the file P08_29.xlsx. Bus 99 w...
See AnswerQ: Determine the best pricing policy if quantity discounts with a single-
Determine the best pricing policy if quantity discounts with a single-price breakpoint are used.
See AnswerQ: Other sensitivity analyses besides those discussed could be performed on the product
Other sensitivity analyses besides those discussed could be performed on the product mix model. Use SolverTable to perform each of the following. In each case keep track of the values in the decision...
See AnswerQ: Ten data sets must be assigned for storage to one of three
Ten data sets must be assigned for storage to one of three disk drives. Each disk drive can store 150 GB (about 150,000 MB). The sizes of the data sets (in MB) are listed in the file P08_30.xlsx. When...
See AnswerQ: Xerox is trying to determine how many maintenance centers are needed in
Xerox is trying to determine how many maintenance centers are needed in the mid-Atlantic states. Xerox earns $500 profit (excluding the cost of running maintenance centers) on each copier sale. The sa...
See AnswerQ: You are the Democratic campaign manager for the state of Indiana.
You are the Democratic campaign manager for the state of Indiana. There are 15 fairly large cities in the state of Indiana. The numbers of Democrats and Republican voters in these cities (in thousands...
See AnswerQ: A steel manufacturer needs to cool 17 pieces of steel. The
A steel manufacturer needs to cool 17 pieces of steel. The weight and due date for each piece are listed in the file P08_33.xlsx. Processing and cooling a batch in the furnace takes five minutes regar...
See AnswerQ: Suppose you are the ad manager for Fox NFL football. Thirty
Suppose you are the ad manager for Fox NFL football. Thirty bids for ads on today’s game between the Packers and the Colts have been submitted. Information on these ads is given in the file P08_34.xls...
See AnswerQ: Assume that a consumer’s purchase decision on an electric razor is based
Assume that a consumer’s purchase decision on an electric razor is based on four attributes, each of which can be set at one of three levels (1, 2, or 3). Using conjoint analysis (a type of analysis u...
See AnswerQ: An important problem in manufacturing is the assembly line balancing problem.
An important problem in manufacturing is the assembly line balancing problem. When setting up a manufacturing line, activities must be assigned to workstations. The maximum time spent at a workstation...
See AnswerQ: A common approach to clustering is called multidimensional scaling (MDS).
A common approach to clustering is called multidimensional scaling (MDS). To apply MDS, we rank each pair of objects we want to cluster from least similar (higher number) to most similar (lower number...
See AnswerQ: Based on Meneses et al. (2004). A string is
Based on Meneses et al. (2004). A string is a list of characters such as “1differ%”. The length of the string is the number of characters in the string. The distance between two strings is the number...
See AnswerQ: A company has nine jobs that must be assigned to three ordered
A company has nine jobs that must be assigned to three ordered workstations. The file P08_39.xlsx lists the times required for each job, which are independent of the workstations they are assigned to....
See AnswerQ: Modify PC Tech’s product mix model so that there is no maximum
Modify PC Tech’s product mix model so that there is no maximum sales constraint. (This is easy to do in the Solver dialog box. Just highlight the constraint and click the Delete button.) Does this mak...
See AnswerQ: Determine the optimal pricing policy if Menthos are sold in only a
Determine the optimal pricing policy if Menthos are sold in only a one-pack or a six-pack.
See AnswerQ: Suppose you are the new supply manager at FedEx. You need
Suppose you are the new supply manager at FedEx. You need to choose three hubs for the company. Each of 28 cities will send all of its outgoing packages to one of the hubs. The packages will then be s...
See AnswerQ: Based on Schrage (1997). The file P08_05.
Based on Schrage (1997). The file P08_05.xlsx lists the size of the four main markets for Excel, Word, and the bundle of Excel and Word. (We assume that Microsoft is willing to sell Excel or Word sepa...
See AnswerQ: In the truck-loading problem, we assumed that any product
In the truck-loading problem, we assumed that any product could be loaded into any compartment. Suppose the following are not allowed: product 1 in compartment 2, product 2 in compartment 1, and produ...
See AnswerQ: In the lawn mower production problem, the model changeover cost dominates
In the lawn mower production problem, the model changeover cost dominates in the optimal objective value. Is this because we assumed such a large unit penalty cost, 200, for each model changeover? Exp...
See AnswerQ: In the lawn mower production problem, experiment with the penalty cost
In the lawn mower production problem, experiment with the penalty cost for unsatisfied pickups in week 1. If this cost is sufficiently small, does the company ever produce fewer than seven models in w...
See AnswerQ: You are given the following information concerning how a change in sales
You are given the following information concerning how a change in sales force effort impacts sales: ■ A 50% cut in sales force effort reduces sales to 48% of its current value. ■ Sales force effort o...
See AnswerQ: Several decision criteria besides EMV are suggested in the section. For
Several decision criteria besides EMV are suggested in the section. For each of the following criteria, rank all three decisions in Figure 9.1 from best to worst. a. Look only at the worst possible ou...
See AnswerQ: Use PrecisionTree to solve problem 7 of the previous section.
Use PrecisionTree to solve problem 7 of the previous section. Data from Problem 7: Sometimes a “single-stage” decision can be broken down into a sequence of decisions, with no uncertainty resolved be...
See AnswerQ: Acme’s probability of technological success, 0.8, is evidently
Acme’s probability of technological success, 0.8, is evidently large enough to make “continue development” the best decision. How low would this probability have to be to make the opposite decision be...
See AnswerQ: In the product mix model it makes sense to change the maximum
In the product mix model it makes sense to change the maximum sales constraint to a “minimum sales” constraint, simply by changing the direction of the inequality Then the input values in row 23 can b...
See AnswerQ: The fixed costs are split $4 million for development and $
The fixed costs are split $4 million for development and $2 million for marketing. Perform a sensitivity analysis where the sum of these two fixed costs remains at $6 million but the split changes. Sp...
See AnswerQ: Use a two-way PrecisionTree sensitivity analysis to examine the changes
Use a two-way PrecisionTree sensitivity analysis to examine the changes in both of the two previous problems simultaneously. Let the probability of technological success vary from 0.6 to 0.9 in increm...
See AnswerQ: In the file Bayes Rule for Disease.xlsx, explain why
In the file Bayes Rule for Disease.xlsx, explain why the probabilities in cells B9 and B10 (or those in cells C9 and C10) do not necessarily sum to 1, but why the probabilities in cells B9 and C9 (or...
See AnswerQ: In using Bayes’ rule for the presence of a disease, we
In using Bayes’ rule for the presence of a disease, we assumed that there are only two test results, positive or negative. Suppose there is another possible test result, “maybe.” The 2 * 2 range B9:C1...
See AnswerQ: The finished version of the file for Example contains two “Strategy
The finished version of the file for Example contains two “Strategy B9” sheets. Explain what each of them indicates and how they differ.
See AnswerQ: Starting with the finished version of the file for Example, change
Starting with the finished version of the file for Example, change the fixed cost in cell B5 to $4000. Then get back into PrecisionTree’s One-Way Sensitivity Analysis dialog box and add three more inp...
See AnswerQ: Starting with the finished version of the file, change the fixed
Starting with the finished version of the file, change the fixed cost in cell B5 to $4000. Change the probabilities in cells B9 (make it smaller), B14 (make it larger), and B15 (make it smaller) in so...
See AnswerQ: Suppose you are tested to see if you have a rare disease
Suppose you are tested to see if you have a rare disease. Assume that if you have the disease, your test will always come back positive, but if you do not have the disease, there is still a 0.001 chan...
See AnswerQ: For the decision problem in Figure 9.1, use data
For the decision problem in Figure 9.1, use data tables to perform the following sensitivity analyses. The goal in each is to see whether decision 1 continues to have the largest EMV. In each part, pr...
See AnswerQ: If you examine the decision tree (or any other decision trees
If you examine the decision tree (or any other decision trees from PrecisionTree), you will see two numbers (in blue font) to the right of each end node. The bottom number is the combined monetary val...
See AnswerQ: Use SolverTable to run a sensitivity analysis on the cost per assembling
Use SolverTable to run a sensitivity analysis on the cost per assembling labor hour, letting it vary from $5 to $20 in increments of $1. Keep track of the computers produced in row 21, the hours used...
See AnswerQ: A technological failure implies that the game is over—the product
A technological failure implies that the game is over—the product must be abandoned. Change the problem so that there are two levels of technological failure, each with probability 0.1. In the first l...
See AnswerQ: The model has only two market outcomes, good and bad,
The model has only two market outcomes, good and bad, and two corresponding predictions, good and bad. Modify the decision tree by allowing three outcomes and three predictions: good, fair, and bad. Y...
See AnswerQ: The terms prior and posterior are relative. Assume that the test
The terms prior and posterior are relative. Assume that the test has been performed, and the outcome is positive, which leads to the posterior probabilities shown. Now assume there is a second test, i...
See AnswerQ: In the original OJ Simpson trial, it was accepted that OJ
In the original OJ Simpson trial, it was accepted that OJ had battered his wife. OJ’s lawyer tried to negate the impact of this information by stating that in a one-year period, only 1 out of 2500 bat...
See AnswerQ: Explain what it means in general when we say a risk-
Explain what it means in general when we say a risk-averse decision maker is willing to give up some EMV to avoid risk? How is this apparent in certainty equivalents of gambles?
See AnswerQ: Using the finished version of the file, use a data table
Using the finished version of the file, use a data table to perform a sensitivity analysis on the risk tolerance. Specifically, let the risk tolerance in cell B12 vary from $10,000 to $100,000 and kee...
See AnswerQ: You saw how Acme prefers to abandon the product when the risk
You saw how Acme prefers to abandon the product when the risk tolerance in cell B12 is $5000 (really $5 million). This is despite the fact that the EMV from continuing with the product is well above 0...
See AnswerQ: Starting with the finished version, change the decision criterion to “
Starting with the finished version, change the decision criterion to “maximize expected utility,” using an exponential utility function with risk tolerance $5000 (really $5 million). Display certainty...
See AnswerQ: Starting with the finished version, change the fixed marketing cost to
Starting with the finished version, change the fixed marketing cost to $4000 (really $4 million) in cell B5, and change the decision criterion to “maximize expected utility,” using an exponential util...
See AnswerQ: Some decision makers prefer decisions with low risk, but this depends
Some decision makers prefer decisions with low risk, but this depends on how risk is measured. As we mentioned in this section, variance is one measure of risk, but it includes both upside and downsid...
See AnswerQ: Create a two-way SolverTable for the product mix model,
Create a two-way SolverTable for the product mix model, where total profit is the only output and the two inputs are the testing line 1 hours and testing line 2 hours available. Let the former vary fr...
See AnswerQ: The SweetTooth Candy Company knows it will need 10 tons of sugar
The SweetTooth Candy Company knows it will need 10 tons of sugar six months from now to implement its production plans. The company has essentially two options for acquiring the needed sugar. It can e...
See AnswerQ: Carlisle Tire and Rubber, Inc., is considering expanding production to
Carlisle Tire and Rubber, Inc., is considering expanding production to meet potential increases in the demand for one of its tire products. Carlisle’s alternatives are to construct a new plant, expand...
See AnswerQ: A local energy provider offers a landowner $180,000 for
A local energy provider offers a landowner $180,000 for the exploration rights to natural gas on a certain site and the option for future development. This option, if exercised, is worth an additional...
See AnswerQ: Techware Incorporated is considering the introduction of two new software products to
Techware Incorporated is considering the introduction of two new software products to the market. The company has four options regarding these products: introduce neither product, introduce product 1...
See AnswerQ: An investor with $10,000 available to invest has the
An investor with $10,000 available to invest has the following options: (1) he can invest in a risk free savings account with a guaranteed 3% annual rate of return; (2) he can invest in a fairly safe...
See AnswerQ: A buyer for a large department store chain must place orders with
A buyer for a large department store chain must place orders with an athletic shoe manufacturer six months prior to the time the shoes will be sold in the department stores. The buyer must decide on N...
See AnswerQ: Two construction companies are bidding against one another for the right to
Two construction companies are bidding against one another for the right to construct a new community center building in Bloomington, Indiana. The first construction company, Fine Line Homes, believes...
See AnswerQ: You have sued your employer for damages suffered when you recently slipped
You have sued your employer for damages suffered when you recently slipped and fell on an icy surface that should have been treated by your company’s physical plant department. Your injury was suffici...
See AnswerQ: Consider a population of 3000 people, 1400 of whom are men
Consider a population of 3000 people, 1400 of whom are men. Assume that 700 of the women in this population earn at least $60,000 per year, and 500 of the men earn less than $60,000 per year. a. What...
See AnswerQ: Yearly automobile inspections are required for residents of the state of Pennsylvania
Yearly automobile inspections are required for residents of the state of Pennsylvania. Suppose that 12% of all inspected cars in Pennsylvania have problems that need to be corrected. Unfortunately, Pe...
See AnswerQ: Model 8 has fairly high profit margins, but it isn’t included
Model 8 has fairly high profit margins, but it isn’t included at all in the optimal mix. Use SolverTable, along with some experimentation on the correct range, to find the (approximate) selling price...
See AnswerQ: The fixed cost of $6 million in the Acme problem is
The fixed cost of $6 million in the Acme problem is evidently not large enough to make Acme abandon the product at the current time. How large would the fixed cost need to be to make the abandon optio...
See AnswerQ: Referring to the landowner’s decision problem in Problem 32, suppose now
Referring to the landowner’s decision problem in Problem 32, suppose now that, at a cost of $90,000, the landowner can request a soundings test on the site where natural gas is believed to be present....
See AnswerQ: A customer has approached a bank for a $100,000
A customer has approached a bank for a $100,000 one-year loan at an 8% interest rate. If the bank does not approve this loan application, the $100,000 will be invested in bonds that earn a 6% annual r...
See AnswerQ: A company is considering whether to market a new product. Assume
A company is considering whether to market a new product. Assume, for simplicity, that if this product is marketed, there are only two possible outcomes: success or failure. The company assesses that...
See AnswerQ: The U.S. government wants to determine whether immigrants should
The U.S. government wants to determine whether immigrants should be tested for a contagious disease, and it is planning to base this decision on financial considerations. Assume that each immigrant wh...
See AnswerQ: The senior executives of an oil company are trying to decide whether
The senior executives of an oil company are trying to decide whether to drill for oil in a particular field in the Gulf of Mexico. It costs the company $1,500,000 to drill in the selected field. Compa...
See AnswerQ: A product manager at Clean & Brite (C&B)
A product manager at Clean & Brite (C&B) wants to determine whether her company should market a new brand of toothpaste. If this new product succeeds in the marketplace, C&B estimates that it could ea...
See AnswerQ: Ford is going to produce a new vehicle, the Pioneer,
Ford is going to produce a new vehicle, the Pioneer, and wants to determine the amount of annual capacity it should build. Ford’s goal is to maximize the profit from this vehicle over the next five ye...
See AnswerQ: Many decision problems have the following simple structure. A decision maker
Many decision problems have the following simple structure. A decision maker has two possible decisions, 1 and 2. If decision 1 is made, a sure cost of c is incurred. If decision 2 is made, there are...
See AnswerQ: A nuclear power company is deciding whether to build a nuclear power
A nuclear power company is deciding whether to build a nuclear power plant at Diablo Canyon or at Roy Rogers City. The cost of building the power plant is $70 million at Diablo and $95 million at Roy...
See AnswerQ: Suppose that you want to increase all three of the resource availabilities
Suppose that you want to increase all three of the resource availabilities in the product mix model simultaneously by the same percentage. You want this percentage to vary from 225% to 50% in incremen...
See AnswerQ: Referring to Techware’s decision problem in Problem 33, suppose now that
Referring to Techware’s decision problem in Problem 33, suppose now that Techware’s utility function of net revenue x (measured in dollars) is U(x) = 1 - e-x/350000. a. Find the decision that maximize...
See AnswerQ: Perform a sensitivity analysis on the probability of a great market.
Perform a sensitivity analysis on the probability of a great market. To do this, enter formulas in cells B9 and B10 to ensure that the probabilities of “fair” and “awful” remain in the same ratio, 35...
See AnswerQ: Referring to the bank’s customer loan decision problem in Problem 41,
Referring to the bank’s customer loan decision problem in Problem 41, suppose now that the bank’s utility function of profit x (in dollars) is U(x) = 1 - e-x/150000. Find the strategy that maximizes t...
See AnswerQ: A television network earns an average of $65 million each season
A television network earns an average of $65 million each season from a hit program and loses an average of $25 million each season on a program that turns out to be a flop. Of all programs picked up...
See AnswerQ: An electric utility company is trying to decide whether to replace its
An electric utility company is trying to decide whether to replace its PCB transformer in a generating station with a new and safer transformer. To evaluate this decision, the utility needs informatio...
See AnswerQ: The Indiana University basketball team trails by two points with eight seconds
The Indiana University basketball team trails by two points with eight seconds to go and has the ball. Should it attempt a two-point shot or a three-point shot? Assume that the Indiana shot will end t...
See AnswerQ: Mr. Maloy has just bought a new $30,000
Mr. Maloy has just bought a new $30,000 sport utility vehicle. As a reasonably safe driver, he believes there is only about a 5% chance of being in an accident in the coming year. If he is involved in...
See AnswerQ: The purchasing agent for a PC manufacturer is currently negotiating a purchase
The purchasing agent for a PC manufacturer is currently negotiating a purchase agreement for a particular electronic component with a given supplier. This component is produced in lots of 1000, and th...
See AnswerQ: A home appliance company is interested in marketing an innovative new product
A home appliance company is interested in marketing an innovative new product. The company must decide whether to manufacture this product in house or employ a subcontractor to manufacture it. The fil...
See AnswerQ: A grapefruit farmer in central Florida is trying to decide whether to
A grapefruit farmer in central Florida is trying to decide whether to take protective action to limit damage to his crop in the event that the overnight temperature falls to a level well below freezin...
See AnswerQ: The spreadsheet model for Sam’s Bookstore contains a two-way data
The spreadsheet model for Sam’s Bookstore contains a two-way data table for profit versus order quantity and demand. Experiment with Excel’s chart types to create a chart that shows this information g...
See AnswerQ: Some analysts complain that spreadsheet models are difficult to resize. You
Some analysts complain that spreadsheet models are difficult to resize. You can be the judge of this. Suppose the current product mix problem is changed so that there is an extra resource, packaging l...
See AnswerQ: A retired partner from a large brokerage firm has one million dollars
A retired partner from a large brokerage firm has one million dollars available to invest in particular stocks or bonds. Each investment’s annual rate of return depends on the state of the economy in...
See AnswerQ: A city in Ohio is considering replacing its fleet of gasoline-
A city in Ohio is considering replacing its fleet of gasoline-powered automobiles with electric cars. The manufacturer of the electric cars claims that this municipality will experience significant co...
See AnswerQ: Sometimes it is possible for a company to influence the uncertain outcomes
Sometimes it is possible for a company to influence the uncertain outcomes in a favorable direction. Suppose Acme could, by an early marketing blitz, change the probabilities of “great,” “fair,” and “...
See AnswerQ: Sharp Outfits is trying to decide whether to ship some customer orders
Sharp Outfits is trying to decide whether to ship some customer orders now via UPS or wait until after the threat of another UPS strike is over. If Sharp Outfits decides to ship the requested merchand...
See AnswerQ: A homeowner wants to decide whether he should install an electronic heat
A homeowner wants to decide whether he should install an electronic heat pump in his home. Given that the cost of installing a new heat pump is fairly large, the homeowner wants to do so only if he ca...
See AnswerQ: Suppose an investor has the opportunity to buy the following contract,
Suppose an investor has the opportunity to buy the following contract, a stock call option, on March 1. The contract allows him to buy 100 shares of ABC stock at the end of March, April, or May at a g...
See AnswerQ: The ending of the game between the Indianapolis Colts and the New
The ending of the game between the Indianapolis Colts and the New England Patriots (NFL teams) in Fall 2009 was quite controversial. With about two minutes left in the game, the Patriots were ahead 34...
See AnswerQ: George Lindsey (1959) looked at box scores of more than
George Lindsey (1959) looked at box scores of more than 1000 baseball games and found the expected number of runs scored in an inning for each on-base and out situation to be as listed in the file P09...
See AnswerQ: One controversial topic in basketball (college or any other level)
One controversial topic in basketball (college or any other level) is whether to foul a player deliberately with only a few seconds left in the game. Consider the following scenario. With about 10 sec...
See AnswerQ: The following situation actually occurred in a 2009 college football game between
The following situation actually occurred in a 2009 college football game between Washington and Notre Dame. With about 3.5 minutes left in the game, Washington had fourth down and one yard to go for...
See AnswerQ: In Solver’s sensitivity report for the product mix model, the allowable
In Solver’s sensitivity report for the product mix model, the allowable decrease for available assembling hours is 2375. This means that something happens when assembling hours fall to 20,000 2 2375 5...
See AnswerQ: Your company needs to make an important decision that involves large monetary
Your company needs to make an important decision that involves large monetary consequences. You have listed all of the possible outcomes and the monetary payoffs and costs from all outcomes and all po...
See AnswerQ: If your company makes a particular decision in the face of uncertainty
If your company makes a particular decision in the face of uncertainty, you estimate that it will either gain $10,000, gain $1000, or lose $5000, with probabilities 0.40, 0.30, and 0.30, respectively....
See AnswerQ: In the previous question, suppose you have the option of receiving
In the previous question, suppose you have the option of receiving a check for $2700 instead of making the risky decision described. Would you make the risky decision, where you could lose $5000, or w...
See AnswerQ: Sometimes a “single-stage” decision can be broken down
Sometimes a “single-stage” decision can be broken down into a sequence of decisions, with no uncertainty resolved between these decisions. Similarly, uncertainty can sometimes be broken down into a se...
See AnswerQ: In a classic oil-drilling example, you are trying to
In a classic oil-drilling example, you are trying to decide whether to drill for oil on a field that might or might not contain any oil. Before making this decision, you have the option of hiring a ge...
See AnswerQ: Your company has signed a contract with a good customer to ship
Your company has signed a contract with a good customer to ship the customer an order no later than 20 days from now. The contract indicates that the customer will accept the order even if it is late,...
See AnswerQ: You must make one of two decisions, each with possible gains
You must make one of two decisions, each with possible gains and possible losses. One of these decisions is much riskier than the other, having much larger possible gains but also much larger possible...
See AnswerQ: A potentially huge hurricane is forming in the Caribbean, and there
A potentially huge hurricane is forming in the Caribbean, and there is some chance that it might make a direct hit on Hilton Head Island, South Carolina, where you are in charge of emergency preparedn...
See AnswerQ: It seems obvious that if you can purchase information before making an
It seems obvious that if you can purchase information before making an ultimate decision, this information should generally be worth something, but explain exactly why (and when) it is sometimes worth...
See AnswerQ: Insurance companies wouldn’t exist unless customers were willing to pay the price
Insurance companies wouldn’t exist unless customers were willing to pay the price of the insurance and the insurance companies were making a profit. So explain how insurance is a win-win proposition f...
See AnswerQ: Can you guess the results of a sensitivity analysis on the initial
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 t...
See AnswerQ: You often hear about the trade-off between risk and reward
You often hear about the trade-off between risk and reward. Is this trade-off part of decision making under uncertainty when the decision maker uses the EMV criterion? For example, how does this work...
See AnswerQ: Can you ever use the material in this chapter to help you
Can you ever use the material in this chapter to help you make your own real-life decisions? Consider the following. You are about to take an important and difficult exam in one of your MBA courses, a...
See AnswerQ: Explain in some detail how the PrecisionTree calculations for the Acme problem
Explain in some detail how the PrecisionTree calculations for the Acme problem are exactly the same as those for the hand-drawn decision tree. In other words, explain exactly how PrecisionTree gets th...
See AnswerQ: Use PrecisionTree’s Sensitivity Analysis tools to perform the sensitivity analysis requested in
Use PrecisionTree’s Sensitivity Analysis tools to perform the sensitivity analysis requested in problem 5 of the previous section. Data from Problem 5: Perform a sensitivity analysis on the probabili...
See AnswerQ: Use the RAND function and the Copy command to generate 100 random
Use the RAND function and the Copy command to generate 100 random numbers. a. What fraction of the random numbers are smaller than 0.5? b. What fraction of the time is a random number less than 0.5 fo...
See AnswerQ: Continuing the preceding problem, suppose that another key uncertain input is
Continuing the preceding problem, suppose that another key uncertain input is the development time, which is measured in an integer number of months. For each of the following scenarios, choose an app...
See AnswerQ: Suppose you own an expensive car and purchase auto insurance. This
Suppose you own an expensive car and purchase auto insurance. This insurance has a $1000 deductible, so that if you have an accident and the damage is less than $1000, you pay for it out of your pocke...
See AnswerQ: In August of the current year, a car dealer is trying
In August of the current year, a car dealer is trying to determine how many cars of the next model year to order. Each car ordered in August costs $20,000. The demand for the dealer’s next year models...
See AnswerQ: In the Walton Bookstore example, suppose that Walton receives no money
In the Walton Bookstore example, suppose that Walton receives no money for the first 50 excess calendars returned but receives $2.50 for every calendar after the first 50 returned. Does this change th...
See AnswerQ: A sweatshirt supplier is trying to decide how many sweatshirts to print
A sweatshirt supplier is trying to decide how many sweatshirts to print for the upcoming NCAA basketball championships. The final four teams have emerged from the quarterfinal round, and there is now...
See AnswerQ: Modify the Pigskin model so that there are eight months in the
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. Don’t forget to modify range names. Then modify the mode...
See AnswerQ: In the Walton Bookstore example with a discrete demand distribution, explain
In the Walton Bookstore example with a discrete demand distribution, explain why an order quantity other than one of the possible demands cannot maximize the expected profit.
See AnswerQ: If you add several normally distributed random numbers, the result is
If you add several normally distributed random numbers, the result is normally distributed, where the mean of the sum is the sum of the individual means, and the variance of the sum is the sum of the...
See AnswerQ: We stated that the damage amount is normally distributed. Suppose instead
We stated that the damage amount is normally distributed. Suppose instead that the damage amount is triangularly distributed with parameters 500, 1500, and 7000. That is, the damage in an accident can...
See AnswerQ: Continuing the previous problem, assume, as in Problem 11,
Continuing the previous problem, assume, as in Problem 11, that the damage amount is normally distributed with mean $3000 and standard deviation $750. Run @RISK with 5000 iterations to simulate the am...
See AnswerQ: In Problem 12 of the previous section, suppose that the demand
In Problem 12 of the previous section, suppose that the demand for cars is normally distributed with mean 100 and standard deviation 15. Use @RISK to determine the “best” order quantity—in this case,...
See AnswerQ: Use Excel’s functions (not @RISK) to generate 1000 random
Use Excel’s functions (not @RISK) to generate 1000 random numbers from a normal distribution with mean 100 and standard deviation 10. Then freeze these random numbers. a. Calculate the mean and standa...
See AnswerQ: Use @RISK to analyze the sweatshirt situation in Problem 14 of
Use @RISK to analyze the sweatshirt situation in Problem 14 of the previous section. Do this for the discrete distributions given in the problem. Then do it for normal distributions. For the normal ca...
See AnswerQ: Although the normal distribution is a reasonable input distribution in many situations
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 improbabl...
See AnswerQ: The Fizzy Company produces six-packs of soda cans. Each
The Fizzy Company produces six-packs of soda cans. Each can is supposed to contain at least 12 ounces of soda. If the total weight in a six-pack is less than 72 ounces, Fizzy is fined $100 and receive...
See AnswerQ: When you use @RISK’s correlation feature to generate correlated random numbers
When you use @RISK’s correlation feature to generate correlated random numbers, how can you verify that they are correlated? Try the following. Use the RISKCORRMAT function to generate two normally di...
See AnswerQ: In PC Tech’s product mix problem, assume there is another PC
In PC Tech’s product mix problem, assume there is another PC model, the VXP, that the company can produce in addition to Basics and XPs. Each VXP requires eight hours for assembling, three hours for t...
See AnswerQ: Repeat problem 23, but make the correlation between the two inputs
Repeat problem 23, but make the correlation between the two inputs equal to –0.7. Explain how the results change. Data from Problem 23: When you use @RISK’s correlation feature to generate correlated...
See AnswerQ: Repeat Problem 23, but now make the second input variable triangularly
Repeat Problem 23, but now make the second input variable triangularly distributed with parameters 50, 100, and 500. This time, verify not only that the correlation between the two inputs is approxima...
See AnswerQ: Suppose you are going to invest equal amounts in three stocks.
Suppose you are going to invest equal amounts in three stocks. The annual return from each stock is normally distributed with mean 0.01 (1%) and standard deviation 0.06. The annual return on your port...
See AnswerQ: The effect of the shapes of input distributions on the distribution of
The effect of the shapes of input distributions on the distribution of an output can depend on the output function. For this problem, assume there are 10 input variables. The goal is to compare the ca...
See AnswerQ: The Business School at State University currently has three parking lots,
The Business School at State University currently has three parking lots, each containing 155 spaces. Two hundred faculty members have been assigned to each lot. On a peak day, an average of 70% of al...
See AnswerQ: Six months before its annual convention, the American Medical Association must
Six months before its annual convention, the American Medical Association must determine how many rooms to reserve. At this time, the AMA can reserve rooms at a cost of $150 per room. The AMA believes...
See AnswerQ: Use @RISK to draw a uniform distribution from 400 to 750
Use @RISK to draw a uniform distribution from 400 to 750. Then answer the following questions. a. What are the mean and standard deviation of this distribution? b. What are the 5th and 95th percentile...
See AnswerQ: You have made it to the final round of the show Let’s
You have made it to the final round of the show Let’s Make a Deal. You know that there is a $1 million prize behind either door 1, door 2, or door 3. It is equally likely that the prize is behind any...
See AnswerQ: A new edition of a very popular textbook will be published a
A new edition of a very popular textbook will be published a year from now. The publisher currently has 1000 copies on hand and is deciding whether to do another printing before the new edition comes...
See AnswerQ: A hardware company sells a lot of low-cost, high
A hardware company sells a lot of low-cost, high-volume products. For one such product, it is equally likely that annual unit sales will be low or high. If sales are low (30,000), the company can sell...
See AnswerQ: As indicated by the algebraic formulation of the Pigskin model, there
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 alterna...
See AnswerQ: W. L. Brown, a direct marketer of women’s clothing
W. L. Brown, a direct marketer of women’s 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 e...
See AnswerQ: Assume that all of a company’s job applicants must take a test
Assume that all of a company’s job applicants must take a test, and that the scores on this test are normally distributed. The selection ratio is the cutoff point used by the company in its hiring pro...
See AnswerQ: Lemington’s is trying to determine how many Jean Hudson dresses to order
Lemington’s 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 1...
See AnswerQ: Dilbert’s Department Store is trying to determine how many Hanson T-
Dilbert’s Department Store is trying to determine how many Hanson T-shirts to order. Currently the shirts are sold for $21, but at later dates the shirts will be offered at a 10% discount, then a 20%...
See AnswerQ: The annual return on each of four stocks for each of the
The annual return on each of four stocks for each of the next five years is assumed to follow a normal distribution, with the mean and standard deviation for each stock, as well as the correlations be...
See AnswerQ: It is surprising (but true) that if 23 people are
It is surprising (but true) that if 23 people are in the same room, there is about a 50% chance that at least two people will have the same birthday. Suppose you want to estimate the probability that...
See AnswerQ: United Electric (UE) sells refrigerators for $400 with a
United Electric (UE) sells refrigerators for $400 with a one-year warranty. The warranty works as follows. If any part of the refrigerator fails during the first year after purchase, UE replaces the r...
See AnswerQ: Use @RISK to draw a normal distribution with mean 500 and
Use @RISK to draw a normal distribution with mean 500 and standard deviation 100. Then answer the following questions. a. What is the probability that a random number from this distribution is less th...
See AnswerQ: A Flexible Savings Account (FSA) plan allows you to put
A Flexible Savings Account (FSA) plan allows you to put money into an account at the beginning of the calendar year that can be used for medical expenses. This amount is not subject to federal tax. As...
See AnswerQ: At the beginning of each week, a machine is in one
At the beginning of each week, a machine is in one of four conditions: 1 = excellent; 2 = good; 3 = average; 4 = bad. The weekly revenue earned by a machine in state 1, 2, 3, or 4 is $100, $90, $50, o...
See AnswerQ: In one modification of the Pigskin problem, the maximum storage constraint
In one modification of the Pigskin problem, the maximum storage constraint and the holding cost are based on the average inventory (not ending inventory) for a given month, where the average inventory...
See AnswerQ: Simulation can be used to illustrate a number of results from statistics
Simulation can be used to illustrate a number of results from statistics that are difficult to understand with non-simulation arguments. One is the famous central limit theorem, which says that if you...
See AnswerQ: In statistics we often use observed data to test a hypothesis about
In statistics we often use observed data to test a hypothesis about a population or populations. The basic method uses the observed data to calculate a test statistic (a single number). If the magnitu...
See AnswerQ: A technical note in the discussion of @RISK indicated that Latin
A technical note in the discussion of @RISK indicated that Latin Hypercube sampling is more efficient than Monte Carlo sampling. This problem allows you to see what this means. The file P10_44.xlsx ge...
See AnswerQ: We are continually hearing reports on the nightly news about natural disasters
We are continually hearing reports on the nightly news about natural disasters—droughts in Texas, hurricanes in Florida, floods in California, and so on. We often hear that one of these was the “worst...
See AnswerQ: You are making several runs of a simulation model, each with
You are making several runs of a simulation model, each with a different value of some decision variable (such as the order quantity in the Walton calendar model), to see which decision value achieves...
See AnswerQ: If you want to replicate the results of a simulation model with
If you want to replicate the results of a simulation model with Excel functions only, not @RISK, you can build a data table and let the column input cell be any blank cell. Explain why this works.
See AnswerQ: Suppose you simulate a gambling situation where you place many bets.
Suppose you simulate a gambling situation where you place many bets. On each bet, the distribution of your net winnings (loss if negative) is highly skewed to the left because there are some possibili...
See AnswerQ: You plan to simulate a portfolio of investments over a multiyear period
You plan to simulate a portfolio of investments over a multiyear period, so for each investment (which could be a particular stock or bond, for example), you need to simulate the change in its value f...
See AnswerQ: Use @RISK to draw a triangular distribution with parameters 300,
Use @RISK to draw a triangular distribution with parameters 300, 500, and 900. Then answer the following questions. a. What are the mean and standard deviation of this distribution? b. What are the 5t...
See AnswerQ: Big Hit Video must determine how many copies of a new video
Big Hit Video must determine how many copies of a new video to purchase. Assume that the company’s goal is to purchase a number of copies that maximizes its expected profit from the video during the n...
See AnswerQ: Modify the Pigskin spreadsheet model so that except for month 6,
Modify the Pigskin spreadsheet model so that except for month 6, demand need not be met on time. The only requirement is that all demand be met eventually by the end of month 6. How does this change t...
See AnswerQ: Many people who are involved in a small auto accident do not
Many people who are involved in a small auto accident do not file a claim because they are afraid their insurance premiums will be raised. Suppose that City Farm Insurance has three rates. If you file...
See AnswerQ: A building contains 1000 lightbulbs. Each bulb lasts at most five
A building contains 1000 lightbulbs. Each bulb lasts at most five months. The company maintaining the building is trying to decide whether it is worthwhile to practice a “group replacement” policy. Un...
See AnswerQ: Why is the RISKCORRMAT function necessary? How does @RISK generate
Why is the RISKCORRMAT function necessary? How does @RISK generate random inputs by default, that is, when RISKCORRMAT is not used?
See AnswerQ: Consider the claim that normally distributed inputs in a simulation model are
Consider the claim that normally distributed inputs in a simulation model are bound to lead to normally distributed outputs. Do you agree or disagree with this claim? Defend your answer.
See AnswerQ: It is very possible that when you use a correlation matrix as
It is very possible that when you use a correlation matrix as input to the RISKCORRMAT function in an @RISK model, the program will inform you that this is an invalid correlation matrix. Provide an ex...
See AnswerQ: When you use a RISKSIMTABLE function for a decision variable, such
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.
See AnswerQ: Consider a situation where there is a cost that is either incurred
Consider a situation where there is a cost that is either incurred or not. It is incurred only if the value of some random input is less than a specified cutoff value. Why might a simulation of this s...
See AnswerQ: Use @RISK to draw a binomial distribution that results from 50
Use @RISK to draw a binomial distribution that results from 50 trials with probability of success 0.3 on each trial, and use it to answer the following questions. a. What are the mean and standard dev...
See AnswerQ: Use @RISK to draw a triangular distribution with parameters 200,
Use @RISK to draw a triangular distribution with parameters 200, 300, and 600. Then superimpose a normal distribution on this drawing, choosing the mean and standard deviation to match those from the...
See AnswerQ: We all hate to keep track of small change. By using
We all hate to keep track of small change. By using random numbers, it is possible to eliminate the need for change and give the store and the customer a fair deal. This problem indicates how it could...
See AnswerQ: Modify the Pigskin spreadsheet model so that demand in any of the
Modify the Pigskin spreadsheet model so that demand in any of the first five months must be met no later than a month late, whereas demand in month 6 must be met on time. For example, the demand in mo...
See AnswerQ: A company is about to develop and then market a new product
A company is about to develop and then market a new product. It wants to build a simulation model for the entire process, and one key uncertain input is the development cost. For each of the following...
See AnswerQ: If the number of competitors doubles, how does the optimal bid
If the number of competitors doubles, how does the optimal bid change?
See AnswerQ: Rerun the new car simulation, but now use the RISKSIMTABLE function
Rerun the new car simulation, but now use the RISKSIMTABLE function appropriately to simulate discount rates of 5%, 7.5%, 10%, 12.5%, and 15%. Comment on how the outputs change as the discount rate de...
See AnswerQ: In the cash balance model, the timing is such that some
In the cash balance model, the timing is such that some receipts are delayed by one or two months, and the payments for materials and labor must be made a month in advance. Change the model so that al...
See AnswerQ: In the cash balance model, is the $250,000
In the cash balance model, is the $250,000 minimum cash balance requirement really “costing” the company very much? Answer this by rerunning the simulation with minimum required cash balances of $50,0...
See AnswerQ: Run the retirement model with a damping factor of 1.0
Run the retirement model with a damping factor of 1.0 (instead of 0.98), again using the same three sets of investment weights. Explain in words what it means, in terms of the simulation, to have a da...
See AnswerQ: The simulation output indicates that an investment heavy in stocks produces the
The simulation output indicates that an investment heavy in stocks produces the best results. Would it be better to invest entirely in stocks? Answer this by rerunning the simulation. Is there any app...
See AnswerQ: Modify the model so that you use only the years 1975 to
Modify the model so that you use only the years 1975 to 2007 of historical data. Run the simulation for the same three sets of investment weights. Comment on whether your results differ in any importa...
See AnswerQ: Referring to the retirement example, rerun the model for a planning
Referring to the retirement example, rerun the model for a planning horizon of 10 years; 15 years; 25 years. For each, which set of investment weights maximizes the VAR 5% (the 5th percentile) of fina...
See AnswerQ: A European put option allows an investor to sell a share of
A European put option allows an investor to sell a share of stock at the exercise price on the exercise data. For example, if the exercise price is $48, and the stock price is $45 on the exercise date...
See AnswerQ: Modify the Pigskin spreadsheet model in the following way. Assume that
Modify the Pigskin spreadsheet model in the following way. Assume that the timing of demand and production are such that only 70% of the production in a given month can be used to satisfy the demand i...
See AnswerQ: Modify that the portfolio now contains 100 shares of stock and one
Modify that the portfolio now contains 100 shares of stock and one put option on the stock with the same parameters as in the example. You can assume that the price of an option is $81. Discuss in a b...
See AnswerQ: Change the new car simulation as follows. It is the same
Change the new car simulation as follows. It is the same as before for years 1 through 5, including depreciation through year 5. However, the car might sell through year 10. Each year after year 5, th...
See AnswerQ: The possible profits vary from negative to positive for each of the
The possible profits vary from negative to positive for each of the 10 possible bids examined. a. For each of these, use @RISK’s RISKTARGET function to find the probability that Miller’s profit is pos...
See AnswerQ: Based on Kelly (1956). You currently have $100.
Based on Kelly (1956). You currently have $100. Each week you can invest any amount of money you currently have in a risky investment. With probability 0.4, the amount you invest is tripled (e.g., if...
See AnswerQ: Amanda has 30 years to save for her retirement. At the
Amanda has 30 years to save for her retirement. At the beginning of each year, she puts $5000 into her retirement account. At any point in time, all of Amanda’s retirement funds are tied up in the sto...
See AnswerQ: In the financial world, there are many types of complex instruments
In the financial world, there are many types of complex instruments called derivatives that derive their value from the value of an underlying asset. Consider the following simple derivative. A stock’...
See AnswerQ: Suppose you currently have a portfolio of three stocks, A,
Suppose you currently have a portfolio of three stocks, A, B, and C. You own 500 shares of A, 300 of B, and 1000 of C. The current share prices are $42.76, $81.33, and $58.22, respectively. You plan t...
See AnswerQ: If you own a stock, buying a put option on the
If you own a stock, buying a put option on the stock will greatly reduce your risk. This is the idea behind portfolio insurance. To illustrate, consider a stock that currently sells for $56 and has an...
See AnswerQ: For the data in problem 24, the following is an example
For the data in problem 24, the following is an example of a butterfly spread: sell two calls with an exercise price of $50, buy one call with an exercise price of $40, and buy one call with an exerci...
See AnswerQ: A stock currently sells for $69. The annual growth rate
A stock currently sells for $69. The annual growth rate of the stock is 15%, and the stock’s annual volatility is 35%. The risk-free rate is currently 5%. You have bought a six-month European put opti...
See AnswerQ: In the Sam’s Bookstore problem, the quantity discount structure is such
In the Sam’s Bookstore problem, the quantity discount structure is such that all the units ordered have the same unit cost. For example, if the order quantity is 2500, then each unit costs $22.25. Som...
See AnswerQ: A chemical company manufactures three chemicals: A, B, and
A chemical company manufactures three chemicals: A, B, and C. These chemicals are produced via two production processes: 1 and 2. Running process 1 for an hour costs $400 and yields 300 units of A, 10...
See AnswerQ: A knockout call option loses all value at the instant the price
A knockout call option loses all value at the instant the price of the stock drops below a given “knockout level.” Determine a fair price for a knockout call option when the current stock price is $20...
See AnswerQ: Suppose an investor has the opportunity to buy the following contract (
Suppose an investor has the opportunity to buy the following contract (a stock call option) on March 1. The contract allows him to buy 100 shares of ABC stock at the end of March, April, or May at a g...
See AnswerQ: Suppose that Coke and Pepsi are fighting for the cola market.
Suppose that Coke and Pepsi are fighting for the cola market. Each week each person in the market buys one case of Coke or Pepsi. If the person’s last purchase was Coke, there is a 0.90 probability th...
See AnswerQ: If the average bid for each competitor stays the same, but
If the average bid for each competitor stays the same, but their bids exhibit less variability, does Miller’s optimal bid increase or decrease? To study this question, assume that each competitor’s bi...
See AnswerQ: Seas Beginning sells clothing by mail order. An important question is
Seas Beginning sells clothing by mail order. An important question is when to strike a customer from the company’s mailing list. At present, the company strikes a customer from its mailing list if a...
See AnswerQ: Based on Babich (1992). Suppose that each week each of
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 unsat...
See AnswerQ: The customer loyalty model in Example 11.9 assumes that once
The customer loyalty model in Example 11.9 assumes that once a customer leaves (becomes disloyal), that customer never becomes loyal again. Assume instead that there are two probabilities that drive t...
See AnswerQ: We are all aware of the fierce competition by mobile phone service
We are all aware of the fierce competition by mobile phone service companies to get our business. For example, AT&T is always trying to attract Verizon’s customers, and vice versa. Some even give away...
See AnswerQ: Suppose that GLC earns a $2000 profit each time a person
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 GLC’s cars. We assume a typical custo...
See AnswerQ: The Mutron Company is thinking of marketing a new drug used to
The Mutron Company is thinking of marketing a new drug used to make pigs healthier. At the beginning of the current year, there are 1,000,000 pigs that could use the product. Each pig will use Mutron’...
See AnswerQ: A furniture company manufactures desks and chairs. Each desk uses four
A furniture company manufactures desks and chairs. Each desk uses four units of wood, and each chair uses three units of wood. A desk contributes $250 to profit, and a chair contributes $145. Marketin...
See AnswerQ: A martingale betting strategy works as follows. You begin with a
A martingale betting strategy works as follows. You begin with a certain amount of money and repeatedly play a game in which you have a 40% chance of winning any bet. In the first game, you bet $1. Fr...
See AnswerQ: The game of Chuck-a-Luck is played as follows
The game of Chuck-a-Luck is played as follows: You pick a number between 1 and 6 and toss three dice. If your number does not appear, you lose $1. If your number appears x times, you win $x. On the av...
See AnswerQ: You have $5 and your opponent has $10. You
You have $5 and your opponent has $10. You flip a fair coin and if heads comes up, your opponent pays you $1. If tails comes up, you pay your opponent $1. The game is finished when one player has all...
See AnswerQ: Assume a very good NBA team has a 70% chance of
Assume a very good NBA team has a 70% chance of winning in each game it plays. During an 82 game season what is the average length of the team’s longest winning streak? What is the probability that th...
See AnswerQ: For each part, make the change indicated, run the simulation
For each part, make the change indicated, run the simulation, and comment on any differences between your outputs and the outputs in the example. a. The cost of a new camera is increased to $500. b. T...
See AnswerQ: You are going to play the Wheel of Misfortune Game against the
You are going to play the Wheel of Misfortune Game against the house. The wheel has 10 equally likely numbers: 5, 10, 15, 20, 25, 30, 35, 40, 45 ,and 50. The goal is to get a total as close as possibl...
See AnswerQ: Consider the following card game. The player and dealer each receive
Consider the following card game. The player and dealer each receive a card from a 52-card deck. At the end of the game the player with the highest card wins; a tie goes to the dealer. (You can assume...
See AnswerQ: Based on Morrison and Wheat (1984). When his team is
Based on Morrison and Wheat (1984). When his team is behind late in the game, a hockey coach usually waits until there is one minute left before pulling the goalie out of the game. Using simulation, i...
See AnswerQ: You are playing Serena Williams in tennis, and you have a
You are playing Serena Williams in tennis, and you have a 42% chance of winning each point. (You are good!) a. Use simulation to estimate the probability you will win a particular game. Note that the...
See AnswerQ: You now have $5000. You will toss a fair coin
You now have $5000. You will toss a fair coin four times. Before each toss you can bet any amount of your money (including none) on the outcome of the toss. If heads comes up, you win the amount you b...
See AnswerQ: A farmer owns 450 acres of land. He is going to
A farmer owns 450 acres of land. He is going to plant each acre with wheat or corn. Each acre planted with wheat yields $2000 profit, requires three workers, and requires two tons of fertilizer. Each...
See AnswerQ: You now have $10,000, all of which is
You now have $10,000, all of which is invested in a sports team. Each year there is a 60% chance that the value of the team will increase by 60% and a 40% chance that the value of the team will decrea...
See AnswerQ: Suppose you have invested 25% of your portfolio in four different
Suppose you have invested 25% of your portfolio in four different stocks. The mean and standard deviation of the annual return on each stock are shown in the file P11_46.xlsx. The correlations between...
See AnswerQ: A ticket from Indianapolis to Orlando on Deleast Airlines sells for $
A ticket from Indianapolis to Orlando on Deleast Airlines sells for $150. The plane can hold 100 people. It costs Deleast $8000 to fly an empty plane. Each person on the plane incurs variable costs of...
See AnswerQ: Based on Marcus (1990). The Balboa mutual fund has beaten
Based on Marcus (1990). The Balboa mutual fund has beaten the Standard and Poor’s 500 during 11 of the last 13 years. People use this as an argument that you can beat the market. Here is another way t...
See AnswerQ: You have been asked to simulate the cash inflows to a toy
You have been asked to simulate the cash inflows to a toy company for the next year. Monthly sales are independent random variables. Mean sales for the months January through March and October through...
See AnswerQ: The gamma distribution was used to model the skewness to the right
The gamma distribution was used to model the skewness to the right of the lifetime distribution. Experiment to see whether the triangular distribution could have been used instead. Let its minimum val...
See AnswerQ: Consider a device that requires two batteries to function. If either
Consider a device that requires two batteries to function. If either of these batteries dies, the device will not work. Currently there are two new batteries in the device, and there are three extra n...
See AnswerQ: Consider a drill press containing three drill bits. The current policy
Consider a drill press containing three drill bits. The current policy (called individual replacement) is to replace a drill bit when it fails. The firm is considering changing to a block replacement...
See AnswerQ: Appliances Unlimited (AU) sells refrigerators. Any refrigerator that fails
Appliances Unlimited (AU) sells refrigerators. Any refrigerator that fails before it is three years old is replaced for free. Of all refrigerators, 2% fail during their first year of operation; 4% of...
See AnswerQ: The annual demand for Prizdol, a prescription drug manufactured and marketed
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 ea...
See AnswerQ: During the next four months, a customer requires, respectively,
During the next four months, a customer requires, respectively, 600, 800, 1200, and 900 units of a commodity, and no backlogging is allowed (that is, the customer’s requirements must be met on time)....
See AnswerQ: A company is trying to determine the proper capacity level for its
A company is trying to determine the proper capacity level for its new electric car. A unit of capacity provides the potential to produce one car per year. It costs $15,000 to build a unit of capacity...
See AnswerQ: The DC Cisco office is trying to predict the revenue it will
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 mill...
See AnswerQ: A common decision is whether a company should buy equipment and produce
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 s...
See AnswerQ: Consider an oil company that bids for the rights to drill in
Consider an oil company that bids for the rights to drill in offshore areas. The value of the right to drill in a given offshore area is highly uncertain, as are the bids of the competitors. This prob...
See AnswerQ: Suppose you begin year 1 with $5000. At the beginning
Suppose you begin year 1 with $5000. At the beginning of each year, you put half of your money under a mattress and invest the other half in Whitewater stock. During each year, there is a 40% chance t...
See AnswerQ: Mary Higgins is a freelance writer with enough spare time on her
Mary Higgins is a freelance writer with enough spare time on her hands to play the stock market fairly seriously. Each morning she observes the change in stock price of a particular stock and decides...
See AnswerQ: We commented on the 95th percentile on days required and the corresponding
We commented on the 95th percentile on days required and the corresponding date to start production. If the company begins production on this date, then it is 95% sure to complete the order by the due...
See AnswerQ: You are considering a 10-year investment project. At present
You are considering a 10-year investment project. At present, the expected cash flow each year is $10,000. Suppose, however, that each year’s cash flow is normally distributed with mean equal to last...
See AnswerQ: Play Things is developing a new Lady Gaga doll. The company
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 equall...
See AnswerQ: An automobile manufacturer is considering whether to introduce a new model called
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 i...
See AnswerQ: A company faces the following demands during the next three weeks:
A company faces the following demands during the next three weeks: week 1, 2000 units; week 2, 1000 units; week 3, 1500 units. The unit production costs during each week are as follows: week 1, $130;...
See AnswerQ: It costs a pharmaceutical company $75,000 to produce a
It costs a pharmaceutical company $75,000 to produce a 1000-pound batch of a drug. The average yield from a batch is unknown but the best case is 90% yield (that is, 900 pounds of good drug will be pr...
See AnswerQ: A truck manufacturer produces the Off Road truck. The company wants
A truck manufacturer produces the Off Road truck. The company wants to gain information about the discounted profits earned during the next three years. During a given year, the total number of trucks...
See AnswerQ: Suppose you buy an electronic device that you operate continuously. The
Suppose you buy an electronic device that you operate continuously. The device costs you $300 and carries a one-year warranty. The warranty states that if the device fails during its first year of use...
See AnswerQ: Rework the previous problem for a case in which the one-
Rework the previous problem for a case in which the one-year warranty requires you to pay for the new device even if failure occurs during the warranty period. Specifically, if the device fails at tim...
See AnswerQ: Based on Hoppensteadt and Peskin (1992). The following model (
Based on Hoppensteadt and Peskin (1992). The following model (the Reed–Frost model) is often used to model the spread of an infectious disease. Suppose that at the beginning of period 1, the populatio...
See AnswerQ: Chemcon has taken over the production of Nasacure from a rival drug
Chemcon has taken over the production of Nasacure from a rival drug company. Chemcon must build a plant to produce Nasacure by the beginning of 2010. Once the plant is built, the plant’s capacity cann...
See AnswerQ: The Tinkan Company produces one-pound cans for the Canadian salmon
The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon spawn during a 24-hour period and must be canned immediately. Tinkan has the following agreement with...
See AnswerQ: Suppose you want to run five simulations, where the probability of
Suppose you want to run five simulations, where the probability of passing inspection is varied from 0.6 to 1.0 in increments of 0.1. Use the RISKSIMTABLE function appropriately to do this. Comment on...
See AnswerQ: You are unemployed, 21 years old, and searching for a
You are unemployed, 21 years old, and searching for a job. Until you accept a job offer, the following situation occurs. At the beginning of each year, you receive a job offer. The annual salary assoc...
See AnswerQ: A popular restaurant in Indianapolis does a brisk business, filling virtually
A popular restaurant in Indianapolis does a brisk business, filling virtually all of its seats from 6 p.m. until 9 p.m. Tuesday through Sunday. Its current annual revenue is $2.34 million. However, it...
See AnswerQ: Continuing the previous problem, perform a sensitivity analysis on the selling
Continuing the previous problem, perform a sensitivity analysis on the selling price of VXPs. Let this price vary from $500 to $650 in increments of $10, and keep track of the values in the decision v...
See AnswerQ: The Ryder Cup is a three-day golf tournament played every
The Ryder Cup is a three-day golf tournament played every other year with 12 of the best U.S. golfers against 12 of the best European golfers. They play 16 team matches (each match has two U.S. golfer...
See AnswerQ: Based on Bukiet et al. (1997). Many Major League
Based on Bukiet et al. (1997). Many Major League teams (including Oakland, Boston, LA Dodgers, and Toronto) use mathematical models to evaluate baseball players. A common measure of a player’s offensi...
See AnswerQ: In this version of “dice blackjack,” you toss a single
In this version of “dice blackjack,” you toss a single die repeatedly and add up the sum of your dice tosses. Your goal is to come as close as possible to a total of 7 without going over. You may stop...
See AnswerQ: It is now May 1 of year 0, and GM is
It is now May 1 of year 0, and GM is deciding whether to produce a new car. The following information is relevant. ■ The fixed cost of developing the car is incurred on January 1 of year 1 and is assu...
See AnswerQ: It is January 1 of year 0, and Lilly is considering
It is January 1 of year 0, and Lilly is considering developing a new drug called Dialis. We are given the following information ■ On March 15 of year 0, Lilly incurs a fixed cost that is assumed to fo...
See AnswerQ: It is January 1 of year 0, and Merck is trying
It is January 1 of year 0, and Merck is trying to determine whether to continue development of a new drug. The following information is relevant. You can assume that all cash flows occur at the ends o...
See AnswerQ: Nucleon is trying to determine whether to produce a new drug that
Nucleon is trying to determine whether to produce a new drug that makes pigs healthier. The product will be sold in years 1 to 5. The following information is relevant: ■ A fixed cost is incurred on J...
See AnswerQ: Suppose you are using an underwater probe to search for a sunken
Suppose you are using an underwater probe to search for a sunken ship. At any time in the search, your probe is located at some point (x, y) in a grid, where the distance between lines in the grid is...
See AnswerQ: If a batch fails to pass inspection, the entire batch is
If a batch fails to pass inspection, the entire batch is unusable. Change the model so that if a batch fails to pass inspection, it is reworked, and at the end of the rework, its entire yield (the sam...
See AnswerQ: We have separated the examples in this chapter into operations, finance
We have separated the examples in this chapter into operations, finance, marketing, and sports categories. List at least one other problem in each of these categories that could be attacked with simul...
See AnswerQ: Maggie Stewart loves desserts, but due to weight and cholesterol concerns
Maggie Stewart loves desserts, but due to weight and cholesterol concerns, she has decided that she must plan her desserts carefully. There are two possible desserts she is considering: snack bars and...
See AnswerQ: Suppose you are an HR (human resources) manager at a
Suppose you are an HR (human resources) manager at a big university, and you sense that the university is becoming too top-heavy with full professors. That is, there do not seem to be as many younger...
See AnswerQ: You are an avid basketball fan, and you would like to
You are an avid basketball fan, and you would like to build a simulation model of an entire game so that you could compare two different strategies, such as man to-man versus zone defense. Is this pos...
See AnswerQ: Suppose you are a financial analyst and your company runs many simulation
Suppose you are a financial analyst and your company runs many simulation models to estimate the profitability of its projects. If you had to choose just two measures of the distribution of any import...
See AnswerQ: Software development is an inherently risky and uncertain process. For example
Software development is an inherently risky and uncertain process. For example, there are many examples of software that couldn’t be “finished” by the scheduled release date—bugs still remained and fe...
See AnswerQ: Health care is continually in the news. Can (or should
Health care is continually in the news. Can (or should) simulation be used to help solve, or at least study, some of the difficult problems associated with health care? Provide at least two examples w...
See AnswerQ: Rerun the new car simulation, but now introduce uncertainty into the
Rerun the new car simulation, but now introduce uncertainty into the fixed development cost. Let it be triangularly distributed with parameters $600 million, $650 million, and $850 million. (You can c...
See AnswerQ: An extremely important concept in queueing models is the difference between rates
An extremely important concept in queueing models is the difference between rates and times. If represents a rate (customers per hour, say), then argue why 1/ is a time and vice versa.
See AnswerQ: The Decision Sciences Department is trying to determine whether to rent a
The Decision Sciences Department is trying to determine whether to rent a slow or a fast copier. The department believes that an employee’s time is worth $15 per hour. The slow copier rents for $4 per...
See AnswerQ: The MM1 Template.xlsx file is now set up so that
The MM1 Template.xlsx file is now set up so that you can enter any integer in cell E11 and the corresponding probability of that many in the system appears in cell F11. Change this setup so that colum...
See AnswerQ: The MM1 Template.xlsx file is now set up so that
The MM1 Template.xlsx file is now set up so that when you enter any time value in cell H11, the formula in cell I11 gives the probability that the wait in queue will be greater than this amount of tim...
See AnswerQ: For a telephone survey, a marketing research group needs to contact
For a telephone survey, a marketing research group needs to contact at least 600 wives, 480 husbands, 400 single adult males, and 440 single adult females. It costs $3 to make a daytime call and (beca...
See AnswerQ: Expand the MM1 Template.xlsx file so that the steady-
Expand the MM1 Template.xlsx file so that the steady-state probability distribution of the number in the system is shown in tabular form and graphically. That is, enter values 0, 1, and so on (up to s...
See AnswerQ: For an M/M/1 queueing system, L =
For an M/M/1 queueing system, L = /(µ - ). Suppose that l and µ are both doubled. How does L change? How does W change? How does WQ change? How does LQ change?
See AnswerQ: Suppose that you observe a sequence of interarrival times, such as
Suppose that you observe a sequence of interarrival times, such as 1.2, 3.7, 4.2, 0.5, 8.2, 3.1, 1.7, 4.2, 0.7, 0.3, and 2.0. For example, 4.2 is the time between the arrivals of customers 2 and 3. If...
See AnswerQ: In the M/M/s model, where µ is
In the M/M/s model, where µ is the service rate per server, explain why , µ is not the appropriate condition for steady state, but , sµ is.
See AnswerQ: Expand the MMs Template.xlsm file so that the steady state
Expand the MMs Template.xlsm file so that the steady state probability distribution of the number in the system is shown in tabular form and graphically. That is, enter values 0, 1, and so on (up to s...
See AnswerQ: Each airline passenger and his luggage must be checked for security.
Each airline passenger and his luggage must be checked for security. Suppose that at Gotham City Airport, 3.6 passengers per minute arrive, on average. Also, assume that interarrival times are exponen...
See AnswerQ: A supermarket is trying to decide how many cash registers to keep
A supermarket is trying to decide how many cash registers to keep open. Suppose an average of 18 customers arrive each hour, and the average checkout time for a customer is four minutes. Interarrival...
See AnswerQ: Explain the basic relationship between the exponential distribution and a Poisson process
Explain the basic relationship between the exponential distribution and a Poisson process. Also, explain how the exponential distribution and the Poisson distribution are fundamentally different.
See AnswerQ: A small bank is trying to determine the number of tellers to
A small bank is trying to determine the number of tellers to employ. The total cost of employing a teller is $100 per day, and a teller can serve an average of 160 customers per day. On average, 210 c...
See AnswerQ: In this problem, assume that all interarrival and service times are
In this problem, assume that all interarrival and service times are exponentially distributed. a. At present, the finance department and the marketing department each has its own typists. Each typist...
See AnswerQ: A furniture company manufactures tables and chairs. Each table and chair
A furniture company manufactures tables and chairs. Each table and chair must be made entirely out of oak or entirely out of pine. A total of 25,000 board feet of oak and 20,000 board feet of pine are...
See AnswerQ: MacBurger’s is attempting to determine how many servers to have available during
MacBurger’s is attempting to determine how many servers to have available during the breakfast shift. On average, 100 customers arrive per hour at the restaurant. Each server can handle an average of...
See AnswerQ: On average, 100 customers arrive per hour at the Gotham City
On average, 100 customers arrive per hour at the Gotham City Bank. The average service time for each customer is one minute. Service times and interarrival times are exponentially distributed. The man...
See AnswerQ: A service facility consists of one server who can serve an average
A service facility consists of one server who can serve an average of two customers per hour (service times are exponential). An average of three customers per hour arrive at the facility (interarriva...
See AnswerQ: On average, 40 cars per hour are tempted to use the
On average, 40 cars per hour are tempted to use the drive-through window at the Hot Dog King Restaurant. (We assume that interarrival times are exponentially distributed.) If a total of more than four...
See AnswerQ: A laundromat has five washing machines. A typical machine breaks down
A laundromat has five washing machines. A typical machine breaks down once every five days. A repairman can repair a machine in an average of 2.5 days. Currently, three repairmen are on duty. The owne...
See AnswerQ: The limited source model can often be used to approximate the behavior
The limited source model can often be used to approximate the behavior of a computer’s CPU (central processing unit). Suppose that 20 terminals (assumed to always be busy) feed the CPU. After the CPU...
See AnswerQ: Consider an airport where taxis and customers arrive (exponential interarrival times
Consider an airport where taxis and customers arrive (exponential interarrival times) with respective rates of one and two per minute. No matter how many other taxis are present, a taxi will wait. If...
See AnswerQ: A bank is trying to determine which of two machines to rent
A bank is trying to determine which of two machines to rent for check processing. Machine 1 rents for $10,000 per year and processes 1000 checks per hour. Machine 2 rents for $15,000 per year and proc...
See AnswerQ: You can easily generate random numbers in a spreadsheet that have an
You can easily generate random numbers in a spreadsheet that have an exponential distribution with a given mean. For example, to generate 200 such numbers from an exponential distribution with = 1...
See AnswerQ: A worker at the State Unemployment Office is responsible for processing a
A worker at the State Unemployment Office is responsible for processing a company’s forms when it opens for business. The worker can process an average of four forms per week. Last year, an average of...
See AnswerQ: A manufacturing company makes two products. Each product can be made
A manufacturing company makes two products. Each product can be made on either of two machines. The time (in hours) required to make each product on each machine is listed in the file. Each month, 500...
See AnswerQ: For the M/M/1 queueing model, why do
For the M/M/1 queueing model, why do the following results hold? a. W = (L + 1) / b. WQ = L /
See AnswerQ: Referring to Problem 18, suppose the airline wants to determine how
Referring to Problem 18, suppose the airline wants to determine how many checkpoints to operate to minimize operating costs and delay costs over a 10-year period. Assume that the cost of delaying a pa...
See AnswerQ: The manager of a bank wants to use an M/M
The manager of a bank wants to use an M/M/s queueing model to weigh the costs of extra tellers against the cost of having customers wait in line. The arrival rate is 60 customers per hour, and the ave...
See AnswerQ: On average, 100 customers arrive per hour at Gotham City Bank
On average, 100 customers arrive per hour at Gotham City Bank. It takes a teller an average of two minutes to serve a customer. Interarrival and service times are exponentially distributed. The bank c...
See AnswerQ: Consider the following two queueing systems. ■ System 1:
Consider the following two queueing systems. ■ System 1: An M/M/1 system with arrival rate and service rate 3µ. ■ System 2: An M/M/3 system with arrival rate and each server working at rate µ. Whi...
See AnswerQ: Two one-barber shops sit side by side in Dunkirk Square
Two one-barber shops sit side by side in Dunkirk Square. Each shop can hold a maximum of four people, and any potential customer who finds a shop full will not wait for a haircut. Barber 1 charges $15...
See AnswerQ: The small mail-order firm Sea’s Beginning has one phone line
The small mail-order firm Sea’s Beginning has one phone line. An average of 60 people per hour call in orders, and it takes an average of one minute to handle a call. Time between calls and time to ha...
See AnswerQ: The Smalltown Credit Union experiences its greatest congestion on paydays from 11
The Smalltown Credit Union experiences its greatest congestion on paydays from 11:30 a.m. until 1:00 p.m. During these rush periods, customers arrive according to a Poisson process at rate 2.1 per min...
See AnswerQ: How long does it take to reach steady state? Use simulation
How long does it take to reach steady state? Use simulation, with the Multiserver Simulation.xlsm file, to experiment with the effect of warm-up time and run time on the key outputs. For each of the f...
See AnswerQ: Do exponentially distributed random numbers have the memoryless property? Here is
Do exponentially distributed random numbers have the memoryless property? Here is one way to find out. Generate many exponentially distributed random numbers with mean 5, using the formula in the prev...
See AnswerQ: The current spreadsheet model essentially finds the expected profit in several steps
The current spreadsheet model essentially finds the expected profit in several steps. It first finds the profit in cell B19 for a fixed value of demand. Then it uses a data table to find the profit fo...
See AnswerQ: There are three factories on the Momiss River. Each emits two
There are three factories on the Momiss River. Each emits two types of pollutants, labeled P1 and P2, into the river. If the waste from each factory is processed, the pollution in the river can be red...
See AnswerQ: Given the model in the Multi-server Simulation.xlsm file
Given the model in the Multi-server Simulation.xlsm file, what unit cost parameters should be used if we are interested in “optimizing” the system? Choose representative inputs and unit costs, and the...
See AnswerQ: Simulate the system in Problem 10. Make any assumptions about the
Simulate the system in Problem 10. Make any assumptions about the warm-up and run-time periods you believe are appropriate. Try solving the problem with exponentially distributed copying times. Then t...
See AnswerQ: We examined whether an M/M/1 system with a
We examined whether an M/M/1 system with a single fast server is better or worse than an M/M/s system with several slow servers. Keeping the same inputs as in the example, use simulation to see whethe...
See AnswerQ: A telephone-order sales company must determine how many telephone operators
A telephone-order sales company must determine how many telephone operators are needed to staff the phones during the 9-to-5 shift. It is estimated that an average of 480 calls are received during thi...
See AnswerQ: US Airlines receives an average of 500 calls per hour from customers
US Airlines receives an average of 500 calls per hour from customers who want to make reservations, where the times between calls follow an exponential distribution. It takes an average of three minut...
See AnswerQ: A company’s warehouse can store up to four units of a good
A company’s warehouse can store up to four units of a good. Each month, an average of 10 orders for the good are received. The times between the receipts of successive orders are exponentially distrib...
See AnswerQ: On average, 50 customers arrive per hour at a small post
On average, 50 customers arrive per hour at a small post office. Interarrival times are exponentially distributed. Each window can serve an average of 25 customers per hour. Service times are exponent...
See AnswerQ: On average, 300 customers arrive per hour at a huge branch
On average, 300 customers arrive per hour at a huge branch of Bank 2. It takes an average of two minutes to serve each customer. It costs $10 per hour to keep a teller window open, and the bank estima...
See AnswerQ: Ships arrive at a port facility at an average rate of two
Ships arrive at a port facility at an average rate of two ships every three days. On average, it takes a single crew one day to unload a ship. Assume that interarrival and service times are exponentia...
See AnswerQ: A printing shop receives an average of one order per day.
A printing shop receives an average of one order per day. The average length of time required to complete an order is half a day. At any given time, the print shop can work on at most one job. Interar...
See AnswerQ: A company manufactures two types of trucks. Each truck must go
A company manufactures two types of trucks. Each truck must go through the painting shop and the assembly shop. If the painting shop were completely devoted to painting type 1 trucks, 650 per day coul...
See AnswerQ: Assume that parts arrive at a machining center at a rate of
Assume that parts arrive at a machining center at a rate of 60 parts per hour. The machining center is capable of processing 75 parts per hour—that is, the mean time to machine a part is 0.8 minute. I...
See AnswerQ: On average, 40 jobs arrive per day at a factory.
On average, 40 jobs arrive per day at a factory. The time between arrivals of jobs is exponentially distributed. The factory can process an average of 42 jobs per day, and the time to process a job is...
See AnswerQ: At the Franklin Post Office, patrons wait in a single line
At the Franklin Post Office, patrons wait in a single line for the first open window. On average, 100 patrons enter the post office per hour, and each window can serve an average of 45 patrons per hou...
See AnswerQ: The manager of a large group of employees must decide whether she
The manager of a large group of employees must decide whether she needs another photocopying machine. The cost of a machine is $40 per eight-hour day regardless of whether the machine is in use. On av...
See AnswerQ: The Newcoat Painting Company has for some time been experiencing high demand
The Newcoat Painting Company has for some time been experiencing high demand for its automobile repainting service. Because it has had to turn away business, management is concerned that the limited s...
See AnswerQ: On average, 90 patrons arrive per hour at a hotel lobby
On average, 90 patrons arrive per hour at a hotel lobby (interarrival times are exponential) waiting to check in. At present there are five clerks, and patrons wait in a single line for the first avai...
See AnswerQ: The mail order firm of L. L. Pea receives an
The mail order firm of L. L. Pea receives an average of 200 calls per hour, where times between calls are exponentially distributed. It takes an L. L. Pea operator an average of three minutes to handl...
See AnswerQ: Bloomington Hospital knows that insurance companies are going to reduce the average
Bloomington Hospital knows that insurance companies are going to reduce the average length of stay of many types of patients. How can queueing models be used to determine how changes in insurance poli...
See AnswerQ: Excessive delays have recently been noted on New York City’s 911 system
Excessive delays have recently been noted on New York City’s 911 system. Discuss how you would use queueing models to improve the performance of the 911 system.
See AnswerQ: Suppose that annually an average of library patrons want to borrow
Suppose that annually an average of library patrons want to borrow a book. A patron borrows the book for an average of 1/ years. Suppose we observe that the book is actually borrowed an average of...
See AnswerQ: A company manufactures mechanical heart valves from the heart valves of pigs
A company manufactures mechanical heart valves from the heart valves of pigs. Different heart operations require valves of different sizes. The company purchases pig valves from three different suppli...
See AnswerQ: Based on Quinn et al. (1991). Winter Riggers handles
Based on Quinn et al. (1991). Winter Riggers handles approximately $400 million in telephone orders per year. Winter Riggers’ system works as follows. Callers are connected to an agent if one is avail...
See AnswerQ: Little’s formula applies to an entire queueing system or to a subsystem
Little’s formula applies to an entire queueing system or to a subsystem of a larger system. For example, consider a single-server system composed of two subsystems. The first subsystem is the waiting...
See AnswerQ: Zerox has 16 service centers throughout the United States. Zerox is
Zerox has 16 service centers throughout the United States. Zerox is trying to determine how many technicians it should assign to each service center. How would you approach this problem?
See AnswerQ: Based on Kolesar et al. (1974), Metropolis PD Precinct
Based on Kolesar et al. (1974), Metropolis PD Precinct 88 must determine the minimum number of police cars required to meet its needs for the next 24 hours. An average call for service requires 30 min...
See AnswerQ: Consider a bank where potential customers arrive at rate of 60 customers
Consider a bank where potential customers arrive at rate of 60 customers per hour. However, because of limited space, one out of every four arriving customers finds the bank full and leaves immediatel...
See AnswerQ: Consider a fast-food restaurant where customers enter at a rate
Consider a fast-food restaurant where customers enter at a rate of 75 per hour, and three servers are working. Customers wait in a single line and go, in FCFS fashion, to the first of the three server...
See AnswerQ: A fast-food restaurant has one drive-through window.
A fast-food restaurant has one drive-through window. On average, 40 customers arrive per hour at the window. It takes an average of one minute to serve a customer. Assume that interarrival and service...
See AnswerQ: The file contains the monthly number of airline tickets sold by a
The file contains the monthly number of airline tickets sold by a travel agency. a. Does a linear trend appear to fit these data well? If so, estimate and interpret the linear trend model for this ti...
See AnswerQ: Sometimes curvature in a scatterplot can be fit adequately (especially to
Sometimes curvature in a scatterplot can be fit adequately (especially to the naked eye) by several trend lines. We discussed the exponential trend line, and the power trend line is discussed in the p...
See AnswerQ: The manager of a commuter rail transportation system was recently asked by
The manager of a commuter rail transportation system was recently asked by her governing board to determine which factors have a significant impact on the demand for rides in the large city served by...
See AnswerQ: A company that builds sailboats wants to determine how many sailboats to
A company that builds sailboats wants to determine how many sailboats to build during each of the next four quarters. The demand during each of the next four quarters is as follows: first quarter, 160...
See AnswerQ: Suppose you are an analyst for a company that produces four products
Suppose you are an analyst for a company that produces four products, and you are trying to decide how much of each product to produce next month. To model this decision problem, you need the unit var...
See AnswerQ: A trucking company wants to predict the yearly maintenance expense (Y
A trucking company wants to predict the yearly maintenance expense (Y ) for a truck using the number of miles driven during the year (X1) and the age of the truck (X2, in years) at the beginning of th...
See AnswerQ: An antique collector believes that the price received for a particular item
An antique collector believes that the price received for a particular item increases with its age and with the number of bidders. The file P13_14.xlsx contains data on these three variables for 32 re...
See AnswerQ: Stock market analysts are continually looking for reliable predictors of stock prices
Stock market analysts are continually looking for reliable predictors of stock prices. Consider the problem of modeling the price per share of electric utility stocks (Y). Two variables thought to inf...
See AnswerQ: Suppose that a regional express delivery service company wants to estimate the
Suppose that a regional express delivery service company wants to estimate the cost of shipping a package (Y) as a function of cargo type, where cargo type includes the following possibilities: fragil...
See AnswerQ: The owner of a restaurant in Bloomington, Indiana, has recorded
The owner of a restaurant in Bloomington, Indiana, has recorded sales data for the past 19 years. He has also recorded data on potentially relevant variables. The data are listed in the file P13_17.xl...
See AnswerQ: The file P13_18.xlsx contains data on over 200
The file P13_18.xlsx contains data on over 200 movies that came out in 2006 and 2007. Create a new variable Total Revenue that is the sum of Total US Gross, International Gross, and US DVD Sales. How...
See AnswerQ: The file P13_19.xlsx contains the weekly sales of
The file P13_19.xlsx contains the weekly sales of a particular brand of paper towels at a supermarket for a one-year period. a. Using a span of 3, forecast the sales of this product for the next 10 we...
See AnswerQ: The file contains five years of monthly data on sales (number
The file contains five years of monthly data on sales (number of units sold) for a particular company. The company suspects that except for random noise, its sales are growing by a constant percentage...
See AnswerQ: The file P13_20.xlsx contains the monthly sales of
The file P13_20.xlsx contains the monthly sales of iPod cases at an electronics store for a two-year period. Use the moving averages method, with spans of your choice, to forecast sales for the next s...
See AnswerQ: A company manufactures two products on two machines. The number of
A company manufactures two products on two machines. The number of hours of machine time and labor depends on the machine and product as shown in the file. The cost of producing a unit of each product...
See AnswerQ: The file P13_21.xlsx contains the weekly sales of
The file P13_21.xlsx contains the weekly sales of rakes at a hardware store for a two-year period. Use the moving averages method, with spans of your choice, to forecast sales for the next 30 weeks. D...
See AnswerQ: The file P13_22.xlsx contains total monthly U.
The file P13_22.xlsx contains total monthly U.S. retail sales data. While holding out the final six months of observations for validation purposes, use the method of moving averages with a carefully c...
See AnswerQ: You have been assigned to forecast the number of aircraft engines ordered
You have been assigned to forecast the number of aircraft engines ordered each month by Commins Engine Company. At the end of February, the forecast is that 100 engines will be ordered during April. D...
See AnswerQ: Simple exponential smoothing with = 0.3 is being used
Simple exponential smoothing with = 0.3 is being used to forecast sales of digital cameras at Lowland Appliance. Forecasts are made on a monthly basis. After August camera sales are observed, the fo...
See AnswerQ: The file P13_25.xlsx contains the quarterly numbers of
The file P13_25.xlsx contains the quarterly numbers of applications for home mortgage loans at a branch office of Northern Central Bank. a. Create a time series chart of the data. Based on what you se...
See AnswerQ: The file P13_26.xlsx contains the monthly number of
The file P13_26.xlsx contains the monthly number of airline tickets sold by the CareFree Travel Agency. a. Create a time series chart of the data. Based on what you see, which of the exponential smoot...
See AnswerQ: The file contains yearly data on the proportion of Americans under the
The file contains yearly data on the proportion of Americans under the age of 18 living below the poverty level. a. Create a time series chart of the data. Based on what you see, which of the exponent...
See AnswerQ: The file P13_28.xlsx contains monthly retail sales of
The file P13_28.xlsx contains monthly retail sales of U.S. liquor stores. a. Is seasonality present in these data? If so, characterize the seasonality pattern. b. Use Winters’ method to forecast this...
See AnswerQ: The file P13_29.xlsx contains monthly time series data
The file P13_29.xlsx contains monthly time series data for total U.S. retail sales of building materials (which includes retail sales of building materials, hardware and garden supply stores, and mobi...
See AnswerQ: The file contains monthly data on production levels and production costs during
The file contains monthly data on production levels and production costs during a four-year period for a company that produces a single product. Use simple regression on all of the data to see how Tot...
See AnswerQ: A textile company produces shirts and pants. Each shirt requires three
A textile company produces shirts and pants. Each shirt requires three square yards of cloth, and each pair of pants requires two square yards of cloth. During the next two months the following demand...
See AnswerQ: A version of simple exponential smoothing can be used to predict the
A version of simple exponential smoothing can be used to predict the outcome of sporting events. To illustrate, consider pro football. We first assume that all games are played on a neutral field. Bef...
See AnswerQ: Many companies manufacture products that are at least partially produced using chemicals
Many companies manufacture products that are at least partially produced using chemicals (e.g., paint, gasoline, and steel). In many cases, the quality of the finished product is a function of the tem...
See AnswerQ: A power company located in southern Alabama wants to predict the peak
A power company located in southern Alabama wants to predict the peak power load (i.e., the maximum amount of power that must be generated each day to meet demand) as a function of the daily high temp...
See AnswerQ: Management of a home appliance store would like to understand the growth
Management of a home appliance store would like to understand the growth pattern of the monthly sales of Blu-ray disc players over the past two years. Managers have recorded the relevant data in the f...
See AnswerQ: A small computer chip manufacturer wants to forecast monthly operating costs as
A small computer chip manufacturer wants to forecast monthly operating costs as a function of the number of units produced during a month. The company has collected the 16 months of data in the file P...
See AnswerQ: The file P13_35.xlsx contains the amount of money
The file P13_35.xlsx contains the amount of money spent advertising a product (in thousands of dollars) and the number of units sold (in millions) for eight months. a. Assume that the only factor infl...
See AnswerQ: When potential workers apply for a job that requires extensive manual assembly
When potential workers apply for a job that requires extensive manual assembly of small intricate parts, they are initially given three different tests to measure their manual dexterity. The ones who...
See AnswerQ: Callaway Golf is trying to determine how the price of a set
Callaway Golf is trying to determine how the price of a set of clubs affects the demand for clubs. The file P13_37.xlsx contains the price of a set of clubs (in dollars) and the monthly sales (number...
See AnswerQ: The file P13_38.xlsx lists the average salary for
The file P13_38.xlsx lists the average salary for each Major League Baseball team from 2004 to 2009, along with the number of team wins in each of these years. a. Rearrange the data so that there are...
See AnswerQ: Let Yt be the sales during month t (in thousands of
Let Yt be the sales during month t (in thousands of dollars) for a photography studio, and let Pt be the price charged for portraits during month t. The data are in the file P13_39.xlsx. a. Use regres...
See AnswerQ: Again continuing Problem 2, suppose that you want to force the
Again continuing Problem 2, suppose that you want to force the optimal solution to be integers. Do this in Solver by adding a new constraint. Select the decision variable cells for the left side of th...
See AnswerQ: The file lists the monthly sales for a company (in millions
The file lists the monthly sales for a company (in millions of dollars) for a 10-year period. a. Fit an exponential trend line to these data. b. By what percentage do you estimate that the company wil...
See AnswerQ: The Baker Company wants to develop a budget to predict how overhead
The Baker Company wants to develop a budget to predict how overhead costs vary with activity levels. Management is trying to decide whether direct labor hours (DLH) or units produced is the better mea...
See AnswerQ: The auditor of Kiely Manufacturing is concerned about the number and magnitude
The auditor of Kiely Manufacturing is concerned about the number and magnitude of year-end adjustments that are made annually when the financial statements of Kiely Manufacturing are prepared. Specifi...
See AnswerQ: The file P13_42.xlsx contains monthly data on consumer
The file P13_42.xlsx contains monthly data on consumer revolving credit (in millions of dollars) through credit unions. a. Use these data to forecast consumer revolving credit through credit unions fo...
See AnswerQ: The belief that larger majorities for an incumbent president in a presidential
The belief that larger majorities for an incumbent president in a presidential election help the incumbent’s party increase its representation in the House and Senate is called the coattail effect. Th...
See AnswerQ: The auditor of Kaefer Manufacturing uses regression analysis during the analytical review
The auditor of Kaefer Manufacturing uses regression analysis during the analytical review stage of the firm’s annual audit. The regression analysis attempts to uncover relationships that exist between...
See AnswerQ: In the 1994 congressional election, the Republican candidate outpolled the Democratic
In the 1994 congressional election, the Republican candidate outpolled the Democratic candidate by 400 votes (excluding absentee ballots). The Democratic candidate outpolled the Republican candidate b...
See AnswerQ: Confederate Express is attempting to determine how its monthly shipping costs depend
Confederate Express is attempting to determine how its monthly shipping costs depend on the number of units shipped during a month. The file P13_46.xlsx contains the number of units shipped and total...
See AnswerQ: The file P13_47.xlsx contains monthly cost accounting data
The file P13_47.xlsx contains monthly cost accounting data on overhead costs, machine hours, and direct material costs. This problem will help you explore the meaning of R2 and the relationship betwee...
See AnswerQ: The Wilhoit Company has observed that there is a linear relationship between
The Wilhoit Company has observed that there is a linear relationship between indirect labor expense and direct labor hours. Data for direct labor hours and indirect labor expense for 18 months are giv...
See AnswerQ: Each year, a shoe manufacturing company faces demands (which must
Each year, a shoe manufacturing company faces demands (which must be met on time) for pairs of shoes as shown in the file P03_40.xlsx. Employees work three consecutive quarters and then receive one qu...
See AnswerQ: Pernavik Dairy produces and sells a wide range of dairy products.
Pernavik Dairy produces and sells a wide range of dairy products. Because a government regulatory board sets most of the dairy’s costs and prices, most of the competition between the dairy and its com...
See AnswerQ: Management of a home appliance store wants to understand the growth pattern
Management of a home appliance store wants to understand the growth pattern of the monthly sales of a new technology device over the past two years. The managers have recorded the relevant data in the...
See AnswerQ: The file P13_50.xlsx contains five years of monthly
The file P13_50.xlsx contains five years of monthly data for a company. The first variable is Time (1–60). The second variable, Sales1, has data on sales of a product. Note that Sales1 increases linea...
See AnswerQ: The Sales2 variable in the file from the previous problem was created
The Sales2 variable in the file from the previous problem was created from the Sales1 variable by multiplying by monthly seasonal factors. Basically, the summer months are high and the winter months a...
See AnswerQ: The file P13_52.xlsx contains data on a motel
The file P13_52.xlsx contains data on a motel chain’s revenue and advertising. a. Use these data and multiple regression to make predictions of the motel chain’s revenues during the next four quarters...
See AnswerQ: Do the sales prices of houses in a given community vary systematically
Do the sales prices of houses in a given community vary systematically with their sizes (as measured in square feet)? Answer this question by estimating a simple regression equation where the sales pr...
See AnswerQ: The file P13_07.xlsx contains monthly values of the
The file P13_07.xlsx contains monthly values of the U.S. national debt (in dollars) from 1993 to early 2010. Fit an exponential growth curve to these data. Write a short report to summarize your findi...
See AnswerQ: The management of a technology company is trying to determine the variable
The management of a technology company is trying to determine the variable that best explains the variation of employee salaries using a sample of 52 full-time employees; see the file P13_08.xlsx. Est...
See AnswerQ: We have discussed linear and exponential trend lines. Another popular choice
We have discussed linear and exponential trend lines. Another popular choice is a power trend line, also called a constant elasticity trend line. This trend line has the form y = axb, and it has the p...
See AnswerQ: The file P14_01.xlsx contains data on 100 consumers
The file P14_01.xlsx contains data on 100 consumers who drink beer. Some of them prefer light beer, and others prefer regular beer. A major beer producer believes that the following variables might be...
See AnswerQ: A small appliance manufacturer must meet (on time) the following
A small appliance manufacturer must meet (on time) the following demands: quarter 1, 3000 units; quarter 2, 2000 units; quarter 3, 4000 units. Each quarter, up to 2700 units can be produced with regul...
See AnswerQ: The file P14_10.xlsx contains customer data on acceptance
The file P14_10.xlsx contains customer data on acceptance of products with various attributes. This is explained more fully in the file. There are three potential Yes/No dependent variables, Accept1,...
See AnswerQ: The file P14_11.xlsx contains data on 178 wines
The file P14_11.xlsx contains data on 178 wines. They are categorized into three types, labeled A, B, and C. The rest of the variables are numeric properties of the wines. Use NeuralTools to classify...
See AnswerQ: Continuing the previous problem, the file P14_12.xlsx
Continuing the previous problem, the file P14_12.xlsx contains the same wine data. Using a Microsoft Data Mining add-in (not discussed here), a decision tree classification was performed (with 0% of t...
See AnswerQ: Neural nets (and NeuralTools) can also be used when the
Neural nets (and NeuralTools) can also be used when the dependent variable is continuous, not categorical. In this case, the method is an alternative to multiple regression. The file P14_13.xlsx conta...
See AnswerQ: Continuing problem 6, there is another method that has been suggested
Continuing problem 6, there is another method that has been suggested when the dependent variable has only a small percentage of one category, in this case Y(yes). This is oversampling. To do this, yo...
See AnswerQ: The file P14_15.xlsx contains the following information about
The file P14_15.xlsx contains the following information about the top 25 MBA programs (according to the 1997 Business Week Guide): percentage of applicants accepted, percentage of accepted applicants...
See AnswerQ: The file P14_16.xlsx contains various data on 325
The file P14_16.xlsx contains various data on 325 metropolitan cities in the United States. Cell comments in row 1 explain some of the variables. A Microsoft Data Mining add-in (not discussed here) wa...
See AnswerQ: The file contains the same wine data. Instead of trying to
The file contains the same wine data. Instead of trying to use a classification algorithm to classify wines into the three known types (A, B, and C), it is interesting to see if a clustering algorithm...
See AnswerQ: Using the data in the file P14_18.xlsx,
Using the data in the file P14_18.xlsx, the same data as in Problem 16, use the method in Example 14.5 to find four clusters of cities. Note that there are two text variables, Crime_Trend and Unemploy...
See AnswerQ: Using the data in the file, the same data as in
Using the data in the file, the same data as in Problem 17, use the method in Example 14.5 to find three clusters of wine types. (Of course, don’t use the Type variable when creating clusters.) Write...
See AnswerQ: A pharmaceutical company manufactures two drugs at Los Angeles and Indianapolis.
A pharmaceutical company manufactures two drugs at Los Angeles and Indianapolis. The cost of manufacturing a pound of each drug depends on the location, as indicated in the file. The machine time (in...
See AnswerQ: Using the same beer preference data in the file P14_01
Using the same beer preference data in the file P14_01.xlsx, discretize the Income and Age variables according to their quartiles. Then use the naïve Bayes procedure to classify the 100 customers as h...
See AnswerQ: This problem lets you see how dissimilarity, the key to clustering
This problem lets you see how dissimilarity, the key to clustering, might be calculated and then used for prediction. The file contains data for 10 people. The value of Amount Spent for person 10 is u...
See AnswerQ: The lasagna data discussed in the chapter is repeated in the file
The lasagna data discussed in the chapter is repeated in the file. Instead of trying to classify a dependent variable, Have Tried, this file shows the result of clustering. Specifically, a Microsoft D...
See AnswerQ: The file contains Gender, Age, Education, and Success (
The file contains Gender, Age, Education, and Success (Yes/No) data of 1000 people. The purpose is to see how a classification tree method can use the first three variables to classify Success. You st...
See AnswerQ: Admissions directors of graduate business programs constantly review the criteria they use
Admissions directors of graduate business programs constantly review the criteria they use to make admission decisions. Suppose that the director of a particular top-20 MBA program is trying to unders...
See AnswerQ: Using the same admissions data in the file P14_03.
Using the same admissions data in the file P14_03.xlsx, discretize the GMAT Score and Undergraduate GPA variables according to their quartiles. Then use the naïve Bayes procedure to classify the 100 a...
See AnswerQ: A company that sells through a catalog and online through the Web
A company that sells through a catalog and online through the Web has collected data on 10,000 potential customers. The data are in the file P14_05.xlsx. They include RFM (recency, frequency, and mone...
See AnswerQ: Continuing the previous problem, the same data have been split into
Continuing the previous problem, the same data have been split into two sets in the file P14_06.xlsx. The first 9500 observations are in the Training Data sheet, and the last 500 observations are in t...
See AnswerQ: The file P14_07.xlsx contains data on 74 companies
The file P14_07.xlsx contains data on 74 companies that have either gone bankrupt or haven’t. The data set also contains data on five frequently quoted accounting ratios. a. Create a pivot table that...
See AnswerQ: Using the same data as in the previous problem, use NeuralTools
Using the same data as in the previous problem, use NeuralTools, with the PNN algorithm, to perform the classification. Even though there are only 74 companies, you can still use 20% of them for testi...
See AnswerQ: Continuing Problem 5, create a two-way data table for
Continuing Problem 5, create a two-way data table for expected profit with order quantity along the side and unit expediting cost along the top. Allow the order quantity to vary from 500 to 4500 in in...
See AnswerQ: In any optimization model such as those in this chapter, we
In any optimization model such as those in this chapter, we say that the model is unbounded (and Solver will indicate as such) if there is no limit to the value of the objective. For example, if the o...
See AnswerQ: A classification algorithm was used to predict Yes/No values for
A classification algorithm was used to predict Yes/No values for a given training data set, and then the results were applied to 100 observations in a testing data set. The actual Yes/No values and th...
See AnswerQ: Suppose you use Solver to find the optimal solution to a maximization
Suppose you use Solver to find the optimal solution to a maximization model. Then you remember that you omitted an important constraint. After adding the constraint and running Solver again, is the op...
See AnswerQ: Consider an optimization model with a number of resource constraints. Each
Consider an optimization model with a number of resource constraints. Each indicates that the amount of the resource used cannot exceed the amount available. Why is the shadow price of such a resource...
See AnswerQ: If you add a constraint to an optimization model, and the
If you add a constraint to an optimization model, and the previously optimal solution satisfies the new constraint, will this solution still be optimal with the new constraint added? Why or why not?
See AnswerQ: If all of the inputs in PC Tech’s product mix problem are
If all of the inputs in PC Tech’s product mix problem are nonnegative (as they should be for any realistic version of the problem), are there any input values such that the resulting model has no feas...
See AnswerQ: There are five corner points in the feasible region for the product
There are five corner points in the feasible region for the product mix problem. We identified the coordinates of one of them: (560, 1200). Identify the coordinates of the others. a. Only one of these...
See AnswerQ: Using the graphical solution of the product mix model as a guide
Using the graphical solution of the product mix model as a guide, suppose there are only 2800 testing hours available. How do the answers to the previous problem change?
See AnswerQ: Again continuing Problem 2, perform a sensitivity analysis where the selling
Again continuing Problem 2, perform a sensitivity analysis where the selling prices of Basics and XPs simultaneously change by the same percentage, but the selling price of VXPs remains at its origina...
See AnswerQ: Consider the graphical solution to the product mix problem. Now imagine
Consider the graphical solution to the product mix problem. Now imagine that another constraint—any constraint—is added. Which of the following three things are possible: (1) the feasible region shrin...
See AnswerQ: The ZapCon Company is considering investing in three projects. If it
The ZapCon Company is considering investing in three projects. If it fully invests in a project, the realized cash flows (in millions of dollars) will be as listed in the file P04_99.xlsx. For example...
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