Operations Research You are given the following data for a linear programming problem where the objective is tominimize the cost of conducting two nonnegative activities so as to achieve three benefits thatdo not fall below their minimum levels. The number of constraints is (without the non-negativity constraints):Benefit123Unit cost65432Benefit Contribution perUnit of Each ActivityActivity 1Activity 2532279$60$50MinimumAcceptableLevel6030126

Linear programming (LP) is a mathematical optimization technique that helps solve problems where an…

Answered: You are given the following data for a…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 35P

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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 decrease by 60%. Estimate the mean and median value of your investment after 50 years. Explain the large difference between the estimated mean and median.
W. L. Brown, a direct marketer of womens clothing, must determine how many telephone operators to schedule during each part of the day. W. L. Brown estimates that the number of phone calls received each hour of a typical eight-hour shift can be described by the probability distribution in the file P10_33.xlsx. Each operator can handle 15 calls per hour and costs the company 20 per hour. Each phone call that is not handled is assumed to cost the company 6 in lost profit. Considering the options of employing 6, 8, 10, 12, 14, or 16 operators, use simulation to determine the number of operators that minimizes the expected hourly cost (labor costs plus lost profits).
In Example 11.1, the possible profits vary from negative to positive for each of the 10 possible bids examined. a. For each of these, use @RISKs RISKTARGET function to find the probability that Millers profit is positive. Do you believe these results should have any bearing on Millers choice of bid? b. Use @RISKs RISKPERCENTILE function to find the 10th percentile for each of these bids. Can you explain why the percentiles have the values you obtain?
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A common decision is whether a company should buy equipment and produce a product in house or outsource production to another company. If sales volume is high enough, then by producing in house, the savings on unit costs will cover the fixed cost of the equipment. Suppose a company must make such a decision for a four-year time horizon, given the following data. Use simulation to estimate the probability that producing in house is better than outsourcing. If the company outsources production, it will have to purchase the product from the manufacturer for 25 per unit. This unit cost will remain constant for the next four years. The company will sell the product for 42 per unit. This price will remain constant for the next four years. If the company produces the product in house, it must buy a 500,000 machine that is depreciated on a straight-line basis over four years, and its cost of production will be 9 per unit. This unit cost will remain constant for the next four years. The demand in year 1 has a worst case of 10,000 units, a most likely case of 14,000 units, and a best case of 16,000 units. The average annual growth in demand for years 2-4 has a worst case of 7%, a most likely case of 15%, and a best case of 20%. Whatever this annual growth is, it will be the same in each of the years. The tax rate is 35%. Cash flows are discounted at 8% per year.
Assume that the payoff table provides cost rather than profit payoffs. What isthe recommended decision using:i. the optimistic approachii. the conservative approachiii. the minimax regret approachiv. the Laplace method
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1. How will the price we offer to a group buyer today affect his or her decision to buy from us in the future? 2. If the price is accepted by the group, what impact will that have on the number of room reservation requests for that same night that we will likely be required to refuse to individual buyers because all our rooms have been sold? 3. Does the price consider the specific type of room desired by the group? Does the price consider the probability that this group will: a. Cancel at the last minute? b. No-show? c. Arrive early? d. Stay more than one night? 4. How has the price been influenced by the prices our competitors are likely to quote to the same group? 5. What are the likely secondary sources of revenue (i.e., food and beverage sales, meeting room rentals, and the like) that this group could provide if they accept our price? 6. What, if any, is the hotel's historical relationship with: a group? Other groups of this same type? 7. Has the quoted price been influenced…
Suppose the equilibrium price for good quality used cars is $20,000. And the equilibrium price for poor quality used cars is $10,000. Assume a potential used car buyer has imperfect information as to the condition of any given used car. Assume this potential buyer believes the probability a given used car is good quality is .60 and the probability a given used car is low quality is .40. Assume the seller has perfect information on all cars in inventory. What policy or mechanism could solve any informational imbalances and restore the market to an efficient allocation of used cars? a. Third-party provided information on the history of the car (ex: maintenance records, accident records, verified millage and verify repairs). b. Legal remedies and laws restricting fraudulent sales of used cars. c. Obtainablepublications discussing quality, price and possible repairs of all cars --used and new. d. All of the above.
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Which of the following types of mortgage loans is presumed to feature points or fees not excending 3%, a maximum term not to exceed 30 years, and no risky features (such as negative amortization, interest-only, or balloon loans)? A) A qualified mortgage B) A conventional mortgage C) A non-qualified mortgage D) A home equity line of credit (HELOC) mortgage

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Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

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Cengage,

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

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You are given the following data for a linear programming problem where the objective is to minimize the cost of conducting two nonnegative activities so as to achieve three benefits that do not fall below their minimum levels. The number of constraints is (without the non- negativity constraints):