0 Voti positivi0 Voti negativi

1 visualizzazioni8 pagine311

May 08, 2019

© © All Rights Reserved

DOCX, PDF, TXT o leggi online da Scribd

311

© All Rights Reserved

1 visualizzazioni

311

© All Rights Reserved

- The Law of Explosive Growth: Lesson 20 from The 21 Irrefutable Laws of Leadership
- Hidden Figures: The American Dream and the Untold Story of the Black Women Mathematicians Who Helped Win the Space Race
- Hidden Figures Young Readers' Edition
- The E-Myth Revisited: Why Most Small Businesses Don't Work and
- Micro: A Novel
- The Wright Brothers
- The Other Einstein: A Novel
- State of Fear
- State of Fear
- The Power of Discipline: 7 Ways it Can Change Your Life
- The Kiss Quotient: A Novel
- Being Wrong: Adventures in the Margin of Error
- Algorithms to Live By: The Computer Science of Human Decisions
- The 6th Extinction
- The Black Swan
- The Art of Thinking Clearly
- The Last Battle
- Prince Caspian
- A Mind for Numbers: How to Excel at Math and Science Even If You Flunked Algebra
- The Theory of Death: A Decker/Lazarus Novel

Sei sulla pagina 1di 8

Section A: Multiple Choice [18 points; 3 points each; no partial credit]

1. If we are to play eBeer game again, which one of the following will not help our performance?

a) We can identify other players in the supply chain and communicate with each other.

b) We have 5 players in a chain, instead of 4.

c) The delivery lead time decreases.

d) The information (order) lead time decreases.

Answer: b

2. Consider an optimization problem under which we maximize the objective function. If we add a

constraint to the original problem, the new optimal solution will be such that:

a) The new optimal objective value may be larger if the added constraint is a “less-than-or-

equal-to” type, and smaller if the added constraint is a “greater-than-equal-to” type.

b) The new optimal decision variables will be the same as before if the added constraint is

binding, and will change if the added constraint is non-binding.

c) The new optimal objective value will be smaller if the added constraint is non-binding.

d) None of the above is true.

Answer: d

3. Consider a continuous review inventory system, or (ROP, Q) system. If delivery lead time

increases, which of the following statements is false?

a) Q will increase.

b) ROP will increase.

c) Average inventory will increase.

d) Throughput time will increase.

Answer: a

4. If standard deviation of daily demand increases, which of the following statements is false?

a) Q will increase.

b) ROP will increase.

c) Average inventory will increase.

d) Throughput time will increase.

Answer: a

a) In Littlefield game 2, we might use newsvendor model to make a final inventory ordering

decision right before day 218.

1

b) Zara’s vertically integrated supply chain enables Zara to have lower costs than the

competitors have.

c) In the E-Beer game, the demand variability seen by the retailer is lower than the one seen

by the manufacturer.

d) Zara’s short design, manufacturing, and delivery lead times increase the accuracy of the

demand forecasts.

Answer: b

6. Trojan Airlines has been operating a flight with a single class fare. Suppose the denied boarding

cost is $600. From the historical records, number of passengers who does not show up in the

flight has the following distribution.

number of no-show-ups 0 1 2 3 4

Probability 0.25 0.25 0.2 0.2 0.1

Suppose that the manager, who took 311, computed that the optimal number of seats to

overbook is 1. Then, which of the following is correct about the ticket price?

b) The ticket price must be between $150 and $300.

c) The ticket price must be between $200 and $400.

d) The ticket price must be between $300 and $600.

Answer: b

2

Section B: Problems

Q1. (40 points) You are making the inventory decisions for an international company. The product has a

forecasted daily demand with mean 365 and standard deviation 36.

You have two different options for procuring each product: from your factory in China (out-sourcing) or

procuring from your own factory in the United states (in-house). The following table provides the

relevant data for each type of procuring.

Outsourcing In-house

Setup cost $4,500 $50

Lead time 64 days 4 days

Procurement cost (per unit) $4.5 $5

The desired service level (irrespective of the procurement decision) is 97.5% and the cost of capital of

the firm is 20% (that is, the firm faces an annual interest rate of 20%). You may assume 365 days in a

year.

1. (2 points) What is the optimal ordering quantity?

2𝑥365𝑥365𝑥50

𝑄=√ = 3650 𝑢𝑛𝑖𝑡𝑠

1

365*365/1969 =67.66

1969 *1 = $1969

365*365/3650 * 50 = $1,825

7. (2 points) What is the annual total cost (including the purchase cost)?

1969+1825+365*365*5=$669,919

3

b) If we decide to outsource using an (ROP,Q) system.

1. (2 points) What is the optimal ordering quantity?

2𝑥365𝑥365𝑥4500

𝑄=√ = 36500 𝑢𝑛𝑖𝑡𝑠

0.9

365*365/18826 = 7.08

7. (2 points) What is the annual total cost (including the purchase cost)?

16943.4+16425+365*365*4.5=$632,880.9

c) We now need to decide on our optimal procurement strategy. That is, we need to decide

whether to produce each product in-house or to outsource in order to minimize total cost.

1. (4 points) Draw a decision tree that corresponds to your decision problem.

632880.9

669919

Outsourcing.

4

d) (4 points) Suppose that we realize that the standard deviation of the demand uncertainty is

much less than what we have originally estimated, will you change your procurement strategy?

Explain your answer.

The safety stock level is proportional to the standard deviation and outsourcing strategy has a

much higher safety stock level compared to the in-house strategy (4:1). As a result, even

outsourcing strategy has low procurement cost (and lower per unit holding cost) (0.9:1), the

reduced demand standard deviation would help outsourcing strategy more and we should

continue use outsourcing. In general, in-house production is reserved for high uncertainty items.

5

Q2. (42 points) Trojan Crafts makes hand-crafted decorations for the holiday season each year. It only

offers two designs: one is the classic set, and the other is the so-called season’s set which changes from

year to year. The price of the classic set is $300 and the price of the season’s set is $450. The demand

has been reasonably strong and Trojan Crafts is limited by its workforce because training additional

employees is costly. Currently, Trojan Crafts employs 3 assemblers and 7 painters. To produce a set,

Trojan Crafts first purchases the pre-made parts from a vendor. The cost of the pre-made parts is $50 for

both designs. The pre-made parts will go through a preparation chamber for heat-treatments, and then

an assembler will assemble the parts, and finally a painter would paint the product. The preparation

chamber can treat 60 sets (either classic or seasonal) in 24 hours and it runs for 365 days a year. One

assembler can assemble a classic set in 20 minutes and a season’s set in 40 minutes. One painter can

paint a classic set in 60 minutes and a season’s set in 80 minutes. Both the assemblers and painters work

250 days a year and 8 hours a day. Trojan Crafts would also like to produce at least 2400 seasonal sets

per year because it would like to satisfy the collectors’ demand. After learning that you have completed

the study of 311, Trojan Crafts asks you to help them figure out the optimal planning.

𝑦 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑠𝑒𝑎𝑠𝑜𝑛𝑎𝑙 𝑠𝑒𝑡𝑠 𝑝𝑟𝑜𝑑𝑢𝑐𝑒𝑑 𝑖𝑛 𝑎 𝑦𝑒𝑎𝑟

Assembly capacity: 20𝑥 + 40𝑦 ≤ 60 × 8 × 250 × 3 = 360,000

Painting capacity: 60𝑥 + 80𝑦 ≤ 60 × 8 × 250 × 7 = 840,000

Seasonal demand production: 𝑦 ≥ 2400

Non-negativity constraints: 𝑥, 𝑦 ≥ 0

6

Answering the following question based on the sensitivity report:

Variable Cells

Final Reduced Objective Allowable Allowable

Cell Name Value Cost Coefficient Increase Decrease

$B$5 6000 0 250 50 50

$C$5 6000 0 400 100 66.66666667

Constraints

Final Shadow Constraint Allowable Allowable

Cell Name Value Price R.H. Side Increase Decrease

$B$10 12000 0 21900 1E+30 9900

$B$11 360000 5 360000 60000 48000

$B$12 840000 2.5 840000 144000 120000

$B$13 6000 0 2400 3600 1E+30

e. (2 points) The engineer finds a way to shorten the heat-treatment time from 24 hours to 20 hours

with an annual maintenance cost of 1000 dollar. Should Trojan Crafts implement it?

No, because the heat-treatment is not used with full capacity (12,000 < 21,900). We do not need

to invest in heat-treatment.

f. (2 points) The vendor is notifying Trojan Crafts that the cost of pre-made parts will increase from 50

to 60. Do we need to resolve the linear optimization to find the optimal solution?

Yes, because under this change both objective coefficients decrease by 10 simultaneously.

Sensitivity report can be used for decision making only if one parameter changes.

g. (3 points) The salary and benefit of a painter would cost Trojan Crafts $10,000 monthly. The new

painter typically only stays 1 year with Trojan Crafts, should we try to hire one more painter?

Annual cost of the new painter to us = 12 × 10,000 = $120,000. The new painter will increase the

painting capacity by 60 × 8 × 250 = 120,000 𝑚𝑖𝑛𝑢𝑡𝑒𝑠, which is within allowable increase. The

optimal profit will increase by $2.5/𝑚𝑖𝑛 × 120,000 𝑚𝑖𝑛 = $300,000, which is greater than

$120,000. Hence, we should try to hire one more painter.

h. (3 points) Continue with information in g. You realize that it takes three months and cost $30,000 to

train a new painter, who typically only stays 9 months with Trojan Crafts (including the three

months of paid training), should we try to hire one more painter given that the new painter will

effectively work 125 days in 6 months and 8 hours a day?

7

Cost of the new painter to us = 30,000 + 9 × 10,000 = $120,000. The new painter will increase

the painting capacity by 60 × 8 × 125 = 60,000 𝑚𝑖𝑛𝑢𝑡𝑒𝑠, which is within allowable increase. The

optimal profit will increase by $2.5/𝑚𝑖𝑛 × 60,000 𝑚𝑖𝑛 = $150,000, which is great than $120,000.

Hence, we should try to hire one more painter.

After looking at the historic transaction record, you notice that while the price of the classic set has been

stable, the price of the seasonal set varies over the year, depending on the trend as well as the

competitors’ seasonal offering. The historic price data of the past five years is listed in the table below.

480

420

450

450

420

i. (6 points) Develop a three-period moving average forecast for the current year.

1 480

2 420

3 450

4 450 450 0

5 420 440 20

6 440

𝑀𝐴𝐷 = (0 + 20)⁄2 = 10

Forecast standard deviation is 1.25𝑀𝐴𝐷 = 1.25 × 10 = 12.5

k. (4 points) You are concerned whether the price uncertainty would impact the optimal product

planning analyzed earlier. After a much-detailed analysis, you believe that the price of the current

year would have a mean of 440 and a standard deviation of 10. You also understand that with 95%

chance, the price would fall between two standard deviations below the mean and two standard

deviations above the mean and you believe that you don’t need to concern about the prices beyond

this range. Should Trojan Crafts change its optimal product planning?

We solved the LOP with the price $450. We consider the prices between (440 − 20, 440 + 20) =

(420, 460). This range is 30 below and 10 above $450, which are both within the allowable range.

Hence, the LOP optimal solution will not change and so we do not need to change the product

planning.

- Simplex Optimization of Production Mix a Case of Custard Producing Industries in NigeriaCaricato daAqueel Amir Ali
- B.a.H Eco. 2nd Semester Mathematical Methods for Economics IICaricato daNitinSharma
- Tata Motors ProjectCaricato dam193823
- Inventory and SCM MCQsCaricato daSyed Abdul Wahab Gilani
- A Profit Optimization for Hacienda Macalauan Incorporated (Recovered)Caricato daAdrimar Adriano
- assignment01_solnCaricato daKushal Bn
- Comprehensive Project Specs Pom 102 2nd Sem Sy2016-2017 (1)Caricato daPaulo Santos
- Design ProjectCaricato dakimromagos
- Effects of Aggregate Shocks in Inventory ModelsCaricato darberrospi
- US Senior Citizen Diabetes Prevention ProposalCaricato dalemonsong
- 904-Aditi MehraCaricato daRubalPathak
- Module 1 MOBCaricato dabeenie man
- Stock control.docxCaricato datapia4yeabu
- Inventory FactorsCaricato daSashi Prabhu
- final_w01_331_solnCaricato dachrismead123
- Quante c Written ReportCaricato daLian Blakely Cousin
- ASCP IO Safety Stock Calc Lead TimeCaricato daMohan Srireddy
- ReviewQA_9Caricato daZainol Azhar Ali
- Intro to Economic Decision MakingCaricato daDavy Rose
- A Systems Architecting Framework for Optimal Distributed Integrated Modular Avionics ArchitecturesCaricato daoyavuz38
- UntitledCaricato daJyoti Mahajan
- 58 - Marketing Models - Reflections...Caricato daManoj De Clarence
- A Multi Criteria Inventory Management System for Perishable & Substitutable ProductsCaricato daMuhammad Atique Anwar Awan
- Power tunnels and penstocks_The economic re-examined - Fahlbusch.pdfCaricato daces.alexander.cv
- Taxonomy of PMU Placement MethodologiesCaricato dawvargas926
- 1 the Economic Efficiency ConceptCaricato dadanzelu
- Pages From 570Caricato dapalanaruva
- jonjolnCaricato daHafis Sayed
- Homework 6Caricato daIzzy Ramirez
- Hybrid Pits - Linking Conditional Simulation and LCaricato daenrike zamora

- Japanese Grammar GuideCaricato daTiana Mampionona
- Late Night SnacksCaricato daEric Su
- 5 Position Scale SystemCaricato daSean Williams
- 0E863649-C08C-474B-BCF2-684ABF552687.pdfCaricato daEric Su
- A 9,500% Stock Surge Turns Janitors Into Millionaires in China - Bloomberg.pdfCaricato daEric Su
- Visa InformationCaricato daEric Su
- 311_fall_2017_final_exam%281%29 (1)Caricato daEric Su
- 311_spring_2017_final_exam_v1%281%29 (1)Caricato daEric Su
- Kimi no Suizou wo Tabetai.txtCaricato daEric Su
- Excercise 2.pdfCaricato daEric Su
- A01_ABC9E_IM_TPCaricato daEric Su
- A01_ABC9E_IM_TP.pdfCaricato daEric Su
- Box 1 Building Block LicksCaricato daEric Su

- Finite Element MethodCaricato daLeo Lonardelli
- Presentation of Statistical Data – Textual PresentationCaricato daM S Sridhar
- 61269800199R1-Data Description BSCaricato daNicusor Moldoveanu
- Online tutor find ApplicationCaricato daMICHEL
- 2910484 VLSI CMOS Interview QuCaricato davlsiQ
- MSU Lossless Codecs Test EnCaricato dataufiqhabib
- RC car in Java source codeCaricato daKyungsuk Bae
- Guide for DIALuxCaricato daSidra Shaikh
- DXOOpticsPro.1Caricato daJMO5710
- Live Image Colour Segmentation Using Different Methods of ANNCaricato daEditor IJRITCC
- AJEX_10.b-R_SGCaricato da3gero3
- Lac Obs Func SpecCaricato daVenu Thelakkat
- Artistic Edge and Corner Enhancing Smoothing2007Caricato daNguyen Tuong Thanh
- Linear Equations P1Caricato dapepe.books
- Shortest Multipath Routing Using Labeled DistanceCaricato daapi-3741689
- 770-001 Startup with OpenESB SE.pdfCaricato dasinanovic_ismar
- The Logic of Computer ArithmeticCaricato davictorkrull
- Presentation Linear Equation in Two Variables 1516100969 314387Caricato daAnmol Khatri
- Datacore Test LabCaricato daAhmed Shaik
- Sure Step PresentationCaricato daLexi Brown
- 5 2 2Caricato daapi-196541959
- DP800 ProgrammingGuide EnCaricato daMalcolm Sanders
- ODI-1Z0-482 (Oracle Data Integrator Essentials 11G)Caricato daSanchit Aggarwal
- Project Management Process Groups and Knowledge AreasCaricato daCharnelle King
- Implementation of 8 Point FFT With IEEE 754 Floating Format for OFDM SystemCaricato daEditor IJRITCC
- Pharos CPE DatasheetCaricato daDario Joel Calderon Ramirez
- ASP.net AjaxCaricato daEditorClasikHits
- Zoological Mythology or the Legens of Animals, Angelo de Gubernatis, London 1872, Vol. ICaricato daJosé Antonio Bellido Díaz
- Unit 4 (4.2,4.3)Micropgm ControlCaricato daSahil Kukreja
- Help_MSACaricato daGiomar Ozaita

## Molto più che documenti.

Scopri tutto ciò che Scribd ha da offrire, inclusi libri e audiolibri dei maggiori editori.

Annulla in qualsiasi momento.