Practical Management Science 5th Edition Wayne L. Winston, Christian Albright - Solutions

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, project 1 requires a cash outflow of $3 million today and returns $5.5 million three years from
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 P04_101.xlsx. Aluminaca has four furnaces in which ingots can be produced. During one week, each furnace can be operated for 50 hours. Because ingots are
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 each capacitor made during each shift, and the number of defects in each capacitor produced during a
During the next three months, a heating and cooling company must meet (on time) the following demands for air conditioners: month 1, 300; month 2, 400; and month 3, 500. Air conditioners can be produced in either New York or Los Angeles. It takes 1.5 hours of skilled labor to produce an air
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 Bank hires two types of tellers. Full-time tellers work 9 a.m. to 5 p.m. five days per week, with one
Based on Charnes and Cooper (1955). Alex Cornby makes his living buying and selling corn. On January 1, he has 5000 bushels of corn and $10,000 in cash. On the first day of each month, Alex can buy corn at the forecasted prices per bushel listed in the file P04_106.xlsx. On the last day of each
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 day. The cost to incinerate waste is $40 per ton at incinerator 1 and $30 per ton at incinerator 2.
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 a transistor) in a furnace. Unfortunately, the melting process yields germanium of highly variable
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 $2.79 per pound and must consist of at least 70% white meat. Cutlet 2 sells for $1.89 per pound and must consist of at least
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 employees; Saturday and Sunday, 30 employees. Grummins employs 110 line employees. Determine how to
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 is sent to data entry (DE), where it is entered into the computer. During the next 3 weeks, the
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 the file P04_112.xlsx. It is clear that Korvair will have a short-term cash flow problem until the
Mackk Engine produces diesel trucks. New government emission standards have dictated that the aver-age pollution emissions of all trucks produced in the next three years cannot exceed 10 grams per truck. Mackk produces two types of trucks. Each type 1 truck sells for $20,000, costs $15,000 to
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 costs $20 and requires two barrels of crude oil 1 and three barrels of crude oil 2. The output
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 be sold, and up to 300 units of product 2 can be sold. Demand for products 3 and 4 is unlimited.
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 can yield 2 ounces of input 1, requiring 2 hours of processing time and incurring $2 in processing
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 of A and three units of B and incurs $5 in processing costs. Products A and B are produced from
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. The local court has decided that each of the town’s two high schools (Cooley High and Walt Whitman
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 purchase lumber from an outside supplier and then dry it at the Brady kiln. Second, Brady can chop down
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 on a unit of A and B are shown in the file P04_123.xlsx. Each customer will buy either product A or
Based on Robichek et al. (1965). At the beginning of month 1, Finco has $4500 in cash. At the beginning of months 1, 2, 3, and 4, Finco receives certain revenues, after which it pays bills. (File P04_124.xlsx.) Any money left over can be invested for one month at the interest rate of 0.25% per
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. Po-lice officers can be hired to work either 12 consecutive hours or 18 consecutive hours. Police officers are paid $15 per hour for each of the
Based on Glassey and Gupta (1978). A paper recycling plant processes box board, tissue paper, news-print, and book paper into pulp that can be used to produce three grades of recycled paper. The prices per ton and the pulp contents of the four inputs are shown in the file P04_126.xlsx. Two methods,
Three bonds, as listed in the file P04_127.xlsx, 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 pays 0.5*(coupon rate)*(Face value). At the expiration date the face value is paid.
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 can be solved on a PC at the restaurant.a. What data would you collect as inputs to your model?b.
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 appropriate objective functions for your model.c. Describe in words the constraints needed for your model.
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 deter-mine the cost of producing a product? What difficulties might arise?
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-brightness paper. The high-brightness paper must have a brightness level of at least 90, the
For the distribution data shown in Table 5.10, what is the least-cost assignment of truckloads to carriers that meets the necessary requirements? What is the cost of this distribution plan?epilogue Carrier selection at Westvaco was done manually (with pencil and paper!) by transportation planners
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, but upper limits on the amounts they can sell. Assume these upper limits are 50 autos above the
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 unit selling prices and/or tax rates to see whether the company ever uses less than its total capacity.
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 locations, each with distances to the various customers. (These distances, along with other inputs,
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 of the form (5c, 10c), where the factor c is allowed to vary from 1 to 10 in increments of 1.
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 located at (7, 7), then the traveling distance is |5 – 7| + |10 – 7| = 5.
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 customer way up to the right, or way down to the left, or near a current customer, and so on. For each
In Example 7.5, 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 corresponding to one ad might really be an average over 15 different weeks where
Starting with the solution to the advertising selection problem in Example 7.6, suppose the company, for whatever reason, cannot place ads on “Sports Center.” Make the appropriate changes in the model and rerun Solver. Comment on the changes to the decision variable cells. Then comment on the
In judging the fit of the estimated response function in Example 7.5, 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 your objective, do you get approximately the same estimated response function
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, demand for that product decreases. The positive coefficients indicate that as the price of a product
In the electricity pricing model in Example 7.4, we assumed that the capacity level is a decision variable. Assume now that capacity has already been set at 0.700 million of mWh. Change the model appropriately and run Solver. Then use SolverTable to see how sensitive the optimal solution is to the
In the complementary-product pricing model in Example 7.3, 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 behavior continue? Answer by extending the SolverTable to larger values of the

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