Reconsider the example illustrating the use of chance constraints that was presented in Section 8.8. Suppose that
Question:
Reconsider the example illustrating the use of chance constraints that was presented in Section 8.8. Suppose that after a more careful consideration of the hours required per door and window in Plant 3, HD3 and HW3, Wyndor management has considerably narrowed the range of what these times might turn out to be.
a. HD3 and HW3 are now considered equally likely to be anywhere between 15 minutes below and 15 minutes above the original estimates of 3 hours and 2 hours, respectively. Use a chance constraint and Analytic Solver to find the solution that maximizes total profit while requiring at least a 95 percent chance of satisfying the original constraint for the third plant.
b. Repeat part a, but now require at least a 99 percent chance of satisfying the constraint at the third plant.
c. Now assume HD3 and HW3 follow the normal distribution with means equal to the original estimates of 3 hours and 2 hours, respectively, and each with a standard deviation of 0.25 hours. Use a chance constraint and Analytic Solver to find the solution that maximizes total profit while requiring at least a 95 percent chance of satisfying the original constraint for the third plant.
d. Repeat part c, but now require at least a 99 percent chance of satisfying the original constraint at the third plant.
Step by Step Answer:
Introduction To Management Science and Business Analytics A Modeling And Case Studies Approach With Spreadsheets
ISBN: 9781260716290
7th Edition
Authors: Frederick S. Hillier, Mark S. Hillier