Answer these questions by following data.

- Introduction: Clearly define the business problem for MG Wire. - Problem formulation and solution: Formulate and solve the problem, and report the results from the managerial perspective. - Explanation of assumptions, including: List and justify all assumptions you have made to formulate and solve the problem. This includes all assumptions got directly from the case study description and all additional assumptions you needed to make. > Explain which assumptions are key for formulating and solving the problem. Briefly discuss what conditions would make key assumptions invalid, and, if key assumptions are invalid, how the results could change if relevant. - Sensitivity analysis: If relevant, discuss the results from the sensitivity report, and identify relevant information that could be help with decision making in MG Wire. The Background Ron Smith felt good about his first week as a management trainee at MG Wire Winding. He had not yet developed technical knowledge about the manufacturing process, but he had toured the facility and met many people in various areas of the operation. MG Wire Winding, a Queensland company, is a medium-sized producer of wire windings used in making electrical transformers. Joseph Lowes, the production control manager, described the windings to Ron as being of standardized design. Ron's tour of the plant, which is laid out by process type (See Figure 1), followed the manufacturing sequence for the windings: drawing, extrusion, winding, inspection and packaging. After inspection, good product is packaged and sent to finished product storage; defective product is stored separately until it can be reworked. Figure 1 Plant Layout of MG Wire Vivian Napoli, MG's general manager, stopped by Ron's office and asked him to attend a staff meeting. "Let's get started with the business at hand", Vivian said, opening the meeting. "Ron studied operations and supply chain management, so I think he can help us with a problem we have been discussing but without resolution." Vivian turned to Joseph Lowes, the production control manager. "Joseph, why don't you describe the problem we are facing?" "Well," Joseph said, "business is very good right now. We are booking more orders than we can fill. We plan to purchase some new equipment, which will take care of our capacity problem, though we haven't decided the type of equipment to purchase, that is, it is not clear which department should get new equipment." "Any plan for new equipment will take months to finalize and implement, so it won't help us next month. I have located some retired employees who used to work in the drawing department, and I'm going to bring them in as temporary employees next month to increase capacity there. Because we are planning to refinance some of our long-term debt, Vivian wants our profit to look as good as possible next month. I'm having a hard time figuring out which orders to run and which to back-order so that I can make the bottom line look as good as possible. Can you help me with this?" Data 1. Next month orders Note: Vivian Napoli has given her word to a key customer that MG Wire will manufacture 600 units of product W0007X and 150 units of product W0075C for him next month. 2. Standard cost 3. Selected operating data 4. Plant capacity (hours) Note: Inspection capacity is not a problem: we can work overtime as necessary to accommodate any schedule. 5. Bill of resource (hours/unit) A B C D E F G H Microsoft Excel 16.74 Sensitivity Report Worksheet: [Book9.xIsx]Sheet1 Report Created: 27/6/2023 10:37:04 am Variable Cells Constraints \begin{tabular}{llrrrrr} \hline & & Final & Shadow & \multicolumn{3}{c}{ Constraint Allowable Allowable } \\ Cell & Name & Value & Price & R.H. Side & Increase & Decrease \\ \hline \$F\$19 & Key Customer Order 150 LHS & 1100 & 0 & 150 & 950 & 1E+30 \\ \hline \$F\$20 & Key Customer Order 600 LHS & 600 & -44 & 600 & 475 & 75 \\ \hline \$F\$21 & Plant Capacity (hrs) - Drawing LHS & 2200 & 0 & 4000 & 1E+30 & 1800 \\ \hline \$F\$22 & Plant Capacity (hrs) - Extrusion LHS & 1950 & 0 & 4200 & 1E+30 & 2250 \\ \hline \$F\$23 & Plant Capacity (hrs) - Winding LHS & 1850 & 0 & 2000 & 1E+30 & 150 \\ \hline \$F\$24 & Plant Capacity (hrs) - Packaging LHS & 2300 & 34 & 2300 & 150 & 950 \\ \hline \$F\$25 & Next Months Orders - W0075C LHS & 1100 & 0 & 1400 & 1E+30 & 300 \\ \hline \$F\$26 & Next Months Orders - W0033C LHS & 250 & 30 & 250 & 50 & 250 \\ \hline \$F\$27 & Next Months Orders - W0005X LHS & 0 & 0 & 1510 & 1E+30 & 1510 \\ \hline \$F\$28 & Next Months Orders - W0007X LHS & 600 & 0 & 1116 & 1E+30 & 516 \\ \hline \end{tabular} - Introduction: Clearly define the business problem for MG Wire. - Problem formulation and solution: Formulate and solve the problem, and report the results from the managerial perspective. - Explanation of assumptions, including: List and justify all assumptions you have made to formulate and solve the problem. This includes all assumptions got directly from the case study description and all additional assumptions you needed to make. > Explain which assumptions are key for formulating and solving the problem. Briefly discuss what conditions would make key assumptions invalid, and, if key assumptions are invalid, how the results could change if relevant. - Sensitivity analysis: If relevant, discuss the results from the sensitivity report, and identify relevant information that could be help with decision making in MG Wire. The Background Ron Smith felt good about his first week as a management trainee at MG Wire Winding. He had not yet developed technical knowledge about the manufacturing process, but he had toured the facility and met many people in various areas of the operation. MG Wire Winding, a Queensland company, is a medium-sized producer of wire windings used in making electrical transformers. Joseph Lowes, the production control manager, described the windings to Ron as being of standardized design. Ron's tour of the plant, which is laid out by process type (See Figure 1), followed the manufacturing sequence for the windings: drawing, extrusion, winding, inspection and packaging. After inspection, good product is packaged and sent to finished product storage; defective product is stored separately until it can be reworked. Figure 1 Plant Layout of MG Wire Vivian Napoli, MG's general manager, stopped by Ron's office and asked him to attend a staff meeting. "Let's get started with the business at hand", Vivian said, opening the meeting. "Ron studied operations and supply chain management, so I think he can help us with a problem we have been discussing but without resolution." Vivian turned to Joseph Lowes, the production control manager. "Joseph, why don't you describe the problem we are facing?" "Well," Joseph said, "business is very good right now. We are booking more orders than we can fill. We plan to purchase some new equipment, which will take care of our capacity problem, though we haven't decided the type of equipment to purchase, that is, it is not clear which department should get new equipment." "Any plan for new equipment will take months to finalize and implement, so it won't help us next month. I have located some retired employees who used to work in the drawing department, and I'm going to bring them in as temporary employees next month to increase capacity there. Because we are planning to refinance some of our long-term debt, Vivian wants our profit to look as good as possible next month. I'm having a hard time figuring out which orders to run and which to back-order so that I can make the bottom line look as good as possible. Can you help me with this?" Data 1. Next month orders Note: Vivian Napoli has given her word to a key customer that MG Wire will manufacture 600 units of product W0007X and 150 units of product W0075C for him next month. 2. Standard cost 3. Selected operating data 4. Plant capacity (hours) Note: Inspection capacity is not a problem: we can work overtime as necessary to accommodate any schedule. 5. Bill of resource (hours/unit) A B C D E F G H Microsoft Excel 16.74 Sensitivity Report Worksheet: [Book9.xIsx]Sheet1 Report Created: 27/6/2023 10:37:04 am Variable Cells Constraints \begin{tabular}{llrrrrr} \hline & & Final & Shadow & \multicolumn{3}{c}{ Constraint Allowable Allowable } \\ Cell & Name & Value & Price & R.H. Side & Increase & Decrease \\ \hline \$F\$19 & Key Customer Order 150 LHS & 1100 & 0 & 150 & 950 & 1E+30 \\ \hline \$F\$20 & Key Customer Order 600 LHS & 600 & -44 & 600 & 475 & 75 \\ \hline \$F\$21 & Plant Capacity (hrs) - Drawing LHS & 2200 & 0 & 4000 & 1E+30 & 1800 \\ \hline \$F\$22 & Plant Capacity (hrs) - Extrusion LHS & 1950 & 0 & 4200 & 1E+30 & 2250 \\ \hline \$F\$23 & Plant Capacity (hrs) - Winding LHS & 1850 & 0 & 2000 & 1E+30 & 150 \\ \hline \$F\$24 & Plant Capacity (hrs) - Packaging LHS & 2300 & 34 & 2300 & 150 & 950 \\ \hline \$F\$25 & Next Months Orders - W0075C LHS & 1100 & 0 & 1400 & 1E+30 & 300 \\ \hline \$F\$26 & Next Months Orders - W0033C LHS & 250 & 30 & 250 & 50 & 250 \\ \hline \$F\$27 & Next Months Orders - W0005X LHS & 0 & 0 & 1510 & 1E+30 & 1510 \\ \hline \$F\$28 & Next Months Orders - W0007X LHS & 600 & 0 & 1116 & 1E+30 & 516 \\ \hline \end{tabular}