Let M = average of the last three digits of your team USF IDs, N = average of the last digits of your team USF IDs. If any of M and N is not an integer, round it up to the next integer. If N is zero, make it 6. For example, if M = 646.2, and N = 3.5, make M = 647, N = 4.

1. Case in Chapter 5: Developing Kathleen Taylors 401 (K) Plan, on Page 234 Replace the monthly contribution from $900 by $400+M, and change 5% to 10% in bonds to N% to 2N% in bonds.

2. Case in Chapter 6, Scheduling at Hawk Systems, Inc., on page 290 Replace the February sales forecast of 550 by 150+M. No need to balance.

Case Problem DEVELOPING KATHLEEN TAYLOR'S 401(K) PLAN over a year. She is now eligible to participate in the com- pany's 401(k) retirement plan. The company has provided Kathleen with the information in the table on the following page about the various funds that are available for her to invest in. Mathleen Taylor has been working for a government contractor, Summit Solutions, in Washington, DC, for Evening Star Evening Star S -Year Fund Size S1000.000) Expense US F ile 1959 11.139 1.300 SPM S . MSR US S et Small Value Ouk Small Growth Map Ful Mith T he with Draper Stud Mid Cap Jan Map Value Manam Mudiyapatity OS 1.33 4.145 4.05 4632 2.537 6374 L -Cap T. Row Price Crowth Jarus Diversified Equity Inc er Strategic Crowth CentC om Stock Crowth Mari Sack with 3.22 7.81 D 9.991 20194 190648 Macam Bad Parham High Yield Masal US. Cover Federal Palio Band 3.106 8 402 1.045 12 D International funds invest in global overseas com for operating expenses e ministrative management paneswall cap fundsvest in companies that have advertisintete. a market capitalization the sumber of outstanding Since Kathleen is young and experts build her 401) shares multiplied by the stock pricepershanel, in plan over a los period of time, he wants to comply a between 100 miles and 52 bilimid-cap funds investe ely investment strategy. She has read in companies with a market capital and that a relatively SIO on and are cap funt in companies O ples would t o 355 inimal funds, S10 No. The Saras developed by a 250 ml cap fundit 155 de funds independent a lysis and funds 20550 are cap funds and 55 105 in hond hedost a ted performance fundsKahe plans to u te 900 of her salary periods best."1" w saig c o ach o ther plan which the company will the y value i s receive while she has also developed a few of her com ment guide ocks are dis c ard the lines to diversity he was to estis five funds Byssa valm ive For The inacheme or she was to achieve aver expenser is the percentage of fundas d e Sant of at least 3.7: she wants to me in funds that average at least 10.000 million in size she to achieve an average pense rate for her five funds no more than 1.10 and she wants to maximize the aver age 5.year return of the five funds she selects, weighted by shem sheimesis in each Develop an imesime plan for Kathleen using linear programming. How would her investment plan change if she wanted to maximize the Star rating? Case Problem SCHEDULING AT HAWK SYSTEMS, INC. Jim Hug and Roderick Wheeler were sales pre- statives in a computer store at a shopping mallin Arlington, Virginia, when they got the idea of going into business in the burgeoning and highly competitive micro- computer make mwent to Taiwan over the summer to visit relatives and made a contact with a new producing display monitors for microcomputers, which was looking for an East Coast distributor in America im made a seative deal with them to supply a maximum of 500 monitor per month and called Rod to see if he could find a building they could operate out of and some potential customers Rod went to work. The time thing he did was send Nids to several universities in Maryland, Virginia, and Pennsylvania for contracts as an authorized vender for monitor at the schools. Next, he started looking for a facility to operate from him and his operation would pro- Videmir physical modifications to the monitors, includ- ing some labeling testin packaging, and then store in preparation for shipping. He knew he needed a building with good security air-conditioning, and a loading dock. However, this wanch proved to be more difficult than he anticipated. Building pace of the type and s he needed was very limited in the area and very expensive Rod to worry that he would not be able to find a suitable face ity He decided to look for in the Virginia and Maryland and conside, and although the found some good locations, the shipping costs out to the loca tions were extremely Disheartened by his lack of success, Rod oh help from his sister-in-law Miriam, a local real estate ape Rod poured out the details of his plight to Miriam over dinner at Rods mother's house and she was sympathetic She told Red that she owned a building in Arlington that might be just what he was looking for, and she would show to him the next day. As m ed, she showed him the ground floor of the building and it was perfect. It had plenty of space food security, and a nice office further more, it was in an upscale shopping area with lots of good restaurants Rod was elated the type of environ met he had envisioned for them to set up their business in. However, his joy soured when he asked Miriam what the rent was. She said she had not worked out the details but the rent would be around $100,000 per year. Rod was shocked, so Miriam said he would offer him an alterna tive a storage fee of Sio per monitor for every monitor purchased and in stock the first month of operation with an increase of 52 per month port for the remainder of the year. Miriam explained that based on what he told her about the business, they would not have any sales until the universities opened around the end of Art or the first of September, and that the sales would fall off to nothing in May of June. She said he offer meant that the would share in their access or failure. If they ended up with some university contact she would reap a reward als with them if they did well many month would lose on the deal. But the summer September October November December January March April May school ended, if they had to monitors in stock, they would pay her nothing. Rod mulled this over, and it sounded fair. He loved the building. Also, he liked the idea that they would not be indebted for a flat lease payment and that there was essentially on a per-unit basis. If they failed, at least they would not be stuck with a huge lease. So he agreed to Miriam's offer When Jim returned from Taiwan, he was skeptical about Rod's lease arrangement with Miriam. He was cha- primed that Rod hadn't performed a more thorough analysis of the costs, but Rod explained that it was pretty hard to do an analysis when he did not know their costs, potential sales, or selling price. Jim said he had a point, and his con- cer was somewhat offset by the fact that Rod had o n contracts with five universities as an authorized vender for monitors at a selling price of $180 per unit. So the two al down to be in planning their operation. First, Jim said he had thought of a name for their enter prise, Hawk Systems, Inc. which he said stood for Huang and Wheeler Computers. When Rod asked how Jim gotak out of computers, Jim cited poetic license Jim said that he had figured that the total cost of the units for them- including the purchase of the units, ship- ping, and their own material, labor, and administrative costs would be $100 per unit during the first 4 months but would then drop to $90 per month for the following 4 months and finally, to $85 per month for the remainder of the year. Jim said that the Taiwan firm was anticipating being able to lower the purchase price because its produc- tion cost would go down at gained experience. Jim thought their own costs would go down too. He ako explained that they would not be able to return any items, so it was important that they develop a good onder plan that would minimize costs. This was now much more important than Jim ad originally thought because of their peculiar lease arrangement based on their inventory level. Rod said that he had done w research on past computer sales at the universities they had contracted with and had come up with the following sales forecast for the next 9 months of the academic year from September through Rod explained to Jim that computer equipment purchases at universities go up in the fall, then drep until January, and the peak again in April, just before university budgets are exhausted at the end of the academic year. Jim then asked Rod what kind of monthly ordering schedule from Taiwan they should develop to meet demand while minimizing their costs. Rod said that it was a dif- ficult question, but he remembered that when he was in college in a management Science course, he had seen a pro- duction schedule developed using a transportation model. Jim suggested he get out his old textbook and get busy, o they would be turning over all their profits to Miriam. However, before Rod was able to develop a schedule, Jim got a call from the Taiwan fim, saying that it had go- te some more business later in the year and it could no longer supply up to 500 units per month Instrad it could supply 700 monitors for the test 4 months and 300 for the next 5. Jim and Rod worried about what this would do to their inventory costs. A. Formulate and solve a transportation model to deter- mine an optimal monthly codering and distribution schedule for Hawk Systems that will minimize costs. B. If Hawk Systems has to borrow approximately $200,000 to start up the business, will it end up mak- ing anything the first year? C. What will the change in the supply pallem from the Taiwan firm cost Hawk Systems? D. How did Miriam fare with her alternative lease arrangement? Would she have been better off with a f S100,000 lease payment? Case Problem DEVELOPING KATHLEEN TAYLOR'S 401(K) PLAN over a year. She is now eligible to participate in the com- pany's 401(k) retirement plan. The company has provided Kathleen with the information in the table on the following page about the various funds that are available for her to invest in. Mathleen Taylor has been working for a government contractor, Summit Solutions, in Washington, DC, for Evening Star Evening Star S -Year Fund Size S1000.000) Expense US F ile 1959 11.139 1.300 SPM S . MSR US S et Small Value Ouk Small Growth Map Ful Mith T he with Draper Stud Mid Cap Jan Map Value Manam Mudiyapatity OS 1.33 4.145 4.05 4632 2.537 6374 L -Cap T. Row Price Crowth Jarus Diversified Equity Inc er Strategic Crowth CentC om Stock Crowth Mari Sack with 3.22 7.81 D 9.991 20194 190648 Macam Bad Parham High Yield Masal US. Cover Federal Palio Band 3.106 8 402 1.045 12 D International funds invest in global overseas com for operating expenses e ministrative management paneswall cap fundsvest in companies that have advertisintete. a market capitalization the sumber of outstanding Since Kathleen is young and experts build her 401) shares multiplied by the stock pricepershanel, in plan over a los period of time, he wants to comply a between 100 miles and 52 bilimid-cap funds investe ely investment strategy. She has read in companies with a market capital and that a relatively SIO on and are cap funt in companies O ples would t o 355 inimal funds, S10 No. The Saras developed by a 250 ml cap fundit 155 de funds independent a lysis and funds 20550 are cap funds and 55 105 in hond hedost a ted performance fundsKahe plans to u te 900 of her salary periods best."1" w saig c o ach o ther plan which the company will the y value i s receive while she has also developed a few of her com ment guide ocks are dis c ard the lines to diversity he was to estis five funds Byssa valm ive For The inacheme or she was to achieve aver expenser is the percentage of fundas d e Sant of at least 3.7: she wants to me in funds that average at least 10.000 million in size she to achieve an average pense rate for her five funds no more than 1.10 and she wants to maximize the aver age 5.year return of the five funds she selects, weighted by shem sheimesis in each Develop an imesime plan for Kathleen using linear programming. How would her investment plan change if she wanted to maximize the Star rating? Case Problem SCHEDULING AT HAWK SYSTEMS, INC. Jim Hug and Roderick Wheeler were sales pre- statives in a computer store at a shopping mallin Arlington, Virginia, when they got the idea of going into business in the burgeoning and highly competitive micro- computer make mwent to Taiwan over the summer to visit relatives and made a contact with a new producing display monitors for microcomputers, which was looking for an East Coast distributor in America im made a seative deal with them to supply a maximum of 500 monitor per month and called Rod to see if he could find a building they could operate out of and some potential customers Rod went to work. The time thing he did was send Nids to several universities in Maryland, Virginia, and Pennsylvania for contracts as an authorized vender for monitor at the schools. Next, he started looking for a facility to operate from him and his operation would pro- Videmir physical modifications to the monitors, includ- ing some labeling testin packaging, and then store in preparation for shipping. He knew he needed a building with good security air-conditioning, and a loading dock. However, this wanch proved to be more difficult than he anticipated. Building pace of the type and s he needed was very limited in the area and very expensive Rod to worry that he would not be able to find a suitable face ity He decided to look for in the Virginia and Maryland and conside, and although the found some good locations, the shipping costs out to the loca tions were extremely Disheartened by his lack of success, Rod oh help from his sister-in-law Miriam, a local real estate ape Rod poured out the details of his plight to Miriam over dinner at Rods mother's house and she was sympathetic She told Red that she owned a building in Arlington that might be just what he was looking for, and she would show to him the next day. As m ed, she showed him the ground floor of the building and it was perfect. It had plenty of space food security, and a nice office further more, it was in an upscale shopping area with lots of good restaurants Rod was elated the type of environ met he had envisioned for them to set up their business in. However, his joy soured when he asked Miriam what the rent was. She said she had not worked out the details but the rent would be around $100,000 per year. Rod was shocked, so Miriam said he would offer him an alterna tive a storage fee of Sio per monitor for every monitor purchased and in stock the first month of operation with an increase of 52 per month port for the remainder of the year. Miriam explained that based on what he told her about the business, they would not have any sales until the universities opened around the end of Art or the first of September, and that the sales would fall off to nothing in May of June. She said he offer meant that the would share in their access or failure. If they ended up with some university contact she would reap a reward als with them if they did well many month would lose on the deal. But the summer September October November December January March April May school ended, if they had to monitors in stock, they would pay her nothing. Rod mulled this over, and it sounded fair. He loved the building. Also, he liked the idea that they would not be indebted for a flat lease payment and that there was essentially on a per-unit basis. If they failed, at least they would not be stuck with a huge lease. So he agreed to Miriam's offer When Jim returned from Taiwan, he was skeptical about Rod's lease arrangement with Miriam. He was cha- primed that Rod hadn't performed a more thorough analysis of the costs, but Rod explained that it was pretty hard to do an analysis when he did not know their costs, potential sales, or selling price. Jim said he had a point, and his con- cer was somewhat offset by the fact that Rod had o n contracts with five universities as an authorized vender for monitors at a selling price of $180 per unit. So the two al down to be in planning their operation. First, Jim said he had thought of a name for their enter prise, Hawk Systems, Inc. which he said stood for Huang and Wheeler Computers. When Rod asked how Jim gotak out of computers, Jim cited poetic license Jim said that he had figured that the total cost of the units for them- including the purchase of the units, ship- ping, and their own material, labor, and administrative costs would be $100 per unit during the first 4 months but would then drop to $90 per month for the following 4 months and finally, to $85 per month for the remainder of the year. Jim said that the Taiwan firm was anticipating being able to lower the purchase price because its produc- tion cost would go down at gained experience. Jim thought their own costs would go down too. He ako explained that they would not be able to return any items, so it was important that they develop a good onder plan that would minimize costs. This was now much more important than Jim ad originally thought because of their peculiar lease arrangement based on their inventory level. Rod said that he had done w research on past computer sales at the universities they had contracted with and had come up with the following sales forecast for the next 9 months of the academic year from September through Rod explained to Jim that computer equipment purchases at universities go up in the fall, then drep until January, and the peak again in April, just before university budgets are exhausted at the end of the academic year. Jim then asked Rod what kind of monthly ordering schedule from Taiwan they should develop to meet demand while minimizing their costs. Rod said that it was a dif- ficult question, but he remembered that when he was in college in a management Science course, he had seen a pro- duction schedule developed using a transportation model. Jim suggested he get out his old textbook and get busy, o they would be turning over all their profits to Miriam. However, before Rod was able to develop a schedule, Jim got a call from the Taiwan fim, saying that it had go- te some more business later in the year and it could no longer supply up to 500 units per month Instrad it could supply 700 monitors for the test 4 months and 300 for the next 5. Jim and Rod worried about what this would do to their inventory costs. A. Formulate and solve a transportation model to deter- mine an optimal monthly codering and distribution schedule for Hawk Systems that will minimize costs. B. If Hawk Systems has to borrow approximately $200,000 to start up the business, will it end up mak- ing anything the first year? C. What will the change in the supply pallem from the Taiwan firm cost Hawk Systems? D. How did Miriam fare with her alternative lease arrangement? Would she have been better off with a f S100,000 lease payment