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    JUSKOLORD

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    Jace
    The document summarizes 4 problems involving optimization modeling: 1) A t-shirt company planning a production run where attendance is uncertain must determine how many blank t-shirts to order to maximize expected profit. 2) A winemaker must determine how many liters of table and dessert wine to produce to maximize profit given constraints on labor hours and bottling time. 3) A hospital must determine nurse scheduling to minimize staff needed while meeting daily requirements for full-time nurses. 4) Given a fixed number of nurses, the hospital must determine a schedule to maximize weekend days off for nurses.

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    JUSKOLORD

    Uploaded by

    Jace
    39 views2 pages
    The document summarizes 4 problems involving optimization modeling: 1) A t-shirt company planning a production run where attendance is uncertain must determine how many blank t-shirts to order to maximize expected profit. 2) A winemaker must determine how many liters of table and dessert wine to produce to maximize profit given constraints on labor hours and bottling time. 3) A hospital must determine nurse scheduling to minimize staff needed while meeting daily requirements for full-time nurses. 4) Given a fixed number of nurses, the hospital must determine a schedule to maximize weekend days off for nurses.

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    The document summarizes 4 problems involving optimization modeling: 1) A t-shirt company planning a production run where attendance is uncertain must determine how many blank t-shirts to order to maximize expected profit. 2) A winemaker must determine how many liters of table and dessert wine to produce to maximize profit given constraints on labor hours and bottling time. 3) A hospital must determine nurse scheduling to minimize staff needed while meeting daily requirements for full-time nurses. 4) Given a fixed number of nurses, the hospital must determine a schedule to maximize weekend days off for nurses.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    39 views2 pages

    JUSKOLORD

    Uploaded by

    Jace
    The document summarizes 4 problems involving optimization modeling: 1) A t-shirt company planning a production run where attendance is uncertain must determine how many blank t-shirts to order to maximize expected profit. 2) A winemaker must determine how many liters of table and dessert wine to produce to maximize profit given constraints on labor hours and bottling time. 3) A hospital must determine nurse scheduling to minimize staff needed while meeting daily requirements for full-time nurses. 4) Given a fixed number of nurses, the hospital must determine a schedule to maximize weekend days off for nurses.

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    © All Rights Reserved
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    of 2

    2.

        A t-shirt company is planning a production run for an event where the attendance (and thus
    demand for t-shirts) is uncertain. The event planners have indicated that they think the attendance
    will be 500, 750 or 1000, with probabilities of 30%, 50% and 20% respectively. The company must
    pre-order the blank t-shirts (cost=P250 per shirt) and it can sell finished shirts for P600 apiece. Any
    finished shirts that cannot be sold at the event can be sold for P100 apiece to a used clothing
    vendor.

    Likely Attendance (a) Probability (b) Blank T-shirts to be ordered


    (a*b)
    500 30% 150
    750 50% 375
    1000 20% 200
    Blank T-shirts to be ordered TOTAL 725
     

    Requirements: (25 points)


    a) What Excel function is useful for calculating the expected value of demand for t-shirts?
    What is the expected demand?
    b) What Excel function is useful for calculating revenue? Explain why it is useful.

    c) What are the two possible cases for the number of t-shirts that will be sold to the used clothing
    vendor? How would you calculate this amount in a spreadsheet model?

    d) Suppose that blank t-shirts can only be ordered from the wholesale vendor in batches of 100?
    How many t-shirts should the company order?
    e) Suppose now that blank t-shirts can only be ordered from the wholesale vendor in batches of 50?
    How many t-shirts should the company order?

    3.  A winemaker in California's Napa Valley must decide how much of two types of wine she will
    produce from a particular variety of grapes. Each liter of table wine yields $8 profit, while each
    liter of dessert wine produces $3 profit. The labor hours and bottling process time used for the type
    of wine are given in the table below. Resources available include 200 labor hours and 80 hours of
    bottling process time. Assume the winemaker has more than enough grapes available to supply any
    feasible production plan.

    Table Wine Dessert Wine


    Labor (Hours) 0.20 0.60
    Process Time (Hours) 0.30 0.10

    Cell Name Final Value Reduced Objective Allowable Allowable


    Cost Coefficient Increase Decrease
    $C$3 Table 175 0 8 1 7
    $C$4 Dessert 275 0 3 21 0.33333333
     
    Cell Name Final Shadow Constraint Allowable Allowable
    Value Price R.H. Side Increase Decrease
    $C$9 Labor 200 0.625 200 280 146.6666667
    $C$10 Process 80 26.25 80 220 46.66666667
    $C$11 175 0 0 175 1E+30
    $C$12 275 0 0 275 1E+30

    Requirements: (20 points)


    a)    Formulate a linear programming model (an algebraic model) that will enable the winemaker to
    determine the number of liters of each type of wine to produce in order to maximize her profit.

    b)    Implement the model in Part (a) in Excel Solver and obtain an answer report. Which
    constraint(s) are binding on the optimal solution?
    c)    Obtain a sensitivity report for the model in Part (a). How much should the winemaker be
    willing to pay for an additional labor hour?
    Table wine: 175

    d)    Suppose the winemaker can obtain 100 additional labor hours. Can you use the sensitivity
    analysis obtained for Part (c) to determine her expected profit? Would her bottling plan change?
    Explain your answer.

    4.  A hospital emergency room requires different numbers of nurses on different days of the week.
    The number of full-time employees required to be working (i.e. not on call) each day is given in the
    table below.
     

    Hospital rules require that nurses work four consecutive days, are on call for one day, and then
    receive two days off. The hospital wants to meet its daily requirements while minimizing the
    number of nurses that must be on staff.
     
    Requirements: (15 points)
    a)    Use Solver to formulate and solve the hospital's problem.
    b)    Suppose the hospital is experiencing a budget crunch and needs to use the nurses' on call day to
    temporarily staff the emergency room. Use Solver to formulate and solve the hospital's problem.

    c)    Suppose the hospital has 40 nurses and is not allowed to hire or fire any employees, and cannot
    temporarily schedule nurses on their on-call days. Determine a schedule that maximizes the number of
    weekend days off received by the nurses.

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