
Concept explainers
Six months before its annual convention, the American Medical Association must determine how many rooms to reserve. At this time, the AMA can reserve rooms at a cost of $150 per room. The AMA believes the number of doctors attending the convention will be
- a. Use simulation with @RISK to determine the number of rooms that should be reserved to minimize the expected cost to the AMA. Try possible values from 4100 to 4900 in increments of 100.
- b. Redo part a for the case where the number attending has a triangular distribution with minimum value 2000, maximum value 7000, and most likely value 5000. Does this change the substantive results from part a?
a)

To determine: The number of rooms that should be reserved to minimize the expected cost.
Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.
Explanation of Solution
Formulae to determine the above table:
Output results:
Run simulation by placing the cursor on B15.
In the @RISK click start simulation to develop the following output results:
The average cost minimized between 4500 and 4900.
b)

To determine: The number of rooms that should be reserved to minimize the expected cost.
Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.
Explanation of Solution
Formulae to determine the above table:
Output results:
Run simulation by placing the cursor on B16.
In the @RISK click start simulation to develop the following output results:
Here, the best number of rooms reserved is somewhat smaller than the numbers in part (a). The average cost is not lower than part (a).
Want to see more full solutions like this?
Chapter 10 Solutions
Practical Management Science
- I need the answer to requirement C.arrow_forwardImagine you are Susan Kim and are faced with a difficult choice to either follow the orders she was given, or refusing to do so. Using each lens determine what the ethical response would be. Suppot your answer with materials from readings and lectures. For example, using Universalism what would the ethical response be? Do the same for all four lenses.arrow_forwardAnswer all these questions, selecting any company of your choice. Choose a specific type of food company. Select a specific product. Develop all the inputs that are part of the process. Develop the transformation process in a graphic (diagram, etc.). Develop all the outputs or finished products that are part of the process. Describe all the processes involved in one line of production in any manufacturing facility. Also describing how good management is the center of any part of a production company.arrow_forward
- Using exponential smoothing with α =0.2, forecast the demand for The initial forecast for January is 2000 tons. Calculate the capacity utilization for June, July and Discuss the implications of underutilized or over utilized capacity for Green Harvestarrow_forwardIn organizational development when results are improving but relationships are declining, what leadership style is appropriate? directing delegating supporting coachingarrow_forwardWhat is the first thing a leader should do when moving through a cultural change? conduct an assessment comparing the practices to other high-performing organizations learn about the current organizational culture continue to monitor key metrics define expectationsarrow_forward
- The third change leadership strategy, Collaborate on Implementation, is designed to address what type of concerns? impact concerns personal concerns refinement concerns collaboration concernsarrow_forwardIf team members are concerned with specifics such as their tasks, contingency plans, resources, and timeline, what concerns do they have? implementation concerns impact concerns refinement concerns personal concernsarrow_forwardAt the developing stage of organizational development, which leadership style is most appropriate? supporting coaching delegating directingarrow_forward
- During the start-up phase of organizations, which leadership style is appropriate? supporting coaching directing delegatingarrow_forwardRegarding relationships and results, what is typically seen in start-up orgnanizations? low results/high relationships low results/low relationships high results/high relationships high results/ low relationshipsarrow_forwardWhat issues lie within Employee and Labor relations with hours worked and how to solve the issues effectively.arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
