EBK PRACTICAL MANAGEMENT SCIENCE
5th Edition
ISBN: 9780100655065
Author: ALBRIGHT
Publisher: YUZU
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Chapter 3.8, Problem 22P
Summary Introduction
To modify: The spreadsheet model with the new assumption.
Introduction: In linear programming, the unbounded solution would occur when the objective function is infinite. If no solution satisfied the constraints, then it is said to be an unfeasible solution.
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The table below provides demand data for 6 weeks (weeks 31-36 for the current year) for one product. Inventory is managed with a periodic review system where T = 5 weeks and M = 280. The previous order was for 120 units at the end of week 28. The lead time is a constant 4 weeks. At the beginning of week 31 the inventory level is 130 units. Orders are made at the end of a week.
1. When is the next order? end of week __________
2. How large is the next order? ___________
Week
Demand
Inventory
31
30
32
40
33
45
34
30
35
30
36
30
6. Ah Seng Coffeeshop needs to decide in November 2021 how many Chinese New Year cups to
order to sell at his coffeeshop. Because the cups are specially made for the year 2022 (year of the
tiger), those that are unsold by end of February 2022 are considered a loss. These specially-
designed cups sell for $23.95 and cost $6.75 each. Ah Seng is uncertain of the demand. He believes
that there is a 25% chance that they will sell 10,000 cups, a 50% chance that they will sell 15,000
and a 25% chance that they will sell 20,000.
a) Construct decision tree and cumulative risk profiles for the problem above using Precision Tree
b) Now, assume that any unsold cups are discounted and can be sold for $5 after February 2022.
How does this affect the decision?
Forrest and Dan make boxes of chocolates for which the demand is uncertain. Forrest says, “That’s life.” On the other hand, Dan believes that some demand patterns exist that could be useful for planning the purchase of sugar, chocolate, and shrimp. Forrest insists on placing a surprise chocolatecovered shrimp in some boxes so that “You never know what you’ll get.” Quarterly demand (in boxes of chocolates) for the last 3 years follows:
Quarter
Year 1
Year 2
Year 3
1
2
3
4
3,000
1,700
900
4,400
3,300
2,100
1,500
5,100
3,502
2,448
1,768
5,882
Total
10,000
12,000
13,600
a. Use intuition and judgment to estimate quarterly demand for the fourth year.b. If the expected sales for chocolates are 14,800 cases for year 4, use the multiplicative seasonal method to prepare a forecast for each quarter of the year. Are any of the quarterly forecasts different from what you thought you would get in part (a)?
Chapter 3 Solutions
EBK PRACTICAL MANAGEMENT SCIENCE
Ch. 3.6 - Prob. 1PCh. 3.6 - Prob. 2PCh. 3.6 - Prob. 3PCh. 3.6 - Prob. 4PCh. 3.6 - Prob. 5PCh. 3.6 - Prob. 6PCh. 3.6 - Prob. 7PCh. 3.6 - Prob. 8PCh. 3.6 - Prob. 9PCh. 3.7 - Prob. 10P
Ch. 3.7 - Prob. 11PCh. 3.7 - Prob. 12PCh. 3.7 - Prob. 13PCh. 3.7 - Prob. 14PCh. 3.7 - Prob. 15PCh. 3.7 - Prob. 16PCh. 3.7 - Prob. 17PCh. 3.8 - The Pigskin Company produces footballs. Pigskin...Ch. 3.8 - The Pigskin Company produces footballs. Pigskin...Ch. 3.8 - The Pigskin Company produces footballs. Pigskin...Ch. 3.8 - Prob. 21PCh. 3.8 - Prob. 22PCh. 3.8 - Prob. 23PCh. 3.8 - Prob. 24PCh. 3 - Prob. 25PCh. 3 - Prob. 26PCh. 3 - Prob. 27PCh. 3 - Prob. 28PCh. 3 - Prob. 29PCh. 3 - Prob. 30PCh. 3 - Prob. 31PCh. 3 - Prob. 32PCh. 3 - Prob. 33PCh. 3 - Prob. 34PCh. 3 - Prob. 35PCh. 3 - Prob. 36PCh. 3 - Prob. 37PCh. 3 - Prob. 38PCh. 3 - Prob. 39PCh. 3 - Prob. 40PCh. 3 - Prob. 41PCh. 3 - Prob. 42PCh. 3 - Prob. 43PCh. 3 - Prob. 44PCh. 3 - Prob. 45PCh. 3 - Prob. 46PCh. 3 - Prob. 47PCh. 3 - Prob. 48PCh. 3 - Prob. 49PCh. 3 - Prob. 50PCh. 3 - Prob. 51PCh. 3 - Prob. 52PCh. 3 - Prob. 1CCh. 3 - Prob. 2.1CCh. 3 - Prob. 2.2CCh. 3 - Prob. 2.3CCh. 3 - Prob. 2.4CCh. 3 - Prob. 2.5CCh. 3 - Prob. 2.6CCh. 3 - Prob. 2.7CCh. 3 - Prob. 2.8C
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