Spreadsheet Modeling & Decision Analysis: A Practical Introduction To Business Analytics, Loose-leaf Version
8th Edition
ISBN: 9781337274852
Author: Ragsdale, Cliff
Publisher: South-Western College Pub
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 4, Problem 20QP
Summary Introduction
To determine: The sensitivity report using solver.
a)
Summary Introduction
To determine: Whether the optimal solution is unique.
b)
Summary Introduction
To determine: The total cost increase if it is forced to ship from location 1 to location 3.
c)
Summary Introduction
To determine: The increase in total cost for the given information.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
A national truck rental services has a surplus of one truck in each of the cities, 1, 2, 3, 4, 5, and 6 and a deficit of one truck in each of the cities 7,8,9,10,11 and 12.The distance (in kilometers) between the cities with a surplus and cities with deficit are displayed below:a)
b) How should the trucks be displayed so as to maximize the total distance travelled?
1 2 3 4 5 6
7
41
72
39
52
25
51
8
22
29
49
65
81
50
9
27
39
60
51
32
32
10
45
50
48
52
37
43
11
82
40
40
60
51
30
Two vaccination schemes are recently adopted in Lebanon, Pfizer and Astrazenica. The profit for each one of these is dependent on the site (clinic or hospital) performing the vaccination process. This is shown in the following payoff table.
Ministry of health considering the maximum profit to be able to cover the cost of staff where vaccination process can either be in a small clinics, or medium size hospitals or in main hospitals
Assume the payoffs represent profits. Determine the alternative that would be chosen under each of these decision criteria: Maximin, Maximax, Laplace. In your own opinion, which alternative likely to be excluded and why?
The ministry of health would like to check the possible loss. Find out the minimax regret table and identify the recommended alternative.
Assuming the probability of getting Pfizer is 0.6 and getting Astrazenica is 40%, determine the expected value of perfect information using the regret table.
Compute the EVPI again…
Sarah has a startup business that makes two distinct bird feeders that she has designed. Sarah is planning on operating a small factory to build the bird feeders. She is looking at two possible locations, A and B. If she chooses location A, the lease on the building will be higher than location B, thus leading to higher fixed costs than what she would have with location B. However, if she makes more than 20,000 units, both locations will likely have to be expanded, both the physical buildings and the manufacturing equipment. Variable costs to produce each unit will vary by location as well as by product. For example, the first design will have variable costs of $10 and $15 in locations A and B respectively, while the second bird feeder design will have variable costs of $20 and $25 respectively depending on location. However, she thinks that variable costs will decrease if she sells more than 5,000 units, as she will receive discounts from her suppliers at that point. She is unsure of…
Chapter 4 Solutions
Spreadsheet Modeling & Decision Analysis: A Practical Introduction To Business Analytics, Loose-leaf Version
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, management and related others by exploring similar questions and additional content below.Similar questions
- Even though independent gasoline stations have been having a difficult time. Murad has been thinking about starting her own independent gasoline station. Murad's problem is to decide how large his station would be. The annual returns will depend on both the size of his station and a number of marketing factors related to the oil industry and demand for gasoline. After a careful analysis, Murad developed the following table: Size of the first station Small Medium Large Very large Probability Good market,$ 50 000 80 000 100 000 300 000 20% Fair market,$ 20 000 30 000 30 000 25 000 30% a) what is the maximax decision? b) what is the maximin decision c) what is the equally likely decision (Laplace) d) What is the Expected Monetary Value Criterion (EMV Criterion) Poor market, $ -10 000 -20 000 -40 000 -160 000 50%arrow_forwardOhio Swiss Milk Products manufactures and distributes ice cream in Ohio, Kentucky, and West Virginia. The company wants to expand operations by locating another plant in northern Ohio. The size of the new plant will be a function of the expected demand for ice cream within the area served by the plant. A market survey is currently under way to determine that demand. Ohio Swiss wants to estimate the relationship between the manufacturing cost per gallon and the number of gallons sold in a year to determine the demand for ice cream and, thus, the size of the new plant. The following data have been collected: Plant ITT Thousands of Gallons Sold (X) 434.7 Cost per Thousand Gallons (Y) 1 $1,024 2 962 466.4 3 1,065 1,006 1,045 1,068 251.3 372.1 5 245.0 6. 258.6 7 988 614.9 414.0 8 997 9 1,063 1,000 $10,218 267.5 380,4 3,704.9 10 Total a. Develop a regression equation to forecast the cost per thousand gallons as a function of the number of thousands of gallons produced. The forecasting model…arrow_forwardOhio Swiss Milk Products manufactures and distributes ice cream in Ohio, Kentucky, and West Virginia. The company wants to expand operations by locating another plant in northern Ohio. The size of the new plant will be a function of the expected demand for ice cream within the area served by the plant. A market survey is currently under way to determine that demand. Ohio Swiss wants to estimate the relationship between the manufacturing cost per gallon and the number of gallons sold in a year to determine the demand for ice cream and, thus, the size of the new plant. The following data have been collected: ITT Cost per Thousand Gallons (Y) $1,024 Thousands of Gallons Sold (X) 434.7 Plant 962 466.4 251.3 372. 1,065 1,006 1.045 245.0 258.6 1,068 988 997 1,063 1,000 $10.218 614.9 414.0 267.5 380,4 3 704 9 9 10 Total a. Develop a regression equation to forecast the cost per thousand gallons as a function of the number of thousands of gallons produced. The forecasting model is given by the…arrow_forward
- Ohio Swiss Milk Products manufactures and distributes ice cream in Ohio, Kentucky, and West Virginia. The company wants to expand operations by locating another plant in northern Ohio. The size of the new plant will be a function of the expected demand for ice cream within the area served by the plant. A market survey is currently under way to determine that demand. Ohio Swiss wants to estimate the relationship between the manufacturing cost per gallon and the number of gallons sold in a year to determine the demand for ice cream and, thus, the size of the new plant. The following data have been collected: ITT Plant 1 Cost per Thousand Gallons (Y) $1,024 Thousands of Gallons Sold (X) 434.7 2 962 466.4 3 1,065 1,006 1,045 1,068 251.3 372.1 5 245.0 258.6 614.9 7 988 8. 997 414.0 267.5 380.4 3,704.9 9 1,063 1,000 $10,218 10 Total a. Develop a regression equation to forecast the cost per thousand gallons as a function of the number of thousands of gallons produced. The forecasting model is…arrow_forwardTommy Hilfiger is currently considering to source certain textile goods, Tommy Jeans, from Mexico. The estimated shipping time from Mexico to the U.S. for each shipment of Tommy Jeans is 4 days and the estimated freight cost of each shipment is $800. On the other hand, the current average shipping time from Vietnam to the U.S. for each shipment of Tommy Jeans is 23 days and the average freight cost is $2300. Even though the shipping time and freight cost seem to be much lower in case of Mexico, Tommy Hilfiger management is concerned about the production cost of each Jeans shipment. The management anticipates that the production cost of each Jeans shipment will be higher in Mexico compared to Vietnam. However, Tommy Hilfiger management has decided that even if the total cost (sum of production cost, freight cost, and holding cost) remain similar to Vietnam, Tommy Hilfiger will still source Jeans from Mexico because of the reduced shipping time, which, in turn, will result in better…arrow_forwardA local real estate investor in Kingston is considering three alternative investments: a motel, a restaurant, or a theater. Profits from the motel or restaurant will be affected by the availability of gasoline and the number of tourists; profits from the theater will be relatively stable under any conditions. The following payoff table shows the profit or loss that could result from each investment: Real Estate Investor Payoff Table Payoffs are Profits States of Nature (Gasoline Availability) Decision Alternatives Shortage Stable Supply Surplus Motel $–8,000 $15,000 $22,000 Restaurant $2,000 $8,000 $6,000 Theater $6,000 $6,000 $5,000 Which option should the real estate investor choose if he uses the LaPlace criterion? Using…arrow_forward
- 9-7 The management of the Executive Furniture Corporation decided to expand the production capacity at its Des Moines factory and to cut back the production capacities at its other two factories. It also recognizes a shifting market for its desks and revises the requirements at its three warehouses. The table on this page provides the requirement at each of the warehouses, the capacity at each of the factories, and the shipping cost per unit to ship from each factory to each warehouse. Find the least-cost way to meet the requirements given the capacity at each factory.arrow_forward4arrow_forwardPlease help with the question in the attached image.arrow_forward
- Mr. Smith is a rentier, he lives on renting apartments. However, these days he has to sell one of his apartments to get a big money. He hesitates which of three apartments of his to sell. Help Mr. Smith to make the right decision if you know the following: The present prices per m2 in the three locations equal: A) 4000, B) 5000, C) 6000 goldies, respectively. However, the long-run prices of those real estates are: A) 5000, B) 6000, and C) 7000 goldies, whereas the respective standard deviations are A) 400, B) 500, and C) 250 goldies.arrow_forwardThe following table shows the payoff matrix that represents the strategic interaction between two friends, Amanda and Barbara. They are deciding which island in the Outer Hebrides of Scotland to visit on their holiday. Amanda Barral South Uist Select all the correct answers. Barra 6,3 4,4 Barbara South Uist 2,2 3,6 There are two Nash equilibria In a one-shot, simultaneous game, both Amanda and Barbara will choose to visit Barra since their total happiness would be the highest In a sequential game where Barbara can move first, Amanda would choose to visit South Uist Amanda likes Barra more than South Uist, conditional on both choosing the same islandarrow_forwardCanning Transport is to move goods from three factories to three distribution centers. Information about the move is given below. Supply 200 Source Destination Demand 50 A 125 125 в 100 Y 150 Shipping costs are: Source 3 9 Destination Y 2 A в 10 6. (Source B cannot ship to destination Z) A. According to the Northwest Corner method, the initial solution would have a total transportation cost of B. According to the Vogel's Approximation Method, the initial solution would have a total transportation cost of C. According to the minimum cell cost method, the initial solution would have a total transportation cost of D. According to the Northwest Corner method, the initial solution would give to cell CIII a loading of E. According to the Vogel's Approximation Method, the initial solution would give to cell Cll a loading of F. According to the minimum cell cost method, the initial solution would give to cell BI a loading ofarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,