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
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The Canadian government has built a large grain-shipping port at Churchill, Manitoba, on the Hudson Bay. Grain grown in southern Manitoba is carried by rail to Churchill during the open-water shipping season. Unfortunately the port is open only 50 days per year during July and August. This leads to some critical crew staffing decisions by management. The port has the capacity to load up to 7 ships simultaneously, provided that each loading bay has an assigned crew. The remote location and short shipping season results in a very high labor cost for each crew assigned, and management would like to minimize the number of crews. Ships arrive in a random pattern that can be modeled using the Poisson probability model. If a ship arrives and all available loading bays are filled, the ship will be delayed, resulting in a large cost that must be paid to the owner of the ship. This penalty was negotiated to encourage ship owners to send their ships to Churchill.Results of an initial analysis…
Macon Controls produces three different types of control units used to protect industrial equipment from overheating. Each of these units must be processed by a
machine that Macon considers to be their process bottleneck. The plant operates on two 8-hour shifts, 5 days per week, 52 weeks per year. The table below provides the
time standards at the bottleneck, lot sizes, and demand forecasts for the three units. Because of demand uncertainties, the operations manager obtained three demand
forecasts (pessimistic, expected, and optimistic). The manager believes that a 25 percent capacity cushion is best.
D
Demand Forecast
Component
A
B
C
Time Standard
Processing Setup
(hr/unit) (hr/lot)
0.04
1.0
0.20
4.4
0.05
8.5
Lot Size
(units/lot)
50
75
100
Demand Forecast
Pessimistic
Expected
Optimistic
Pessimistic
16,000
10,000
18,000
a. How many machines are required to meet minimum (Pessimistic) demand, expected demand, and maximum (Optimistic) demand? (Enter your responses rounded up
to the next…
Macon Controls produces three different types of control units used to protect industrial equipment from overheating. Each of these units must be processed by a
machine that Macon considers to be their process bottleneck. The plant operates on two 8-hour shifts, 5 days per week, 52 weeks per year. The table below provides the
time standards at the bottleneck, lot sizes, and demand forecasts for the three units. Because of demand uncertainties, the operations manager obtained three demand
forecasts (pessimistic, expected, and optimistic). The manager believes that a 25 percent capacity cushion is best.
i
Demand Forecast
Component
A
B
C
Time Standard
Processing
(hr/unit)
0.04
0.20
0.05
Setup
(hr/lot)
1.0
4.4
8.5
Lot Size
(units/lot)
50
75
100
Demand Forecast
Pessimistic Expected
16,000
17,000
10,000
12,000
18,000
24,000
a. How many machines are required to meet minimum (Pessimistic) demand, expected demand, and maximum (Optimistic) demand? (Enter your responses rounded up
to the next…
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