Chapter 8, Problem 15QP

3. Nathasa, the controller of Nath Pizza, is purchasing several new delivery vehicles. Nathasa has numerous work responsibilities, so she has limited time to shop for cars. Because of the time constraints, she cannot make an extensive search for the best alternative, so she looks for cars until she finds a model that is satisfactory. Nathasa is following the ____ model. a.dilemma b.rational c.limited scope d.satisficing e.limited focus

Formulate decision variable, objective function, and constraints only. Eastborne Realty has $2 million available for the purchase of new rental property. After an initial screening, Eastborne reduced the investment alternatives to townhouses and apartment buildings. Each townhouse can be purchased for $282,000, and five are available. Each apartment building can be purchased for $400,000, and the developer will construct as many buildings as Eastborne wants to purchase. Eastborne’s property manager can devote up to 140 hours per month to these new properties; each townhouse is expected to require 4 hours per month, and each apartment building is expected to require 40 hours per month. The annual cash flow, after deducting mortgage payments and operating expenses, is estimated to be $10,000 per townhouse and $15,000 per apartment building. Eastborne’s owner would like to determine the number of townhouses and the number of apartment buildings to purchase to maximize annual cash flow.

Calculating outcomes as equally likely would BEST describe: O a. Maximax criterion O b. Laplace criterion O c. Regret criterion Od. Maximin criterion Determining the average payoff for each alternative and choosing the one with the BEST payoff is the approach called: ea, maximax O b. minimax regret O c. laplace Od maximin 2

Develop a decision analysis formulation of this problem by identifying the decision alternatives, state of nature, and the payoff table.

A car company is planning the introduction of a new electric car.  There are two options for production.  One is to produce the electric car at the company’s existing plant in Illinois, sharing production with its other products that are currently being produced there.  If the sales of the electric car are moderate, this will work out well as there is significant capacity to produce all of the products there.  However, if sales of the electric car are strong, this option would necessitate Adding a 3rd shift, which would lead to significantly higher costs. Another option is to build a new plant in Ohio.  The new plant would have sufficient capacity to meet whatever level of demand for the new car.  However, if sales of the new car not strong, the plant would be underutilized and less efficient. Since this is a new product, sales are hard to predict.  The forecast indicates there is a 60% chance of strong sales (annual sales of 100,000), and 40% chance of moderate sales (annual sales of…

: You are employed by Univeristy of Gujrat , a university that provides a range of training and education, including Computing, and Information & Communication Technology (ITC). The Head of Department of ITC, Mr Rumi, has discovered that on more than one occasion recently a computer virus has been introduced to the computers in the department. He thinks that the viruses have been introduced from computer disks brought in by students. He has decided to introduce a system where all disks used in the department must be checked for a virus before they can be put into the computers. He says to you, I would like you to send a memo in my name to all teachers who use the computer rooms. You will have to tell them that all disks brought in  by students must be checked before there are used. The teachers have to check them carefully, of course. We have got to stop these viruses being introduced before they cause serious problems. Oh yes, reminds them to lock up the rooms when they leave.…

Let’s consider the following LP problem:   min            Subject to:                                                                                                      Solve the problem with the graphic method.

3. Consider the following linear program: Min 8X + 12Y s.t. IX +3Y 9 2X+ 2Y 10 6X + 2Y 18 XY 0 Use the graphical solution procedure to find the optimal solution. b. Assume that the objective function coefficient for X changes from 8 to 6. Does the optimal solution change? Use the graphical solution procedure to find the new optimal solution. a. Assume that the objective function coefficient for X remains 8, but the objective func- tion coefficient for Y changes from 12 to 6. Does the optimal solution change? Use the graphical solution procedure to find the new optimal solution. d. The sensitivity report for the linear program in part (a) provides the following objec- tive coefficient range information: C. Objective Coefficient Allowable Inerease Allowable Variable Decrease 8.000 12.000 4.000 12.000 4.000 4.000 How would this objective coelficient range information help you answer parts (b) and (C) prior to resolving the problem?

A college provides free tutoring services for its students 7 days a week, and the daily requirements for tutors are: Day M T W Th F S Su Requirements 5 4 7 3 6 3 4 Find the minimum number of tutors required if each tutor works 4 days a week and has 3 consecutive days off. Give preference to Saturday and Sunday off in case of a tie. (Hint: Look for group of 3 days with the lowest requirements). Specify the work schedule for each tutor. How much slack does your schedule generate for each day?