Grand Canyon University BUS 660 FINAL EXAM. All Questions and Answers.

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Problem 11-9 (Algorithmic) Hawkins Manufacturing Company produces connecting rods for 4- and 6-cylinder automobile engines using the same production line. The cost required to set up the production ... line to produce the 4- cylinder connecting rods is $2100, and the cost required to set up the production line for the 6-cylinder connecting rods is $3000. Manufacturing costs are $15 for each 4-cylinder connecting rod and $18 for each 6-cylinder connecting rod. Hawkins makes a decision at the end of each week as to which product will be manufactured the following week. If there is a production changeover from one week to the next, the weekend is used to reconfigure the production line. Once the line has been set up, the weekly production capacities are 6500 6-cylinder connecting rods and 7800 4-cylinder connecting rods. Let x4 = the number of 4-cylinder connecting rods produced next week x6 = the number of 6-cylinder connecting rods produced next week s4= 1 if the production line is set up to produce the 4-cylinder connecting rods; 0 if otherwise s6 = 1 if the production line is set up to produce the 6-cylinder connecting rods; 0 if otherwise a. Using the decision variables x4 and s4, write a constraint that limits next week's production of the 4-cylinder connecting rods to either 0 or 7800 units. Problem 9-11 (Algorithmic) Edwards Manufacturing Company purchases two component parts from three different suppliers. The suppliers have limited capacity, and no one supplier can meet all the company’s needs. In addition, the suppliers charge different prices for the components. Component price data (in price per unit) are as follows: Problem 15-7 (Algorithmic) Speedy Oil provides a single-server automobile oil change and lubrication service. Customers provide an arrival rate of 2 cars per hour. The service rate is 3 cars per hour. Assume that arrivals follow a Poisson probability distribution and that service times follow an exponential probability distribution. The Ace Manufacturing Company has orders for three similar products: Product Order (Units) A 1900 B 550 C 1300 Three machines are available for the manufacturing operations. All three machines can produce all the products at the same production rate. However, due to varying defect percentages of each product on each machine, the unit costs of the products vary depending on the machine used. Machine capacities for the next week and the unit costs are as follows: Machine Capacity (Units) 1 1400 2 1500 3 1100 Product Machine A B C 1 $1.00 $1.20 $0.80 2 $1.30 $1.40 $1.40 3 $1.00 $1.00 $1.50 Use the transportation model to develop the minimum cost production schedule for the products and machines. Show the linear programming formulation. If required, round your answers to one decimal place. The linear programming formulation and optimal solution are shown. Let x1A Units of product A on machine 1 x1B = Units of product B on machine 1 • • • x3C = Units of product C on machine 3 Problem 15-9 (Algorithmic) Marty's Barber Shop has one barber. Customers have an arrival rate of 2.1 customers per hour, and haircuts are given with a service rate of 5 per hour. Use the Poisson arrivals and exponential service times model to answer the following questions: a. What is the probability that no units are in the system? If required, round your answer to four decimal places. Bay Oil produces two types of fuels (regular and super) by mixing three ingredients. The major distinguishing feature of the two products is the octane level required. Regular fuel must have a minimum octane level of 90 while super must have a level of at least 100. The cost per barrel, octane levels, and available amounts (in barrels) for the upcoming two-week period are shown in the following table. Likewise, the maximum demand for each end product and the revenue generated per barrel are shown. Develop and solve a linear programming model to maximize contribution to profit. Let Ri = the number of barrels of input i to use to produce Regular, i=1,2,3 Si = the number of barrels of input i to use to produce Super, i=1,2,3 If required, round your answers to one decimal place. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300) Let x1 , x2 , and x3 be 0 - 1 variables whose values indicate whether the projects are not done (0) or are done (1). Which answer below indicates that at least two of the projects must be done? x1 + x2 + x3 ≥ 2 Each point on the efficient frontier graph associated with the Markowitz portfolio model is the minimum possible risk for the given return. The number of units shipped from origin i to destination j is represented by xi j. The media selection model presented in the textbook involves maximizing the number of potential customers reached subject to a minimum total exposure quality rating. False To develop a portfolio that provides the best return possible with a minimum risk, the linear programming model will have an objective function which maximizes the minimum return. The solution to the LP Relaxation of a maximization integer linear program provides an upper bound for the value of the objective function. The constraint x1 + x2 + x3 + x4 ≤ 2 means that two out of the first four projects must be selected. FALSE Consider a maximal flow problem in which vehicle traffic entering a city is routed among several routes before eventually leaving the city. When represented with a network, the arcs represent one way streets. Let Pij = the production of product i in period j. To specify that production of product 1 in period 3 and in period 4 differs by no more than 100 units, P13 - P14 ≤ 100; P14 - P13 ≤ 100 The dual price for a constraint that compares funds used with funds available is .058. This means that if more funds can be obtained at a rate of 5.5%, some should be. For many waiting line situations, the arrivals occur randomly and independently of other arrivals and it has been found that a good description of the arrival pattern is provided by a Poisson probability distribution. The overall goal of portfolio models is to create a portfolio that provides the best balance between risk and return. If the acceptance of project A is conditional on the acceptance of project B, and vice versa, the appropriate constraint to use is a corequisite constraint. Assuming W1, W2 and W3 are 0 -1 integer variables, the constraint W1 + W2 + W3 < 1 is often called a mutually exclusive constraint. If a transportation problem has four origins and five destinations, the LP formulation of the problem will have 9 constraints Modern revenue management systems maximize revenue potential for an organization by helping to manage pricing strategies. short-term supply decisions. reservation policies. All of the alternatives are correct. In a waiting line situation, arrivals occur, on average, every 10 minutes, and 10 units can be received every hour. What are λ and μ? λ = 10, μ = 6 λ = 6, μ = 10 (correct) λ = 10, μ = 10 λ = 6, μ = 6 A company makes two products from steel; one requires 2 tons of steel and the other requires 3 tons. There are 100 tons of steel available daily. A constraint on daily production could be written as: 2x1 + 3x2 ≤ 100. True If arrivals occur according to the Poisson distribution every 20 minutes, then which is NOT true? λ = 20 arrivals per hour Let M be the number of units to make and B be the number of units to buy. If it costs $2 to make a unit and $3 to buy a unit and 4000 units are needed, the objective function is Min 2M + 3B The assignment problem constraint x31 + x32 + x33 + x34 ≤ 2 means agent 3 can be assigned to 2 tasks. The total cost for a waiting line does NOT specifically depend on the cost of a lost customer. The assumption that arrivals follow a Poisson probability distribution is equivalent to the assumption that the time between arrivals has an exponential probability distribution [Show More]

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