Problem 1.
Arsenal
Electronics is going to construct a new $1.2 billion semiconductor plant and
has selected four towns in the Midwest as potential sites. The important
location factors and ratings for each town are as follows:
|
Scores |
|||||
|
Location Factor |
Weight |
Abbeton |
Bayside |
Cane |
Dunnville |
|
Work ethics |
0.18 |
80 |
90 |
70 |
75 |
|
Quality of life |
0.16 |
75 |
85 |
95 |
90 |
|
Labor laws/unionization |
0.12 |
90 |
60 |
60 |
70 |
|
Infrastructure |
0.10 |
60 |
50 |
60 |
70 |
|
Education |
0.08 |
80 |
90 |
85 |
95 |
|
Labor skill and education |
0.07 |
75 |
65 |
70 |
80 |
|
Cost of living |
0.06 |
70 |
80 |
85 |
75 |
|
Taxes |
0.05 |
65 |
70 |
55 |
60 |
|
Incentive package |
0.05 |
90 |
95 |
70 |
80 |
|
Government regulations |
0.03 |
40 |
50 |
65 |
55 |
|
Environmental regulations |
0.03 |
65 |
60 |
70 |
80 |
|
Transportation |
0.03 |
90 |
80 |
95 |
80 |
|
Space for expansion |
0.02 |
90 |
95 |
90 |
90 |
|
Urban proximity |
0.02 |
60 |
90 |
70 |
80 |
Recommend a site based on these location
factors and ratings.
Problem 2.
Sawyer
Furniture is one of the few remaining domestic manufacturers of wood furniture.
In the current competitive environment, cost containment is the key to its
continued survival. Demand for furniture follows a seasonal demand pattern with
increased sales in the summer and fall months, culminating with peak demand in
November.
The cost of
production is $16 per unit for regular production, $24 for overtime, and $33
for subcontracting. Hiring and firing costs are $500 per worker. Inventory
holding costs are $20 per unit per month. There is no beginning inventory. Ten
workers are currently employed. Each worker can produce 50 pieces of furniture
per month. Overtime cannot exceed regular production. Given the following
demand data, use Excel Solver to design an aggregate production plan for Sawyer
Furniture that will meet demand at the lowest possible cost.
|
Input: |
Beg. Wkrs |
10 |
Regular |
$16 |
Hiring |
$500 |
||||||||||
|
|
Units/wkr |
50 |
Overtime |
$24 |
Firing |
$500 |
||||||||||
|
Beg. Inv. |
0 |
Subk |
$33 |
Inventory |
$20 |
|||||||||||
|
Month |
Demand |
Reg |
OT |
Subk |
Inv |
#Wkrs |
#Hired |
#Fired |
||||||||
|
Jan |
500 |
500 |
0 |
0 |
0 |
10 |
0 |
0 |
||||||||
|
Feb |
500 |
500 |
0 |
0 |
0 |
10 |
0 |
0 |
||||||||
|
Mar |
1000 |
1,000 |
0 |
0 |
0 |
20 |
10 |
0 |
||||||||
|
Apr |
1200 |
1,000 |
200 |
0 |
0 |
20 |
0 |
0 |
||||||||
|
May |
2000 |
1,000 |
1,000 |
0 |
0 |
20 |
0 |
0 |
||||||||
|
Jun |
400 |
400 |
0 |
0 |
0 |
8 |
0 |
12 |
||||||||
|
Jul |
400 |
400 |
0 |
0 |
0 |
8 |
0 |
0 |
||||||||
|
Aug |
1000 |
1,000 |
0 |
0 |
0 |
20 |
12 |
0 |
||||||||
|
Sep |
1000 |
1,000 |
0 |
0 |
0 |
20 |
0 |
0 |
||||||||
|
Oct |
1500 |
1,500 |
0 |
0 |
0 |
30 |
10 |
0 |
||||||||
|
Nov |
7000 |
3,500 |
3,500 |
0 |
0 |
70 |
40 |
0 |
||||||||
|
Dec |
500 |
500 |
0 |
0 |
0 |
10 |
0 |
60 |
||||||||
|
Total |
17,000 |
12,300 |
4,700 |
0 |
0 |
246 |
72 |
72 |
||||||||
Problem 3.
Complete the
following MRP matrix for Item X. Determine when orders should be released and
the size of those orders.
|
Item: X |
LLC: 0 |
Period |
|||||||
|
Lot Size: Min 50 |
LT: 2 |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
|
Gross Requirements |
25 |
30 |
56 |
25 |
100 |
40 |
30 |
20 |
|
|
Scheduled Receipts |
50 |
||||||||
|
Projected on Hand |
30 |
||||||||
|
Net Requirements |
|||||||||
|
Planned Order Receipts |
|||||||||
|
Planned Order Releases |
Release
orders in periods 1 through 5 for quantities of 50, 50, 56, 50, and 50
respectively.
Problem 4.
|
Fibrous Incorporated makes products from
|
Problem 5.
The
following probabilistic activity time estimates are for a CPM/PERT network.
|
Time |
|
Time |
|||||
|
Activity |
a |
m |
b |
Activity |
a |
m |
b |
|
1 |
1 |
2 |
?6 |
?7 |
1 |
1.5 |
2 |
|
2 |
1 |
3 |
?5 |
?8 |
1 |
3 |
5 |
|
3 |
3 |
5 |
10 |
?9 |
1 |
1 |
5 |
|
4 |
3 |
6 |
14 |
10 |
2 |
4 |
9 |
|
5 |
2 |
4 |
?9 |
11 |
1 |
2 |
3 |
|
6 |
2 |
3 |
?7 |
12 |
1 |
1 |
1 |
Determine
the following:
a.
Expected
activity times
b.
Earliest
start and finish times
c.
Latest start
and finish times
d.
Activity
Slack
e.
Critical
Path
Expected Project duration and standard
deviation.
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