# HW1 - BUSI 410 Homework#1 Due Instructions Solve each of...

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_________________________________________________________________________________________________ BUSI 410 - Homework #1 Due 2/8/2010 Instructions: Solve each of the following problems using these steps: 1) Identify the objective of the firm/manager as specified in the problem. 2) Identify the decision variables in the problem. 3) Write the objective in terms of the decision variables. 4) State the constraints in English (briefly) and then convert them into mathematical functions in terms of the decision variables. 5) Set up the problem in Excel and use Solver to find the optimal values of the decision variables. Ask Solver to create an Answer Report and, if necessary, a Sensitivity Report. 6) Answer the questions in each of the problems. 7) Hand in your mathematical formulation, including the verbal descriptions asked for above, Solver’s Answer Report, Solver’s Sensitivity Report if you used it , and your handwritten answers to step 6 above. 1. Product mix problem at Kristen’s Cookies: Kristen sells two types of cookies: Choc. Chip cookies Oatmeal Raisin cookies Selling price \$ 5.00 per dozen \$ 5.50 per dozen Cost of materials \$ 2.50 per dozen \$ 2.40 per dozen Weekly demand for CC cookies is limited to 100 dozen and for OR cookies to 50 dozen. The processing times of the two types of cookies in different steps of production are as follows: Processing times for each step (1 tray = 1 dozen cookies) Step 1 Mix and Dish Step 2 Bake Step 3 Cool Step 4 Pack Step 5 Pay Chocolate Chip 4 Mins/tray 10 mins/tray 5 mins/tray 2 mins/tray 1min/tray Oatmeal Raisin 6 mins/tray 15 mins/tray 2 mins/tray 2 mins/tray 1min/tray Kristen employs a friend to help her execute this process. For each type of cookie, the following steps require labor time from either Kristen or her friend: the “mix & dish” step, setting the oven timer (which takes one minute), the packing step, and the acceptance of payment. How many of each type of cookie should Kristen produce? She and her friend combined can work 20 hours each week. Ignore start up and shut down time at the beginning and end of each shift. 2. Compressor Problem. A company that manufactures compressors has plants in three locations: Cleveland, Chicago, and Boston. During a week, the total production capacity of one type of special compressor from each plant is 35, 50, and 40 units respectively. The company wants to ship 45 units to a

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distribution center in Dallas, 20 to Atlanta, 30 to San Francisco, and 30 to Philadelphia. The unit production
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HW1 - BUSI 410 Homework#1 Due Instructions Solve each of...

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