13-influence diagram example

13-influence diagram example - loaf, while the value of the...

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The Real Bakery bakes fresh bread every night for sale the next day. Each loaf  baked costs 0.75 YTL in ingredients and sells for 1.60 YTL. The bakery employs  several bakers. They earn 18 YTL per hour. Each baker can bake 480 loaves of  bread per 8-hour shift. Bakers have to be hired for a full 8-hour shift, even if they  are not fully occupied. However, up to I hour of overtime per day can be  scheduled for each baker. Naturally, the demand for bread varies from day to  day. So on some days too much bread is baked and some is left unsold at the  end of the day, while on other days all bread is sold. Any unsold bread from the  previous day is picked up in the morning and converted into bread crumbs, sold  to a fish processing plant. Unsold bread incurs a handling cost of 0.12 YTL per 
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Unformatted text preview: loaf, while the value of the bread crumbs produced is 0.28 YTL per loaf. Real wants to maximise profits and the manager has to answer three questions: (I) How many bakers should he employ? (2) How much overtime should he schedule? and (3) How many loaves of bread should he have baked each day? Note that the answers to these questions are not necessarily independent of each other. Clearly, the number of bakers employed must be sufficient to enable production of the desired number of loaves to be baked, either during their regular 8-hour shift or with overtime of up to I hour for some or all bakers. a) Draw an influence diagram that can be used to construct a profit maximisation model for Real. b) Identify boundary judgements....
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