Exam2_Review - MANAGEMENT SCIENCE(MGMT 306 Review Problems...

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MANAGEMENT SCIENCE (MGMT 306) Review Problems for Exam 2 Reminders: Seating charts will be posted before the exam. You may bring one sheet (8.5x11) of "crib" notes both sides to use in the exam. Do not submit your crib notes with your exam; you may reuse them during the final exam. Integer programming models, simulation modeling, and the corresponding Excel and @RISK models and outputs are included in the exam. Question 1. (Integer programming formulation) Allison owns and runs a business preparing tax returns for individuals, businesses, and non- profit organizations. Business is growing and she has hired Bob to help handle the demand. Bob is still learning the business and can process only individual returns. Allison is working at most 200 hours during the next month. Bob is working at most 100 hours. Allison is paying Bob $20 per hour. Since she owns the business, she does not pay herself but instead keeps the profit. Processor Individual Returns (Hours per Return) Business Returns (Hours per Return) Non-Profit Returns (Hours per Return) Allison 0.5 2 3 Bob 1 - - Revenue per Return 50 200 250 Returns to be processed 200 30 20 Part A. (12 points) How should Allison allocate the work in order to maximize profit. Formulate an integer linear program to find the solution. Use the decision variables provided and write the objective function and constraints. You do not need to solve the problem. Part B. (8 points) While Bob can handle the individual tax forms, she will need to spend 4 hours training him if he processes any of the business returns. During the training period no work can be done by either in processing customer forms. After training, Bob will be able to complete a business return in 3 hours. Modify your formulation to determine if Bob should be trained to complete business forms and how many he should be assigned to complete. (You just need to write down any new variables, new objective function, and the changed/added constraints.) 1
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Question 2. (Integer programming formulation) Mayfax Distributors, Inc., has three sales representatives. Each of the sales representatives must be assigned to one of four sales territories, and each of the four sales territories is going to have at most one assigned sales representative. From experience the firm’s sales manager has estimated the labor expense (in thousands of dollars) for each representative in a sales territory.
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