1
10. The Spartan Bank has six branches in the metropolitan area. Mr. Misser, C.E.O. would like
to determine the efficiency of (Glass) branch. The relevant input and output data are
summarized below.
Customer Service
Bank
(FTE tellers)
Glass
8
Hill
3
Meye

1
5. The Bayside Art gallery is considering installing a video camera security system to reduce the
insurance premiums. Which rooms and the number of rooms each camera can monitor depend
on the location of the camera. The location of the camera also influ

A committee in charge of promoting a seniors PGA tournament wants to determine the optimal
strategy to advertise the event during the two weeks prior to the tournament. The committee
obtained the information below regarding the three advertising media sel

1
LP applications
Make or Buy
Frandec Company manufactures, assembles, and rebuilds material handling equipment used in
warehouses and distributions centers. One product, called a lift master, is assembled from four
components: a frame, a motor, two suppo

Network Models
Assignment Problem
Scott and Associates Inc., is an accounting firm that has three new clients. Project leaders will be
assigned to the three clients. Based on the different backgrounds and experiences of the three
leaders, the various lead

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LP Applications (Continued)
Multi-period financial
As part of the settlement for a class action lawsuit, Hoxworth Corporation must provide
sufficient cash to make the following annual payments (in thousands of dollars)
Year
Payment
1
190
2
215
3
240
4
2

1
Chapter 7 Integer Linear Programming
Three types.
I All General Integer (any whole number, zero or greater)
II All Binary (all decision variables equal 0 or 1, yes/no questions)
III Mixed Integer (any combination of general, binary, or non-integer)
Prob

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Revenue Management
Definitions
Yield management, also known as revenue management, is the process of understanding,
anticipating and influencing consumer behavior in order to maximize revenue or profits from a
fixed, perishable resource (such as airline

1
Chapter 9 Project Scheduling: PERT/CPM
Example Test Problems
1. Draw the PERT network. Determine the earliest and latest start times and the amount of
slack for each activity.
Activity
Immediate
Predecessor
Time
(Weeks)
Earliest
Start
Latest
Start
Slack

1
The Loan Policy committee of Shady National Bank is about to hold its quarterly meeting to
determine the guidelines for making loans and other investments with cash it expects to receive
from the inflow of deposits and the repayments on previous investm

Metropolis Public School System of Malawi has 18 school bus routes, of which six will expire
at the end of current school year. They must sign a three year contract for each of the six bus
routes by March of 2006. Bids have been made by five regional bus

Chapter 2 Practice Problems:
Solve graphically. Identify the feasible solution area, the extreme points (under the label
extreme points on this page) and the optimal solution. cfw_unless problem is infeasible or
unbounded , in which case simply identify t

1
Product Mix: Quality Air Conditioning
Quality Air Conditioning manufactures three home air conditioners: an Economy model (E), and
Standard model (S), and a Deluxe model (D). The model formulation is shown on the next page.
The objective is to maximize

Linear Programming
Linear
Optimization Technique
Optimization
Linear Programming is an optimization
Linear
technique (Statistics vs Mathematics)
technique
Thus if the model is formulated correctly the
Thus
procedure will guarantee the BEST
Solution
Exampl

1
Forecasting Time Series Data
Time Series Data A quantitative variable measured at regular intervals of time. (p. 696) Y
Examples:
Italys Annual GDP
Quarterly revenue for Hallmark Company
Monthly rainfall is Springfield
Weekly demand for the Sunday Newsl

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Redwood Picnic Problem
LINEAR PROGRAMMING PROBLEM
MAX 6T+8C
S.T.
1)
2)
30T+20C<300
5T+10C<110
OPTIMAL SOLUTION
Objective Function Value =
96.000
Variable
-T
C
Value
-4.000
9.000
Reduced Costs
-0.000
0.000
Constraint
-1
2
Slack/Surplus
-0.000
0.000
Dual

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LP Sensitivity Analysis
Question: If the LP model is altered, would the solution change?
Does the solution change? If so, by how much and in what way?
Two Parts to Sensitivity Analysis:
I Changes in the objective function coefficients
II Changes in the

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Regression Topics
Outliers
Outliers are extreme values or values that do not fit the trend shown by the remaining data.
Outliers can be detected by the standardized residuals.
Residual = Y
A standardized residual is normed so that the mean is equal to

Multiple Regression Interaction
Interaction when the effect of one independent variable on the dependent variable is
determined by the level or value of a second independent variable. The interaction term is
obtained by multiplying the values of the two i

1
Multiple Regression - Variable Selection Procedures
Stepwise Regression Procedures
Forward Selection - Starts with the best predictors and adds the next predictor at each step. Once
a variable is entered it always remains in the model in each succeeding

1
Forecasting
Time Series Data A quantitative variable measured at regular intervals of time. Y
Examples:
Italys Annual GDP
Quarterly revenue for Hallmark company
Monthly rainfall is Springfield
Weekly demand for the Sunday Newsleader
Daily requirement fo

1
Linear Programming Sensitivity Analysis Minimization problems
A recent retiree wants to invest her savings in Stocks and Money market funds. The objective is
to determine how many units of stocks to purchase and how many units of Money market fund to
pu

Solve graphically. Identify the feasible solution area, the extreme points (under the label
extreme points on this page) and the optimal solution. cfw_unless problem is infeasible or
unbounded , in which case simply identify the problem as such)
1. MAX 16