Solution 3:
D = 5000
C0 = $32
Ch = $2
The economic order quantity Q* that minimize the total yearly cost is:
Q =
2 DC 0
2500032
=
=400
Ch
2
Working days per year; W = 250
Demand per day; d = D / W = 5000 / 250 = 20
The equation for the reorder point is:
R
Solution 7:
Let C = total Gasoline cost in dollar
d = distance of city
p = price of gasoline per gallon
m = mileage per gallon
The model that determines the round trip gasoline cost; C = (2 * d * p) / m
A deterministic model is a mathematical model which
Solution 9:
Total number of patients = 250
Number of patients who experienced eye relief = 90
Probability that a patient who takes the drug will experience eye relief = 90/250 = 0.36
Number of patients who experienced their skin rash clear up = 135
Probab
Problem Solving Steps
My Example
Define the problem
Select a new supplier
One of the suppliers has to be selected among three suppliers available in
the nearby area.
The supplier with the best quality product and with a history of timely
deliveries.
The s
Problem 11:
120
100
80
B
60
Optimal Solution
40
20
0
0
20
40
60
80
100
120
A
Problem 15:
a.
b. Similar to part (a), the same feasible region with a different objective function.
The optimal solution occurs at (708, 0) with a profit of z = 20*(708) + 9*(0)
Solution 7:
Unit Demand;
x
300
400
500
600
Total
Probability;
P(x)
0.20
0.30
0.35
0.15
1.00
x * P(x)
60.00
120.00
175.00
90.00
445.00
a. Expected value of the monthly demand = 445
Carolinas monthly order quantity for this quantity should be 445 units.
b.
1. Constraints:
Constraints are a set of restrictions or limitations, which effect the inputs, decisions or
outputs. For example, a constraint of limited production capacity in a factory can affect the
optimal production, or planned production, which ulti
Problem 7:
a. The four-week and five-week moving average for the time series is mentioned below.
Week
1
2
3
4
5
6
7
8
9
10
11
12
Sales (1000s of
gallons)
17
21
19
23
18
16
20
18
22
20
15
22
4-week MA
5-week MA
20.00
20.25
19.00
19.25
18.00
19.00
20.00
18.
Solution 3:
a. Estimate of the probability of winning = 1 / 250,000 = 0.000004
Estimate of the probability of loosing =1- 0.000004 = 0.999996
Thus, the expected values for the two decision alternatives are:
EV (d1) = 0.000004 * (300,000) + 0.999996 * (2)
The decision to be made by Jan is to choose the kind of bakery she should start for her own
pastry business. The chance event is the level of demand, and the consequence is the payoff
which is to be maximized. There are three decision alternatives, which
Solution 7:
a.
Start
A
3
F
3
B
1
D
4
G
6
Finish
E
5
C
2
H
4
b. Critical Activities: Start A D E H Finish
Time required to complete the project using Critical Activities = 3 + 4 + 5 + 4 = 16
c. Activity F has the most slack time of 4 weeks.
Slack time = la
Solution 5:
a. Decision tree for the decision of whether Temples coach should go for a 1-point conversion
or a 2-point conversion after each touchdown:
1.00
1.00
1-Point (After 2nd touchdown) DRAW
1-Point
2-Point (After 2nd touchdown) WIN
p
After 1st touc
Solution 1:
a. The expected number of customers that will arrive in a five-minute period is:
Mean; = 0.4 * 5 = 2
b. Probability that exactly 0 customer will arrive during a five-minute period is:
x
e
(
)
P x ; =
x!
2
0
e 2
(
)
P x=0 =
=0.1353
0!
Probabil