Kazakhstan Institute of Management, Economics and Strategic Research
desicion techniques and tools
OPERATIONS 3011

Fall 2013
Excel
Given ordering data for computer hardware, write an =IF() function to find total cost with shipping based on
the following conditions: If total cost of ordered products (range D2:D4) exceeds 75,000 tenge then total cost
(which will be computed in ce
Kazakhstan Institute of Management, Economics and Strategic Research
desicion techniques and tools
OPERATIONS 3011

Fall 2013
Student_
ID_
DT & T
SET OF PROBLEMS
MaxGrade = (30% +3%) of Total Grade
Problem 1.
(max 6 pts)
Consider the following payoff table of
S1 (0.3)
Profits(prior probabilities are in parentheses)
S2 (0.45)
S3 (0.25)
d1
d2
d3
d4
a.
b.
c.
d.
0.49
0.2
0.41
0.4

Kazakhstan Institute of Management, Economics and Strategic Research
desicion techniques and tools
OPERATIONS 3011

Fall 2013
Lecture 4
Game Theory
Source:
/1 / D.R.Anderson, D.J.Sweeney, T.A.Williams. Quantitative Methods for Business, SouthWestern College Publishing, 11th edition. Chapter 5.
Contents:
4.1 Introduction to Game Theory
4.2 Mixed Strategy games
4.1 Introduction t
Kazakhstan Institute of Management, Economics and Strategic Research
desicion techniques and tools
OPERATIONS 3011

Fall 2013
a) Given ordering data for computer hardware, write an =IF() function to find total cost with shipping based on
the following conditions: If total cost of ordered products (range D2:D4) exceeds 75,000 tenge then total cost
(which will be computed in cell
Kazakhstan Institute of Management, Economics and Strategic Research
desicion techniques and tools
OPERATIONS 3011

Fall 2013
If customer opens deposit for amount.
<$10,000  Ordinary
<$100,000  Premium
>=$100,000  VIP
=IF(A5<10000,"Ordinary",IF(A5<100000,"Premium","VIP")
_
If customer either opens deposit for amount that is more than $100,000 or customer keeps his/her depo
Kazakhstan Institute of Management, Economics and Strategic Research
desicion techniques and tools
OPERATIONS 3011

Fall 2013
Set 2
DECISION ANALYSIS
1. An entrepreneur is committed to producing a concert of rock star during the June next year. He is
unable to finalize plans due to indecision over whether to take a chance on rain and hold the concert
in Stadium or play it safe i
Kazakhstan Institute of Management, Economics and Strategic Research
desicion techniques and tools
OPERATIONS 3011

Fall 2013
Case Set 3 Solutions
Problem 1. Alexander Industries is considering purchasing an insurance policy for its new
office building in St. Louis, Missouri. The policy has an annual cost of $10,000. If
Alexander Industries doesn't purchase the insurance and min
Kazakhstan Institute of Management, Economics and Strategic Research
desicion techniques and tools
OPERATIONS 3011

Fall 2013
Case Set 2 WITH SOLUTIONS
1. An entrepreneur is committed to producing a concert of rock star during the June next year. He is
unable to finalize plans due to indecision over whether to take a chance on rain and hold the concert
in Stadium or play it safe
Kazakhstan Institute of Management, Economics and Strategic Research
desicion techniques and tools
OPERATIONS 3011

Fall 2013
Problemset8
1.
2.
3.
1 2
5 4
, B
.ShowthatAB=BA
A
3 4
6 11
6 3
.Showthat AAT AT A
A
3 6
sin x
cos x
.Showthat A 2 I , A A 1 , A 1 AT
A
sin x cos x
4.
ex
A
0
5.
2
E 1
1
e x
1
,
B
0
e x
2
3
2
1
2
x Find AB
e
4
4 showthat E 2
Kazakhstan Institute of Management, Economics and Strategic Research
desicion techniques and tools
OPERATIONS 3011

Fall 2013
Solution:
1. Decision variables:
T table (# of tables produced)
C  chair (# of chairs produced)
Companys objective is to maximize profits.
Company has two constraints:
# hours assemble
4h
3h
305h
Table
Chair
Total # assemble
# hours finishing
2h
1,5h
355
Kazakhstan Institute of Management, Economics and Strategic Research
desicion techniques and tools
OPERATIONS 3011

Fall 2013
L ecture8
INTRODUCTION TO MATRICES
8.1 Matrix Operations
8.2 Determinants
8.3 Systems of linear equations
Cramers Rule
A rectangular table of numbers is called a matrix. If a matrix A
has m rows and n columns, we say that A has size m n , or A
is an m n m
Kazakhstan Institute of Management, Economics and Strategic Research
desicion techniques and tools
OPERATIONS 3011

Fall 2013
Set 6
1. A furniture company constructs and finishes tables and chairs. Each table nets a profit of $100 &
each chair a profit of $60. During 1 week the company has 305 workhours for assembly operations
and 355 workhours for finishing. Each chair requir
Kazakhstan Institute of Management, Economics and Strategic Research
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OPERATIONS 3011

Fall 2013
Set 5
1. For the Hawkins Company, the monthly percentages of all shipments that were received on
time over the past 12 months are 80, 82, 84, 83, 83, 84, 85, 84, 82, 83, 84, and 83.
a. Graph this time series. Does a linear trend appear?
b. Compare a three
Kazakhstan Institute of Management, Economics and Strategic Research
desicion techniques and tools
OPERATIONS 3011

Fall 2013
Student_
ID_
1
DT & T
SET OF PROBLEMS
MaxGrade = (30% +3%) of Total Grade
Problem 1.
(max 6 pts)
Consider the following payoff table of
S1 (0.25)
costs (prior probabilities are in parentheses)
S2 (0.35)
S3 (0.45)
d1
d2
d3
d4
a.
b.
c.
d.
0.51
0.2
0.41
0.4
Kazakhstan Institute of Management, Economics and Strategic Research
desicion techniques and tools
OPERATIONS 3011

Fall 2013
Student_
ID_
DT & T
SET OF PROBLEMS
MaxGrade = (30% +3%) of Total Grade
Problem 1.
(max 5.5pts)
A firm has three investment alternatives. Payoffs are in thousands of dollars.
Decision Alternative
Investment A, d 1
Investment B, d 2
Investment C, d 3
Proba