Chapter 1: The Study of Choice
START UP: ECONOMICS IN THE NEWS
o 2008
Worst financial crisis since Great
Depression; possibility of a global recession;
gyrating gasoline/food prices; plunging
housing prices were primary factors of 2008
presidential camp
The expansion path shows
how input prices change as the firm's output level changes.
A)
how the marginal products change as the firm's output level changes.
B)
C)
D)
E)
2
how the profit-maximizing input choices change as the firm's output level
changes.
h
1.
The price of capital is $100 per unit.
What is the marginal rate of technical substitution at point C?
0.14
0.4
1.4
4
none of the above
2.
In the long run
all inputs are fixed.
a firm is making the optimal input choice when the marginal rate of technic
CHAPTER 8: Example 3
Center of gravity
Enter the weights and coordinates in the data area.
Enter the weights and coordinates in the data area.
Locat ion
Data
Chicago
New York
Pittsburgh
Atlanta
Results
Sum
Average
Weighted Average
Weight
X coord
Y coord
2
CHAPTER 8: Example 2
Enter the fixed and variable costs for the options in
Cost-volume analysis costs for the options in
Enter the fixed and variable
the data area. You may enter a volume at which to
the data area. You may enter a volume at which to
perfo
CHAPTER 8: Example 1
Factor rating
Enter the weights for the factors and the scores of each site on each factor.
Enter the weights for the factors and the scores of each site on each factor.
Data
Weight
Labor availability and attitude
People-to-car Ratio
Trans_min
MODULE C: Example C6 (DEGENERACY)
Transportation
Enter the transportation data in the shaded area. Then go to the DATA Tab on the ribbon, click on Solver in the Data
Enter the transportation data in the shaded area. Then go to the DATA Tab on th
Trans_min
MODULE C: Example C5 (UNBALANCED)
Transportation
Enter the transportation data in the shaded area. Then go to the DATA Tab on the ribbon, click on Solver in the Data
Enter the transportation data in the shaded area. Then go to the DATA Tab on th
Trans_min
MODULE C: Example C3
Transportation
Enter the transportation data in the shaded area. Then go to the DATA Tab on the ribbon, click on Solver in the Data
Enter the transportation data in the shaded area. Then go to the DATA Tab on the ribbon, cli
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30
Data row
MODULE A: Example 6
Large Plant
0
40000
1
3
Small Plant
0
Do Nothing
0
Problem Data
Use the Decision Tree Creation Window to create the tree. Click on a node to edit the tree. Values
Use the Decision Tree Creation Window
MODULE A: Example 4 and 5
Decision Tables
Enter the profits in the main body of the data table. Enter probabilities in the first row if you want to compute the expected value.
Enter the profits in the main body of the data table. Enter probabilities in th
ProjCrashing
A
B
C
D
E
F
G
H
I
J
K
L
M
N
3 Project Management
Crashing
4
Enter the data in the shaded area. Then go to the DATA Tab on the ribbon, click on Solver in the Data Analysis Group and then click SOLVE.
Enter the data in the shaded area. Then go
CHAPTER 3: Example 8 and 9
Project Management
Precedences; 3 time estimates
Gant t Chart
Enter the times in the appropriate column(s). Enter the precedences, one per column. (Do not try to use
Enter the times in the appropriate column(s). Enter the preced
CHAPTER 3: Example 4, 5 and 6
Project Management
Precedences; 1 time estimate
Gant t Chart
Enter the times in the appropriate column(s). Enter the precedences, one per column. (Do not try to use
Enter the times in the appropriate column(s). Enter the prec
Quality Control
Number of samples
Sample size
x bar chart
Enter the mean and range from each sample.
Enter the mean and range from each sample.
1
5
Data
Results
Mean
Sample 1
Average
Range
12
12
Xbar
0.25
0.25
x-bar value
R bar
Graph
Sample 1
Average
Mean
CHAPTER S6: Example S6
Quality Control
Process Capability
Enter the data in the shaded area
Enter the data in the shaded area
Data
Upper tolerance limit
Lower tolerance limit
Mean (optional)
Standard deviation
213
207
0.516
Results
Mean
Upper one-sided in
CHAPTER S6: Example S1
Quality Control
x bar chart
Number of samples
Sample size
Population standard
deviation
Data
Enter the population standard deviation then enter the
Enter the population standard deviation then enter the
data from each sample. Finall
CHAPTER S6: Example S5
Quality Control
c chart
Number of samples
5
Enter the number of defects for each of the
Enter the number of defects for each of the
samples/items.
samples/items.
Results
Total units sampled
Total Defects
Defect rate, l
Standard devi
CHAPTER S6: Example S7
Quality Control
Process Capability
Enter the data in the shaded area
Enter the data in the shaded area
Data
Upper tolerance limit
Lower tolerance limit
Mean (optional)
Standard deviation
0.251
0.249
0.0005
Results
Mean
Upper one-sid
CHAPTER S6: Example S4
Number of samples
Sample size
p chart
Enter the sample size then enter the number of
Enter the sample size then enter the number of
defects in each sample.
defects in each sample.
20
100
Data
# Defects
Sample 1
Sample 2
Sample 3
Sam
CHAPTER S11: Example S2
Factor rating
Enter the weights for the factors and the scores of each site on each factor.
Data
Weight
Can reduce operating cost
Can reduce capital investment
Skiiled Personnel
Can Improve Quality
Cain gain access to Tech. not in
CHAPTER S11: Example S1
Factor rating
Enter the weights for the factors and the scores of each site on each factor.
Data
Weight
Economic: Labor Cost
Economic: Capital Available
Economic: Infrastructure
Culture: Language
Culture: Social Norms
Migration: Un
CHAPTER 15: Example 5
Enter the data in the shaded area, select items in columns A through G then sort by whatever criterion you
desire. In Excel 2007 Sort is on the Data tab while in earlier versions Sort is on the Data menu
One machine scheduling
Start
CHAPTER 15: Example 7
Two machine scheduling
Enter the data in the shaded area
Data
A
B
C
D
E
Machine 1 Machine 2
5
2
3
6
8
4
10
7
7
12
Results
Job
B
E
D
C
A
Makespan
Iterations
number of jobs
Step
Step
Step
Step
Step
Machine 1 Machine 1 Machine 2 Machine
Assign_min
A
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
B
C
D
E
F
G
CHAPTER 15: Example 4
Assignment
Enter the assignment costs in the shaded area. Then go to the DATA Tab on the
ribbon, click on Solver in the Data Analysis Group and then cl
Created by Excel MSOM
30
Data row
MODULE A: Example 6
Large Plant
0
40000
1
3
Small Plant
0
Do Nothing
0
Problem Data
Use the Decision Tree Creation Window to create the tree. Click on a node to edit the tree. Value
nodes. For decision nodes, decision is
MODULE A: Example 4 and 5
Decision Tables
Enter the profits in the main body of the data table. Enter probabilities in the first row if you want to compute the expected value.
Data
Profit
Probability
Construct Large Plant
Construct Small Plant
Do Nothing
Chapter 12: Example 3
Inventory
Economic Order Quantity Model
Enter the data in the shaded area
Data
Demand rate, D
Setup cost, S
Holding cost, H
Unit Price, P
Daily demand rate
Lead time in days
1000
10
0.5 (fixed amount)
Inventory: Cost vs Quantity
2 50
Chapter 12: Example 9
Inventory
Quantity Discount Model
Enter the data in the shaded area. The minimum quantity is the minimum amount that needs to be
ordered in order to get the price that is in the same column.
Data
Demand rate, D
Setup cost, S
Holding
CHAPTER 12: Example 8
Inventory
Production Order Quantity Model
Enter the data in the shaded area. You may have to do some work to enter the
daily production rate.
Data
Demand rate, D
Setup cost, S
Holding cost, H
Daily production rate, p
Daily demand rat