Breakeven Analysis at Great Threads
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Great Threads direct mail model
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This spreadsheet illustrates the use of th
Integer Programming:
Applications
73-220
Lecture 16
1
Agenda
Review of last class.
Applications of using binary decision
variables.
More IP applications
Capital budgeting
Fixed cost
Distribution design
Next Class
2
Capital Budgeting: I
Julie Schwasher
Project Scheduling:
PERT/CPM
73-220
Lecture 18
1
Agenda
Review of last class.
PERT/CPM with known activity times
Project scheduling PERT/CPM
Project scheduling with uncertain
activity times
Next Class
2
Uncertain Activity Times:
Mean
In the three-time e
Midterm Review
73-220
Lecture 12
1
Agenda
Review Last Class
Network models.
Midterm review
Next Class
2
Date, Time, and Place.
Friday, Mar 03, 17:30-20:30
TC200, TC202 and TC204.
Please find your seat number on the
course website and be seated
accordi
Integer Programming: Binary
Decision Variables
73-220
Lecture 15
1
Agenda
Review of last class.
Sufficient and necessary conditions by
binary decision variables.
Solutions to the four homework
problems.
Binary decision variables.
Next Class
2
Set Cover
RMC Inc. LP Problem
Material
Material 1
Material 2
Material 3
Profit per ton
Material Requirements
Fuel Additive
Solvent Base
0.4
0.5
0
0.2
0.6
0.3
40
30
Amount Available
20
5
21
Model
Fuel Additive
Tons Produced
25
Max Total Profit
1600
Constraints
Mater
Portfolio Planning
Return per dollar invested
Investment Portfolio (in $M)
Upper Limit
Expected total return
Amount invested in TB & CS
Amount invested in MM & MB
Total investment
Treasury bonds Common stock Money markets Municipal bonds
0.08
0.06
0.12
0.
CHAPTER 1: Introduction
Body of Knowledge
Problem Solving and Decision Making
Quantitative Analysis and Decision Making
Models of Cost, Revenue, Profit and Break-Even
Analysis
Management Science Techniques
Introduction
Management science is a body o
THE GRAPHICAL METHOD IN LINEAR
PROGRAMMING
EXAMPLE: RMCS PRODUCT MIX PROBLEM
RMC, Inc. is a firm that produces a variety of chemical products. In a particular
process, three raw materials are blended (mixed together) to produce two products: a
fuel additi
QUANTITATIVE DECISION MODELS I
73-220
USING EXCEL FOR BREAKEVEN ANALYSIS (For a similar example, see Section
1.4 pp. 14-16 and Appendix 1.1 on pages 26-29, Textbook 14e).
The Great Threads Company sells hand-knit sweaters. Great Threads is planning to pri
QUANTITATIVE DECISION MODELS I
73-220
LINEAR PROGRAMMING (LP) is one of the most successful quantitative approaches to decision
making. The following examples, which will be discussed in class, show how LP can be used to model
and solve problems from the
Intro to Linear Programming and
Model Formulation
(Chapters 2, 3, and 4)
Linear Programming
Linear programming (LP) is concerned with the
allocation of limited resources (such as
money, labour, material, machine capacity, time,
space, technology, etc.) a
Great Threads direct mail model
This spreadsheet illustrates the use of two useful Excel functions: (one-way) Data Table function and the Goal Seek func
Mailing inputs
Fixed cost of printing
Variable costs
Printing
Mailing, buying names
Number mailed
Orde