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MGT 420 ASSIGNMENT 1 1. Logan, Ltd. makes two products, tables and chairs, which must be processed through assembly and finishing departments. Each...

Logan, Ltd. makes two products, tables and chairs, which must be processed through assembly and finishing departments. Each table requires 4 hours to assemble and 3 hours to finish, but each chair requires 3 hours to assemble and 5 hours to finish. Assembly department has up to 60 hours available, and finishing department can handle up to 80 hours of work. The company wants to see at least 5 tables produced during the production. Due to the current on-hand inventory of chairs, the production of chairs must be less than the production of table. Each table yields a profit of $6, and each chair can be sold for a profit of $4. If you have your solutions in decimal, keep them as they are and do not round them to the nearest integer.

a. Show the feasible region graphically ((Draw a graph by using MS WORD’s ‘Shapes’ under the ‘Insert’
tab).
b. What are the extreme points of the feasible region?
c. Find the optimal solution using the graphical method.
d. Are there any slack values? Are there any surplus values? (Hint: You can measure slack and surplus
values at the optimal solution.)
e. Compute the shadow price of the assembly constraint.

MGT 420 ASSIGNMENT 1 1. Logan, Ltd. makes two products, tables and chairs, which must be processed through assembly and finishing departments. Each table requires 4 hours to assemble and 3 hours to finish, but each chair requires 3 hours to assemble and 5 hours to finish. Assembly department has up to 60 hours available, and finishing department can handle up to 80 hours of work. The company wants to see at least 5 tables produced during the production. Due to the current on-hand inventory of chairs, the production of chairs must be less than the production of table. Each table yields a profit of $6, and each chair can be sold for a profit of $4. If you have your solutions in decimal, keep them as they are and do not round them to the nearest integer. a. Show the feasible region graphically ((Draw a graph by using MS WORD’s ‘Shapes’ under the ‘Insert’ tab). b. What are the extreme points of the feasible region? c. Find the optimal solution using the graphical method. d. Are there any slack values? Are there any surplus values? (Hint: You can measure slack and surplus values at the optimal solution.) e. Compute the shadow price of the assembly constraint. 2. Scott Armstrong, the managing editor of Your Horoscope magazine, needs to develop a forecasting system for monthly newsstand sales in order to schedule press runs. Sales in thousands of copies for the first 7 months of publication were: Year Month Sales 2013 August 50 September 55 October 65 November 74 December 80 2014 January 76 February 86 Scott does not believe there is a seasonal pattern. He is considering three different forecasting models: three-period moving average, simple exponential smoothing with , and time series regression (i.e., trend projection). Determine the best forecasting model among the above three methods, and develop a forecast for March 2014. Use the first four months as the warm-up sample period and the remaining months as the forecasting sample period. The criteria of measuring forecast accuracy to be used are Bias, MAD, MSE, and MAPE.
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Logan, Ltd. makes two products, tables and chairs, which must be processed through assembly and finishing
departments. Each table requires 4 hours to assemble and 3 hours to finish, but each chair...

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