Microsoft Word - QMB 3820 Spring 2020 Asignment 2 .docx QMB 3820 – Introduction to Quantitative Modeling for Business Decisions Assignment 2 – Spring 2018 MEMO TO: Management Scientist Analysist FROM:...

please refer to pdf, this assignment has two parts to it.


Microsoft Word - QMB 3820 Spring 2020 Asignment 2 .docx QMB 3820 – Introduction to Quantitative Modeling for Business Decisions Assignment 2 – Spring 2018 MEMO TO: Management Scientist Analysist FROM: Production Manager, BLSR Mfg. Re: Production schedule for next week BLSR Manufacturing produces several products of which only one is scheduled for next week. The product are identified by their size, Small, Medium, Large, and XLarge. The following departments have provided the following helpful information. Production: Each size goes through 3 manufacturing phases, casting, milling and polishing. There are 60 hours available in casting and polishing and 40 hours in milling for next week. The processing time for each product in each phase in minutes is listed in the table below: Small Medium Large XLarge Casting 19 14 13 9 Milling 5 8 6 7 Polishing 12 13 14 8 Accounting: Accounting has identified that the profit per unit for each product is in the table below: Small Medium Large XLarge Profit per Unit $7.00 $6.00 $9.00 $6.00 Marketing: Marketing has developed a contract for 100 of product Medium for next week. Management: Management would like you to formulate the product and solve it using Excel Solver then forward your recommendations to them. Additionally, management would like your input on the following questions: 1) How many of each product should be produced and what is the expected profit? 2) If you could obtain an additional 10 hours in any department which one would you choose and what would be the impact on profit? 3) What would be the impact of increasing the contract for product Medium from 100 units to 110 units? 4) Competitive pressures may require the reduction in selling price of the Large so that the profit is reduced to $7.00. What if any impact would this change have on the product mix and total profit? Please post your response in a single file for both problems in eLearning no later than 11:30 pm on 11 February 2018. The answer to each question is worth 2 points and the Excel solution is worth 2 points. Hint: The value of the objective function is $2,113.64. You should have a correct formulation before answering the questions. Use the sensitivity analysis to answer the questions, do not resolve the problem for each question. QMB 3820 – Introduction to Quantitative Modeling for Business Decisions Assignment 2 – Spring 2018 MEMO TO: Management Scientist Analysist FROM: Production Manager, DJSR Mfg. Re: Production schedule for next week DJSR Manufacturing produces several products four of which are scheduled for next week. The products are identified as Part 1, Part 2, Part 3 and Part 4. The following departments have provided the following helpful information. Production: Each product goes through 3 manufacturing phases, lathe, milling and fitting. The processing time for each product in each phase in minutes is listed in the table below: Part 1 (min) Part 2 (min) Part 3 (min) Part 4 (min) Lathe 12 5 19 14 Milling 10 15 19 14 Fitting 10 14 8 12 There are 40 hours available in each phase for next week. Management has indicated that they would like to produce at least 200 of the four different parts. Accounting: Accounting has identified that the cost per unit for each product is in the table below: Part 1 Part 2 Part 3 Part 4 Cost per Unit $6.00 $8.00 $6.00 $5.00 Marketing: Marketing has a contract for 50 units of Part 2 for next week. Management: Management would like you to formulate the product and solve it using Excel Solver then forward your recommendations to them. Additionally, management would like your input on the following questions: 1) If management would like to produce Part 3 and keep an optimal solution what do they have to do? 2) If the contract for Part 2 could be reduced to 40 from the current 50 what would be the impact on total costs? 3) If management could obtain 4 more hours in milling do they want it and if accepted what would be the impact on costs? 4) Due to an error the cost of Part 4 should have been $5.50 not $5.00. What are the impacts of this error? Please post your response in a single file for both problems in eLearning no later than 11:30 pm on 9 February 2020. The answer to each question is worth 2 points and the Excel solution is worth 2 points. Hint: The value of the objective function is $1,262.50. You should have a correct formulation before answering the questions. Use the sensitivity analysis to answer the questions, do not resolve the problem for each question.