Book:
Quantitative Analysis for management 11th edition
Render, Stair, Hanna
Electronic Book
http://www.docstoc.com/docs/110777903/QUANTITATIVE-ANALYSIS-FOR-MANAGEMENT
Part 1 of 5 - Part 1
The Electrocomp Corporation manufactures two electrical products: air conditioners and large fans. The assembly process for each is similar in that both require a certain amount of wiring and drilling. Each air conditioner takes 3 hours of wiring and 2 hours of drilling. Each fan must go through 2 hours of wiring and 1 hour of drilling. During the next production period, 240 hours of wiring time are available and up to 140 hours of drilling time may be used. Each air conditioner sold yields a profit of $25. Each fan assembled may be sold for a $15 profit.
Now, Electrocomp’s management also realizes that there should be a minimum number of air conditioners produced in order to fulfill a contract. Also, due to an oversupply of fans in the preceding period, a limit should be placed on the total number of fans produced.
Question 1 of 11
10.0 Points
If Electrocomp decides that at least 20 air conditioners should be produced but no more than 80 fans should be produced, the optimal production mix of air conditioners and fans is __________. (The first number is for air conditioners and the second for fans.)
A.(50,30)
B.(20,80)
C.(40,60)
D.(26.67,80)
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Question 2 of 11
10.0 Points
In the optimal solution for the above question (Question 1), the slack for the four constrains — Total hours of wiring, Total hours of drilling, Number of air conditioners, Number of fans are __________, respectively. (Hint: A negative number shows that the constraint is binding downward, i.e. it sets a lower rather than an upper limit. You may take the negative sign out when interpreting the results.)
A.0, 0, 20, 20
B.0, 0, 10, 20
C.0, 0, 20, 10
D.10, 10, 10, 10
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Question 3 of 11
5.0 Points
If Electrocomp decides that at least 30 air conditioners should be produced but no more than 50 fans should be produced, the optimal production of air conditioners is and the optimal production of fans is . (Please only enter an integer and include no units.)
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Question 4 of 11
5.0 Points
In the optimal solution for the above question (Question 3), the slack for the four constrains — Total hours of wiring, Total hours of drilling, Number of air conditioners, Number of fans are __________, respectively. (Hint: A negative number shows that the constraint is binding downward, i.e. it sets a lower rather than an upper limit. You may take the negative sign out when interpreting the results.)
A.0, 0, 15, 10
B.5, 0, 15, 0
C.0, 5, 15, 0
D.0, 0, 10, 15
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Part 2 of 5 - Part 2
The Outdoor Furniture Corporation manufactures two products, benches and picnic tables, for use in yards and parks. The firm has two main resources: its ...
“Oh GOSH! Reflecting on Hackteria's Collaborative Practices in a Global Do-It...
BookQuantitative Analysis for management 11th editionRender.docx
1. Book:
Quantitative Analysis for management 11th edition
Render, Stair, Hanna
Electronic Book
http://www.docstoc.com/docs/110777903/QUANTITATIVE-
ANALYSIS-FOR-MANAGEMENT
Part 1 of 5 - Part 1
The Electrocomp Corporation manufactures two electrical
products: air conditioners and large fans. The assembly process
for each is similar in that both require a certain amount of
wiring and drilling. Each air conditioner takes 3 hours of wiring
and 2 hours of drilling. Each fan must go through 2 hours of
wiring and 1 hour of drilling. During the next production
period, 240 hours of wiring time are available and up to 140
hours of drilling time may be used. Each air conditioner sold
yields a profit of $25. Each fan assembled may be sold for a $15
profit.
Now, Electrocomp’s management also realizes that there should
be a minimum number of air conditioners produced in order to
fulfill a contract. Also, due to an oversupply of fans in the
preceding period, a limit should be placed on the total number
of fans produced.
Question 1 of 11
10.0 Points
If Electrocomp decides that at least 20 air conditioners should
be produced but no more than 80 fans should be produced, the
optimal production mix of air conditioners and fans is
__________. (The first number is for air conditioners and the
second for fans.)
2. A.(50,30)
B.(20,80)
C.(40,60)
D.(26.67,80)
Reset Selection
Mark for Review What's This?
Question 2 of 11
10.0 Points
In the optimal solution for the above question (Question 1), the
slack for the four constrains — Total hours of wiring, Total
hours of drilling, Number of air conditioners, Number of fans
are __________, respectively. (Hint: A negative number shows
that the constraint is binding downward, i.e. it sets a lower
rather than an upper limit. You may take the negative sign out
when interpreting the results.)
A.0, 0, 20, 20
B.0, 0, 10, 20
C.0, 0, 20, 10
D.10, 10, 10, 10
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Question 3 of 11
3. 5.0 Points
If Electrocomp decides that at least 30 air conditioners should
be produced but no more than 50 fans should be produced, the
optimal production of air conditioners is and the optimal
production of fans is . (Please only enter an integer and include
no units.)
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Question 4 of 11
5.0 Points
In the optimal solution for the above question (Question 3), the
slack for the four constrains — Total hours of wiring, Total
hours of drilling, Number of air conditioners, Number of fans
are __________, respectively. (Hint: A negative number shows
that the constraint is binding downward, i.e. it sets a lower
rather than an upper limit. You may take the negative sign out
when interpreting the results.)
A.0, 0, 15, 10
B.5, 0, 15, 0
C.0, 5, 15, 0
D.0, 0, 10, 15
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Part 2 of 5 - Part 2
The Outdoor Furniture Corporation manufactures two products,
benches and picnic tables, for use in yards and parks. The firm
has two main resources: its carpenters (labor force) and a
4. supply of redwood for use in the furniture. During the next
production cycle, 1,200 hours of labor are available under a
union agreement. The firm also has a stock of 3,500 feet of
good-quality redwood. Each bench that Outdoor Furniture
produces requires 4 labor hours and 10 feet of redwood; each
picnic table takes 6 labor hours and 35 feet of redwood.
Completed benches will yield a profit of $9 each, and tables
will result in a profit of $20 each.
Question 5 of 11
10.0 Points
The optimal production of benches is and the optimal
production of tables is . (Please only enter an integer and
include no units. Hint: Because of the resource constraints, you
may not be able to produce 4 tables even if the solution is 3.8;
you may have to just produce 3 tables.)
Part 3 of 5 - Part 3
A winner of the Texas Lotto has decided to invest $50,000 per
year in the stock market. Under consideration are stocks for a
petrochemical firm and a public utility. Although a long-range
goal is to get the highest possible return, some consideration is
given to the risk involved with the stocks. A risk index on a
scale of 1–10 (with 10 being the most risky) is assigned to each
of the two stocks. The total risk of the portfolio is found by
multiplying the risk of each stock by the dollars invested in that
stock. The attached table provides a summary of the return and
risk. The investor would like to maximize the return on the
investment, but the average risk index of the investment should
not be higher than 6.
Attachments
Question 6 of 11
5. 10.0 Points
The optimal dollar amount invested in Petrochemical stock is
_________ dollars, and the optimal dollar amount invested in
Utility stock is ___________ dollars. (Please only enter an
integer and include no units. Hint: The total risk on each stock
is the risk index times the investment in dollars. When you use
Excel QM, you need to end the total risk in the right hand side
of the constraint not simply the risk index.)
A.20,000, 30,000
B.30,000, 20,000
C.10,000, 15,000
D.15,000, 10,000
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Question 7 of 11
10.0 Points
The average risk index (not in dollar amount) for the optimal
investment is , and the estimated best/maximum return for this
investment is . (Please only enter an integer and include no
units.)
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This part of the question is based on the following information.
The Heinlein and Krampf Brokerage firm has just been
instructed by one of its clients to invest $250,000 of her money
obtained recently through the sale of land holdings in Ohio. The
client has a good deal of trust in the investment house, but she
6. also has her own ideas about the distribution of the funds being
invested. In particular, she requests that the firm select
whatever stocks and bonds they believe are well rated, but
within the following guidelines:
(a) Municipal bonds should constitute at least 20% of the
investment.
(b) At least 40% of the funds should be placed in a combination
of electronic firms, aerospace firms, and drug manufacturers.
(c) No more than 50% of the amount invested in municipal
bonds should be placed in a high-risk, high-yield nursing home
stock.
Subject to these restraints, the client’s goal is to maximize
projected return on investments. The analysts at Heinlein and
Krampf, aware of these guidelines, prepare the attached list of
high-quality stocks and bonds and their corresponding rates of
return.
Hint: You will need to rearrange one of the constraints in this
problem so that all variables will be at the left hand side of the
constraint and the right hand side of the constraint will be zero.
You may adjust he sign of the constraint accordingly. For
example, rearranging x < y + 2 to x - y < 2.
Attachments
Question 8 of 11
10.0 Points
The optimal money invested in the five stocks and bonds —
Municipal bonds, Electronics, Aerospace, Drugs, and Nursing
homes are __________ dollars, respectively.
A.50,000, 50,000, 50,000, 50,000, 50,000
B.50,000, 0, 0, 175,000, 25,000
7. C.25,000, 0, 0, 175,000, 50,000
D.50,000, 25,000, 25,000, 125,000, 25,000
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Part 5 of 5 - Part 5
Mt. Sinai Hospital in New Orleans is a large, private, 600-bed
facility, complete with laboratories, operating rooms, and x-ray
equipment. In seeking to increase revenues, Mt. Sinai’s
administration has decided to make a 90-bed addition on a
portion of adjacent land currently used for staff parking. The
administrators feel that the labs, operating rooms, and x-ray
department are not being fully utilized at present and do not
need to be expanded to handle additional patients. The addition
of 90 beds, however, involves deciding how many beds should
be allocated to the medical staff for medical patients and how
many to the surgical staff for surgical patients.
The hospital’s accounting and medical records departments have
provided the following pertinent information. The average
hospital stay for a medical patient is 8 days, and the average
medical patient generates $2,280 in revenues. The average
surgical patient is in the hospital 5 days and receives a $1,515
bill. The laboratory is capable of handling 15,000 tests per year
more than it was handling. The average medical patient requires
3.1 lab tests and the average surgical patient takes 2.6 lab tests.
Furthermore, the average medical patient uses one x-ray,
whereas the average surgical patient requires two x-rays. If the
hospital was expanded by 90 beds, the x-ray department could
handle up to 7,000 x-rays without significant additional cost.
Finally, the administration estimates that up to 2,800 additional
operations could be performed in existing operating room
facilities. Medical patients, of course, do not require surgery,
whereas each surgical patient generally has one surgery
performed.
8. Assume that the hospital is open 365 days a year. Round off
your answers to the nearest integer.
Part 5 of 5 - Part 5
Mt. Sinai Hospital in New Orleans is a large, private, 600-bed
facility, complete with laboratories, operating rooms, and x-ray
equipment. In seeking to increase revenues, Mt. Sinai’s
administration has decided to make a 90-bed addition on a
portion of adjacent land currently used for staff parking. The
administrators feel that the labs, operating rooms, and x-ray
department are not being fully utilized at present and do not
need to be expanded to handle additional patients. The addition
of 90 beds, however, involves deciding how many beds should
be allocated to the medical staff for medical patients and how
many to the surgical staff for surgical patients.
The hospital’s accounting and medical records departments have
provided the following pertinent information. The average
hospital stay for a medical patient is 8 days, and the average
medical patient generates $2,280 in revenues. The average
surgical patient is in the hospital 5 days and receives a $1,515
bill. The laboratory is capable of handling 15,000 tests per year
more than it was handling. The average medical patient requires
3.1 lab tests and the average surgical patient takes 2.6 lab tests.
Furthermore, the average medical patient uses one x-ray,
whereas the average surgical patient requires two x-rays. If the
hospital was expanded by 90 beds, the x-ray department could
handle up to 7,000 x-rays without significant additional cost.
Finally, the administration estimates that up to 2,800 additional
operations could be performed in existing operating room
facilities. Medical patients, of course, do not require surgery,
whereas each surgical patient generally has one surgery
performed.
Assume that the hospital is open 365 days a year. Round off
your answers to the nearest integer.
9. Question 9 of 11
10.0 Points
The optimal number of medical patients per year is , and
optimal number of surgical patients per year is . The maximum
annual profit is dollars. (Please round to the closest integer and
include no units.)
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Question 10 of 11
10.0 Points
Among the 90 additional beds, _______ beds should be used for
medical patients and _______ beds used for surgical patients.
A.45, 45
B.60, 30
C.61, 29
D.29, 61
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Question 11 of 11
10.0 Points
At the optimal, there are empty beds, lab tests of unused
capacity, x-rays of unused capacity, and unused operation rooms
available. (Please round to the closest integer and include no
units.)
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