BB207

 Assignment  
 
  UCSI  UNIVERSITY  
 
Faculty  of  Business  and  Information  Science  
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
An  assignment  completed  as  part  of  the  requirement  for  
COURSE  NAME:  Management  Science  
COURSE  CODE  :  BB207  
LECTURER       :  Asst.  Prof.  Noraimah  Farah  
 
 BB207  ASSIGNMENT    
 
Submitted  on  
Due  date:  3/7/2019  after  lecture  
 
Produced  by  
STUDENT  NAME   STUDENT  ID   SIGNATURE  
     
     
     
     
     
 
 
 
 
 
 
 
 

UCSI  University  
Problems
8-1 (Production
BB207  problem)
Assignment   Winkler Furniture manufac- one of its clients to invest $250,000 of her money
tures two different types of china cabinets: a French obtained recently through the sale of land holdings
BB207  
Provincial Management  
model and a Danish Science   Assignment  
Modern model.(30%)     in Ohio. The client has a good deal of trust in the in-
Each cabinet
  produced must go through three de- vestment house, but she also has her own ideas about
partments: carpentry,
Instruction:     painting, and finishing. The the distribution of the funds being invested. In par-
table below contains all relevant information con- ticular, she requests that the firm select whatever
Every  group  needs  to  submit  the  assignment  in  hard  copy  and  soft  copy  (Excel).  The  cover  
cerning production times per cabinet produced and stocks and bonds they believe are well rated, but
page  should  be  attached  as  the  front  page  of  your  assignment.  
production capacities for each operation per day,
Please  label  your  excel  file  as  
within the following guidelines:
Assig   B B207   –   f irst   student  
along with net revenue per unit produced. The firm ID   –   s econd   s tudent   I D   –   third  
(a) Municipal Ibonds
student   D   –   fourth  
shouldstudent  
constitute ID  at
–   least 20%
fifth  student  
has a contract with anID   and  send/email  
Indiana distributor toit  produce
to  me  thru  CN   of the investment.
 
a minimum of 300 of each cabinet per week (or 60 (b) At least 40% of the funds should be placed in a
  per day). Owner Bob Winkler would like
cabinets combination of electronic firms, aerospace firms,
to determine a product mix to maximize his daily
1.   (Production   problem)   Winkler   Furniture   manufactures   and two  
drug manufacturers.
different   types   of   china  
revenue.
cabinets:   a   French   Provincial   model   and   a   Danish   Modern   model.  than (c) No more Each   50% of theproduced  
cabinet   amount invested in
(a) Formulate as an LP problem. municipal bonds
must   go   through   three   departments:   carpentry,   painting,   and   finishing.   The   table   below   should be placed in a high-risk,
(b) Solve using an LP software program or spread- high-yield nursing home stock.
contains   all   relevant   information   concerning   production   times   per   cabinet   produced   and  
sheet. Subject to these restraints, the client’s goal is to max-
production  capacities  for  each  operation  per  day,  along  with  net  revenue  per  unit  produced.  
8-2 (Investment decision problem) The Heinlein and imize projected return on investments. The analysts
The   firm   has   a   contract  
Krampf Brokerage firm has just been instructed by with   an   Indiana   distributor   to   atproduce  
Heinleina  and
minimum  
Krampf,of   aware300  of
of  these
each  guidelines,
cabinet   per   week   (or   60   cabinets   per   day).   Owner   Bob   Winkler   would   like   to   determine   a  
product  mix  to  maximize  his  daily  revenue.  
  
  Data for Problem 8-1
CARPENTRY PAINTING FINISHING
(HOURS/ (HOURS/ (HOURS/ NET REVENUE/
CABINET STYLE CABINET) CABINET) CABINET) CABINET ($)
French Provincial 3 1.5 0.75 28
Danish Modern 2 1 0.75 25
Department capacity (hours) 360 200 125
 
 
(a)  Formulate  as  an  LP  problem. 

 
Note: means the (b)  
problem maythis  
Solve   be solved with QM
problem   for Windows;
using   means
Excel  solver.   Wthe problem
hat   may
would   be suggest  to  Bob  Winkler  to  solve  
you  
solved with Excel; and means the problem may be solved with QM for Windows and/or Excel.
his   problem?  
 
(c)  If  the  available  painting  hours  are  increased  to  400  hours,  will  your  answers  in  (b)  
change?  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

UCSI  University  
 BB207  Assignment  
2.   (Investment   decision   problem)   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   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:    

 (i)      Municipal  bonds  should  constitute  at  least  20%  of  the  investment.  
  

(ii)      At  least  40%  of  the  funds  should  be  placed  in  a  combination  of  electronic  firms,  
aerospace  firms,  and  drug  manufacturers.  
  

(iii)  No  more  than  50%  of  the  amount  invested  in  municipal  bonds  should  be  placed  in  high-­‐
risk,  high-­‐yield  nursing  home  stock.  
  
332
Subject  CHAPTER
to  these  8restraints,  
• LINEAR PROGRAMMING APPLICATIONS
the  client’s  goal  is  to  maximize  projected  return  on  investments.  
The  analysts  
prepare at  Haeinlein  
list of ahigh-quality
nd  Krampf,  stocksaware  and
of  these  
bonds guidelines,  
and prepare   a  list  of  hfeed
8-4 (Animal igh-­‐quality  
mix problem) The Batte
stocks  and   b onds   a nd   their  
their corresponding rates of return: corresponding   rates   o f   return:     feeds and houses the horses used to pu
carriages through the streets of Charle
waterfront area. The stable owner, a
PROJECTED RATE
trainer, recognizes the need to set a nut
INVESTMENT OF RETURN (%)
the horses in his care. At the same time
Los Angeles municipal bonds 5.3 to keep the overall daily cost of feed to
Thompson Electronics, Inc. 6.8 The feed mixes available for the h
United Aerospace Corp. 4.9 an oat product, a highly enriched grain
product. Each of these mixes cont
Palmer Drugs 8.4
amount of five ingredients needed da
Happy Days Nursing Homes 11.8 average horse healthy. The table on th
  these minimum requirements, units of
per pound of feed mix, and costs for th
(a)  Formulate  
(a) Formulatethis  portfolio   selection  
this portfolio problem  
selection using  Lusing
problem P.    
LP. In addition, the stable owner is
(b)  Solve  (b) this  
Solveproblem   using  Excel  solver.  What  would  you  suggest  to  the  overfed
this problem. client?  horse is a sluggish worker. Co
determines that 6 pounds of feed p
8-3 (Restaurant work scheduling problem). The fa-
(c)  If  the  mous
projected   rate  of  Restaurant
return  of  “isHappy   Days   Nursing   most that any horse needs to function
Y. S. Chang open 24 hours a day.Homes”  drops  to  6.0%  next  year,  
mulate this problem and solve for the
would   you  suggest  
Waiters and busboys the  client  
report to  for
invest  
dutyit?  
at P3lease  
A.M., e 7xplain  
A.M., based  on  your  new  findings  using  
mix of the three feeds.
Excel  11solver.  
A.M., 3 P.M., 7 P.M., or 11 P.M., and each works an
8-hour shift. The following table shows the mini- 8-5 The Kleenglass Corporation makes
  mum number of workers needed during the six peri- that has excellent cleaning power. Th
ods into which the day is divided. Chang’s uses less water than most competitor
  scheduling problem is to determine how many wait- tremely quiet. Orders have been rece
ers and busboys should report for work at the start of eral retails stores for delivery at the
  each time period to minimize the total staff required the next 3 months, as shown below:
for one day’s operation. (Hint: Let Xi equal the
  number of waiters and busboys beginning work in NUMBER OF
time period i, where i = 1, 2, 3, 4, 5, 6.) MONTH UNITS
  June 195

  July 215
NUMBER OF WAITERS August 205
PERIOD TIME AND BUSBOYS REQUIRED
 
1 3 A.M.–7 A.M. 3
Due to limited capacity, only 20
2 7 A.M.–11 A.M. 12
be made each month on regular time,
3 11 A.M.–3 P.M. 16 $300 UCSI  
each.UHowever,
niversity   an extra 15 un
4 3 P.M.–7 P.M. 9 can be produced if overtime is used
5 7 P.M.–11 P.M. 11 goes up to $325 each. Also, if there
BB207  Assignment  
3.  (Media  selection  problem)  The  advertising  director  for  Diversey  Paint  and  Supply,  a  chain  
of  four  retail  stores  on  Chicago’s  North  Side,  is  considering  two  media  possibilities.  One  plan  
is  for  a  series  of  half-­‐page  ads  in  the  Sunday  Chicago  Tribune  newspaper,  and  the  other  is  
for   advertising   time   on   Chicago   TV.   The   stores   are   expanding   their   lines   of   do-­‐it-­‐yourself  
tools,  and  the  advertising  director  is  interested  in  an  exposure  level  of  at  least  40%  within  
the  city’s  neighbourhoods  and  60%  in  northwest  suburban  areas.  

The   TV   viewing   time   under   consideration   has   an   exposure   rating   per   spot   of   5%   in   city  
homes   and   3%   in   the   northwest   suburbs.   The   Sunday   newspaper   has   corresponding  
exposure  rates  of  4%  and  3%  per  ad.  The  cost  of  a  half-­‐page  Tribune  advertisement  is  $925;  
a  television  spot  costs  $2,000.  

Diversey   Paint   would   like   to   select   the   least   costly   advertising   strategy   that   would   meet  
desired  exposure  levels.  

(a)  Formulate  using  LP.  

(b)  Solve  this  problem  using  Excel  solver.  What  would  you  suggest  to  the  Diversey  Paint?  

(c)  Comparing  the  advertising  strategies  between  newspaper  and  TV,  which  one  would  you  
think  is  more  effective?  Please  explain  your  choice.  

UCSI  University