1. (Factor Rating)The Low-Credit Card Interest Bank
Score
Score
According
to
Site A
Site B
those factors,
1,200 and
1,500
weights
ratings
450 find200
the
best 2,250
2,000
alternative
250
175
with factor
1,275
1,200
rating system.
Weight
Rating
Site A
Rating
Site B
Size and education of workforce within 15 miles
20
60
75
Availability of part-time workers (students)
10
45
20
Distance to telecommunication infrastructure
25
80
90
5
50
35
Cost of living index
15
85
80
Cultural amenities
10
65
40
650
400
Crime statistics
15
95
90
1,425
1,350
7,250
7,075
Factor
Distance to higher education facilities
Totals
100
2. (Factor Rating)A dry-cleaning firm has decided to operate stores in five neighborhoods
in which a market analysis has determined the demand level. Its strategy is to
investigate the best site to expand into a centralized plant to process the cleaning and
pressing. It has completed a qualitative assessment and wants to supplement its
analysis by rating a series of conditions for each site. Given the following preference
matrix, identify the preferred site for the plant.
Cleaner's Site
FACTOR
NAME
SCORES
WGT
LOC A
LOC B LOC C
LOC D
LOC E
1
Proximity to complementary
businesses
25
10
8
8
9
7
2
Power availability & cost
25
8
7
8
8
8
3
Public transportation
15
3
6
7
8
9
4
Mixed-use zoning
15
1
8
6
5
7
5
Road quality
10
9
6
8
9
8
6
Demand level
10
5
8
7
7
8
3. (BreakEvenAnalysis)Potential locations X, Y and Z have the cost structures shown
below. The ABC company has a demand of 130,000 units of a new product. Three
potential locations X, Y and Z having following cost structures shown are available.
Select which location is to be selected and also identify the volume ranges where each
location is suited with break-even method?
Fixed Costs
Location X
Location Y
Location Z
150,000
350,000
950,000
8
6
Variable Costs 10
4. (North-West&VAM)A manufacturer with four production locations wishes to minimize
the shipping cost to their four warehouses. The supply from each factory and the
demand of each warehouse are shown in the table along with the cost to ship one unit
from each factory to each warehouse.
Factory
A
B
C
D
Total
Demand
Warehouse Warehouse Warehouse Warehouse Total
1
2
3
4
Supply
$5
$6
$4
$7
250
$8
$3
$7
$4
150
$6
$4
$5
$6
300
$7
$3
$4
$2
250
300
200
150
300
What is the lowest total cost for the factories to supply the warehouses with Northwest model and VAM ?
5. (Line Balancing)Karlstad kakes is a manufacturer of a speciality cakes, which has
recently obtained a contract to supply a major supermarket chain with a speciality cake
in the shape of space rocket. It has been decided that the volume required by the
supermarket warrant special production line to perform the finishing, decorating and
packing of the cake. This line would hace to carry out elements shown in table 1, which
also shows precedence diagram for the toal job. The initial order from the supermarket
is for 5000 cakes a week and number of hours worked by the factory is 40 per week.
a. Find the cycle time, required number of stages and match elements and stages.
b. Calculate the balance efficiency.
A
De-tin and trim
0,12min
B
Reshape with off-cuts
0,30min
C
Clad in almond fondant 0,36min
D
Clad in white fondant
0,25min
E
Decorate, red icing
0,17min
F
Decorate, green icing
0,05min
G
Decorate, blue icing
0,10min
H
Affix transfers
0,08min
I
Transfer to base and
0,25min
pack
6. (Line Balancing)The Jacobs Ladder Company produces a ladder in an assembly line
process that is represented by the given precedence chart. The daily available
production time is 7 hours (eight-hour workday less 1 hour of setup and break time).
The average daily demand is seventy (70) units. What is the cycle time for this assembly
line in minutes per unit?
TASK
A
B
PREDECESSOR
TASK TIME (min)
2
5
C
D
E
B
A, C
D
4
4
3
SUM
18
7. (Decision Tree)The owner of the Snow Fun Ski Resort wants to decide how the resort
should be run in the coming winter season. The resort’s profits for this year’s skiing
season will depend
on the amount of snowfall during the winter. On the basis of prior experience, the
probability distribution of snowfall and the resulting profit is summarized below.
Amount of snow
More than 40inches
20-40 inches
Less than 20 inches
Probability
0,4
0,2
0,4
Profit
$120000
$40000
-$40000
The owner has recently received an offer from a larger hotel chain to operate the
resort for the winter, guaranteeing a $45,000 profit for the season.
The owner is also considering leasing snowmaking equipment for the season. If the
equipment is leased, the resort will be able to operate full time, regardless of the
amount of natural snowfall. If the owner decides to use snowmakers to supplement the
natural snowfall, the profit for the season will be $120,000 minus the cost of leasing
and operating the snowmaking equipment. The leasing cost will be about $12,000 per
season, regardless of how much it is used. The operating cost will be $10,000 if the
natural snowfall is more than 40 inches, $50,000 if it is between 20 and 40 inches, and
$90,000 if it is less than 20 inches.