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Management Science 407 – Quiz 2
13 August 2011
B. ( 4 Points total )
Breezeless Company produces doors and window frames. It generates profit at $2.00 per door and $1.00 per window frame. Manufacture of these products requires two work centers. Work center 1 has 120 labor hours available while work center 2 has 80 hours available. Production of one hundred doors requires 3 hours in work center 1 and 5 hours in work center 2. To produce one hundred window frames, it takes 5 hours in work center 1 and 2 hours in work center 2.
1. Formulate the preceding problem into linear programming format.
Use the seven question and table approach. Work center 2’s constraint is:
( 1 point )
a. .05D + .02W = 80
b. .05D + .02W = 120
c. 5D + 2W = 80
d. 5D + 2W = 120
e. .05D + .02W = 2
2. Solve the problem using EXCEL or the graphical method. ( 3 points: 1 point each )
How many doors are to be produced?
a. 8.4
b. 842
c. 900
d. 1684
e. 84.2
How many windows are to be produced?
a. 16.3
b. 163
c. 1625
d. 1895
e. 2000
What is the optimal profit?
a. 3501
b. 3579
c. 3595
d. 3623
e. 3701
Management Science 407 – Quiz 2
13 August 2011
C. ( 3 Points total )
D.O. Better, operations manager for Luxury Products, Inc., is forecasting the coming month’s (October’s) demand for his best-selling product based on the following data:
Month: Jan Feb Mar Apr May Jun Jul Aug Sep
Price: 19 17 21 20 23 24 31 28 29
1. Develop the October forecast using exponential smoothing with a smoothing parameter of .7 and the value 20 as the initial forecast for January. ( 1 point )
The forecast for October is:
a. 27
b. 28
c. 29
d. 30
e. 12
2. Develop the October forecast using linear regression for trend determination.
( 2 points )
The slope (rate of change per month) of the trend is:
a. 1.5037
b. 1.6167
c. 1.6666
d. 1.75
e. 2.0
What is the forecast for October (month 10)?
a. 29.7
b. 31.1
c. 31.6
d….