Homework 5 attached
Homework 5 Problem 1: Northcutt manufactures high-end racing bikes and is looking for a source of gear sprocket sets. Northcutt would need 1,550 sets each month. Supplier A is a domestic firm, Suppliers B and C are located overseas. Cost information for each supplier is as follows: Supplier A: Price of $100 per set, plus packing cos of $3.50 per set. Total inland freight costs for all 1,550 units would be $800 per month. Supplier B: Price of $96 per set, plus packing cost of $3.50 per set. International transportation costs would total $3,500 per month, while total inland freight costs would be $800 per month for all 1,550 units. Supplier C: Price of $93 per set, plus packing cost of $3.00 per set. International transportation costs would total $5,000 per month, while total inland freight costs would be $1,000 per month for all 1,550 units. Calculate total landed costs per unit and per month for the three potential suppliers. Who is the cheapest? Who is the most expensive? Problem 2 A local golf ball manufacturer collects the following data relating sales to average temperature. You developed a regression model that expresses monthly sales (Y) as a function of the average temperature (degrees Fahrenheit) during the month (X1) and an average number of alligator sightings on the golf course during the month (X2). Your calculation resulted in the following formula: Monthly Sales = – 767.7 + 98.5*(Avg temp) – 523.2*(Num. Alligator Sightings) Using the given regression forecasting equation, forecast the monthly golf ball sales in June and July 2017 assuming average temperatures in June are expected to be 76 degrees, average temperatures in July are expected to be 82 degrees, the company expects 8 alligator sightings in June, and expects 12 alligator sightings in July. All else being equal, what happens to the forecasted sales every time another alligator sighting is expected? Problem 3 A franchised coffee shop company is deciding where to establish a new location near Empire University’s campus. The major population centers on campus are located in the business, science, liberal arts, and mathematics buildings. Business has 2,300 students and is located at (3,7); science has 1,200 students and is located at (1,1); liberal arts has 3,400 students and is located at (6,2); mathematics has 1,100 students and is located at (7,6). According to the center of gravity method, where should the coffee shop be placed? Graphically display your answer. Problem 4 You start working at a new company as a demand planner and find that someone has already calculated the following forecasting model for your use: Demand = (12,000 + 2.8*period) * seasonal index Seasonal Indices Summer 1.30 Fall 0.80 Winter 0.65 Spring 0.80 Based only on this information, answer the following questions and justify your answers. True or False? The forecast model is a qualitative model. True or False? The forecast model suggests that the variable being forecasted is experiencing an upwards trend in demand. Describe the pattern of demand over the course of the year. Problem 5 Flynn’s Boot Company from Example 8.7 from your book has experienced tremendous growth due to their boots being prominently exposed to a large audience during an awards ceremony. As such, they have opened two new retail outlets and one new warehouse. With the new data given below, determine the most cost effective means for delivering their boots to market using Excel’s Solver function. Weekly Weekly Capacity Demand Warehouse (Ci) Customer (Dj) Atlanta 20,000 BillyBob 27,800 Fort Worth 40,000 DudeWear 8,000 Tucson 30,000 Slickers 13,500 Nashville 35,000 CJ’s 33,000 Total 125,000 BigD 15,000 MusicCity 20,000 Total 117,300 Cost to ship one pair of boots from Warehouse i to Customer j (Tij) BillyBob DudeWear Slickers CJ’s BigD MusicCity Atlanta $2.00 $3.00 $3.50 $1.50 $1.90 $2.00 Fort Worth $5.00 $1.75 $2.25 $4.00 $0.50 $4.00 Tucson $1.00 $2.50 $1.00 $3.00 $1.25 $6.00 Nashville $6.00 $4.50 $2.35 $2.00 $5.00 $0.25 Objective Function: Minimize Total Shipping Costs: Problem 6 Fill out the course evaluations at https://uhd.campuslabs.com/courseeval/  (Note: this is not a graded portion of the homework, merely a reminder to please fill them out! They are invaluable sources of feedback about both the course and my teaching skills. Thank you!)