Spreadsheet Modeling & Decision Analysis: A Practical Introduction to Business Analytics (MindTap Course List)
8th Edition
ISBN: 9781305947412
Author: Cliff Ragsdale
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
error_outline
This textbook solution is under construction.
Students have asked these similar questions
snip
Sarah has a startup business that makes two distinct bird feeders that she has designed. Sarah is planning on operating a small factory to build the bird feeders. She is looking at two possible locations, A and B. If she chooses location A, the lease on the building will be higher than location B, thus leading to higher fixed costs than what she would have with location B. However, if she makes more than 20,000 units, both locations will likely have to be expanded, both the physical buildings and the manufacturing equipment. Variable costs to produce each unit will vary by location as well as by product. For example, the first design will have variable costs of $10 and $15 in locations A and B respectively, while the second bird feeder design will have variable costs of $20 and $25 respectively depending on location. However, she thinks that variable costs will decrease if she sells more than 5,000 units, as she will receive discounts from her suppliers at that point. She is unsure of…
Daniel Tracy, owner of Martin Manufacturing, must expand by building a new factory. The search for a location
for this factory has been narrowed to four sites: A, B, C, or D. The following table shows the results thus far
obtained by Tracy by using the factor-rating method to analyze the problem. The scale used for each factor
scoring is 1 through 5.
Factor Factor Description
Quality of labor
1
2356
2 Construction cost
3 Transportation costs
Proximity to Markets
4
5
6
7
Taxes
Weather
Energy costs
Weight
10
A
5
3
2777656
353
6
3
5
1
3
a) Based on the given information, the best site for Daniel Tracy is
(Enter your response as an integer.)
B
15037
3
4
3
3
Site Scores
с
5
3
4
5
2
4
2
with a total weighted score of
4
D
523
4
4
4
b) If site D's score for Energy costs increases from a 2 to a 5, D's weighted score will be (Enter your response as a whole number)
Then the best site for Daniel Tracy will be with a weighted score of
c) If site B's Weather score is adiusted to a 5. B's weighted…
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, management and related others by exploring similar questions and additional content below.Similar questions
- Daniel Tracy, owner of Martin Manufacturing, must expand by building a new factory. The search for a location for this factory has been narrowed to four sites: A, B, C, or D. The following table shows the results thus far obtained by Tracy by using the factor-rating method to analyze the problem. The scale used for each factor scoring is 1 through 5. Factor 1 2 3 4 5 6 Factor Description Quality of labor Construction cost Transportation costs Proximity to Markets Taxes 7 Weight 10 7 78565 A 5 3 4 5 2 2 4 B 3 2 5 3 2 5 4 (Enter your response as an integer.) Site Scores Weather Energy costs a) Based on the given information, the best site for Daniel Tracy is C with a total weighted score of 197. (Enter your response as an integer.) b) If site D's score for Energy costs increases from a 3 to a 5, its a total weighted score will be 144. (Enter your response as an integer.) Then, the best site for Daniel Tracy will be C with a total weighted score of 197. (Enter your response as an…arrow_forwardAPC industries has been experiencing significant growth and has been having difficulty meeting customer demands recently. They are considering three options to address this issue. They can move to a larger facility, add a second shift or use a subcontractor to assist in production. The annual payoff of each option depends on if the current market continues to expand hold s steady or declines. The expected payoff for each combination is shown in the table below Option Expand Steady Decline Move to larger facility 250,000 125,000 -90,000 Add a second shift 175,000 80,000 -45,000 Subcontract 90,000 15,000 -10,000 Which option should APC choose with the Hurwicz criterion with α = 0.5? Using a minimax regret approach, what alternative should she choose? After reading about economic predictions, APC has assigned the probability that the market will be expanded, or be steady or be weak at 20%, 50%, and 30 %. Using expected monetary values, what option should be chosen, and what…arrow_forwardDaniel Tracy, owner of Martin Manufacturing, must expand by building a new factory. The search for a location for this factory has been narrowed to four sites: A, B, C, or D. The following table shows the results thus far obtained by Tracy by using the factor-rating method to analyze the problem. The scale used for each factor scoring is 1 through 5. Factor Factor Description Quality of labor 2 3 4 5 6 Construction cost Transportation costs Proximity to Markets Taxes 7 Weight 10 7 7 8 5 6 5 Weather Energy costs a) Based on the given information, the best site for Daniel Tracy is C b) If site D's score for Energy costs increases from a 3 to a 5, its a total weighted score will be A 5 3 4 5 2 2 4 B 3 2 5 3 2 5 4 Site Scores C 5 4 3 4 with a total weighted score of 197 (Enter your response as an integer.) (Enter your response as an integer.) D 3 1 2 3 4 3arrow_forward
- Two vaccination schemes are recently adopted in Lebanon, Pfizer and Astrazenica. The profit for each one of these is dependent on the site (clinic or hospital) performing the vaccination process. This is shown in the following payoff table. Ministry of health considering the maximum profit to be able to cover the cost of staff where vaccination process can either be in a small clinics, or medium size hospitals or in main hospitals Assume the payoffs represent profits. Determine the alternative that would be chosen under each of these decision criteria: Maximin, Maximax, Laplace. In your own opinion, which alternative likely to be excluded and why? The ministry of health would like to check the possible loss. Find out the minimax regret table and identify the recommended alternative. Assuming the probability of getting Pfizer is 0.6 and getting Astrazenica is 40%, determine the expected value of perfect information using the regret table. Compute the EVPI again…arrow_forwardMicrocomp is a U.S.-based manufacturer of personal computers. It is planning to build a new manufacturing and distribution facility in either South Korea, China, Taiwan, the Philippines, or Mexico. It will take approximately 5 years to build the necessary infrastructure (roads, etc.), construct the new facility, and put it into operation. The eventual cost of the facility will differ between countries and will even vary within countries depending on the financial, labor, and political climate, including monetary exchange rates. The company has estimated the facility cost (in $1,000,000s) in each country under three different future economic and political climates, as follows: Determine the best decision, using the following decision criteria. a. Minimin b. Minimaxarrow_forwardQuantum Ltd. (QL) was created by a group of university students who completed film school and wanted to create feature films using Canadian locations and Canadian film crews. QL’s management team knows that there may be difficulties working in some locations due to terrain, weather, and availability of personnel trained to work in the film industry. As a result, QL is going to set up training programs to allow interested Canadians to take unpaid internships to shadow QL’s film crews and learn the trade so on a future film individuals can obtain paid positions. QL believes this will also give it an advantage in the film industry, as it will be creating an effective and efficient film-making team. QL’s office staff is working to prepare a film schedule including film topics, locations, and available film workers. QL feels it can pay competitive salaries to qualified personnel working on its films. The average feature film takes 90 days to complete, from storyboard creation to the final…arrow_forward
- Adelie Enterprises is exploring a new service to provide weekly delivery of grocery items to homes in the greater Greenwood area. The company’s customers place Web-based orders and Adelie’s team assembles and delivers the orders in specially designed cardboard boxes. Management, interested in locating a supplier that can provide boxes cheaply and efficiently, has discovered that each potential supplier’s ability to satisfy the company’s requirements is influenced by the level of demand. The following table provides Adelie’s vendor selection criteria, criterion weights, and rankings (1–10 with 10 being the highest) under the assumption that low, moderate,or high demand is generated for their service.a. Which supplier should be selected if there is low demand for Adelie’s new service? Which supplier should be selected under moderate demand assumptions? Under high demand assumptions?b. Which supplier is selected if Adelie evaluates each alternative using a Maximin decision criterion (see…arrow_forwardSanta Cruz Bottling is a manufacturer of organic soft drinks on the coast of central California. Its products are enjoying a growing reputation and increased demand throughout the American Southwest. Because of the high cost of transporting soft drinks, they are considering a new plant to serve the states of New Mexico and Arizona. A key concern in their search for a new location is the resultant transportation costs to serve their key markets. Following is a list of cities where their main wholesale customers are located, along with estimated annual demand in cases of product for each. CITY Phoenix X-COORDINATES y-COORDINATES 260 260 Tucson 360 135 Albuquerque 810 Santa Fe 860 460 530 NUMBER OF CASES 26,000 22,000 30,000 18,000 a. Use the centroid method to recommend a location for the new bottling plant. (Round your answers to 1 decimal place.) Cx Cyarrow_forwardPlease explain proper steps by Step and Do Not Give Solution In Image Format ? And Fast Answering Please ?arrow_forward
- Joburg Logistics (JL), a distributor of various products in Polokwane receives their products from suppliers in Durban, Cape Town, and Johannesburg. The company's management is concerned with the supply cost of a certain product that is supplied by a manufacturer in Durban. Currently JL has a contract with Transnet Freight Rail (TFR) for the transport of the orders from Durban. The following are the rail rate and transit time: Transit time (rail) Rail rate 5 days R2.75/unit The impact on the transport and inventory carrying cost because of this arrangement is a concern of the logistics director, Mrs Micky. As a result, Mrs Micky has requested the logistics manager to evaluate the option to use a 3PL service provider for the shipment from Durban to Johannesburg. The logistics manager has identified a certain 3PL company that has the capacity to perform this contract. However, in order to provide a transport rate, the 3PL company required the size and frequency of orders. JL currently…arrow_forwardUse the table below to answer the following question(s). The Riviera Transport Company (RTC) produces car accessories at two plants: Dallas and Atlanta. They ship them to major distribution centers in Houston, San Jose, Jacksonville, and Memphis. The accounting, production, and marketing departments have provided the information in the table below, which shows the unit cost of shipping between any plant and distribution center, plant capacities over the next planning period, and distribution center demands. RTC's supply chain manager faces the problem of determining how much to ship between each plant and distribution center to minimize the total transportation cost, not exceed available capacity, and meet customer demand. Assume Xij = amount shipped from plant i to distribution center j, where i = 1 represents Dallas, i = 2 represents Atlanta, j = 1 represents Houston, and so on. Transportatio In Model Data Distribution Center Plant Houston Memphis 18.48 Dallas 13.00 Atlanta 10.75…arrow_forwardOne of Avondale Industries’ global locations (located just outside of London, England) is part of the aircraft wheel and brake production and repair division and focuses on brake repair for aircraft at the nearby Heathrow Airport. The site competes with three other companies in the area to provide brake repair service. Improvements in brake design on several aircraft that the site has service contracts with has necessitated the installation of new equipment to aid the company in responding more quickly and efficiently to service demands. Avondale’s training and development office has been asked to arrange for employee training on the new equipment within one week. What is the most important reason for the employees to be trained quickly to operate the new equipment? Employees’ skills need to be constantly upgraded for the company to maintain its ability to respond quickly to customer demand. Employees need to be aware that their jobs could be in jeopardy if they don’t…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,