Operations Research : Applications and Algorithms
Operations Research : Applications and Algorithms
4th Edition
ISBN: 9780534380588
Author: Wayne L. Winston
Publisher: Brooks Cole
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In the model in Example 15.5, suppose bonuses and penalties are incurred for earliness or lateness. Specifically, suppose a bonus of $2000 is received if the project is completed within 60 days, an extra bonus of $1000 is received if the project is completed within 58 days, and a penalty of $1000 is incurred for every full day past a project completion of 64 days. (For example, if the project is completed in 66.7 days, the penalty is $2000—two full days late.) Modify the model appropriately, and then run the simulation to find the distribution of the net monetary outcome (negative if a penalty, positive if a bonus). What is the expected value of this net amount? What is the probability of a $3000 total bonus? What is the probability of a penalty of at least $4000? Example 15.5 LAN PROJECT WITH UNCERTAIN ACTIVITY TIMES We again analyze the LAN project from Example 15.1, but we now assume that the activity durations are uncertain, with given probability distributions. The…
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Operations Research : Applications and Algorithms

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Operations Research : Applications and Algorithms
Computer Science
ISBN:9780534380588
Author:Wayne L. Winston
Publisher:Brooks Cole