Chapter Three 36

Excel Problems

1 An investment company currently has $1 million dollar available for investment in five different stocks The company wants to maximize the interest earned over the next year The five investment possibilities along with the expected interest earned are shown below To manage risk the investment firm wishes to have at least 35 of the investment in stocks A and B Furthermore no more than 15 of the investment may be in stock E Model and solve this problem in Excel

Investment Expected Interest Earned ()Stock A 7Stock B 9Stock C 8Stock D 10Stock E 11

37 Test Item File

2 The following table contains information on the cost to run four jobs (1 2 3 and 4) on four available machines (A B C and D) Use Excel to model and solve this problem to determine the least costly job-machine assignment

MachineA B C D

1 $12 $16 $14 $10Job 2 $9 $8 $13 $7

3 $15 $12 $9 $114 $10 $13 $15 $16

Chapter Three 38

3 Refer to the data provided in question number 2 Assume that job number 4 was canceled and will no longer be processed How will this affect the job-machine assignment Use Excel to model and solve this problem to determine the least costly assignment

39 Test Item File

4 A production manager wants to determine how many units of each product to produce weekly to maximize weekly profits Production requirements for the products are shown in the following table

Product Material 1 (lbs) Material 2 (lbs) Labor (hours)A 3 2 4B 1 4 2C 5 none 35

Material 1 costs $7 a pound material 2 costs $5 a pound and labor costs $15 per hour Product A sells for $101 a unit product B sells for $67 a unit and product C sells for $9750 a unit Each week there are 300 pounds of material 1 400 pounds of material 2 and 200 hours of labor Also there is a weekly demand of 10 units of product C each week Use Excel to formulate and solve this problem

Chapter Three 40

5 A beer distributor wants to prepare an aggregate plan for the next 6 weeks Demand can be met using regular time production overtime production or a combination of both as illustrated below

Week 1 2 3 4 5 6

Demand (cases) 165 155 140 155 130 155Capacity (cases)Regular 150 150 150 150 150 150Overtime 20 10 10 10 10 10

Cost per Unit Regular time $50Overtime $75Inventory per week $5

Assume that beginning inventory is zero Use Excel to formulate and solve this multiperiod production problem to minimize total costs

41 Test Item File

6 Refer to question number 5 Assume that the beer distributor has the option of ldquosubcontracting ldquobeer cases to supplement the existing capacity Subcontracting can handle a maximum of 5 cases per week Subcontracting cost per case is $80 Also due to an upcoming holiday season the beer distributor wants to maintain a safety stock of at least 5 cases per week Use Excel to formulate and solve this multiperiod production scheduling problem

Chapter Three 42

7 A company wants to determine how to allocate its $200000 advertising budget to market a new cereal The company is considering newspaper ads television ads and radio ads The following table illustrates the cost of advertising in these different media and the exposure to new customers reached by increasing the number of ads in each medium

Media and Number of Ads No of New Customers reached Cost per adNewspaper 1-5 700 $500Newspaper 6-10 500 $400Television 1-10 9000 $5000Television 11-20 7500 $4000Radio 110 4000 $2000Radio 11-20 300 $1500

Use Excel to formulate and solve this problem to maximize audience exposure

43 Test Item File

8 An insurance company has three secretaries A B and C that each is capable of processing four different types of insurance claims The amount of time required by each secretary to process a particular type of a claim is summarized in the following table

Processing Time in HoursClaim Type

1 2 3 4A 2 3 2 4

Secretary B 4 5 3 1C 3 2 1 5

On a typical week the insurance firm has 5 type 1 claims 4 type 2 claims 2 type 3 claims and 3 type 4 claims Each secretary works a maximum of 40 hours per week The office manager wants to know how many of each type of an insurance claim should be processed by each secretary to minimize the total processing time Use Excel to formulate and solve this problem

Chapter Three 44

9 Consider the following data that illustrates demand production costs and expected capacity for a given product

Month1 2 3 4

Demand (units) 100 125 200 175Production costUnit $20 $25 $30 $35Production Capacity (units) 150 150 150 150

Inventory carrying costs are estimated at $4 per unit per month The firm wants to produce at least 50 units per month to uniformly utilize its existing resources Assume that beginning inventory is zero Use Excel to formulate and solve this problem to determine how many units of the product should be produced monthly to meet the expected demand at minimal cost

45 Test Item File

10 A company can ship its product from any of its three factories F1 F2 and F3 to any of its retail outlets R1 R2 and R3 The capacity demand and shipping cost information is provided as follows

Demand (units) Capacity (units)R1 300 F1 250R2 500 F2 350R3 200 F3 400

Shipping Costunit ($)R1 R2 R3

F1 1 3 2F2 3 4 2F3 2 2 3

The company wants to come up with an optimal shipping strategy to minimize its total shipping cost Use Excel to formulate and solve this problem

Chapter Three 46

11 Consider the same information provided in question 10 However now assume that demand for retail outlet three (R3) has increased to 300 units How will this affect the prior solution to question 10 Use Excel to formulate and solve this problem

47 Test Item File

12 Consider the same information provided in question 10 However now assume that the road leading from factory F1 to retail outlet R1 is currently closed due to construction How will this affect the prior solution to question 10 Use Excel to formulate and solve this problem

Chapter Three 48

13 A company manufactures two types of lawn mowers riding mowers and push mowers The company has the option of manufacturing the mowers in-house or outsourcing the entire operation In-house manufacturing requires the following four operations production assembly electrical wiring and final inspection The following table summarizes the weekly hours of processing time available and the processing time required by each operation

Hours Required per MowerRiding Mower Push Mower Hours

AvailableProduction 3 15 40Assembly 5 2 30Electrical Wiring 1 05 45Final Inspection 05 025 40

The company has a weekly demand of 5 riding mowers and 3 push mowers The company makes its riding mowers in-house for $500 each and its push mower for $200 each Alternatively it can outsource its riding and push mowers for $550 and $225 each respectively Use Excel to formulate and solve this ldquomakerdquo or ldquobuyrdquo problem

49 Test Item File

14 A factory operates 7 days a week Due to labor union regulations employees are allowed to work a maximum of 5 consecutive days The minimum number of employees that are needed on a given day is provided as follows

Day Number of Employees NeededSunday 20Monday 30Tuesday 35Wednesday 40Thursday 37Friday 30Saturday 25

Use Excel to formulate and solve this labor planning problem to determine the minimum number of employees needed each day

Chapter Three 50

15 In a small suburban town firefighters work 8-hour shifts Assume there are six shifts each day that are divided into six 4-hour periods The minimum number of firefighters needed on each shift is illustrated below

Shift Number of Firefighters NeededMidnight-4 am 54 am-8 am 68 am-Noon 10Noon-4 pm 124 pm-8 pm 88 pm-Midnight 5

Firefighters must report to work at the beginning of the above time periods and must work eight consecutive hours Use Excel to formulate and solve this labor planning problem to determine the minimum number of firefighters needed on each shift

51 Test Item File

16 A furniture manufacturer produces three products desks tables and chairs These products can be produced during either the morning shift or the evening shift The morning shift has a labor cost of $20 per hour with a maximum availability of 20000 hours The evening shift has a labor cost of $25 per hour and is limited to 15000 hours The labor lumber and demand requirements are given as follows

Resource Desk Table ChairLabor (hours) 075 2 05Lumber (pounds) 7 15 4Nails (pounds) 05 2 025

Demand 50 75 100

Assume that there are 20000 pounds of lumber and 20000 pounds of nails available for both shifts

Use Excel to formulate and solve this problem to minimize total labor cost

Chapter Three 52

17 A manufacturer of 19rdquo LCD monitors encounters the following quarterly production cost demand and production capacity for its monitors

Quarter1 2 3 4

Production CostLCD $290 $275 $265 $255Demand 500 550 600 550Maximum Production Capacity 600 700 600 700

To maintain a stable workforce the manufacturer wants to produce at least 500 units each quarter To meet unexpected fluctuation in demand the company wants to hold at least 100 monitors in stock each quarter The cost of carrying a monitor in stock is $5 each quarter Assume that beginning inventory is zero Use Excel to formulate and solve this problem to determine to minimize production and inventory costs

53 Test Item File

18 A real estate developer is planning to build an office complex Currently there are three office sizes under consideration small medium and large Small offices can be rented for $600 per month medium offices can be rented for $750 per month and large offices can be rented for $1000 per month Each small office requires 600 square feet each medium office requires 800 square feet and each large office requires 1000 square feet The current plot of land available to the developer is 100000 square feet The developer wants to ensure that the office complex has at least 3 units of each office size Use Excel to formulate and solve this problem to maximize total revenue

Chapter Three 54

19 Speedy Lube has 4 bays in its shop and 3 cars waiting for an oil change The estimated time (in minutes) to change the oil and filter for each car in each bay is given as follows

CarBay A B C1 10 12 92 15 13 123 14 12 104 13 11 12

Which car should be assigned to which bay if Speedy Lube wants to minimize its total service time Use Excel to formulate and solve this problem

55 Test Item File

20 A company is considering various advertising media to promote its new toy Pertinent information regarding potential customers reached and costs per advertisement isillustrated below

No of Customers Maximum Times Cost perMedia Reached Available per Month AdvertisementDaytime TV 1000 10 $2000Evening TV 3000 8 $3500Daytime Radio 500 15 $1000Evening radio 750 15 $1500Newspaper 900 4 $500

Currently the company has a monthly advertising budget of $150000 The marketing department has imposed the following restrictions

No more than $20000 may be spent on radio advertising each month At least 5 TV ads must be used each month

Use Excel to formulate and solve this problem to maximize monthly audience exposure

37 Test Item File

2 The following table contains information on the cost to run four jobs (1 2 3 and 4) on four available machines (A B C and D) Use Excel to model and solve this problem to determine the least costly job-machine assignment

MachineA B C D

1 $12 $16 $14 $10Job 2 $9 $8 $13 $7

3 $15 $12 $9 $114 $10 $13 $15 $16

Chapter Three 38

3 Refer to the data provided in question number 2 Assume that job number 4 was canceled and will no longer be processed How will this affect the job-machine assignment Use Excel to model and solve this problem to determine the least costly assignment

39 Test Item File

4 A production manager wants to determine how many units of each product to produce weekly to maximize weekly profits Production requirements for the products are shown in the following table

Product Material 1 (lbs) Material 2 (lbs) Labor (hours)A 3 2 4B 1 4 2C 5 none 35

Material 1 costs $7 a pound material 2 costs $5 a pound and labor costs $15 per hour Product A sells for $101 a unit product B sells for $67 a unit and product C sells for $9750 a unit Each week there are 300 pounds of material 1 400 pounds of material 2 and 200 hours of labor Also there is a weekly demand of 10 units of product C each week Use Excel to formulate and solve this problem

Chapter Three 40

5 A beer distributor wants to prepare an aggregate plan for the next 6 weeks Demand can be met using regular time production overtime production or a combination of both as illustrated below

Week 1 2 3 4 5 6

Demand (cases) 165 155 140 155 130 155Capacity (cases)Regular 150 150 150 150 150 150Overtime 20 10 10 10 10 10

Cost per Unit Regular time $50Overtime $75Inventory per week $5

Assume that beginning inventory is zero Use Excel to formulate and solve this multiperiod production problem to minimize total costs

41 Test Item File

6 Refer to question number 5 Assume that the beer distributor has the option of ldquosubcontracting ldquobeer cases to supplement the existing capacity Subcontracting can handle a maximum of 5 cases per week Subcontracting cost per case is $80 Also due to an upcoming holiday season the beer distributor wants to maintain a safety stock of at least 5 cases per week Use Excel to formulate and solve this multiperiod production scheduling problem

Chapter Three 42

7 A company wants to determine how to allocate its $200000 advertising budget to market a new cereal The company is considering newspaper ads television ads and radio ads The following table illustrates the cost of advertising in these different media and the exposure to new customers reached by increasing the number of ads in each medium

Media and Number of Ads No of New Customers reached Cost per adNewspaper 1-5 700 $500Newspaper 6-10 500 $400Television 1-10 9000 $5000Television 11-20 7500 $4000Radio 110 4000 $2000Radio 11-20 300 $1500

Use Excel to formulate and solve this problem to maximize audience exposure

43 Test Item File

8 An insurance company has three secretaries A B and C that each is capable of processing four different types of insurance claims The amount of time required by each secretary to process a particular type of a claim is summarized in the following table

Processing Time in HoursClaim Type

1 2 3 4A 2 3 2 4

Secretary B 4 5 3 1C 3 2 1 5

On a typical week the insurance firm has 5 type 1 claims 4 type 2 claims 2 type 3 claims and 3 type 4 claims Each secretary works a maximum of 40 hours per week The office manager wants to know how many of each type of an insurance claim should be processed by each secretary to minimize the total processing time Use Excel to formulate and solve this problem

Chapter Three 44

9 Consider the following data that illustrates demand production costs and expected capacity for a given product

Month1 2 3 4

Demand (units) 100 125 200 175Production costUnit $20 $25 $30 $35Production Capacity (units) 150 150 150 150

Inventory carrying costs are estimated at $4 per unit per month The firm wants to produce at least 50 units per month to uniformly utilize its existing resources Assume that beginning inventory is zero Use Excel to formulate and solve this problem to determine how many units of the product should be produced monthly to meet the expected demand at minimal cost

45 Test Item File

10 A company can ship its product from any of its three factories F1 F2 and F3 to any of its retail outlets R1 R2 and R3 The capacity demand and shipping cost information is provided as follows

Demand (units) Capacity (units)R1 300 F1 250R2 500 F2 350R3 200 F3 400

Shipping Costunit ($)R1 R2 R3

F1 1 3 2F2 3 4 2F3 2 2 3

The company wants to come up with an optimal shipping strategy to minimize its total shipping cost Use Excel to formulate and solve this problem

Chapter Three 46

11 Consider the same information provided in question 10 However now assume that demand for retail outlet three (R3) has increased to 300 units How will this affect the prior solution to question 10 Use Excel to formulate and solve this problem

47 Test Item File

12 Consider the same information provided in question 10 However now assume that the road leading from factory F1 to retail outlet R1 is currently closed due to construction How will this affect the prior solution to question 10 Use Excel to formulate and solve this problem

Chapter Three 48

13 A company manufactures two types of lawn mowers riding mowers and push mowers The company has the option of manufacturing the mowers in-house or outsourcing the entire operation In-house manufacturing requires the following four operations production assembly electrical wiring and final inspection The following table summarizes the weekly hours of processing time available and the processing time required by each operation

Hours Required per MowerRiding Mower Push Mower Hours

AvailableProduction 3 15 40Assembly 5 2 30Electrical Wiring 1 05 45Final Inspection 05 025 40

The company has a weekly demand of 5 riding mowers and 3 push mowers The company makes its riding mowers in-house for $500 each and its push mower for $200 each Alternatively it can outsource its riding and push mowers for $550 and $225 each respectively Use Excel to formulate and solve this ldquomakerdquo or ldquobuyrdquo problem

49 Test Item File

14 A factory operates 7 days a week Due to labor union regulations employees are allowed to work a maximum of 5 consecutive days The minimum number of employees that are needed on a given day is provided as follows

Day Number of Employees NeededSunday 20Monday 30Tuesday 35Wednesday 40Thursday 37Friday 30Saturday 25

Use Excel to formulate and solve this labor planning problem to determine the minimum number of employees needed each day

Chapter Three 50

15 In a small suburban town firefighters work 8-hour shifts Assume there are six shifts each day that are divided into six 4-hour periods The minimum number of firefighters needed on each shift is illustrated below

Shift Number of Firefighters NeededMidnight-4 am 54 am-8 am 68 am-Noon 10Noon-4 pm 124 pm-8 pm 88 pm-Midnight 5

Firefighters must report to work at the beginning of the above time periods and must work eight consecutive hours Use Excel to formulate and solve this labor planning problem to determine the minimum number of firefighters needed on each shift

51 Test Item File

16 A furniture manufacturer produces three products desks tables and chairs These products can be produced during either the morning shift or the evening shift The morning shift has a labor cost of $20 per hour with a maximum availability of 20000 hours The evening shift has a labor cost of $25 per hour and is limited to 15000 hours The labor lumber and demand requirements are given as follows

Resource Desk Table ChairLabor (hours) 075 2 05Lumber (pounds) 7 15 4Nails (pounds) 05 2 025

Demand 50 75 100

Assume that there are 20000 pounds of lumber and 20000 pounds of nails available for both shifts

Use Excel to formulate and solve this problem to minimize total labor cost

Chapter Three 52

17 A manufacturer of 19rdquo LCD monitors encounters the following quarterly production cost demand and production capacity for its monitors

Quarter1 2 3 4

Production CostLCD $290 $275 $265 $255Demand 500 550 600 550Maximum Production Capacity 600 700 600 700

To maintain a stable workforce the manufacturer wants to produce at least 500 units each quarter To meet unexpected fluctuation in demand the company wants to hold at least 100 monitors in stock each quarter The cost of carrying a monitor in stock is $5 each quarter Assume that beginning inventory is zero Use Excel to formulate and solve this problem to determine to minimize production and inventory costs

53 Test Item File

18 A real estate developer is planning to build an office complex Currently there are three office sizes under consideration small medium and large Small offices can be rented for $600 per month medium offices can be rented for $750 per month and large offices can be rented for $1000 per month Each small office requires 600 square feet each medium office requires 800 square feet and each large office requires 1000 square feet The current plot of land available to the developer is 100000 square feet The developer wants to ensure that the office complex has at least 3 units of each office size Use Excel to formulate and solve this problem to maximize total revenue

Chapter Three 54

19 Speedy Lube has 4 bays in its shop and 3 cars waiting for an oil change The estimated time (in minutes) to change the oil and filter for each car in each bay is given as follows

CarBay A B C1 10 12 92 15 13 123 14 12 104 13 11 12

Which car should be assigned to which bay if Speedy Lube wants to minimize its total service time Use Excel to formulate and solve this problem

55 Test Item File

20 A company is considering various advertising media to promote its new toy Pertinent information regarding potential customers reached and costs per advertisement isillustrated below

No of Customers Maximum Times Cost perMedia Reached Available per Month AdvertisementDaytime TV 1000 10 $2000Evening TV 3000 8 $3500Daytime Radio 500 15 $1000Evening radio 750 15 $1500Newspaper 900 4 $500

Currently the company has a monthly advertising budget of $150000 The marketing department has imposed the following restrictions

No more than $20000 may be spent on radio advertising each month At least 5 TV ads must be used each month

Use Excel to formulate and solve this problem to maximize monthly audience exposure

Chapter Three 38

3 Refer to the data provided in question number 2 Assume that job number 4 was canceled and will no longer be processed How will this affect the job-machine assignment Use Excel to model and solve this problem to determine the least costly assignment

39 Test Item File

4 A production manager wants to determine how many units of each product to produce weekly to maximize weekly profits Production requirements for the products are shown in the following table

Product Material 1 (lbs) Material 2 (lbs) Labor (hours)A 3 2 4B 1 4 2C 5 none 35

Material 1 costs $7 a pound material 2 costs $5 a pound and labor costs $15 per hour Product A sells for $101 a unit product B sells for $67 a unit and product C sells for $9750 a unit Each week there are 300 pounds of material 1 400 pounds of material 2 and 200 hours of labor Also there is a weekly demand of 10 units of product C each week Use Excel to formulate and solve this problem

Chapter Three 40

5 A beer distributor wants to prepare an aggregate plan for the next 6 weeks Demand can be met using regular time production overtime production or a combination of both as illustrated below

Week 1 2 3 4 5 6

Demand (cases) 165 155 140 155 130 155Capacity (cases)Regular 150 150 150 150 150 150Overtime 20 10 10 10 10 10

Cost per Unit Regular time $50Overtime $75Inventory per week $5

Assume that beginning inventory is zero Use Excel to formulate and solve this multiperiod production problem to minimize total costs

41 Test Item File

6 Refer to question number 5 Assume that the beer distributor has the option of ldquosubcontracting ldquobeer cases to supplement the existing capacity Subcontracting can handle a maximum of 5 cases per week Subcontracting cost per case is $80 Also due to an upcoming holiday season the beer distributor wants to maintain a safety stock of at least 5 cases per week Use Excel to formulate and solve this multiperiod production scheduling problem

Chapter Three 42

7 A company wants to determine how to allocate its $200000 advertising budget to market a new cereal The company is considering newspaper ads television ads and radio ads The following table illustrates the cost of advertising in these different media and the exposure to new customers reached by increasing the number of ads in each medium

Media and Number of Ads No of New Customers reached Cost per adNewspaper 1-5 700 $500Newspaper 6-10 500 $400Television 1-10 9000 $5000Television 11-20 7500 $4000Radio 110 4000 $2000Radio 11-20 300 $1500

Use Excel to formulate and solve this problem to maximize audience exposure

43 Test Item File

8 An insurance company has three secretaries A B and C that each is capable of processing four different types of insurance claims The amount of time required by each secretary to process a particular type of a claim is summarized in the following table

Processing Time in HoursClaim Type

1 2 3 4A 2 3 2 4

Secretary B 4 5 3 1C 3 2 1 5

On a typical week the insurance firm has 5 type 1 claims 4 type 2 claims 2 type 3 claims and 3 type 4 claims Each secretary works a maximum of 40 hours per week The office manager wants to know how many of each type of an insurance claim should be processed by each secretary to minimize the total processing time Use Excel to formulate and solve this problem

Chapter Three 44

9 Consider the following data that illustrates demand production costs and expected capacity for a given product

Month1 2 3 4

Demand (units) 100 125 200 175Production costUnit $20 $25 $30 $35Production Capacity (units) 150 150 150 150

Inventory carrying costs are estimated at $4 per unit per month The firm wants to produce at least 50 units per month to uniformly utilize its existing resources Assume that beginning inventory is zero Use Excel to formulate and solve this problem to determine how many units of the product should be produced monthly to meet the expected demand at minimal cost

45 Test Item File

10 A company can ship its product from any of its three factories F1 F2 and F3 to any of its retail outlets R1 R2 and R3 The capacity demand and shipping cost information is provided as follows

Demand (units) Capacity (units)R1 300 F1 250R2 500 F2 350R3 200 F3 400

Shipping Costunit ($)R1 R2 R3

F1 1 3 2F2 3 4 2F3 2 2 3

The company wants to come up with an optimal shipping strategy to minimize its total shipping cost Use Excel to formulate and solve this problem

Chapter Three 46

11 Consider the same information provided in question 10 However now assume that demand for retail outlet three (R3) has increased to 300 units How will this affect the prior solution to question 10 Use Excel to formulate and solve this problem

47 Test Item File

12 Consider the same information provided in question 10 However now assume that the road leading from factory F1 to retail outlet R1 is currently closed due to construction How will this affect the prior solution to question 10 Use Excel to formulate and solve this problem

Chapter Three 48

13 A company manufactures two types of lawn mowers riding mowers and push mowers The company has the option of manufacturing the mowers in-house or outsourcing the entire operation In-house manufacturing requires the following four operations production assembly electrical wiring and final inspection The following table summarizes the weekly hours of processing time available and the processing time required by each operation

Hours Required per MowerRiding Mower Push Mower Hours

AvailableProduction 3 15 40Assembly 5 2 30Electrical Wiring 1 05 45Final Inspection 05 025 40

The company has a weekly demand of 5 riding mowers and 3 push mowers The company makes its riding mowers in-house for $500 each and its push mower for $200 each Alternatively it can outsource its riding and push mowers for $550 and $225 each respectively Use Excel to formulate and solve this ldquomakerdquo or ldquobuyrdquo problem

49 Test Item File

14 A factory operates 7 days a week Due to labor union regulations employees are allowed to work a maximum of 5 consecutive days The minimum number of employees that are needed on a given day is provided as follows

Day Number of Employees NeededSunday 20Monday 30Tuesday 35Wednesday 40Thursday 37Friday 30Saturday 25

Use Excel to formulate and solve this labor planning problem to determine the minimum number of employees needed each day

Chapter Three 50

15 In a small suburban town firefighters work 8-hour shifts Assume there are six shifts each day that are divided into six 4-hour periods The minimum number of firefighters needed on each shift is illustrated below

Shift Number of Firefighters NeededMidnight-4 am 54 am-8 am 68 am-Noon 10Noon-4 pm 124 pm-8 pm 88 pm-Midnight 5

Firefighters must report to work at the beginning of the above time periods and must work eight consecutive hours Use Excel to formulate and solve this labor planning problem to determine the minimum number of firefighters needed on each shift

51 Test Item File

16 A furniture manufacturer produces three products desks tables and chairs These products can be produced during either the morning shift or the evening shift The morning shift has a labor cost of $20 per hour with a maximum availability of 20000 hours The evening shift has a labor cost of $25 per hour and is limited to 15000 hours The labor lumber and demand requirements are given as follows

Resource Desk Table ChairLabor (hours) 075 2 05Lumber (pounds) 7 15 4Nails (pounds) 05 2 025

Demand 50 75 100

Assume that there are 20000 pounds of lumber and 20000 pounds of nails available for both shifts

Use Excel to formulate and solve this problem to minimize total labor cost

Chapter Three 52

17 A manufacturer of 19rdquo LCD monitors encounters the following quarterly production cost demand and production capacity for its monitors

Quarter1 2 3 4

Production CostLCD $290 $275 $265 $255Demand 500 550 600 550Maximum Production Capacity 600 700 600 700

To maintain a stable workforce the manufacturer wants to produce at least 500 units each quarter To meet unexpected fluctuation in demand the company wants to hold at least 100 monitors in stock each quarter The cost of carrying a monitor in stock is $5 each quarter Assume that beginning inventory is zero Use Excel to formulate and solve this problem to determine to minimize production and inventory costs

53 Test Item File

18 A real estate developer is planning to build an office complex Currently there are three office sizes under consideration small medium and large Small offices can be rented for $600 per month medium offices can be rented for $750 per month and large offices can be rented for $1000 per month Each small office requires 600 square feet each medium office requires 800 square feet and each large office requires 1000 square feet The current plot of land available to the developer is 100000 square feet The developer wants to ensure that the office complex has at least 3 units of each office size Use Excel to formulate and solve this problem to maximize total revenue

Chapter Three 54

19 Speedy Lube has 4 bays in its shop and 3 cars waiting for an oil change The estimated time (in minutes) to change the oil and filter for each car in each bay is given as follows

CarBay A B C1 10 12 92 15 13 123 14 12 104 13 11 12

Which car should be assigned to which bay if Speedy Lube wants to minimize its total service time Use Excel to formulate and solve this problem

55 Test Item File

20 A company is considering various advertising media to promote its new toy Pertinent information regarding potential customers reached and costs per advertisement isillustrated below

No of Customers Maximum Times Cost perMedia Reached Available per Month AdvertisementDaytime TV 1000 10 $2000Evening TV 3000 8 $3500Daytime Radio 500 15 $1000Evening radio 750 15 $1500Newspaper 900 4 $500

Currently the company has a monthly advertising budget of $150000 The marketing department has imposed the following restrictions

No more than $20000 may be spent on radio advertising each month At least 5 TV ads must be used each month

Use Excel to formulate and solve this problem to maximize monthly audience exposure

39 Test Item File

4 A production manager wants to determine how many units of each product to produce weekly to maximize weekly profits Production requirements for the products are shown in the following table

Product Material 1 (lbs) Material 2 (lbs) Labor (hours)A 3 2 4B 1 4 2C 5 none 35

Material 1 costs $7 a pound material 2 costs $5 a pound and labor costs $15 per hour Product A sells for $101 a unit product B sells for $67 a unit and product C sells for $9750 a unit Each week there are 300 pounds of material 1 400 pounds of material 2 and 200 hours of labor Also there is a weekly demand of 10 units of product C each week Use Excel to formulate and solve this problem

Chapter Three 40

5 A beer distributor wants to prepare an aggregate plan for the next 6 weeks Demand can be met using regular time production overtime production or a combination of both as illustrated below

Week 1 2 3 4 5 6

Demand (cases) 165 155 140 155 130 155Capacity (cases)Regular 150 150 150 150 150 150Overtime 20 10 10 10 10 10

Cost per Unit Regular time $50Overtime $75Inventory per week $5

Assume that beginning inventory is zero Use Excel to formulate and solve this multiperiod production problem to minimize total costs

41 Test Item File

6 Refer to question number 5 Assume that the beer distributor has the option of ldquosubcontracting ldquobeer cases to supplement the existing capacity Subcontracting can handle a maximum of 5 cases per week Subcontracting cost per case is $80 Also due to an upcoming holiday season the beer distributor wants to maintain a safety stock of at least 5 cases per week Use Excel to formulate and solve this multiperiod production scheduling problem

Chapter Three 42

7 A company wants to determine how to allocate its $200000 advertising budget to market a new cereal The company is considering newspaper ads television ads and radio ads The following table illustrates the cost of advertising in these different media and the exposure to new customers reached by increasing the number of ads in each medium

Media and Number of Ads No of New Customers reached Cost per adNewspaper 1-5 700 $500Newspaper 6-10 500 $400Television 1-10 9000 $5000Television 11-20 7500 $4000Radio 110 4000 $2000Radio 11-20 300 $1500

Use Excel to formulate and solve this problem to maximize audience exposure

43 Test Item File

8 An insurance company has three secretaries A B and C that each is capable of processing four different types of insurance claims The amount of time required by each secretary to process a particular type of a claim is summarized in the following table

Processing Time in HoursClaim Type

1 2 3 4A 2 3 2 4

Secretary B 4 5 3 1C 3 2 1 5

On a typical week the insurance firm has 5 type 1 claims 4 type 2 claims 2 type 3 claims and 3 type 4 claims Each secretary works a maximum of 40 hours per week The office manager wants to know how many of each type of an insurance claim should be processed by each secretary to minimize the total processing time Use Excel to formulate and solve this problem

Chapter Three 44

9 Consider the following data that illustrates demand production costs and expected capacity for a given product

Month1 2 3 4

Demand (units) 100 125 200 175Production costUnit $20 $25 $30 $35Production Capacity (units) 150 150 150 150

Inventory carrying costs are estimated at $4 per unit per month The firm wants to produce at least 50 units per month to uniformly utilize its existing resources Assume that beginning inventory is zero Use Excel to formulate and solve this problem to determine how many units of the product should be produced monthly to meet the expected demand at minimal cost

45 Test Item File

10 A company can ship its product from any of its three factories F1 F2 and F3 to any of its retail outlets R1 R2 and R3 The capacity demand and shipping cost information is provided as follows

Demand (units) Capacity (units)R1 300 F1 250R2 500 F2 350R3 200 F3 400

Shipping Costunit ($)R1 R2 R3

F1 1 3 2F2 3 4 2F3 2 2 3

The company wants to come up with an optimal shipping strategy to minimize its total shipping cost Use Excel to formulate and solve this problem

Chapter Three 46

11 Consider the same information provided in question 10 However now assume that demand for retail outlet three (R3) has increased to 300 units How will this affect the prior solution to question 10 Use Excel to formulate and solve this problem

47 Test Item File

12 Consider the same information provided in question 10 However now assume that the road leading from factory F1 to retail outlet R1 is currently closed due to construction How will this affect the prior solution to question 10 Use Excel to formulate and solve this problem

Chapter Three 48

13 A company manufactures two types of lawn mowers riding mowers and push mowers The company has the option of manufacturing the mowers in-house or outsourcing the entire operation In-house manufacturing requires the following four operations production assembly electrical wiring and final inspection The following table summarizes the weekly hours of processing time available and the processing time required by each operation

Hours Required per MowerRiding Mower Push Mower Hours

AvailableProduction 3 15 40Assembly 5 2 30Electrical Wiring 1 05 45Final Inspection 05 025 40

The company has a weekly demand of 5 riding mowers and 3 push mowers The company makes its riding mowers in-house for $500 each and its push mower for $200 each Alternatively it can outsource its riding and push mowers for $550 and $225 each respectively Use Excel to formulate and solve this ldquomakerdquo or ldquobuyrdquo problem

49 Test Item File

14 A factory operates 7 days a week Due to labor union regulations employees are allowed to work a maximum of 5 consecutive days The minimum number of employees that are needed on a given day is provided as follows

Day Number of Employees NeededSunday 20Monday 30Tuesday 35Wednesday 40Thursday 37Friday 30Saturday 25

Use Excel to formulate and solve this labor planning problem to determine the minimum number of employees needed each day

Chapter Three 50

15 In a small suburban town firefighters work 8-hour shifts Assume there are six shifts each day that are divided into six 4-hour periods The minimum number of firefighters needed on each shift is illustrated below

Shift Number of Firefighters NeededMidnight-4 am 54 am-8 am 68 am-Noon 10Noon-4 pm 124 pm-8 pm 88 pm-Midnight 5

Firefighters must report to work at the beginning of the above time periods and must work eight consecutive hours Use Excel to formulate and solve this labor planning problem to determine the minimum number of firefighters needed on each shift

51 Test Item File

16 A furniture manufacturer produces three products desks tables and chairs These products can be produced during either the morning shift or the evening shift The morning shift has a labor cost of $20 per hour with a maximum availability of 20000 hours The evening shift has a labor cost of $25 per hour and is limited to 15000 hours The labor lumber and demand requirements are given as follows

Resource Desk Table ChairLabor (hours) 075 2 05Lumber (pounds) 7 15 4Nails (pounds) 05 2 025

Demand 50 75 100

Assume that there are 20000 pounds of lumber and 20000 pounds of nails available for both shifts

Use Excel to formulate and solve this problem to minimize total labor cost

Chapter Three 52

17 A manufacturer of 19rdquo LCD monitors encounters the following quarterly production cost demand and production capacity for its monitors

Quarter1 2 3 4

Production CostLCD $290 $275 $265 $255Demand 500 550 600 550Maximum Production Capacity 600 700 600 700

To maintain a stable workforce the manufacturer wants to produce at least 500 units each quarter To meet unexpected fluctuation in demand the company wants to hold at least 100 monitors in stock each quarter The cost of carrying a monitor in stock is $5 each quarter Assume that beginning inventory is zero Use Excel to formulate and solve this problem to determine to minimize production and inventory costs

53 Test Item File

18 A real estate developer is planning to build an office complex Currently there are three office sizes under consideration small medium and large Small offices can be rented for $600 per month medium offices can be rented for $750 per month and large offices can be rented for $1000 per month Each small office requires 600 square feet each medium office requires 800 square feet and each large office requires 1000 square feet The current plot of land available to the developer is 100000 square feet The developer wants to ensure that the office complex has at least 3 units of each office size Use Excel to formulate and solve this problem to maximize total revenue

Chapter Three 54

19 Speedy Lube has 4 bays in its shop and 3 cars waiting for an oil change The estimated time (in minutes) to change the oil and filter for each car in each bay is given as follows

CarBay A B C1 10 12 92 15 13 123 14 12 104 13 11 12

Which car should be assigned to which bay if Speedy Lube wants to minimize its total service time Use Excel to formulate and solve this problem

55 Test Item File

20 A company is considering various advertising media to promote its new toy Pertinent information regarding potential customers reached and costs per advertisement isillustrated below

No of Customers Maximum Times Cost perMedia Reached Available per Month AdvertisementDaytime TV 1000 10 $2000Evening TV 3000 8 $3500Daytime Radio 500 15 $1000Evening radio 750 15 $1500Newspaper 900 4 $500

Currently the company has a monthly advertising budget of $150000 The marketing department has imposed the following restrictions

No more than $20000 may be spent on radio advertising each month At least 5 TV ads must be used each month

Use Excel to formulate and solve this problem to maximize monthly audience exposure

Chapter Three 40

5 A beer distributor wants to prepare an aggregate plan for the next 6 weeks Demand can be met using regular time production overtime production or a combination of both as illustrated below

Week 1 2 3 4 5 6

Demand (cases) 165 155 140 155 130 155Capacity (cases)Regular 150 150 150 150 150 150Overtime 20 10 10 10 10 10

Cost per Unit Regular time $50Overtime $75Inventory per week $5

Assume that beginning inventory is zero Use Excel to formulate and solve this multiperiod production problem to minimize total costs

41 Test Item File

6 Refer to question number 5 Assume that the beer distributor has the option of ldquosubcontracting ldquobeer cases to supplement the existing capacity Subcontracting can handle a maximum of 5 cases per week Subcontracting cost per case is $80 Also due to an upcoming holiday season the beer distributor wants to maintain a safety stock of at least 5 cases per week Use Excel to formulate and solve this multiperiod production scheduling problem

Chapter Three 42

7 A company wants to determine how to allocate its $200000 advertising budget to market a new cereal The company is considering newspaper ads television ads and radio ads The following table illustrates the cost of advertising in these different media and the exposure to new customers reached by increasing the number of ads in each medium

Media and Number of Ads No of New Customers reached Cost per adNewspaper 1-5 700 $500Newspaper 6-10 500 $400Television 1-10 9000 $5000Television 11-20 7500 $4000Radio 110 4000 $2000Radio 11-20 300 $1500

Use Excel to formulate and solve this problem to maximize audience exposure

43 Test Item File

8 An insurance company has three secretaries A B and C that each is capable of processing four different types of insurance claims The amount of time required by each secretary to process a particular type of a claim is summarized in the following table

Processing Time in HoursClaim Type

1 2 3 4A 2 3 2 4

Secretary B 4 5 3 1C 3 2 1 5

On a typical week the insurance firm has 5 type 1 claims 4 type 2 claims 2 type 3 claims and 3 type 4 claims Each secretary works a maximum of 40 hours per week The office manager wants to know how many of each type of an insurance claim should be processed by each secretary to minimize the total processing time Use Excel to formulate and solve this problem

Chapter Three 44

9 Consider the following data that illustrates demand production costs and expected capacity for a given product

Month1 2 3 4

Demand (units) 100 125 200 175Production costUnit $20 $25 $30 $35Production Capacity (units) 150 150 150 150

Inventory carrying costs are estimated at $4 per unit per month The firm wants to produce at least 50 units per month to uniformly utilize its existing resources Assume that beginning inventory is zero Use Excel to formulate and solve this problem to determine how many units of the product should be produced monthly to meet the expected demand at minimal cost

45 Test Item File

10 A company can ship its product from any of its three factories F1 F2 and F3 to any of its retail outlets R1 R2 and R3 The capacity demand and shipping cost information is provided as follows

Demand (units) Capacity (units)R1 300 F1 250R2 500 F2 350R3 200 F3 400

Shipping Costunit ($)R1 R2 R3

F1 1 3 2F2 3 4 2F3 2 2 3

The company wants to come up with an optimal shipping strategy to minimize its total shipping cost Use Excel to formulate and solve this problem

Chapter Three 46

11 Consider the same information provided in question 10 However now assume that demand for retail outlet three (R3) has increased to 300 units How will this affect the prior solution to question 10 Use Excel to formulate and solve this problem

47 Test Item File

12 Consider the same information provided in question 10 However now assume that the road leading from factory F1 to retail outlet R1 is currently closed due to construction How will this affect the prior solution to question 10 Use Excel to formulate and solve this problem

Chapter Three 48

13 A company manufactures two types of lawn mowers riding mowers and push mowers The company has the option of manufacturing the mowers in-house or outsourcing the entire operation In-house manufacturing requires the following four operations production assembly electrical wiring and final inspection The following table summarizes the weekly hours of processing time available and the processing time required by each operation

Hours Required per MowerRiding Mower Push Mower Hours

AvailableProduction 3 15 40Assembly 5 2 30Electrical Wiring 1 05 45Final Inspection 05 025 40

The company has a weekly demand of 5 riding mowers and 3 push mowers The company makes its riding mowers in-house for $500 each and its push mower for $200 each Alternatively it can outsource its riding and push mowers for $550 and $225 each respectively Use Excel to formulate and solve this ldquomakerdquo or ldquobuyrdquo problem

49 Test Item File

14 A factory operates 7 days a week Due to labor union regulations employees are allowed to work a maximum of 5 consecutive days The minimum number of employees that are needed on a given day is provided as follows

Day Number of Employees NeededSunday 20Monday 30Tuesday 35Wednesday 40Thursday 37Friday 30Saturday 25

Use Excel to formulate and solve this labor planning problem to determine the minimum number of employees needed each day

Chapter Three 50

15 In a small suburban town firefighters work 8-hour shifts Assume there are six shifts each day that are divided into six 4-hour periods The minimum number of firefighters needed on each shift is illustrated below

Shift Number of Firefighters NeededMidnight-4 am 54 am-8 am 68 am-Noon 10Noon-4 pm 124 pm-8 pm 88 pm-Midnight 5

Firefighters must report to work at the beginning of the above time periods and must work eight consecutive hours Use Excel to formulate and solve this labor planning problem to determine the minimum number of firefighters needed on each shift

51 Test Item File

16 A furniture manufacturer produces three products desks tables and chairs These products can be produced during either the morning shift or the evening shift The morning shift has a labor cost of $20 per hour with a maximum availability of 20000 hours The evening shift has a labor cost of $25 per hour and is limited to 15000 hours The labor lumber and demand requirements are given as follows

Resource Desk Table ChairLabor (hours) 075 2 05Lumber (pounds) 7 15 4Nails (pounds) 05 2 025

Demand 50 75 100

Assume that there are 20000 pounds of lumber and 20000 pounds of nails available for both shifts

Use Excel to formulate and solve this problem to minimize total labor cost

Chapter Three 52

17 A manufacturer of 19rdquo LCD monitors encounters the following quarterly production cost demand and production capacity for its monitors

Quarter1 2 3 4

Production CostLCD $290 $275 $265 $255Demand 500 550 600 550Maximum Production Capacity 600 700 600 700

To maintain a stable workforce the manufacturer wants to produce at least 500 units each quarter To meet unexpected fluctuation in demand the company wants to hold at least 100 monitors in stock each quarter The cost of carrying a monitor in stock is $5 each quarter Assume that beginning inventory is zero Use Excel to formulate and solve this problem to determine to minimize production and inventory costs

53 Test Item File

18 A real estate developer is planning to build an office complex Currently there are three office sizes under consideration small medium and large Small offices can be rented for $600 per month medium offices can be rented for $750 per month and large offices can be rented for $1000 per month Each small office requires 600 square feet each medium office requires 800 square feet and each large office requires 1000 square feet The current plot of land available to the developer is 100000 square feet The developer wants to ensure that the office complex has at least 3 units of each office size Use Excel to formulate and solve this problem to maximize total revenue

Chapter Three 54

19 Speedy Lube has 4 bays in its shop and 3 cars waiting for an oil change The estimated time (in minutes) to change the oil and filter for each car in each bay is given as follows

CarBay A B C1 10 12 92 15 13 123 14 12 104 13 11 12

Which car should be assigned to which bay if Speedy Lube wants to minimize its total service time Use Excel to formulate and solve this problem

55 Test Item File

20 A company is considering various advertising media to promote its new toy Pertinent information regarding potential customers reached and costs per advertisement isillustrated below

No of Customers Maximum Times Cost perMedia Reached Available per Month AdvertisementDaytime TV 1000 10 $2000Evening TV 3000 8 $3500Daytime Radio 500 15 $1000Evening radio 750 15 $1500Newspaper 900 4 $500

Currently the company has a monthly advertising budget of $150000 The marketing department has imposed the following restrictions

No more than $20000 may be spent on radio advertising each month At least 5 TV ads must be used each month

Use Excel to formulate and solve this problem to maximize monthly audience exposure

41 Test Item File

6 Refer to question number 5 Assume that the beer distributor has the option of ldquosubcontracting ldquobeer cases to supplement the existing capacity Subcontracting can handle a maximum of 5 cases per week Subcontracting cost per case is $80 Also due to an upcoming holiday season the beer distributor wants to maintain a safety stock of at least 5 cases per week Use Excel to formulate and solve this multiperiod production scheduling problem

Chapter Three 42

7 A company wants to determine how to allocate its $200000 advertising budget to market a new cereal The company is considering newspaper ads television ads and radio ads The following table illustrates the cost of advertising in these different media and the exposure to new customers reached by increasing the number of ads in each medium

Media and Number of Ads No of New Customers reached Cost per adNewspaper 1-5 700 $500Newspaper 6-10 500 $400Television 1-10 9000 $5000Television 11-20 7500 $4000Radio 110 4000 $2000Radio 11-20 300 $1500

Use Excel to formulate and solve this problem to maximize audience exposure

43 Test Item File

8 An insurance company has three secretaries A B and C that each is capable of processing four different types of insurance claims The amount of time required by each secretary to process a particular type of a claim is summarized in the following table

Processing Time in HoursClaim Type

1 2 3 4A 2 3 2 4

Secretary B 4 5 3 1C 3 2 1 5

On a typical week the insurance firm has 5 type 1 claims 4 type 2 claims 2 type 3 claims and 3 type 4 claims Each secretary works a maximum of 40 hours per week The office manager wants to know how many of each type of an insurance claim should be processed by each secretary to minimize the total processing time Use Excel to formulate and solve this problem

Chapter Three 44

9 Consider the following data that illustrates demand production costs and expected capacity for a given product

Month1 2 3 4

Demand (units) 100 125 200 175Production costUnit $20 $25 $30 $35Production Capacity (units) 150 150 150 150

Inventory carrying costs are estimated at $4 per unit per month The firm wants to produce at least 50 units per month to uniformly utilize its existing resources Assume that beginning inventory is zero Use Excel to formulate and solve this problem to determine how many units of the product should be produced monthly to meet the expected demand at minimal cost

45 Test Item File

10 A company can ship its product from any of its three factories F1 F2 and F3 to any of its retail outlets R1 R2 and R3 The capacity demand and shipping cost information is provided as follows

Demand (units) Capacity (units)R1 300 F1 250R2 500 F2 350R3 200 F3 400

Shipping Costunit ($)R1 R2 R3

F1 1 3 2F2 3 4 2F3 2 2 3

The company wants to come up with an optimal shipping strategy to minimize its total shipping cost Use Excel to formulate and solve this problem

Chapter Three 46

11 Consider the same information provided in question 10 However now assume that demand for retail outlet three (R3) has increased to 300 units How will this affect the prior solution to question 10 Use Excel to formulate and solve this problem

47 Test Item File

12 Consider the same information provided in question 10 However now assume that the road leading from factory F1 to retail outlet R1 is currently closed due to construction How will this affect the prior solution to question 10 Use Excel to formulate and solve this problem

Chapter Three 48

13 A company manufactures two types of lawn mowers riding mowers and push mowers The company has the option of manufacturing the mowers in-house or outsourcing the entire operation In-house manufacturing requires the following four operations production assembly electrical wiring and final inspection The following table summarizes the weekly hours of processing time available and the processing time required by each operation

Hours Required per MowerRiding Mower Push Mower Hours

AvailableProduction 3 15 40Assembly 5 2 30Electrical Wiring 1 05 45Final Inspection 05 025 40

The company has a weekly demand of 5 riding mowers and 3 push mowers The company makes its riding mowers in-house for $500 each and its push mower for $200 each Alternatively it can outsource its riding and push mowers for $550 and $225 each respectively Use Excel to formulate and solve this ldquomakerdquo or ldquobuyrdquo problem

49 Test Item File

14 A factory operates 7 days a week Due to labor union regulations employees are allowed to work a maximum of 5 consecutive days The minimum number of employees that are needed on a given day is provided as follows

Day Number of Employees NeededSunday 20Monday 30Tuesday 35Wednesday 40Thursday 37Friday 30Saturday 25

Use Excel to formulate and solve this labor planning problem to determine the minimum number of employees needed each day

Chapter Three 50

15 In a small suburban town firefighters work 8-hour shifts Assume there are six shifts each day that are divided into six 4-hour periods The minimum number of firefighters needed on each shift is illustrated below

Shift Number of Firefighters NeededMidnight-4 am 54 am-8 am 68 am-Noon 10Noon-4 pm 124 pm-8 pm 88 pm-Midnight 5

Firefighters must report to work at the beginning of the above time periods and must work eight consecutive hours Use Excel to formulate and solve this labor planning problem to determine the minimum number of firefighters needed on each shift

51 Test Item File

16 A furniture manufacturer produces three products desks tables and chairs These products can be produced during either the morning shift or the evening shift The morning shift has a labor cost of $20 per hour with a maximum availability of 20000 hours The evening shift has a labor cost of $25 per hour and is limited to 15000 hours The labor lumber and demand requirements are given as follows

Resource Desk Table ChairLabor (hours) 075 2 05Lumber (pounds) 7 15 4Nails (pounds) 05 2 025

Demand 50 75 100

Assume that there are 20000 pounds of lumber and 20000 pounds of nails available for both shifts

Use Excel to formulate and solve this problem to minimize total labor cost

Chapter Three 52

17 A manufacturer of 19rdquo LCD monitors encounters the following quarterly production cost demand and production capacity for its monitors

Quarter1 2 3 4

Production CostLCD $290 $275 $265 $255Demand 500 550 600 550Maximum Production Capacity 600 700 600 700

To maintain a stable workforce the manufacturer wants to produce at least 500 units each quarter To meet unexpected fluctuation in demand the company wants to hold at least 100 monitors in stock each quarter The cost of carrying a monitor in stock is $5 each quarter Assume that beginning inventory is zero Use Excel to formulate and solve this problem to determine to minimize production and inventory costs

53 Test Item File

18 A real estate developer is planning to build an office complex Currently there are three office sizes under consideration small medium and large Small offices can be rented for $600 per month medium offices can be rented for $750 per month and large offices can be rented for $1000 per month Each small office requires 600 square feet each medium office requires 800 square feet and each large office requires 1000 square feet The current plot of land available to the developer is 100000 square feet The developer wants to ensure that the office complex has at least 3 units of each office size Use Excel to formulate and solve this problem to maximize total revenue

Chapter Three 54

19 Speedy Lube has 4 bays in its shop and 3 cars waiting for an oil change The estimated time (in minutes) to change the oil and filter for each car in each bay is given as follows

CarBay A B C1 10 12 92 15 13 123 14 12 104 13 11 12

Which car should be assigned to which bay if Speedy Lube wants to minimize its total service time Use Excel to formulate and solve this problem

55 Test Item File

20 A company is considering various advertising media to promote its new toy Pertinent information regarding potential customers reached and costs per advertisement isillustrated below

No of Customers Maximum Times Cost perMedia Reached Available per Month AdvertisementDaytime TV 1000 10 $2000Evening TV 3000 8 $3500Daytime Radio 500 15 $1000Evening radio 750 15 $1500Newspaper 900 4 $500

Currently the company has a monthly advertising budget of $150000 The marketing department has imposed the following restrictions

No more than $20000 may be spent on radio advertising each month At least 5 TV ads must be used each month

Use Excel to formulate and solve this problem to maximize monthly audience exposure

Chapter Three 42

7 A company wants to determine how to allocate its $200000 advertising budget to market a new cereal The company is considering newspaper ads television ads and radio ads The following table illustrates the cost of advertising in these different media and the exposure to new customers reached by increasing the number of ads in each medium

Media and Number of Ads No of New Customers reached Cost per adNewspaper 1-5 700 $500Newspaper 6-10 500 $400Television 1-10 9000 $5000Television 11-20 7500 $4000Radio 110 4000 $2000Radio 11-20 300 $1500

Use Excel to formulate and solve this problem to maximize audience exposure

43 Test Item File

8 An insurance company has three secretaries A B and C that each is capable of processing four different types of insurance claims The amount of time required by each secretary to process a particular type of a claim is summarized in the following table

Processing Time in HoursClaim Type

1 2 3 4A 2 3 2 4

Secretary B 4 5 3 1C 3 2 1 5

On a typical week the insurance firm has 5 type 1 claims 4 type 2 claims 2 type 3 claims and 3 type 4 claims Each secretary works a maximum of 40 hours per week The office manager wants to know how many of each type of an insurance claim should be processed by each secretary to minimize the total processing time Use Excel to formulate and solve this problem

Chapter Three 44

9 Consider the following data that illustrates demand production costs and expected capacity for a given product

Month1 2 3 4

Demand (units) 100 125 200 175Production costUnit $20 $25 $30 $35Production Capacity (units) 150 150 150 150

Inventory carrying costs are estimated at $4 per unit per month The firm wants to produce at least 50 units per month to uniformly utilize its existing resources Assume that beginning inventory is zero Use Excel to formulate and solve this problem to determine how many units of the product should be produced monthly to meet the expected demand at minimal cost

45 Test Item File

10 A company can ship its product from any of its three factories F1 F2 and F3 to any of its retail outlets R1 R2 and R3 The capacity demand and shipping cost information is provided as follows

Demand (units) Capacity (units)R1 300 F1 250R2 500 F2 350R3 200 F3 400

Shipping Costunit ($)R1 R2 R3

F1 1 3 2F2 3 4 2F3 2 2 3

The company wants to come up with an optimal shipping strategy to minimize its total shipping cost Use Excel to formulate and solve this problem

Chapter Three 46

11 Consider the same information provided in question 10 However now assume that demand for retail outlet three (R3) has increased to 300 units How will this affect the prior solution to question 10 Use Excel to formulate and solve this problem

47 Test Item File

12 Consider the same information provided in question 10 However now assume that the road leading from factory F1 to retail outlet R1 is currently closed due to construction How will this affect the prior solution to question 10 Use Excel to formulate and solve this problem

Chapter Three 48

13 A company manufactures two types of lawn mowers riding mowers and push mowers The company has the option of manufacturing the mowers in-house or outsourcing the entire operation In-house manufacturing requires the following four operations production assembly electrical wiring and final inspection The following table summarizes the weekly hours of processing time available and the processing time required by each operation

Hours Required per MowerRiding Mower Push Mower Hours

AvailableProduction 3 15 40Assembly 5 2 30Electrical Wiring 1 05 45Final Inspection 05 025 40

The company has a weekly demand of 5 riding mowers and 3 push mowers The company makes its riding mowers in-house for $500 each and its push mower for $200 each Alternatively it can outsource its riding and push mowers for $550 and $225 each respectively Use Excel to formulate and solve this ldquomakerdquo or ldquobuyrdquo problem

49 Test Item File

14 A factory operates 7 days a week Due to labor union regulations employees are allowed to work a maximum of 5 consecutive days The minimum number of employees that are needed on a given day is provided as follows

Day Number of Employees NeededSunday 20Monday 30Tuesday 35Wednesday 40Thursday 37Friday 30Saturday 25

Use Excel to formulate and solve this labor planning problem to determine the minimum number of employees needed each day

Chapter Three 50

15 In a small suburban town firefighters work 8-hour shifts Assume there are six shifts each day that are divided into six 4-hour periods The minimum number of firefighters needed on each shift is illustrated below

Shift Number of Firefighters NeededMidnight-4 am 54 am-8 am 68 am-Noon 10Noon-4 pm 124 pm-8 pm 88 pm-Midnight 5

Firefighters must report to work at the beginning of the above time periods and must work eight consecutive hours Use Excel to formulate and solve this labor planning problem to determine the minimum number of firefighters needed on each shift

51 Test Item File

16 A furniture manufacturer produces three products desks tables and chairs These products can be produced during either the morning shift or the evening shift The morning shift has a labor cost of $20 per hour with a maximum availability of 20000 hours The evening shift has a labor cost of $25 per hour and is limited to 15000 hours The labor lumber and demand requirements are given as follows

Resource Desk Table ChairLabor (hours) 075 2 05Lumber (pounds) 7 15 4Nails (pounds) 05 2 025

Demand 50 75 100

Assume that there are 20000 pounds of lumber and 20000 pounds of nails available for both shifts

Use Excel to formulate and solve this problem to minimize total labor cost

Chapter Three 52

17 A manufacturer of 19rdquo LCD monitors encounters the following quarterly production cost demand and production capacity for its monitors

Quarter1 2 3 4

Production CostLCD $290 $275 $265 $255Demand 500 550 600 550Maximum Production Capacity 600 700 600 700

To maintain a stable workforce the manufacturer wants to produce at least 500 units each quarter To meet unexpected fluctuation in demand the company wants to hold at least 100 monitors in stock each quarter The cost of carrying a monitor in stock is $5 each quarter Assume that beginning inventory is zero Use Excel to formulate and solve this problem to determine to minimize production and inventory costs

53 Test Item File

18 A real estate developer is planning to build an office complex Currently there are three office sizes under consideration small medium and large Small offices can be rented for $600 per month medium offices can be rented for $750 per month and large offices can be rented for $1000 per month Each small office requires 600 square feet each medium office requires 800 square feet and each large office requires 1000 square feet The current plot of land available to the developer is 100000 square feet The developer wants to ensure that the office complex has at least 3 units of each office size Use Excel to formulate and solve this problem to maximize total revenue

Chapter Three 54

19 Speedy Lube has 4 bays in its shop and 3 cars waiting for an oil change The estimated time (in minutes) to change the oil and filter for each car in each bay is given as follows

CarBay A B C1 10 12 92 15 13 123 14 12 104 13 11 12

Which car should be assigned to which bay if Speedy Lube wants to minimize its total service time Use Excel to formulate and solve this problem

55 Test Item File

20 A company is considering various advertising media to promote its new toy Pertinent information regarding potential customers reached and costs per advertisement isillustrated below

No of Customers Maximum Times Cost perMedia Reached Available per Month AdvertisementDaytime TV 1000 10 $2000Evening TV 3000 8 $3500Daytime Radio 500 15 $1000Evening radio 750 15 $1500Newspaper 900 4 $500

Currently the company has a monthly advertising budget of $150000 The marketing department has imposed the following restrictions

No more than $20000 may be spent on radio advertising each month At least 5 TV ads must be used each month

Use Excel to formulate and solve this problem to maximize monthly audience exposure

43 Test Item File

8 An insurance company has three secretaries A B and C that each is capable of processing four different types of insurance claims The amount of time required by each secretary to process a particular type of a claim is summarized in the following table

Processing Time in HoursClaim Type

1 2 3 4A 2 3 2 4

Secretary B 4 5 3 1C 3 2 1 5

On a typical week the insurance firm has 5 type 1 claims 4 type 2 claims 2 type 3 claims and 3 type 4 claims Each secretary works a maximum of 40 hours per week The office manager wants to know how many of each type of an insurance claim should be processed by each secretary to minimize the total processing time Use Excel to formulate and solve this problem

Chapter Three 44

9 Consider the following data that illustrates demand production costs and expected capacity for a given product

Month1 2 3 4

Demand (units) 100 125 200 175Production costUnit $20 $25 $30 $35Production Capacity (units) 150 150 150 150

Inventory carrying costs are estimated at $4 per unit per month The firm wants to produce at least 50 units per month to uniformly utilize its existing resources Assume that beginning inventory is zero Use Excel to formulate and solve this problem to determine how many units of the product should be produced monthly to meet the expected demand at minimal cost

45 Test Item File

10 A company can ship its product from any of its three factories F1 F2 and F3 to any of its retail outlets R1 R2 and R3 The capacity demand and shipping cost information is provided as follows

Demand (units) Capacity (units)R1 300 F1 250R2 500 F2 350R3 200 F3 400

Shipping Costunit ($)R1 R2 R3

F1 1 3 2F2 3 4 2F3 2 2 3

The company wants to come up with an optimal shipping strategy to minimize its total shipping cost Use Excel to formulate and solve this problem

Chapter Three 46

11 Consider the same information provided in question 10 However now assume that demand for retail outlet three (R3) has increased to 300 units How will this affect the prior solution to question 10 Use Excel to formulate and solve this problem

47 Test Item File

12 Consider the same information provided in question 10 However now assume that the road leading from factory F1 to retail outlet R1 is currently closed due to construction How will this affect the prior solution to question 10 Use Excel to formulate and solve this problem

Chapter Three 48

13 A company manufactures two types of lawn mowers riding mowers and push mowers The company has the option of manufacturing the mowers in-house or outsourcing the entire operation In-house manufacturing requires the following four operations production assembly electrical wiring and final inspection The following table summarizes the weekly hours of processing time available and the processing time required by each operation

Hours Required per MowerRiding Mower Push Mower Hours

AvailableProduction 3 15 40Assembly 5 2 30Electrical Wiring 1 05 45Final Inspection 05 025 40

The company has a weekly demand of 5 riding mowers and 3 push mowers The company makes its riding mowers in-house for $500 each and its push mower for $200 each Alternatively it can outsource its riding and push mowers for $550 and $225 each respectively Use Excel to formulate and solve this ldquomakerdquo or ldquobuyrdquo problem

49 Test Item File

14 A factory operates 7 days a week Due to labor union regulations employees are allowed to work a maximum of 5 consecutive days The minimum number of employees that are needed on a given day is provided as follows

Day Number of Employees NeededSunday 20Monday 30Tuesday 35Wednesday 40Thursday 37Friday 30Saturday 25

Use Excel to formulate and solve this labor planning problem to determine the minimum number of employees needed each day

Chapter Three 50

15 In a small suburban town firefighters work 8-hour shifts Assume there are six shifts each day that are divided into six 4-hour periods The minimum number of firefighters needed on each shift is illustrated below

Shift Number of Firefighters NeededMidnight-4 am 54 am-8 am 68 am-Noon 10Noon-4 pm 124 pm-8 pm 88 pm-Midnight 5

Firefighters must report to work at the beginning of the above time periods and must work eight consecutive hours Use Excel to formulate and solve this labor planning problem to determine the minimum number of firefighters needed on each shift

51 Test Item File

16 A furniture manufacturer produces three products desks tables and chairs These products can be produced during either the morning shift or the evening shift The morning shift has a labor cost of $20 per hour with a maximum availability of 20000 hours The evening shift has a labor cost of $25 per hour and is limited to 15000 hours The labor lumber and demand requirements are given as follows

Resource Desk Table ChairLabor (hours) 075 2 05Lumber (pounds) 7 15 4Nails (pounds) 05 2 025

Demand 50 75 100

Assume that there are 20000 pounds of lumber and 20000 pounds of nails available for both shifts

Use Excel to formulate and solve this problem to minimize total labor cost

Chapter Three 52

17 A manufacturer of 19rdquo LCD monitors encounters the following quarterly production cost demand and production capacity for its monitors

Quarter1 2 3 4

Production CostLCD $290 $275 $265 $255Demand 500 550 600 550Maximum Production Capacity 600 700 600 700

To maintain a stable workforce the manufacturer wants to produce at least 500 units each quarter To meet unexpected fluctuation in demand the company wants to hold at least 100 monitors in stock each quarter The cost of carrying a monitor in stock is $5 each quarter Assume that beginning inventory is zero Use Excel to formulate and solve this problem to determine to minimize production and inventory costs

53 Test Item File

18 A real estate developer is planning to build an office complex Currently there are three office sizes under consideration small medium and large Small offices can be rented for $600 per month medium offices can be rented for $750 per month and large offices can be rented for $1000 per month Each small office requires 600 square feet each medium office requires 800 square feet and each large office requires 1000 square feet The current plot of land available to the developer is 100000 square feet The developer wants to ensure that the office complex has at least 3 units of each office size Use Excel to formulate and solve this problem to maximize total revenue

Chapter Three 54

19 Speedy Lube has 4 bays in its shop and 3 cars waiting for an oil change The estimated time (in minutes) to change the oil and filter for each car in each bay is given as follows

CarBay A B C1 10 12 92 15 13 123 14 12 104 13 11 12

Which car should be assigned to which bay if Speedy Lube wants to minimize its total service time Use Excel to formulate and solve this problem

55 Test Item File

20 A company is considering various advertising media to promote its new toy Pertinent information regarding potential customers reached and costs per advertisement isillustrated below

No of Customers Maximum Times Cost perMedia Reached Available per Month AdvertisementDaytime TV 1000 10 $2000Evening TV 3000 8 $3500Daytime Radio 500 15 $1000Evening radio 750 15 $1500Newspaper 900 4 $500

Currently the company has a monthly advertising budget of $150000 The marketing department has imposed the following restrictions

No more than $20000 may be spent on radio advertising each month At least 5 TV ads must be used each month

Use Excel to formulate and solve this problem to maximize monthly audience exposure

Chapter Three 44

9 Consider the following data that illustrates demand production costs and expected capacity for a given product

Month1 2 3 4

Demand (units) 100 125 200 175Production costUnit $20 $25 $30 $35Production Capacity (units) 150 150 150 150

Inventory carrying costs are estimated at $4 per unit per month The firm wants to produce at least 50 units per month to uniformly utilize its existing resources Assume that beginning inventory is zero Use Excel to formulate and solve this problem to determine how many units of the product should be produced monthly to meet the expected demand at minimal cost

45 Test Item File

10 A company can ship its product from any of its three factories F1 F2 and F3 to any of its retail outlets R1 R2 and R3 The capacity demand and shipping cost information is provided as follows

Demand (units) Capacity (units)R1 300 F1 250R2 500 F2 350R3 200 F3 400

Shipping Costunit ($)R1 R2 R3

F1 1 3 2F2 3 4 2F3 2 2 3

The company wants to come up with an optimal shipping strategy to minimize its total shipping cost Use Excel to formulate and solve this problem

Chapter Three 46

11 Consider the same information provided in question 10 However now assume that demand for retail outlet three (R3) has increased to 300 units How will this affect the prior solution to question 10 Use Excel to formulate and solve this problem

47 Test Item File

12 Consider the same information provided in question 10 However now assume that the road leading from factory F1 to retail outlet R1 is currently closed due to construction How will this affect the prior solution to question 10 Use Excel to formulate and solve this problem

Chapter Three 48

13 A company manufactures two types of lawn mowers riding mowers and push mowers The company has the option of manufacturing the mowers in-house or outsourcing the entire operation In-house manufacturing requires the following four operations production assembly electrical wiring and final inspection The following table summarizes the weekly hours of processing time available and the processing time required by each operation

Hours Required per MowerRiding Mower Push Mower Hours

AvailableProduction 3 15 40Assembly 5 2 30Electrical Wiring 1 05 45Final Inspection 05 025 40

The company has a weekly demand of 5 riding mowers and 3 push mowers The company makes its riding mowers in-house for $500 each and its push mower for $200 each Alternatively it can outsource its riding and push mowers for $550 and $225 each respectively Use Excel to formulate and solve this ldquomakerdquo or ldquobuyrdquo problem

49 Test Item File

14 A factory operates 7 days a week Due to labor union regulations employees are allowed to work a maximum of 5 consecutive days The minimum number of employees that are needed on a given day is provided as follows

Day Number of Employees NeededSunday 20Monday 30Tuesday 35Wednesday 40Thursday 37Friday 30Saturday 25

Use Excel to formulate and solve this labor planning problem to determine the minimum number of employees needed each day

Chapter Three 50

15 In a small suburban town firefighters work 8-hour shifts Assume there are six shifts each day that are divided into six 4-hour periods The minimum number of firefighters needed on each shift is illustrated below

Shift Number of Firefighters NeededMidnight-4 am 54 am-8 am 68 am-Noon 10Noon-4 pm 124 pm-8 pm 88 pm-Midnight 5

Firefighters must report to work at the beginning of the above time periods and must work eight consecutive hours Use Excel to formulate and solve this labor planning problem to determine the minimum number of firefighters needed on each shift

51 Test Item File

16 A furniture manufacturer produces three products desks tables and chairs These products can be produced during either the morning shift or the evening shift The morning shift has a labor cost of $20 per hour with a maximum availability of 20000 hours The evening shift has a labor cost of $25 per hour and is limited to 15000 hours The labor lumber and demand requirements are given as follows

Resource Desk Table ChairLabor (hours) 075 2 05Lumber (pounds) 7 15 4Nails (pounds) 05 2 025

Demand 50 75 100

Assume that there are 20000 pounds of lumber and 20000 pounds of nails available for both shifts

Use Excel to formulate and solve this problem to minimize total labor cost

Chapter Three 52

17 A manufacturer of 19rdquo LCD monitors encounters the following quarterly production cost demand and production capacity for its monitors

Quarter1 2 3 4

Production CostLCD $290 $275 $265 $255Demand 500 550 600 550Maximum Production Capacity 600 700 600 700

To maintain a stable workforce the manufacturer wants to produce at least 500 units each quarter To meet unexpected fluctuation in demand the company wants to hold at least 100 monitors in stock each quarter The cost of carrying a monitor in stock is $5 each quarter Assume that beginning inventory is zero Use Excel to formulate and solve this problem to determine to minimize production and inventory costs

53 Test Item File

18 A real estate developer is planning to build an office complex Currently there are three office sizes under consideration small medium and large Small offices can be rented for $600 per month medium offices can be rented for $750 per month and large offices can be rented for $1000 per month Each small office requires 600 square feet each medium office requires 800 square feet and each large office requires 1000 square feet The current plot of land available to the developer is 100000 square feet The developer wants to ensure that the office complex has at least 3 units of each office size Use Excel to formulate and solve this problem to maximize total revenue

Chapter Three 54

19 Speedy Lube has 4 bays in its shop and 3 cars waiting for an oil change The estimated time (in minutes) to change the oil and filter for each car in each bay is given as follows

CarBay A B C1 10 12 92 15 13 123 14 12 104 13 11 12

Which car should be assigned to which bay if Speedy Lube wants to minimize its total service time Use Excel to formulate and solve this problem

55 Test Item File

20 A company is considering various advertising media to promote its new toy Pertinent information regarding potential customers reached and costs per advertisement isillustrated below

No of Customers Maximum Times Cost perMedia Reached Available per Month AdvertisementDaytime TV 1000 10 $2000Evening TV 3000 8 $3500Daytime Radio 500 15 $1000Evening radio 750 15 $1500Newspaper 900 4 $500

Currently the company has a monthly advertising budget of $150000 The marketing department has imposed the following restrictions

No more than $20000 may be spent on radio advertising each month At least 5 TV ads must be used each month

Use Excel to formulate and solve this problem to maximize monthly audience exposure

45 Test Item File

10 A company can ship its product from any of its three factories F1 F2 and F3 to any of its retail outlets R1 R2 and R3 The capacity demand and shipping cost information is provided as follows

Demand (units) Capacity (units)R1 300 F1 250R2 500 F2 350R3 200 F3 400

Shipping Costunit ($)R1 R2 R3

F1 1 3 2F2 3 4 2F3 2 2 3

The company wants to come up with an optimal shipping strategy to minimize its total shipping cost Use Excel to formulate and solve this problem

Chapter Three 46

11 Consider the same information provided in question 10 However now assume that demand for retail outlet three (R3) has increased to 300 units How will this affect the prior solution to question 10 Use Excel to formulate and solve this problem

47 Test Item File

12 Consider the same information provided in question 10 However now assume that the road leading from factory F1 to retail outlet R1 is currently closed due to construction How will this affect the prior solution to question 10 Use Excel to formulate and solve this problem

Chapter Three 48

13 A company manufactures two types of lawn mowers riding mowers and push mowers The company has the option of manufacturing the mowers in-house or outsourcing the entire operation In-house manufacturing requires the following four operations production assembly electrical wiring and final inspection The following table summarizes the weekly hours of processing time available and the processing time required by each operation

Hours Required per MowerRiding Mower Push Mower Hours

AvailableProduction 3 15 40Assembly 5 2 30Electrical Wiring 1 05 45Final Inspection 05 025 40

The company has a weekly demand of 5 riding mowers and 3 push mowers The company makes its riding mowers in-house for $500 each and its push mower for $200 each Alternatively it can outsource its riding and push mowers for $550 and $225 each respectively Use Excel to formulate and solve this ldquomakerdquo or ldquobuyrdquo problem

49 Test Item File

14 A factory operates 7 days a week Due to labor union regulations employees are allowed to work a maximum of 5 consecutive days The minimum number of employees that are needed on a given day is provided as follows

Day Number of Employees NeededSunday 20Monday 30Tuesday 35Wednesday 40Thursday 37Friday 30Saturday 25

Use Excel to formulate and solve this labor planning problem to determine the minimum number of employees needed each day

Chapter Three 50

15 In a small suburban town firefighters work 8-hour shifts Assume there are six shifts each day that are divided into six 4-hour periods The minimum number of firefighters needed on each shift is illustrated below

Shift Number of Firefighters NeededMidnight-4 am 54 am-8 am 68 am-Noon 10Noon-4 pm 124 pm-8 pm 88 pm-Midnight 5

Firefighters must report to work at the beginning of the above time periods and must work eight consecutive hours Use Excel to formulate and solve this labor planning problem to determine the minimum number of firefighters needed on each shift

51 Test Item File

16 A furniture manufacturer produces three products desks tables and chairs These products can be produced during either the morning shift or the evening shift The morning shift has a labor cost of $20 per hour with a maximum availability of 20000 hours The evening shift has a labor cost of $25 per hour and is limited to 15000 hours The labor lumber and demand requirements are given as follows

Resource Desk Table ChairLabor (hours) 075 2 05Lumber (pounds) 7 15 4Nails (pounds) 05 2 025

Demand 50 75 100

Assume that there are 20000 pounds of lumber and 20000 pounds of nails available for both shifts

Use Excel to formulate and solve this problem to minimize total labor cost

Chapter Three 52

17 A manufacturer of 19rdquo LCD monitors encounters the following quarterly production cost demand and production capacity for its monitors

Quarter1 2 3 4

Production CostLCD $290 $275 $265 $255Demand 500 550 600 550Maximum Production Capacity 600 700 600 700

To maintain a stable workforce the manufacturer wants to produce at least 500 units each quarter To meet unexpected fluctuation in demand the company wants to hold at least 100 monitors in stock each quarter The cost of carrying a monitor in stock is $5 each quarter Assume that beginning inventory is zero Use Excel to formulate and solve this problem to determine to minimize production and inventory costs

53 Test Item File

18 A real estate developer is planning to build an office complex Currently there are three office sizes under consideration small medium and large Small offices can be rented for $600 per month medium offices can be rented for $750 per month and large offices can be rented for $1000 per month Each small office requires 600 square feet each medium office requires 800 square feet and each large office requires 1000 square feet The current plot of land available to the developer is 100000 square feet The developer wants to ensure that the office complex has at least 3 units of each office size Use Excel to formulate and solve this problem to maximize total revenue

Chapter Three 54

19 Speedy Lube has 4 bays in its shop and 3 cars waiting for an oil change The estimated time (in minutes) to change the oil and filter for each car in each bay is given as follows

CarBay A B C1 10 12 92 15 13 123 14 12 104 13 11 12

Which car should be assigned to which bay if Speedy Lube wants to minimize its total service time Use Excel to formulate and solve this problem

55 Test Item File

20 A company is considering various advertising media to promote its new toy Pertinent information regarding potential customers reached and costs per advertisement isillustrated below

No of Customers Maximum Times Cost perMedia Reached Available per Month AdvertisementDaytime TV 1000 10 $2000Evening TV 3000 8 $3500Daytime Radio 500 15 $1000Evening radio 750 15 $1500Newspaper 900 4 $500

Currently the company has a monthly advertising budget of $150000 The marketing department has imposed the following restrictions

No more than $20000 may be spent on radio advertising each month At least 5 TV ads must be used each month

Use Excel to formulate and solve this problem to maximize monthly audience exposure

Chapter Three 46

11 Consider the same information provided in question 10 However now assume that demand for retail outlet three (R3) has increased to 300 units How will this affect the prior solution to question 10 Use Excel to formulate and solve this problem

47 Test Item File

12 Consider the same information provided in question 10 However now assume that the road leading from factory F1 to retail outlet R1 is currently closed due to construction How will this affect the prior solution to question 10 Use Excel to formulate and solve this problem

Chapter Three 48

13 A company manufactures two types of lawn mowers riding mowers and push mowers The company has the option of manufacturing the mowers in-house or outsourcing the entire operation In-house manufacturing requires the following four operations production assembly electrical wiring and final inspection The following table summarizes the weekly hours of processing time available and the processing time required by each operation

Hours Required per MowerRiding Mower Push Mower Hours

AvailableProduction 3 15 40Assembly 5 2 30Electrical Wiring 1 05 45Final Inspection 05 025 40

The company has a weekly demand of 5 riding mowers and 3 push mowers The company makes its riding mowers in-house for $500 each and its push mower for $200 each Alternatively it can outsource its riding and push mowers for $550 and $225 each respectively Use Excel to formulate and solve this ldquomakerdquo or ldquobuyrdquo problem

49 Test Item File

14 A factory operates 7 days a week Due to labor union regulations employees are allowed to work a maximum of 5 consecutive days The minimum number of employees that are needed on a given day is provided as follows

Day Number of Employees NeededSunday 20Monday 30Tuesday 35Wednesday 40Thursday 37Friday 30Saturday 25

Use Excel to formulate and solve this labor planning problem to determine the minimum number of employees needed each day

Chapter Three 50

15 In a small suburban town firefighters work 8-hour shifts Assume there are six shifts each day that are divided into six 4-hour periods The minimum number of firefighters needed on each shift is illustrated below

Shift Number of Firefighters NeededMidnight-4 am 54 am-8 am 68 am-Noon 10Noon-4 pm 124 pm-8 pm 88 pm-Midnight 5

Firefighters must report to work at the beginning of the above time periods and must work eight consecutive hours Use Excel to formulate and solve this labor planning problem to determine the minimum number of firefighters needed on each shift

51 Test Item File

16 A furniture manufacturer produces three products desks tables and chairs These products can be produced during either the morning shift or the evening shift The morning shift has a labor cost of $20 per hour with a maximum availability of 20000 hours The evening shift has a labor cost of $25 per hour and is limited to 15000 hours The labor lumber and demand requirements are given as follows

Resource Desk Table ChairLabor (hours) 075 2 05Lumber (pounds) 7 15 4Nails (pounds) 05 2 025

Demand 50 75 100

Assume that there are 20000 pounds of lumber and 20000 pounds of nails available for both shifts

Use Excel to formulate and solve this problem to minimize total labor cost

Chapter Three 52

17 A manufacturer of 19rdquo LCD monitors encounters the following quarterly production cost demand and production capacity for its monitors

Quarter1 2 3 4

Production CostLCD $290 $275 $265 $255Demand 500 550 600 550Maximum Production Capacity 600 700 600 700

To maintain a stable workforce the manufacturer wants to produce at least 500 units each quarter To meet unexpected fluctuation in demand the company wants to hold at least 100 monitors in stock each quarter The cost of carrying a monitor in stock is $5 each quarter Assume that beginning inventory is zero Use Excel to formulate and solve this problem to determine to minimize production and inventory costs

53 Test Item File

18 A real estate developer is planning to build an office complex Currently there are three office sizes under consideration small medium and large Small offices can be rented for $600 per month medium offices can be rented for $750 per month and large offices can be rented for $1000 per month Each small office requires 600 square feet each medium office requires 800 square feet and each large office requires 1000 square feet The current plot of land available to the developer is 100000 square feet The developer wants to ensure that the office complex has at least 3 units of each office size Use Excel to formulate and solve this problem to maximize total revenue

Chapter Three 54

19 Speedy Lube has 4 bays in its shop and 3 cars waiting for an oil change The estimated time (in minutes) to change the oil and filter for each car in each bay is given as follows

CarBay A B C1 10 12 92 15 13 123 14 12 104 13 11 12

Which car should be assigned to which bay if Speedy Lube wants to minimize its total service time Use Excel to formulate and solve this problem

55 Test Item File

20 A company is considering various advertising media to promote its new toy Pertinent information regarding potential customers reached and costs per advertisement isillustrated below

No of Customers Maximum Times Cost perMedia Reached Available per Month AdvertisementDaytime TV 1000 10 $2000Evening TV 3000 8 $3500Daytime Radio 500 15 $1000Evening radio 750 15 $1500Newspaper 900 4 $500

Currently the company has a monthly advertising budget of $150000 The marketing department has imposed the following restrictions

No more than $20000 may be spent on radio advertising each month At least 5 TV ads must be used each month

Use Excel to formulate and solve this problem to maximize monthly audience exposure

47 Test Item File

12 Consider the same information provided in question 10 However now assume that the road leading from factory F1 to retail outlet R1 is currently closed due to construction How will this affect the prior solution to question 10 Use Excel to formulate and solve this problem

Chapter Three 48

13 A company manufactures two types of lawn mowers riding mowers and push mowers The company has the option of manufacturing the mowers in-house or outsourcing the entire operation In-house manufacturing requires the following four operations production assembly electrical wiring and final inspection The following table summarizes the weekly hours of processing time available and the processing time required by each operation

Hours Required per MowerRiding Mower Push Mower Hours

AvailableProduction 3 15 40Assembly 5 2 30Electrical Wiring 1 05 45Final Inspection 05 025 40

The company has a weekly demand of 5 riding mowers and 3 push mowers The company makes its riding mowers in-house for $500 each and its push mower for $200 each Alternatively it can outsource its riding and push mowers for $550 and $225 each respectively Use Excel to formulate and solve this ldquomakerdquo or ldquobuyrdquo problem

49 Test Item File

14 A factory operates 7 days a week Due to labor union regulations employees are allowed to work a maximum of 5 consecutive days The minimum number of employees that are needed on a given day is provided as follows

Day Number of Employees NeededSunday 20Monday 30Tuesday 35Wednesday 40Thursday 37Friday 30Saturday 25

Use Excel to formulate and solve this labor planning problem to determine the minimum number of employees needed each day

Chapter Three 50

15 In a small suburban town firefighters work 8-hour shifts Assume there are six shifts each day that are divided into six 4-hour periods The minimum number of firefighters needed on each shift is illustrated below

Shift Number of Firefighters NeededMidnight-4 am 54 am-8 am 68 am-Noon 10Noon-4 pm 124 pm-8 pm 88 pm-Midnight 5

Firefighters must report to work at the beginning of the above time periods and must work eight consecutive hours Use Excel to formulate and solve this labor planning problem to determine the minimum number of firefighters needed on each shift

51 Test Item File

16 A furniture manufacturer produces three products desks tables and chairs These products can be produced during either the morning shift or the evening shift The morning shift has a labor cost of $20 per hour with a maximum availability of 20000 hours The evening shift has a labor cost of $25 per hour and is limited to 15000 hours The labor lumber and demand requirements are given as follows

Resource Desk Table ChairLabor (hours) 075 2 05Lumber (pounds) 7 15 4Nails (pounds) 05 2 025

Demand 50 75 100

Assume that there are 20000 pounds of lumber and 20000 pounds of nails available for both shifts

Use Excel to formulate and solve this problem to minimize total labor cost

Chapter Three 52

17 A manufacturer of 19rdquo LCD monitors encounters the following quarterly production cost demand and production capacity for its monitors

Quarter1 2 3 4

Production CostLCD $290 $275 $265 $255Demand 500 550 600 550Maximum Production Capacity 600 700 600 700

To maintain a stable workforce the manufacturer wants to produce at least 500 units each quarter To meet unexpected fluctuation in demand the company wants to hold at least 100 monitors in stock each quarter The cost of carrying a monitor in stock is $5 each quarter Assume that beginning inventory is zero Use Excel to formulate and solve this problem to determine to minimize production and inventory costs

53 Test Item File

18 A real estate developer is planning to build an office complex Currently there are three office sizes under consideration small medium and large Small offices can be rented for $600 per month medium offices can be rented for $750 per month and large offices can be rented for $1000 per month Each small office requires 600 square feet each medium office requires 800 square feet and each large office requires 1000 square feet The current plot of land available to the developer is 100000 square feet The developer wants to ensure that the office complex has at least 3 units of each office size Use Excel to formulate and solve this problem to maximize total revenue

Chapter Three 54

19 Speedy Lube has 4 bays in its shop and 3 cars waiting for an oil change The estimated time (in minutes) to change the oil and filter for each car in each bay is given as follows

CarBay A B C1 10 12 92 15 13 123 14 12 104 13 11 12

Which car should be assigned to which bay if Speedy Lube wants to minimize its total service time Use Excel to formulate and solve this problem

55 Test Item File

20 A company is considering various advertising media to promote its new toy Pertinent information regarding potential customers reached and costs per advertisement isillustrated below

No of Customers Maximum Times Cost perMedia Reached Available per Month AdvertisementDaytime TV 1000 10 $2000Evening TV 3000 8 $3500Daytime Radio 500 15 $1000Evening radio 750 15 $1500Newspaper 900 4 $500

Currently the company has a monthly advertising budget of $150000 The marketing department has imposed the following restrictions

No more than $20000 may be spent on radio advertising each month At least 5 TV ads must be used each month

Use Excel to formulate and solve this problem to maximize monthly audience exposure

Chapter Three 48

13 A company manufactures two types of lawn mowers riding mowers and push mowers The company has the option of manufacturing the mowers in-house or outsourcing the entire operation In-house manufacturing requires the following four operations production assembly electrical wiring and final inspection The following table summarizes the weekly hours of processing time available and the processing time required by each operation

Hours Required per MowerRiding Mower Push Mower Hours

AvailableProduction 3 15 40Assembly 5 2 30Electrical Wiring 1 05 45Final Inspection 05 025 40

The company has a weekly demand of 5 riding mowers and 3 push mowers The company makes its riding mowers in-house for $500 each and its push mower for $200 each Alternatively it can outsource its riding and push mowers for $550 and $225 each respectively Use Excel to formulate and solve this ldquomakerdquo or ldquobuyrdquo problem

49 Test Item File

14 A factory operates 7 days a week Due to labor union regulations employees are allowed to work a maximum of 5 consecutive days The minimum number of employees that are needed on a given day is provided as follows

Day Number of Employees NeededSunday 20Monday 30Tuesday 35Wednesday 40Thursday 37Friday 30Saturday 25

Use Excel to formulate and solve this labor planning problem to determine the minimum number of employees needed each day

Chapter Three 50

15 In a small suburban town firefighters work 8-hour shifts Assume there are six shifts each day that are divided into six 4-hour periods The minimum number of firefighters needed on each shift is illustrated below

Shift Number of Firefighters NeededMidnight-4 am 54 am-8 am 68 am-Noon 10Noon-4 pm 124 pm-8 pm 88 pm-Midnight 5

Firefighters must report to work at the beginning of the above time periods and must work eight consecutive hours Use Excel to formulate and solve this labor planning problem to determine the minimum number of firefighters needed on each shift

51 Test Item File

16 A furniture manufacturer produces three products desks tables and chairs These products can be produced during either the morning shift or the evening shift The morning shift has a labor cost of $20 per hour with a maximum availability of 20000 hours The evening shift has a labor cost of $25 per hour and is limited to 15000 hours The labor lumber and demand requirements are given as follows

Resource Desk Table ChairLabor (hours) 075 2 05Lumber (pounds) 7 15 4Nails (pounds) 05 2 025

Demand 50 75 100

Assume that there are 20000 pounds of lumber and 20000 pounds of nails available for both shifts

Use Excel to formulate and solve this problem to minimize total labor cost

Chapter Three 52

17 A manufacturer of 19rdquo LCD monitors encounters the following quarterly production cost demand and production capacity for its monitors

Quarter1 2 3 4

Production CostLCD $290 $275 $265 $255Demand 500 550 600 550Maximum Production Capacity 600 700 600 700

To maintain a stable workforce the manufacturer wants to produce at least 500 units each quarter To meet unexpected fluctuation in demand the company wants to hold at least 100 monitors in stock each quarter The cost of carrying a monitor in stock is $5 each quarter Assume that beginning inventory is zero Use Excel to formulate and solve this problem to determine to minimize production and inventory costs

53 Test Item File

18 A real estate developer is planning to build an office complex Currently there are three office sizes under consideration small medium and large Small offices can be rented for $600 per month medium offices can be rented for $750 per month and large offices can be rented for $1000 per month Each small office requires 600 square feet each medium office requires 800 square feet and each large office requires 1000 square feet The current plot of land available to the developer is 100000 square feet The developer wants to ensure that the office complex has at least 3 units of each office size Use Excel to formulate and solve this problem to maximize total revenue

Chapter Three 54

19 Speedy Lube has 4 bays in its shop and 3 cars waiting for an oil change The estimated time (in minutes) to change the oil and filter for each car in each bay is given as follows

CarBay A B C1 10 12 92 15 13 123 14 12 104 13 11 12

Which car should be assigned to which bay if Speedy Lube wants to minimize its total service time Use Excel to formulate and solve this problem

55 Test Item File

20 A company is considering various advertising media to promote its new toy Pertinent information regarding potential customers reached and costs per advertisement isillustrated below

No of Customers Maximum Times Cost perMedia Reached Available per Month AdvertisementDaytime TV 1000 10 $2000Evening TV 3000 8 $3500Daytime Radio 500 15 $1000Evening radio 750 15 $1500Newspaper 900 4 $500

Currently the company has a monthly advertising budget of $150000 The marketing department has imposed the following restrictions

No more than $20000 may be spent on radio advertising each month At least 5 TV ads must be used each month

Use Excel to formulate and solve this problem to maximize monthly audience exposure

49 Test Item File

14 A factory operates 7 days a week Due to labor union regulations employees are allowed to work a maximum of 5 consecutive days The minimum number of employees that are needed on a given day is provided as follows

Day Number of Employees NeededSunday 20Monday 30Tuesday 35Wednesday 40Thursday 37Friday 30Saturday 25

Use Excel to formulate and solve this labor planning problem to determine the minimum number of employees needed each day

Chapter Three 50

15 In a small suburban town firefighters work 8-hour shifts Assume there are six shifts each day that are divided into six 4-hour periods The minimum number of firefighters needed on each shift is illustrated below

Shift Number of Firefighters NeededMidnight-4 am 54 am-8 am 68 am-Noon 10Noon-4 pm 124 pm-8 pm 88 pm-Midnight 5

Firefighters must report to work at the beginning of the above time periods and must work eight consecutive hours Use Excel to formulate and solve this labor planning problem to determine the minimum number of firefighters needed on each shift

51 Test Item File

16 A furniture manufacturer produces three products desks tables and chairs These products can be produced during either the morning shift or the evening shift The morning shift has a labor cost of $20 per hour with a maximum availability of 20000 hours The evening shift has a labor cost of $25 per hour and is limited to 15000 hours The labor lumber and demand requirements are given as follows

Resource Desk Table ChairLabor (hours) 075 2 05Lumber (pounds) 7 15 4Nails (pounds) 05 2 025

Demand 50 75 100

Assume that there are 20000 pounds of lumber and 20000 pounds of nails available for both shifts

Use Excel to formulate and solve this problem to minimize total labor cost

Chapter Three 52

17 A manufacturer of 19rdquo LCD monitors encounters the following quarterly production cost demand and production capacity for its monitors

Quarter1 2 3 4

Production CostLCD $290 $275 $265 $255Demand 500 550 600 550Maximum Production Capacity 600 700 600 700

To maintain a stable workforce the manufacturer wants to produce at least 500 units each quarter To meet unexpected fluctuation in demand the company wants to hold at least 100 monitors in stock each quarter The cost of carrying a monitor in stock is $5 each quarter Assume that beginning inventory is zero Use Excel to formulate and solve this problem to determine to minimize production and inventory costs

53 Test Item File

18 A real estate developer is planning to build an office complex Currently there are three office sizes under consideration small medium and large Small offices can be rented for $600 per month medium offices can be rented for $750 per month and large offices can be rented for $1000 per month Each small office requires 600 square feet each medium office requires 800 square feet and each large office requires 1000 square feet The current plot of land available to the developer is 100000 square feet The developer wants to ensure that the office complex has at least 3 units of each office size Use Excel to formulate and solve this problem to maximize total revenue

Chapter Three 54

19 Speedy Lube has 4 bays in its shop and 3 cars waiting for an oil change The estimated time (in minutes) to change the oil and filter for each car in each bay is given as follows

CarBay A B C1 10 12 92 15 13 123 14 12 104 13 11 12

Which car should be assigned to which bay if Speedy Lube wants to minimize its total service time Use Excel to formulate and solve this problem

55 Test Item File

20 A company is considering various advertising media to promote its new toy Pertinent information regarding potential customers reached and costs per advertisement isillustrated below

No of Customers Maximum Times Cost perMedia Reached Available per Month AdvertisementDaytime TV 1000 10 $2000Evening TV 3000 8 $3500Daytime Radio 500 15 $1000Evening radio 750 15 $1500Newspaper 900 4 $500

Currently the company has a monthly advertising budget of $150000 The marketing department has imposed the following restrictions

No more than $20000 may be spent on radio advertising each month At least 5 TV ads must be used each month

Use Excel to formulate and solve this problem to maximize monthly audience exposure

Chapter Three 50

15 In a small suburban town firefighters work 8-hour shifts Assume there are six shifts each day that are divided into six 4-hour periods The minimum number of firefighters needed on each shift is illustrated below

Shift Number of Firefighters NeededMidnight-4 am 54 am-8 am 68 am-Noon 10Noon-4 pm 124 pm-8 pm 88 pm-Midnight 5

Firefighters must report to work at the beginning of the above time periods and must work eight consecutive hours Use Excel to formulate and solve this labor planning problem to determine the minimum number of firefighters needed on each shift

51 Test Item File

16 A furniture manufacturer produces three products desks tables and chairs These products can be produced during either the morning shift or the evening shift The morning shift has a labor cost of $20 per hour with a maximum availability of 20000 hours The evening shift has a labor cost of $25 per hour and is limited to 15000 hours The labor lumber and demand requirements are given as follows

Resource Desk Table ChairLabor (hours) 075 2 05Lumber (pounds) 7 15 4Nails (pounds) 05 2 025

Demand 50 75 100

Assume that there are 20000 pounds of lumber and 20000 pounds of nails available for both shifts

Use Excel to formulate and solve this problem to minimize total labor cost

Chapter Three 52

17 A manufacturer of 19rdquo LCD monitors encounters the following quarterly production cost demand and production capacity for its monitors

Quarter1 2 3 4

Production CostLCD $290 $275 $265 $255Demand 500 550 600 550Maximum Production Capacity 600 700 600 700

To maintain a stable workforce the manufacturer wants to produce at least 500 units each quarter To meet unexpected fluctuation in demand the company wants to hold at least 100 monitors in stock each quarter The cost of carrying a monitor in stock is $5 each quarter Assume that beginning inventory is zero Use Excel to formulate and solve this problem to determine to minimize production and inventory costs

53 Test Item File

18 A real estate developer is planning to build an office complex Currently there are three office sizes under consideration small medium and large Small offices can be rented for $600 per month medium offices can be rented for $750 per month and large offices can be rented for $1000 per month Each small office requires 600 square feet each medium office requires 800 square feet and each large office requires 1000 square feet The current plot of land available to the developer is 100000 square feet The developer wants to ensure that the office complex has at least 3 units of each office size Use Excel to formulate and solve this problem to maximize total revenue

Chapter Three 54

19 Speedy Lube has 4 bays in its shop and 3 cars waiting for an oil change The estimated time (in minutes) to change the oil and filter for each car in each bay is given as follows

CarBay A B C1 10 12 92 15 13 123 14 12 104 13 11 12

Which car should be assigned to which bay if Speedy Lube wants to minimize its total service time Use Excel to formulate and solve this problem

55 Test Item File

20 A company is considering various advertising media to promote its new toy Pertinent information regarding potential customers reached and costs per advertisement isillustrated below

No of Customers Maximum Times Cost perMedia Reached Available per Month AdvertisementDaytime TV 1000 10 $2000Evening TV 3000 8 $3500Daytime Radio 500 15 $1000Evening radio 750 15 $1500Newspaper 900 4 $500

Currently the company has a monthly advertising budget of $150000 The marketing department has imposed the following restrictions

No more than $20000 may be spent on radio advertising each month At least 5 TV ads must be used each month

Use Excel to formulate and solve this problem to maximize monthly audience exposure

51 Test Item File

16 A furniture manufacturer produces three products desks tables and chairs These products can be produced during either the morning shift or the evening shift The morning shift has a labor cost of $20 per hour with a maximum availability of 20000 hours The evening shift has a labor cost of $25 per hour and is limited to 15000 hours The labor lumber and demand requirements are given as follows

Resource Desk Table ChairLabor (hours) 075 2 05Lumber (pounds) 7 15 4Nails (pounds) 05 2 025

Demand 50 75 100

Assume that there are 20000 pounds of lumber and 20000 pounds of nails available for both shifts

Use Excel to formulate and solve this problem to minimize total labor cost

Chapter Three 52

17 A manufacturer of 19rdquo LCD monitors encounters the following quarterly production cost demand and production capacity for its monitors

Quarter1 2 3 4

Production CostLCD $290 $275 $265 $255Demand 500 550 600 550Maximum Production Capacity 600 700 600 700

To maintain a stable workforce the manufacturer wants to produce at least 500 units each quarter To meet unexpected fluctuation in demand the company wants to hold at least 100 monitors in stock each quarter The cost of carrying a monitor in stock is $5 each quarter Assume that beginning inventory is zero Use Excel to formulate and solve this problem to determine to minimize production and inventory costs

53 Test Item File

18 A real estate developer is planning to build an office complex Currently there are three office sizes under consideration small medium and large Small offices can be rented for $600 per month medium offices can be rented for $750 per month and large offices can be rented for $1000 per month Each small office requires 600 square feet each medium office requires 800 square feet and each large office requires 1000 square feet The current plot of land available to the developer is 100000 square feet The developer wants to ensure that the office complex has at least 3 units of each office size Use Excel to formulate and solve this problem to maximize total revenue

Chapter Three 54

19 Speedy Lube has 4 bays in its shop and 3 cars waiting for an oil change The estimated time (in minutes) to change the oil and filter for each car in each bay is given as follows

CarBay A B C1 10 12 92 15 13 123 14 12 104 13 11 12

Which car should be assigned to which bay if Speedy Lube wants to minimize its total service time Use Excel to formulate and solve this problem

55 Test Item File

20 A company is considering various advertising media to promote its new toy Pertinent information regarding potential customers reached and costs per advertisement isillustrated below

No of Customers Maximum Times Cost perMedia Reached Available per Month AdvertisementDaytime TV 1000 10 $2000Evening TV 3000 8 $3500Daytime Radio 500 15 $1000Evening radio 750 15 $1500Newspaper 900 4 $500

Currently the company has a monthly advertising budget of $150000 The marketing department has imposed the following restrictions

No more than $20000 may be spent on radio advertising each month At least 5 TV ads must be used each month

Use Excel to formulate and solve this problem to maximize monthly audience exposure

Chapter Three 52

17 A manufacturer of 19rdquo LCD monitors encounters the following quarterly production cost demand and production capacity for its monitors

Quarter1 2 3 4

Production CostLCD $290 $275 $265 $255Demand 500 550 600 550Maximum Production Capacity 600 700 600 700

To maintain a stable workforce the manufacturer wants to produce at least 500 units each quarter To meet unexpected fluctuation in demand the company wants to hold at least 100 monitors in stock each quarter The cost of carrying a monitor in stock is $5 each quarter Assume that beginning inventory is zero Use Excel to formulate and solve this problem to determine to minimize production and inventory costs

53 Test Item File

18 A real estate developer is planning to build an office complex Currently there are three office sizes under consideration small medium and large Small offices can be rented for $600 per month medium offices can be rented for $750 per month and large offices can be rented for $1000 per month Each small office requires 600 square feet each medium office requires 800 square feet and each large office requires 1000 square feet The current plot of land available to the developer is 100000 square feet The developer wants to ensure that the office complex has at least 3 units of each office size Use Excel to formulate and solve this problem to maximize total revenue

Chapter Three 54

19 Speedy Lube has 4 bays in its shop and 3 cars waiting for an oil change The estimated time (in minutes) to change the oil and filter for each car in each bay is given as follows

CarBay A B C1 10 12 92 15 13 123 14 12 104 13 11 12

Which car should be assigned to which bay if Speedy Lube wants to minimize its total service time Use Excel to formulate and solve this problem

55 Test Item File

20 A company is considering various advertising media to promote its new toy Pertinent information regarding potential customers reached and costs per advertisement isillustrated below

No of Customers Maximum Times Cost perMedia Reached Available per Month AdvertisementDaytime TV 1000 10 $2000Evening TV 3000 8 $3500Daytime Radio 500 15 $1000Evening radio 750 15 $1500Newspaper 900 4 $500

Currently the company has a monthly advertising budget of $150000 The marketing department has imposed the following restrictions

No more than $20000 may be spent on radio advertising each month At least 5 TV ads must be used each month

Use Excel to formulate and solve this problem to maximize monthly audience exposure

53 Test Item File

18 A real estate developer is planning to build an office complex Currently there are three office sizes under consideration small medium and large Small offices can be rented for $600 per month medium offices can be rented for $750 per month and large offices can be rented for $1000 per month Each small office requires 600 square feet each medium office requires 800 square feet and each large office requires 1000 square feet The current plot of land available to the developer is 100000 square feet The developer wants to ensure that the office complex has at least 3 units of each office size Use Excel to formulate and solve this problem to maximize total revenue

Chapter Three 54

19 Speedy Lube has 4 bays in its shop and 3 cars waiting for an oil change The estimated time (in minutes) to change the oil and filter for each car in each bay is given as follows

CarBay A B C1 10 12 92 15 13 123 14 12 104 13 11 12

Which car should be assigned to which bay if Speedy Lube wants to minimize its total service time Use Excel to formulate and solve this problem

55 Test Item File

20 A company is considering various advertising media to promote its new toy Pertinent information regarding potential customers reached and costs per advertisement isillustrated below

No of Customers Maximum Times Cost perMedia Reached Available per Month AdvertisementDaytime TV 1000 10 $2000Evening TV 3000 8 $3500Daytime Radio 500 15 $1000Evening radio 750 15 $1500Newspaper 900 4 $500

Currently the company has a monthly advertising budget of $150000 The marketing department has imposed the following restrictions

No more than $20000 may be spent on radio advertising each month At least 5 TV ads must be used each month

Use Excel to formulate and solve this problem to maximize monthly audience exposure

Chapter Three 54

19 Speedy Lube has 4 bays in its shop and 3 cars waiting for an oil change The estimated time (in minutes) to change the oil and filter for each car in each bay is given as follows

CarBay A B C1 10 12 92 15 13 123 14 12 104 13 11 12

Which car should be assigned to which bay if Speedy Lube wants to minimize its total service time Use Excel to formulate and solve this problem

55 Test Item File

20 A company is considering various advertising media to promote its new toy Pertinent information regarding potential customers reached and costs per advertisement isillustrated below

No of Customers Maximum Times Cost perMedia Reached Available per Month AdvertisementDaytime TV 1000 10 $2000Evening TV 3000 8 $3500Daytime Radio 500 15 $1000Evening radio 750 15 $1500Newspaper 900 4 $500

Currently the company has a monthly advertising budget of $150000 The marketing department has imposed the following restrictions

No more than $20000 may be spent on radio advertising each month At least 5 TV ads must be used each month

Use Excel to formulate and solve this problem to maximize monthly audience exposure

55 Test Item File

20 A company is considering various advertising media to promote its new toy Pertinent information regarding potential customers reached and costs per advertisement isillustrated below

No of Customers Maximum Times Cost perMedia Reached Available per Month AdvertisementDaytime TV 1000 10 $2000Evening TV 3000 8 $3500Daytime Radio 500 15 $1000Evening radio 750 15 $1500Newspaper 900 4 $500

Currently the company has a monthly advertising budget of $150000 The marketing department has imposed the following restrictions

No more than $20000 may be spent on radio advertising each month At least 5 TV ads must be used each month

Use Excel to formulate and solve this problem to maximize monthly audience exposure