QSO 600 Problem Questions Problem 1 . Arsenal Electronics is
QSO 600 Problem Questions Problem 1 . Arsenal Electronics is
QSO 600 Problem Questions
Problem 1.
Arsenal Electronics is going to construct a new $1.2 billion semiconductor plant and has selected four towns in the Midwest as potential sites. The important location factors and ratings for each town are as follows:
Scores (0 to 100)
Location Factor
Weight
Abbeton
Bayside
Cane Creek
Dunnville
Work ethics
0.18
80
90
70
75
Quality of life
0.16
75
85
95
90
Labor laws/unionization
0.12
90
60
60
70
Infrastructure
0.10
60
50
60
70
Education
0.08
80
90
85
95
Labor skill and education
0.07
75
65
70
80
Cost of living
0.06
70
80
85
75
Taxes
0.05
65
70
55
60
Incentive package
0.05
90
95
70
80
Government regulations
0.03
40
50
65
55
Environmental regulations
0.03
65
60
70
80
Transportation
0.03
90
80
95
80
Space for expansion
0.02
90
95
90
90
Urban proximity
0.02
60
90
70
80
Recommend a site based on these location factors and ratings.
Answer 1:
Problem 2.
Sawyer Furniture is one of the few remaining domestic manufacturers of wood furniture. In the current competitive environment, cost containment is the key to its continued survival. Demand for furniture follows a seasonal demand pattern with increased sales in the summer and fall months, culminating with peak demand in November.
The cost of production is $16 per unit for regular production, $24 for overtime, and $33 for subcontracting. Hiring and firing costs are $500 per worker. Inventory holding costs are $20 per unit per month. There is no beginning inventory. Ten workers are currently employed. Each worker can produce 50 pieces of furniture per month. Overtime cannot exceed regular production. Given the following demand data, use Excel Solver to design an aggregate production plan for Sawyer Furniture that will meet demand at the lowest possible cost.
Input:
Beg. Wkrs
10
Regular
$16
Hiring
$500
Units/wkr
50
Overtime
$24
Firing
$500
Beg. Inv.
0
Subk
$33
Inventory
$20
Month
Demand
Reg
OT
Subk
Inv
#Wkrs
#Hired
#Fired
Jan
500
500
0
0
0
10
0
0
Feb
500
500
0
0
0
10
0
0
Mar
1000
1,000
0
0
0
20
10
0
Apr
1200
1,000
200
0
0
20
0
0
May
2000
1,000
1,000
0
0
20
0
0
Jun
400
400
0
0
0
8
0
12
Jul
400
400
0
0
0
8
0
0
Aug
1000
1,000
0
0
0
20
12
0
Sep
1000
1,000
0
0
0
20
0
0
Oct
1500
1,500
0
0
0
30
10
0
Nov
7000
3,500
3,500
0
0
70
40
0
Dec
500
500
0
0
0
10
0
60
Total
17,000
12,300
4,700
0
0
246
72
72
Answer 2:
Problem 3.
Complete the following MRP matrix for Item X. Determine when orders should be released and the size of those orders.
Item: X
LLC: 0
Period
Lot Size: Min 50
LT: 2
1
2
3
4
5
6
7
8
Gross Requirements
25
30
56
25
100
40
30
20
Scheduled Receipts
50
Projected on Hand
30
Net Requirements
Planned Order Receipts
Planned Order Releases
Release orders in periods 1 through 5 for quantities of 50, 50, 56, 50, and 50 respectively.
Answer 3:
Problem 4.
Fibrous Incorporated makes products from rough tree fibers. Its product line consists of five items processed through one of five machines. The machines are not identical, and some products are better suited to some machines. Given the following production time in minutes per unit, determine an optimal assignment of product to machine:
Machine
Product
A
B
C
D
E
1
17
10
15
16
20
2
12
9
16
9
14
3
11
16
14
15
12
4
14
10
10
18
17
5
13
12
9
15
11
Answer 4:
Problem 5.
The following probabilistic activity time estimates are for a CPM/PERT network.
Time Estimates (days)
Time Estimates (days)
Activity
a
m
b
Activity
a
m
b
1
1
2
6
7
1
1.5
2
2
1
3
5
8
1
3
5
3
3
5
10
9
1
1
5
4
3
6
14
10
2
4
9
5
2
4
9
11
1
2
3
6
2
3
7
12
1
1
1
Determine the following:
a. Expected activity times
b. Earliest start and finish times
c. Latest start and finish times
d. Activity Slack
e. Critical Path
Expected Project duration and standard deviation.
Answer 5:
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