Complete Problem 7 in Chapter 3 in the text. Develop a two to three-page business memorandum (not including the title and reference pages, and formatted as outlined on pages 30 through 32) to detail your answers and recommendations. To receive full credit for this assignment you must address the following: (a through d):
a.Determine the optimal weekly production schedule for MVC. What is the optimal weekly profit?
b.What is the minimum price that would justify producing the Plus Model? Explain.
c.If MVC could purchase additional 17 inch monitors for $15 more than what they are currently paying for them, should they do this? Explain.
d.Suppose an additional worker could be hired for $1000 per week over the existing weekly worker salary. (Recall that workers average 30 hours per week.) Analyze why MVC should do this.
Required Text
Lawrence, J., & Pasternack, B. (2002). Applied management science: Modeling, spreadsheet analysis, and communication for
decision making (2nd ed.) [with accompanying CD-ROM]. Hoboken, NJ: John Wiley & Sons, Inc. ISBN: 9780471391906
Required Article
Satell, G. (2013, July 15). Why the future of innovation is simulation. Forbes. Retrieved from http://www.forbes.com/sites/gregsatell/2013/07/15/why-the-future-of-innovation-is-simulation/
Recommended Website
Classification and Regression Trees. Retrieved from http://www.dtreg.com/classregress.htm
Recommended Readings
The following articles can be found by clicking the Library link in the left navigation bar. Select the appropriate library database from the table and search by author last name and article title within the database. The best database in which to find each article is listed at the end of the article citation.
Delgado, V.G., Gunter, J.E., & Badiru, A.B. (2004). Comparative study of critical resource diagramming versus PERT and CPM. IIE Annual Conference. Proceedings, 1. Retrieved from ProQuest Database.
Huang, S., & Yang, F. (2010). Solving transportation network design problem with MARKOV traffic. Interdisciplinary Journal of Contemporary Research in Business, 2(6), 9-23. Retrieved from ProQuest Database.
Hymans, S.H. (n.d.). Forecasting and Econometric Models. The Concise Encyclopedia of Economics. Retrieved from http://www.econlib.org/library/Enc/ForecastingandEconometricModels.html.
LeBlanc, L.J., & Galbreth, M.R. (2007). Implementing large-scale optimization models in Excel using VBA. Interfaces, 37(4), 370-382,396. Retrieved from ProQuest Database.
Nassar, K. (2004). Using spreadsheets to optimally unbalance a construction bid. Cost Engineering, 46(12), 28-32. Retrieved from ProQuest Database.
Pasupathy, K.S., & Medina-Borja, A. (2008). Integrating Excel, Access, and Visual Basic to deploy performance measurement and evaluation at the American Red Cross. Interfaces, 38(4), 324-337, 351-352. Retrieved from ProQuest Database.
Yang, J. (2007). How the critical chain scheduling method is working for construction. Cost Engineering, 49(4), 25-32. Retrieved from ProQuest Database.
