Earl Shell owns his own Sno-Cone business and lives 30 miles from a beach resort. The sale of Sno-Cones is highly dependent upon his location and upon the weather. At the resort, he will profit $110 per day in fair weather, $20 per day in foul weather. At home, he will profit $70 in fair weather, $50 in foul weather. Assume that on any particular day, the weather service suggests a 60% chance of fair weather. If Earl could find a forecaster who could tell him each day if it would be fair or foul weather how much would he be willing to pay for that perfect information? The payoff table is   Profit Fair weather Foul weather   Probability = 0.6 Probability = .4 Sell at the resort 110 20 Sell at home 70 50

Which time-series model uses BOTH past forecasts and past demand data to generate a new forecast?

What is the region that satisfies all of the constraints in linear programming called?

Productivity can be improved by:

A bakery must decide how many pies to prepare for the upcoming weekend. The bakery has the option to make 50, 100, or 150 pies.  Assume that demand for the pies can be 50, 100, or 150.  Each pie costs $5 to make and sells for $7.  Unsold pies are donated to a nearby charity center.  Assume that there is no opportunity cost for lost sales. Which alternative should be chosen based on the minimax regret criterion?     States of nature   50 100 150 50       100       150      

What combination of x and y will yield the optimum for this problem? Maximize $3x + $15y, subject to (1) 2x + 4y ≤ 12 and (2) 5x + 2y ≤ 10 and (3) x, y ≥ 0.

Tiny Rick industries packages two product in their Florida Plant. Pancake’s Pancake mix (Mix) and Pickle Rick’s seasoning salt (Salt).  Making 1 batch of  Mix requires 3 hours of mixing time and 1 hour of packaging time. Making 1 batch of Salt Requires 5 hours of mixing and 2 hours of packaging time.  There is a total weekly allotment of 40 hours of mixing and 15 hours of packaging.  Demand for the mix will not exceed 5 batches per week and demand for the salt will not exceed 6 batches per week.  Each batch of mix or salt is expected to generate profit of $120 and $400, respectively. What is the expected weekly profit if Rick optimizes his production based on profit maximization?

Dustin Doors operates 8 hours each day, producing [parts] doors/hour. If productivity were increased [increase]%, how many hours would the plant have to work to produce 800 door? (round your answer to the nearest whole number)

Study Ledge employees part time workers who combine to work a total of 10 hours per day producing study packets. The labor cost for these worked is $8 per hour.  Last semester, the workers combined to produce 650 study packets per work day. This semester they have leased a faster printer which is estimated to cost an additional $20/hour when being used to print packages and is expected to increase labor productivity by 40%. What is the new labor productivity expected to be?

Sterling Archer runs a tie factory. The factory makes 4 types of ties, Silk, Polyester, Blend 1 and Blend 2.  Blend 1 and Blend 2 each are cotton polyester blends.  Archer is limited each week in the number he can make by the amount of each of the three raw materials he can order from his vendor.  He also has maximum demands on each tie type as well as contractually obligated minimums that he must produce.  He has optimized his production strategy to maximize profit using a linear program.  The sensitivity analysis is below.  How much more money could Mr. Archer make each week, according to the model, if he could get is vender to sell him 10% more cotton than he currently receives at his current price?       Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease $B$3 Number of Units Silk 7000 0 3.45 1E+30 3.45 $C$3 Number of Units Poly 13625 0 2.32 2.176 0.952 $D$3 Number of Units Blend 1 13100 0 2.81 0.34 1.36 $E$3 Number of Units Blend 2 8500 0 3.25 1E+30 0.476     Final Shadow Constraint Allowable Allowable Cell Name Value Price R.H. Side Increase Decrease $F$11 Yards of Silk 875 0 1000 1E+30 125 $F$12 Yards of Poly 2000 29 2000 30 290 $F$13 Yards of Cotton 1250 27.2 1250 145 5 $F$14 Max Silk 7000 3.45 7000 1000 1000 $F$15 Max Poly 13625 0 14000 1E+30 375 $F$16 Max B1 13100 0 16000 1E+30 2900 $F$17 Max B2 8500 0.476 8500 71.42857143 2071.428571 $F$18 Min Silk 7000 0 6000 1000 1E+30 $F$19 Min Poly 13625 0 10000 3625 1E+30 $F$20 Min B1 13100 0 13000 100 1E+30 $F$21 Min B2 8500 0 6000 2500 1E+30