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 FactorWeightAbbetonBaysideCane CreekDunnville

Work ethics0.1880907075

Quality of life0.1675859590

Labor laws/unionization0.1290606070

Infrastructure0.1060506070

Education0.0880908595

Labor skill and education0.0775657080

Cost of living0.0670808575

Taxes0.0565705560

Incentive package0.0590957080

Government regulations0.0340506555

Environmental regulations0.0365607080

Transportation0.0390809580

Space for expansion0.0290959090

Urban proximity0.0260907080

Recommend a site based on these location factors and ratings.

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. Wkrs10Regular$16Hiring$500

Units/wkr50Overtime$24Firing$500

Beg. Inv.0Subk$33Inventory$20

Problem 3. 

Complete the following MRP matrix for Item X. Determine when orders should be released and the size of those orders.

Item: XLLC: 0Period

Lot Size: Min 50LT: 212345678

Gross Requirements 25305625100403020

Scheduled Receipts 50  

Projected on Hand30  

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.

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

ProductABCDE

11710151620

212 916 914

31116141512

41410101817

51312 91511

Problem 5.

The following probabilistic activity time estimates are for a CPM/PERT network.

Time Estimates (days) Time Estimates (days)

ActivityambActivityamb

112 6 711.52

213 5 8135

33510 9115

4361410249

524 911123

623 712111

Determine the following:

a.Expected activity times is in Mean column

b.Earliest start and finish times

c.Latest start and finish times

d.Activity Slack

e.Critical Path

f. Expected Project duration and standard deviation.