A hypermarket sells a specific brand of mobile phones and earns a profit of AED100 per mobile. It incurs a holding cost of AED40 per mobile per month if a stocked mobile is not sold. Holding cost is a portion of rent, insurance, and other expenses. If there is a shortage, the hypermarket assigns a goodwill cost of AED75 per mobile. The store has a stocking policy of 210 mobiles a month. The demand for mobile is normally distributed with a mean of 200 and standard deviation of 30. Simulate the operation for 12 months and determine the mean expected net profit, standard deviation of the net profit, and the service level.
> A manufacturing company produces different variations of a product at different work centers in its plant on a daily basis. Following is a network showing the various work centers in the plant, the daily capacities at each work center, and the flow of th
> LT manufactures smartphone components, which are dependent on the global demand for smart- phones. Following are the yearly global sales (in million units) for the past 8 years. Develop a linear trend line model to forecast smartphone sales for years 9,
> Dubai-fly airline operates flights from Dubai to Milan. The demand for airline seats varies from month to month. There are few peak seasonal demands, for instance, just before and after Christmas and during August and September when schools reopen after
> Metro Food Vending operates vending machines in office buildings, the airport, bus stations, colleges, and other businesses and agencies around town, and it operates vending trucks for building and construction sites. The company believes its sandwich sa
> The Northwoods Outdoor Company is a catalog sales operation that specializes in outdoor recreational clothing. Demand for its items is very seasonal, peaking during the Christmas season and during the spring. It has accumulated the following data for ord
> The Beaver Creek Pottery Company sells bowls and mugs, hand-made by Native American artisans, at a craft store and through a Web site. Making these items requires a special type of clay and a large amount of individual person-hours, so for planning purpo
> The River is a literary magazine published by the English Department at Tech. It has a 70-year history and enjoys an excellent reputation for providing a literary outlet for aspiring Appalachian writers in particular. However, its sales, mostly through i
> The Cat Creek Mining Company mines and ships coal. It has experienced the following demand for coal during the past 8 years: Develop an adjusted exponential smoothing model (a = .30, b = .20) and a linear trend line model and compare the forecast accurac
> Monaghan’s Pizza delivery service has randomly selected 8 weekdays during the past month and recorded orders for pizza at four different time periods per day: Develop a seasonally adjusted forecasting model for daily pizza demand and fo
> Develop a seasonally adjusted forecast for the demand data for fertilizer found in Problem 3. Then use a linear trend line model to compute a forecast estimate for demand in year 4.
> The Whistle Stop Cafe in Weems, Georgia, is well known for its popular homemade ice cream, made in a small plant in back of the cafe. People drive all the way from Atlanta and Macon to buy the ice cream. The two women who own the cafe want to develop a f
> Given the following network, with the indicated flow capacities along each branch, determine the maximum flow from source node 1 to destination node 10 and the flow along each path:
> A banana growers’ society grows banana in a region. After planting saplings, it takes around 10 months to harvest stalks of bananas. Since the production cycle is long and strong wind affects the plantation, it becomes impossible to inc
> The time between arrivals of oil tankers at a loading dock at Prudhoe Bay is given by the following probability distribution: The time required to fill a tanker with oil and prepare it for sea is given by the following probability distribution: a. Simula
> First American Bank is trying to determine whether it should install one or two drive-through teller windows. The following probability distributions for arrival intervals and service times have been developed from historical data: Assume that in the two
> Sound Warehouse in Georgetown sells CD players (with speakers), which it orders from Fuji Electronics in Japan. Because of shipping and handling costs, each order must be for five CD players. Because of the time it takes to receive an order, the warehou
> Every time a machine breaks down at the Dynaco Manufacturing Company (Problem 3), 1, 2, or 3 hours are required to fix it, according to the following probability distribution: a. Simulate the repair time for 20 weeks, and then compute the average weekly
> Simulate the decision situation described in Problem 18(a) at the end of Chapter 12 for 20 weeks, and recommend the best decision.
> Solve Problem 21 at the end of Chapter 12 by using simulation.
> In Chapter 8, Figure 8.6 shows a simplified project network for building a house, as follows: There are four paths through this network: The time parameters (in weeks) defining a triangular probability distribution for each activity are provided as follo
> The Management Science Association (MSA) has arranged to hold its annual conference at the Riverside Hotel in Orlando next year. Based on historical data, the MSA believes the number of rooms it will need for its members attending the conference is norma
> In Chapter 16, the formula for the optimal order quantity of an item, Q, given its demand, D, ordering cost, Co, and the cost of holding, or carrying, an item in inventory, Cc, is as follows: The total inventory cost formula is Ordering cost, Co, and car
> Suppose in Problem 35 that the processing cost per unit at each plant is different because of different machinery, workers’ abilities, overhead, and so on, according to the following table: There are no differentiated costs at stage 5,
> Erin Jones has $100,000 and, to diversify, she wants to invest equal amounts of $50,000 each in two mutual funds selected from a list of four possible mutual funds. She wants to invest for a 3-year period. She has used historical data from the four funds
> In Problem 23, assume that production capacity at Burlingham Mills for the Troy Clothing Company contract is normally distributed, with a mean of 320 yards per month and a standard deviation of 120 yards, and that Troy Clothing’s demand is uniformly dist
> In Problem 21, assume that the students at Randolph College have redefined the probability distributions of their dates at Salem College as follows: Physical attractiveness is uniformly distributed from 1 to 5; intelligence is defined by a triangular dis
> In Problem 20, assume that the sales volume for Western Outfitters Store is normally distributed, with a mean of 600 pairs of jeans and a standard deviation of 200; the price is uniformly distributed, with a minimum of $22 and a maximum of $28; and the v
> The Dynaco Manufacturing Company produces a product in a process consisting of operations of five machines. The probability distribution of the number of machines that will break down in a week follows: a. Simulate the machine breakdowns per week for 20
> Tracy McCoy is shopping for a new car. She has identified a particular sports utility vehicle she likes but has heard that it has high maintenance costs. Tracy has decided to develop a simulation model to help her estimate maintenance costs for the life
> For the Bigelow Manufacturing example in this chapter, re-create the simulation for the improved maintenance program shown in Table 14.11 and Exhibit 14.8 using Crystal Ball. For the improved program assume that the repair time is normally distributed wi
> For the Bigelow Manufacturing example in this chapter, re-create the simulation shown in Table 14.10 and Exhibit 14.7 using Crystal Ball. Assume that the repair time is normally distributed with a mean of 2.15 days and a standard deviation of 0.8 day. As
> Perform the Crystal Ball simulation in Problem 25, assuming that demand is normally distributed with a mean of 2.5 and a standard deviation of 1.2 laptops.
> For the ComputerWorld example in this chapter, recreate the simulation shown in Exhibit 14.2 using Crystal Ball. Assume that demand is normally distributed with a mean of 1.5 laptops and a standard deviation of 0.8. Using Crystal Ball determine average w
> Diamant Foods Company produces a variety of food prod- ucts, including a line of candies. One of its most popular candy items is Divine Diamonds, a bag of a dozen individually wrapped diamond-shaped candies made primarily from a blend of dark and milk ch
> A baseball game consists of plays that can be described as follows: Distributions for these plays for two teams, the White Sox (visitors) and the Yankees (home), are as follows: Simulate a nine-inning baseball game using the preceding information.2 Sourc
> Burlingham Mills produces denim cloth that it sells to jeans manufacturers. It is negotiating a contract with Troy Clothing Company to provide denim cloth on a weekly basis. Burlingham has established its monthly available production capacity for this co
> In Problem 21, discuss how you might assess the accuracy of the average rating for Salem College students based on only 20 simulated dates.
> Randolph College and Salem College are within 20 miles of each other, and the students at each college frequently date each other. The students at Randolph College are debating how good their dates are at Salem College. The Randolph students have sampled
> The Western Outfitters Store specializes in denim jeans. The variable cost of the jeans varies according to several factors, including the cost of the jeans from the distributor, labor costs, handling, packaging, and so on. Price also is a random variabl
> The time between arrivals of cars at the Petroco Service Station is defined by the following probability distribution: a. Simulate the arrival of cars at the service station for 20 arrivals, and compute the average time between arrivals. b. Simulate the
> The emergency room of the community hospital in Farmburg has one receptionist, one doctor, and one nurse. The emergency room opens at time zero, and patients begin to arrive some time later. Patients arrive at the emergency room according to the followin
> Compcomm, Inc., is an international communications and information technology company that has seen the value of its common stock appreciate substantially in recent years. A stock analyst would like to use simulation to predict the stock prices of Compco
> A robbery has just been committed at the Corner Market in the downtown area of the city. The market owner was able to activate the alarm, and the robber fled on foot. Police officers arrived a few minutes later and asked the owner, “How long ago did the
> The Paymore Rental Car Agency rents cars in a small town. It wants to determine how many rental cars it should maintain. Based on market projections and historical data, the manager has determined probability distributions for the number of rentals per d
> Christine Yamaguchi is the manager of the A-to-Z Office Supply Company in Charlotte. The company attempts to gain an advantage over its competitors by providing quality customer service, which includes prompt delivery of orders by truck or van and always
> Loebuck Grocery orders milk from a dairy on a weekly basis. The manager of the store has developed the following probability distribution for demand per week (in cases): The milk costs the grocery $10 per case and sells for $16 per case. The carrying cos
> A city is served by two newspapers—the Tribune and the Daily News. Each Sunday readers purchase one of the newspapers at a stand. The following matrix contains the probabilities of a customer’s buying a particular news
> Each semester, the students in the college of business at State University must have their course schedules approved by the college adviser. The students line up in the hallway outside the adviser’s office. The students arrive at the of
> University is playing Tech in their annual football game on Saturday. A sportswriter has scouted each team all season and accumulated the following data: State runs four basic plays—a sweep, a pass, a draw, and an off tackle; Tech uses
> The Hoylake Rescue Squad receives an emergency call every 1, 2, 3, 4, 5, or 6 hours, according to the following probability distribution. The squad is on duty 24 hours per day, 7 days per week: a. Simulate the emergency calls for 3 days (note that this w
> A small grocery market has one checkout counter. The counter clerk takes an average of 3 minutes to serve a customer. Customers arrive at the counter at the rate of 15 per hour. The manager of the store receives feedback from customers that the wait time
> A gas station at a busy highway offers free air service for tires of cars that use the pump. The attendant checks tire pressure and inflates or deflates to the recommeded level. On an average, the attendant takes 2 minutes to check one car. Cars arrive f
> The management of Dynaco Manufacturing Company (see Problem 6) likes to have its operators working 90% of the time. What must the assembly line arrival rate be for the operators to be as busy as management would like?
> The Dynaco Manufacturing Company produces a particular product in an assembly line operation. One of the machines on the line is a drill press that has a single assembly line feeding into it. A partially completed unit arrives at the press to be worked o
> The Fort Worth Texans have won three Super Bowls in the past 5 years, including two in a row the past 2 years. As a result, sportswear such as hats, sweatshirts, sweatpants, and jackets with the Texans logo are particularly popular in Texas. The Texans o
> The Old Colony theme park has a new ride, the Double Cyclone. The ride holds 30 people in double roller coaster cars, and it takes 3.8 minutes to complete the ride circuit. It also takes the ride attendants another 3 minutes (with virtually no variation)
> The Hampton County emergency medical service (EMS) covers an area of 500 square miles with a population of over 100,000. In addition to ambulances and fire engines, the EMS is considering purchased three quick response vehicles—SUVs equipped with medical
> A laundry machine at a laundromat operates for 8 hours a day. The time between customer arrivals on average is 25 minutes. Each machine takes an average of 60 minutes (exponentially distributed) to wash and dry a batch of clothes. The manager wants the a
> In Problem 51, the passenger traffic arriving at the airport security gate varies significantly during the day. At times close to flight takeoffs, the traffic is very heavy, while at other times there is little or no passenger traffic through the securit
> In Problem 24, when the students come back for fall semester, the Sub Shop experiences a large increase in demand for about a month before it begins to level off again, such that the number of phone orders increases to an average of 8 per hour (Poisson d
> Refer to Problem 52. The clinic does not want to add a fourth doctor but plans to increase the efficiency of the existing doctors. By proper training and innovative adoption of technologies, doctors can attend up to 40 patients a day. If the arrival rate
> A renowned healthcare provider, Mediclinic, has a branch in Marina, Dubai. The clinic remains open for 8 hours a day. At present, three doctors are available to attend arriving patients. Each doctor can serve 32 patients per day (exponentially distribute
> TSA security agents at the security gate at the Tri-Cities Regional Airport are able to check passengers and process them through the security gate at a rate of 50 per hour (Poisson distributed). Passengers arrive at the gate throughout the day at a rate
> Judith Lewis is a doctoral student at State University, and she also works full-time as an academic tutor for 10 scholarship student athletes. She took the job, hoping it would leave her free time between tutoring to devote to her own studies. An athlete
> Starbucks Café at the cafeteria of a university has a single attendant who receives orders from the arriving students and passes the orders to its serviceman who prepares and delivers the ordered items to the students. The serviceman at the café can serv
> The Northwoods General Store in Vermont sells a variety of outdoor clothing items and equipment and several food products at its modern but rustic-looking retail store. Its food products include salmon and maple syrup. The store also runs a lucrative cat
> Jim Carter builds custom furniture, primarily cabinets, bookcases, small tables, and chairs. He works on only one piece of furniture for a customer at a time. It takes him an average of 5 weeks (exponentially distributed) to build a piece of furniture. A
> The Delacroix Inn in Alexandria is a small, exclusive hotel with 20 rooms. Guests can call house- keeping from 8:00 A.M. to midnight for any of their service needs. Housekeeping keeps one person on duty during this time to respond to guest calls. Each ro
> Ships arrive at the port of Savannah at the rate of 40 per 30-day month (Poisson distributed), generally with a full cargo of containers. It takes an average of 12 hours (exponentially distributed) to unload and load an average size container ship. Curre
> The Clip Joint is a hairstyling salon at University Mall. Four stylists are always available to serve customers on a first-come, first-served basis. Customers arrive at an average rate of 5 per hour, and the stylists spend an average of 35 minutes on eac
> The Waterfall Buffet in the lower level of the National Art Gallery serves food cafeteria-style daily to visitors and employees. The buffet is self-service. From 7:00 A.M. to 9:00 A.M. customers arrive at the buffet at a rate of 10 per minute; from 9:00
> Dubai airport has three immigration officers that inspect arriving tourists’ travel documents and permit them to enter the country if their visa is genuine. Each officer can check 20 tourists per hour (exponentially distributed). On an average, a tourist
> Partially completed products arrive at a workstation in a manufacturing operation at a mean rate of 40 per hour (Poisson distributed). The processing time at the workstation averages 1.2 minutes per unit (exponentially distributed). The manufacturing com
> Amanda Fall is starting up a new house painting business, Fall Colors. She has been advertising in the local newspaper for several months. Based on inquiries and informal surveys of the local housing market, she anticipates that she will get painting job
> Hudson Valley Books is a small, independent publisher of fiction and nonfiction books. Each week the publisher receives an average of seven unsolicited manuscripts to review (Poisson distributed). The publisher has 12 freelance reviewers in the area who
> The Escargot is a small French restaurant with six waiters and waitresses. The average service time at the restaurant for a table (of any size) is 85 minutes (Poisson distributed). The restaurant does not take reservations, and parties arrive for dinner
> Since the terrorist attacks of 9/11 and because of the ensu- ing measures to increase airline security, airports have faced the problem of long waiting lines and waiting times at secu- rity gates. Waiting lines can be as long as hundreds of yards, and wa
> The ticket booth on the Tech campus is operated by one person, who is selling tickets for the annual Tech versus State football game on Saturday. The ticket seller can serve an average of 12 customers per hour; on average, 10 customers arrive to purchase
> Maggie Attaberry is a nurse on the evening shift from 10:00 p.M. to 6:00 A.M. at Community Hospital. She has 15 patients for whom she is responsible in her area. She averages two calls from each of her patients every evening, on average (Poisson distribu
> In Problem 37, suppose that Moore’s television repair service cannot accommodate more than 30 TV sets at a time. What is the probability that the number of TV sets on hand (under repair and waiting for service) will exceed the shop capacity?
> Moore’s television repair service receives an average of six TV sets per 8-hour day to be repaired. The service manager would like to be able to tell customers that they can expect 1-day service. What average repair time per set will the repair shop have
> When customers arrive at Gilley’s Ice Cream Shop, they take a number and wait to be called to purchase ice cream from one of the counter servers. From experience in past summers, the store’s staff knows that customers arrive at a rate of 40 per hour on s
> The Footrite Shoe Company is going to open a new branch at a mall, and company managers are attempting to determine how many salespeople to hire. Based on an analysis of mall traffic, the company estimates that customers will arrive at the store at a rat
> The Riverview Clinic has two general practitioners who see patients daily. An average of six patients arrive at the clinic per hour. Each doctor spends an average of 15 minutes with a patient. The patients wait in a waiting area until one of the two doct
> Customers arrive to check in at the exclusive and expensive Regency Hotel’s lobby at a rate of 40 per hour (Poisson distributed). The hotel normally has three clerks available at the desk to check in guests. The average time for a clerk to check in a gue
> From 3:00 p.M. to 8:00 p.M. the local K-Star Supermarket has a steady stream of customers. Customers finish shopping and arrive at the checkout area at a rate of 70 per hour (Poisson distributed). It is assumed that when customers arrive at the cash regi
> The local Burger Doodle fast-food restaurant has a drive-through window. Customers in cars arrive at the window at the rate of 10 per hour (Poisson distributed). It requires an average of 4 minutes (exponentially distributed) to take and fill an order. T
> The Valley Swim Club has 300 stockholders, each holding one share of stock in the club. A share of club stock allows the shareholder’s family to use the club’s heated outdoor pool during the summer, upon payment of ann
> On December 16, 1944, in the last year of World War II, two German panzer armies, supported by a third army of infantry, together totaling more than 250,000 men, staged a massive counteroffensive in northern France, overwhelming the American First Army i
> The Regency Hotel has enough space at its entrance for six taxicabs to line up, wait for guests, and then load passengers. Cabs arrive at the hotel every 8 minutes; if a taxi drives by the hotel and the line is full, it must drive on. Hotel guests requir
> A single-server queuing system with an infinite calling population and a first-come, first-served queue discipline has the following arrival and service rates (Poisson distributed): = 16 customers per hour = 24 customers per hour Determine P0, P3, L,
> A company has 20 computers in its office in Johannesburg. Though the computers are brand new, they do fail and this affects the company’s work. A computer crashes every 25 days. The company estimates that it loses R10,000 a day from a faulty computer. Si
> The associate dean of the college of business at Tech is determining which of two copiers he should lease for the college’s administrative suite. A regular copier leases for $8 per hour, and it takes an employee an average of 6 minutes (exponentially dis
> Cakes baked by the Freshfood Bakery are transported from the ovens to be packaged by one of three wrappers. Each wrapper can wrap an average of 200 cakes per hour. The cakes are brought to the wrappers at the rate of 500 per hour. If a cake sits longer t
> In Problem14 , the Dynaco Company has found that if more than three units (average) are waiting to be processed at any one workstation, then too much money is being tied up in work-in-process inventory (i.e., units waiting to be processed). The company e
> The Riverton Post Office has four stations for service. Customers line up in single file for service on a FIFO basis. The mean arrival rate is 40 per hour, Poisson distributed, and the mean service time per server is 4 minutes, exponentially distributed.
> The College Avenue Sub Shop is located in a small college town. Virtually all of its phone delivery orders are in the evening, between 5:00 p.M. and 1:00 A.M., so the shop has a delivery person for that time period. It receives an average of about 3 orde
> In Problem 10, in addition to course approvals, suppose that the advisor also answers questions and provides course counseling, such that the service time can no longer be assumed to be exponentially distributed. Instead, the service time distribution is
> The Rowntown Cab Company has four cabs that are on duty during normal business hours. The cab company dispatcher receives requests for service every 8 minutes, on average, according to an exponential distribution. The average time to complete a trip is 2
> The University Bookstore is owned and operated by State University through an independent corporation with its own board of directors. The bookstore has three locations on or near the State University campus. It stocks a range of items, including textboo
