To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-1 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458 Chapter 8 LP.

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To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-1 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ Chapter 8 LP Modeling Applications: With Computer Analyses in Excel and QM for Windows

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-2 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ Learning Objectives Students will be able to Model a wide variety of medium to large LP problems. Understand major application areas, including marketing, production, labor scheduling, fuel blending, transportation, and finance. Gain experience in solving LP problems with QM for Windows and Excel Solver software.

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-3 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ Chapter Outline 8.1 Introduction 8.2 Marketing Applications 8.3 Manufacturing Applications 8.4 Employee Scheduling Applications 8.5 Financial Applications 8.6 Transportation Applications 8.7 Transshipment Applications 8.8 Ingredient Blending Applications

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-4 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ Marketing Applications Media Selection: Win Big Gambling Club

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-5 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ Win Big Gambling Club :toSubject )spots/weekTV(max 12X 1  expense) radio(max X290X 43  )spots/week radio (min   XX   XXX X )spots/week radio min.-1(max   X )spots/week radio sec.-30max   (X ads/week) newspapermax   (X :Maximize       XX XX (Weekly ad budget)

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-6 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ Win Big Gambling Club - QM for Windows

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-7 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ Manufacturing Applications Variety of Tie Selling Price per Tie ($) Monthly Contract Minimum Monthly Demand Material Required per Tie (Yds) Material Require- ments All silk % silk All polyester % polyester Poly- cotton blend % poly/50% cotton Poly- cotton - blend % poly/70% cotton Production Mix - Fifth Avenue

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-8 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ Fifth Avenue 4.00X3.56X3.07X4.08X :Maximize 4321  1) blend max, (contract X 3  2) blend max,(contract    X 2) blend min, (contract    X 1) blend min, (contract    X polyester) all max, (contract    X polyester) all min, (contract    X silk) max, (contract    X silk) min, (contract    X :toSubject cotton) (yards    X.X. polyester) (yards    X.X.X. silk) of (yards    X.

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-9 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ Fifth Avenue QM for Windows

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-10 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ Manufacturing Applications Truck Loading - Goodman Shipping ItemValue ($) Weight lbs 122,5007, ,0007,500 38,0003,000 49,5003, ,5004,000 69,7503,500

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-11 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ Goodman Shipping                      X X X X X X X (Capacity)    XXXXX : Subject to:       XX X    XXX :value load Maximize

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-12 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ Goodman Shipping - Excel

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-13 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ Goodman Shipping - Excel

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-14 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ Manufacturing Applications

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-15 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ Low Knock Oil Company Minimize 30X X X X 4 Subject to: X 1 + X 3  X 2 + X 4  X X 3  X 2 – 0.25X 4  0

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-16 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ Low Knock Oil Company QM for Windows