1. Bonus Problem 1

2. Decision Models -- Prof. Juran2 Optimization Example: Malcolm’s Glass Shop

3. Decision Models -- Prof. Juran3 Managerial Problem Definition Malcolm owns a glass-molding machine capable of producing two products: six- ounce juice glasses and ten-ounce cocktail glasses. He needs to decide how many of each product he ought to make each week in order to make the greatest profit. He is limited by the production rate of the machine, demand for one of the products, and storage space.

4. Decision Models -- Prof. Juran4 Formulation Decision variables: How many to produce of two products. Objective: Maximize Profit. Constraints: The molding machine can only produce so many glasses in a week. There is a market limit for 6-oz glasses. There is a limit on storage space. Malcolm can’t make negative amounts of either product.

5. Decision Models -- Prof. Juran5 Formulation Maximize Profit from 6-oz glasses + Profit from 10-oz glasses Subject to: Molding Machine capacity used for 6-oz + Molding Machine capacity used for 10-oz  Total Molding capacity Storage Space used for 6-oz + Storage Space used for 10-oz  Total Storage Space 6-oz glasses produced  Total Demand for 6-oz 6-oz glasses produced  0 10-oz glasses produced  0

6. Decision Models -- Prof. Juran6 Formulation

7. Decision Models -- Prof. Juran7 Formulation

8. Decision Models -- Prof. Juran8 Solution Methodology

9. Decision Models -- Prof. Juran9 Solver Dialog Box

10. Decision Models -- Prof. Juran10 Solver Options

11. Decision Models -- Prof. Juran11 Solver Answer Report

12. Decision Models -- Prof. Juran12 Communicating Graphically

13. Decision Models -- Prof. Juran13 Enhancing Charts

14. Decision Models -- Prof. Juran14 Enhancing Charts

15. Decision Models -- Prof. Juran15 Conclusions and Recommendations Make 642 cases of 6-oz glasses and 428 cases of 10-oz glasses. Earn $5,143 profit.