1. Review 2-08 1 30 hospitals were rated on several characteristics including daily patient volume and nurse-to- patient ratio, where a daily patient volume of 200 and a nurse-to-patient ratio of 3.0 are considered to be high 16 hospitals had a daily patient volume of at least 200; one-third of the hospitals had a nurse-to- patient ratio of at least 3.0; and seven of the hospitals had both a nurse-to-patient ratio of at least 3.0 and a daily patient volume of at least 200

2. Review 2-08 2 a) Find the probability of a hospital having a daily patient volume of at least 200; a nurse-to-patient ratio of at least 3.0; and both a nurse-to-patient ratio of at least 3.0 and a daily patient volume of at least 200

3. Review 2-08 3 b) What is the probability that a hospital had either a daily patient volume of at least 200 a nurse-to-patient ratio of at least 3.0 or had both?

4. Review 2-08 4 c) What is the probability that a hospital did not have a daily patient volume of at least 200 or a nurse-to-patient ratio of at least 3.0?

5. Review 2-08 5 Construct a joint probability table

6. Review 2-08 6 Inpatient volume / nurse-patient ratio High Inpatient Volume (PV) Inpatient Volume Not High (PV C ) Total High Nurse-to- Patient Ratio (NPR) Nurse-to-Patient Ratio Not High (NPR C ) Total

7. Review 4-1 7 A company is expanding a retail store and is considering two different build options: 1) add a second floor, 2) expand the ground floor layout. Based on market analysis, the company has estimated that sales will be impacted in different ways by the build option that is selected and by overall macro economic conditions: 1) strong economic growth, 2) moderate economic growth, 3) weak economic growth

8. Review 4-1 8 Construct a payoff table for the problem

9. Review 4-1 9 a) Construct a decision tree for the problem

10. Review 4-1 10 b) If the decision-maker has no information about the state of nature probabilities, what are the build decisions for the optimistic, conservative, and min-max regret approaches?

11. Review 4-1 11

12. Review 4-1 12 What is the EV associated with each decision?

13. Review 4-1 13 What is the EOL associated with each decision?

14. Review 4-1 14 What is the EVPI?

15. Review 4-13 15 A winery is considering two varieties of white grapes: Chardonnay and Riesling. There is a lot of uncertainty about demand for the different wines. Management is considering three possibilities: 1) Chardonnay grapes only, 2) Riesling grapes only, and 3) both grape types. Management has developed demand forecasts for two different demand possibilities, strong and weak

16. 16 Review Riesling Demand Weak Riesling Demand Strong Chardonnay Demand Weak 0.050.5 Chardonnay Demand Strong 0.250.2 Demand Projections

17. 17 Review Riesling Demand Weak Riesling Demand Strong Chardonnay Demand Weak $22,000$40,000 Chardonnay Demand Strong $26,000$60,000 Revenue Projections Plant Chardonnay Only: $20,000 $70,000 Weak Demand Strong Demand Plant Riesling Only: $25,000 $45,000 Plant Chardonnay and Riesling

18. Review 4-13 18 a)What is the decision to be made? What is the chance event? What is the consequence? Create a decision tree

19. 19 Review 2 3 4 1 Char. demand weak Char. demand strong W, W W, S S, W S, S 20 Ries. demand strong Ries. demand weak 70 22 40 26 60 25 45 Char. only Ries. only both 0.55 0.45 0.05 0.50 0.25 0.20 0.30 0.70

20. Review 4-13 20 c)What are the EVs associated with the different decisions?

21. Review 4-13 21 c)What are the EVs associated with the different decisions?

22. Review 4-13 22 d)Assume that (S, W) changes from 0.25 to 0.05 and (S, S) changes from 0.2 to 0.4. How does this change the decision? Riesling Demand Weak Riesling Demand Strong Chardonnay Demand Weak 0.050.5 Chardonnay Demand Strong 0.050.4

23. 23 Review 2 3 4 1 Char. demand weak Char. demand strong W, W W, S S, W S, S 20 Ries. demand strong Ries. demand weak 70 22 40 26 60 25 45 Char. only Ries. only both 0.55 0.45 0.05 0.50 0.05 0.40 0.10 0.90

24. Review 4-13 24

25. Review 4-13 25 e)Supposed profit projections for the case when demand for Chardonnay is strong when Chardonnay only grapes are planted changes from $70K to $50. If we use the original probabilities (not d), what is the best decision?

26. 26 Review 2 3 4 1 Char. demand weak Char. demand strong W, W W, S S, W S, S 20 Ries. demand strong Ries. demand weak 50 22 40 26 60 25 45 Char. only Ries. only both 0.55 0.45 0.05 0.50 0.25 0.20 0.30 0.70

27. Review 4-13 27

28. Review 10-transshipment (Figure 10.4 in book) 28 A company has 2 manufacturing plants (one in Atlanta and one in Denver). The components from the manufacturing plants are sent to two different warehouses (one in Kansas City and one in Louisville). From the warehouses the product is shipped to four different retail outlets in Detroit, Miami, Dallas, and New Orleans

29. 29

30. Review 10-transshipment (Figure 10.4 in book) 30 Formulate the LP for the problem (OF)

31. Review 10-transshipment (Figure 10.4 in book) 31 Supply or origin constraints

32. Review 10-transshipment (Figure 10.4 in book) 32 Balance / flow constraints for transshipment nodes

33. Review 10-transshipment (Figure 10.4 in book) 33 Demand or destination constraints