1. 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 Modeling Applications: With Computer Analyses in Excel and QM for Windows

2. To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-2 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458 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.

3. To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-3 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458 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

4. To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-4 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458 Marketing Applications Media Selection: Win Big Gambling Club

5. To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-5 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458 Win Big Gambling Club :toSubject )spots/weekTV(max 12X 1  expense) radio(max 1800380X290X 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)

6. To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-6 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458 Win Big Gambling Club - QM for Windows

7. To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-7 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458 Manufacturing Applications Variety of Tie Selling Price per Tie ($) Monthly Contract Minimum Monthly Demand Material Required per Tie (Yds) Material Require- ments All silk6.70600070000.125100% silk All polyester 3.5510000140000.08100% polyester Poly- cotton blend 1 4.3113000160000.1050% poly/50% cotton Poly- cotton - blend 2 4.81600085000.1030% poly/70% cotton Production Mix - Fifth Avenue

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

9. To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-9 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458 Fifth Avenue QM for Windows

10. To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-10 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458 Manufacturing Applications Truck Loading - Goodman Shipping ItemValue ($) Weight lbs 122,5007,500 224,0007,500 38,0003,000 49,5003,500 511,5004,000 69,7503,500

11. To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-11 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458 Goodman Shipping                      X X X X X X X (Capacity)    XXXXX : Subject to:       XX X    XXX :value load Maximize

12. To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-12 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458 Goodman Shipping - Excel

13. To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-13 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458 Goodman Shipping - Excel

14. To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-14 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458 Manufacturing Applications

15. To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-15 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458 Low Knock Oil Company Minimize 30X 1 + 30X 2 + 34.80X 3 + 34.80X 4 Subject to: X 1 + X 3  25000 X 2 + X 4  32000 -0.10 X 1 + 0.15X 3  0 0.05X 2 – 0.25X 4  0

16. To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 8-16 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458 Low Knock Oil Company QM for Windows