1. 1/31: LP Applications From last time: Using MS Excel to solve LPs
Telemarketers
Marketing:
Media Selection
Review Sensitivity Analysis in MS Excel
Production:
Make-or-Buy
Production Planning
Group Exercise?
Homework

2. Using MS Excel for LP: Group Exercise
A telemarketing company needs to contact 150 wives, 120 husbands, 100 single males, and 110 single females. A day call costs $2.00, and an evening call costs $5.00. No more than half the calls can be made at night. See the table for percentage of answers. No more than half the calls can be made at night. Minimize the cost.
Who answers
Wife
Husband
Single male
Single female
No one
Day
30%
10%
40%
Night
15%
20% 5%

3. Marketing: Media Selection
A advertising firm has chosen to divide their new ad campaign across 5 media outlets this month. Maximize their “quality exposure units” with a $30,000 budget. Other constraints: min. 10 TV commercials, min. 50,000 potential customers must be reached, and max. $18,000 spent on TV.
# Potential customers
$ / Ad
Max. times available / month
Exposure Quality Units
Day TV
1000
$1500 15 65
Evening TV
2000
$3000 10 90
Daily paper
1500
$400 25 40
Sunday paper
2500
$1000 4 60
Radio
300
$100 30 20
See solution

4. Production: Make-or-Buy Decision
A company makes two types of calculators, A & B. Each type has 3 parts: a base, electronics, and a faceplate. The same base is used for the 2 models. The company can make or purchase all the parts. They need 3000 Type A & 2000 Type B. Manufacturing cap.: 200 hrs. reg. time, 50 hrs. OT at an extra $9.00/hr. Minimize their cost.
Component
Manu. $ (reg. time)
Manu. time (min.)
Purchase
Base
$0.50
1.0
$0.60
Electronics A
3.75
3.0
4.00
Electronics B
3.30
2.5
3.90
Top A
0.60
0.65
Top B
0.75
1.5
0.78
See solution

5. Production: Production Scheduling
James Beerd makes cheesecakes & Black Forest cakes. Each day, he can bake 65 cakes. It costs $0.50 to hold a cheesecake and $0.40 to hold a Black Forest cake in inventory for a day. Minimize the cost of meeting the next 3 days’ demand.
Day 1
Day 2
Day 3
Demand
Cost/ Cake
Cost/ cake
Cheesecake 40
$3.00 30
$3.40 20
$3.80
Black Forest cake
$2.50
$2.80 10
See solution

6. Group Exercise
Schwing Co. produces two types of bicycles: the Wing and the Sail. Maximize the profit based on the following information using MS Excel.
Department
Product (hours / unit)
Labor-hours available
Wing
Sail A
1.00
0.35
100 B
0.30
0.20 36 C
0.50 50
Profit/ unit
$30.00
$15.00

7. Using MS Excel for LP: Homework from last time
Ch. 3 #25, 26, 27 (not b&c), 34 Along with working up an Excel Solver answer to the problems, answer all questions in the problems – type them on the spreadsheets, or add a worksheet to answer each problem’s questions.
Turn in printouts of solved spreadsheets, formulas, and answers, and the Excel files by BEGINNING OF CLASS Thursday, February 7

8. Using MS Excel for LP: Homework from this time
Ch. 4 #1, 14, 17, 21 Along with working up an Excel Solver answer to the problems, answer all questions in the problems – type them on the spreadsheets, or add a worksheet to answer each problem’s questions.
Turn in printouts of solved spreadsheets, formulas, and answers, and the Excel files by BEGINNING OF CLASS Thursday, February 7