# Make sure to show all your work to get full credit. The instructor

Make sure to show all your work to get full credit. The instructor needs to know the formulas and calculations you used to get to your final answer.

You can do part

of the exam in Excel and Paste your Excel work into this document.
Problem 1.
Arsenal Electronics is going to construct a new \$1.2 billion semiconductor plant and has selected four towns in the Midwest as potential sites. The important location

factors and ratings for each town are as follows:
Scores (0 to 100)
Location Factor    Weight    Abbeton    Bayside    Cane Creek    Dunnville
Work ethics    0.18    80    90    70    75
Quality of life    0.16    75    85    95    90
Labor laws/unionization    0.12    90    60    60    70
Infrastructure    0.10    60    50    60    70
Education    0.08    80    90    85    95
Labor skill and education    0.07    75    65    70    80
Cost of living    0.06    70    80    85    75
Taxes    0.05    65    70    55    60
Incentive package    0.05    90    95    70    80
Government regulations    0.03    40    50    65    55
Environmental regulations    0.03    65    60    70    80
Transportation    0.03    90    80    95    80
Space for expansion    0.02    90    95    90    90
Urban proximity    0.02    60    90    70    80

Recommend a site based on these location factors and ratings.

Problem 2.
Sawyer Furniture is one of the few remaining domestic manufacturers of wood furniture. In the current competitive environment, cost containment is the key to its

continued survival. Demand for furniture follows a seasonal demand pattern with increased sales in the summer and fall months, culminating with peak demand in

November.
The cost of production is \$16 per unit for regular production, \$24 for overtime, and \$33 for subcontracting. Hiring and firing costs are \$500 per worker. Inventory

holding costs are \$20 per unit per month. There is no beginning inventory. Ten workers are currently employed. Each worker can produce 50 pieces of furniture per

month. Overtime cannot exceed regular production. Given the following demand data, use Excel Solver to design an aggregate production plan for Sawyer Furniture that

will meet demand at the lowest possible cost.
Input:    Beg. Wkrs    10    Regular    \$16    Hiring    \$500
Units/wkr    50    Overtime    \$24    Firing    \$500
Beg. Inv.    0    Subk    \$33    Inventory    \$20
Month    Demand    Reg    OT    Subk    Inv    #Wkrs    #Hired    #Fired
Jan    500    500    0    0    0    10    0    0
Feb    500    500    0    0    0    10    0    0
Mar    1000    1,000    0    0    0    20    10    0
Apr    1200    1,000    200    0    0    20    0    0
May    2000    1,000    1,000    0    0    20    0    0
Jun    400    400    0    0    0    8    0    12
Jul    400    400    0    0    0    8    0    0
Aug    1000    1,000    0    0    0    20    12    0
Sep    1000    1,000    0    0    0    20    0    0
Oct    1500    1,500    0    0    0    30    10    0
Nov    7000    3,500    3,500    0    0    70    40    0
Dec    500    500    0    0    0    10    0    60
Total    17,000    12,300    4,700    0    0    246    72    72

Problem 3.
Complete the following MRP matrix for Item X. Determine when orders should be released and the size of those orders.
Item: X    LLC: 0    Period
Lot Size: Min 50    LT: 2    1    2    3    4    5    6    7    8
Gross Requirements         25    30    56    25    100    40    30    20
Scheduled Receipts              50
Projected on Hand    30
Net Requirements
Planned Order Receipts
Planned Order Releases
Release orders in periods 1 through 5 for quantities of 50, 50, 56, 50, and 50 respectively.

Problem 4.
Fibrous Incorporated makes products from rough tree fibers. Its product line consists of five items processed through one of five machines. The machines are

not identical, and some products are better suited to some machines. Given the following production time in minutes per unit, determine an optimal assignment of

product to machine:
Machine
Product    A    B    C    D    E
1    17    10    15    16    20
2    12    ‚9    16    ‚9    14
3    11    16    14    15    12
4    14    10    10    18    17
5    13    12    ‚9    15    11

Problem 5.
The following probabilistic activity time estimates are for a CPM/PERT network.
Time Estimates (days)         Time Estimates (days)
Activity    a    m    b    Activity    a    m    b
1    1    2    ‚6    ‚7    1    1.5    2
2    1    3    ‚5    ‚8    1    3    5
3    3    5    10    ‚9    1    1    5
4    3    6    14    10    2    4    9
5    2    4    ‚9    11    1    2    3
6    2    3    ‚7    12    1    1    1
Determine the following:
a.    Expected activity times
b.    Earliest start and finish times
c.    Latest start and finish times
d.    Activity Slack
e.    Critical Path
Expected Project duration and standard deviation.