MDB4443Z

Exam 1

22/10/18

1. Refer pg 324 Heizer

Feasible process

Up to 1.5, Mass customization: Profit = 25,000*150 – 1,300,000 – 1625,000 = 3750000 -1300000 – 1625000
=825000

Up to repetitive: profit = 3750000 – 1700000 – 1525000= 525000

Up to continuous = (3750-2000-1325) 000 = 425000

The most profitable is mass customization

2.
Decision to Build pilot plant:

Scenario 1: 0.5*0.9 = 0.45 the plant will work

Scenario 2: 0.5 * 0.1 = 0.05 the plant will not work

Scenario 3: 0.5 * 0.2 = 0.1 the plant will work

Scenario 4: 0.5 * 0.6 = 0.4 the plant will not work

Probability plant will work = 0.45 + 0.1 = 0.55

Probability plant will not work = 0.05 + 0.4 = 0.45

Thus build the plant

3.

Z = 30X1 + 20X2

4X1 + 3X2 <= 300

1X1 + 2X2 <= 170