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Quantitative Methods Problems Set

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Question;1.;Davis;Instruments;Davis Instruments has two manufacturing plants located in;Atlanta, Georgia. Product demand varies;considerably from month to month, causing Davis extreme difficulty in workforce;scheduling. Recently Davis started;hiring temporary workers supplied by workforce unlimited, a company that;specializes in providing temporary employees for firms in the greater Atlanta;area. WorkForce Unlimited offered to;provide temporary employees under three contract options that differ in terms;of the length of employment and the cost.;The three options are summarized;Option;Length;of Employment;Cost;1;One month;$2,000;2;Two months;$4,800;3;Three;$7,500;The longer contract periods are more expensive because;WorkForce Unlimited experiences greater difficulty finding temporary workers;who are willing to commit to longer work assignments.Over the next six months;David projects the following needs for additional employees;Month;January;February;March;April;May;June;Employees;Needed;10;23;19;26;20;14;Each month, Davis can hire as many temporary employees as;needed under each of the three options.;For instance, if Davis hires five employees in January under Option2;WorkForce Unlimited will supply Davis with five temporary workers who will work;two months: January and February. For;these workers, Davis will have to pay 5 ($4800) = $24,000. Because of some;merger negotiations under way, Davis does not want to commit to any contractual;obligations for temporary employees that extend beyond June.;Davis?s;quality control program requires each temporary employee to receive training at;the time of hire. The training program;is required even if the person worked for Davis Instruments in the past. Davis estimates that the cost of training is;$875 each time a temporary employee is hired.;Thus, if a temporary employee is hired for one month. Davis will incur a training cost of $875,but;will incur no additional training cost if the employee is on a two-or;three-month contract.;Managerial;Report;Develop a model that can be used to determine the number of;temporary employees Davis should hire each month under each contract plan in;order to meet the projected needs at a minimum total cost. Include the following items in your report;a) A;schedule that shows the number of temporary employees that Davis should hire;each month for each contract option.;b) If;the cost to train each temporary employee could be reduce to $700 per month;what effect would this change have on the hiring plan? Explain. Discuss the implications that this;effect on the hiring plan has for identifying methods for reducing training;costs. How much of a reduction in;training costs would be required to change the hiring plan based on a training;cost of $875 per temporary employee?;2.;Carlson;Department Store (Forecasting);The Carlson Department Store suffered heavy damage when a;hurricane struck on August 31. The store;was closed for four months (September through December), and Carson is now;involved in a dispute with its insurance company about the amount of lost sales;during the time the store was closed.;Two key issues must be resolved: (1) the amount of sales Carlson would;have made if the hurricane had not struck, and (2) whether Carlson is entitled;to any compensation for excess sales due to increased business activity after;the storm. More than $8 billion in;federal disaster relief and insurance money came into the county, resulting in;increased sales at department stores and numerous other businesses.;The;attached excel file give Carlson?s sales data for the 48 months preceding the;storm. Tale 15.20 reports total sales;for the 48 months preceding the storm for all department stores in the county;as well as the total sales in the county for the four months the Carlson;Department Store was closed. Carlson?s;managers asked you to analyze these data and develop estimates of the lost;sales at the Carlson Department Store for the months of September through;December. They also asked you to;determine whether a case can be made, Carlson is entitled to compensation for;excess sales it would have earned in addition to ordinary sales.;Carlson Department Store;County Sales;Month;Year 1;Year 2;Year 3;Year 4;Year 5;January;46.8;46.8;43.8;58;February;48;48.6;45.6;51.6;March;60;59.4;57.6;57.6;April;57.6;58.2;53.4;58.2;May;61.8;60.6;56.4;60;June;58.2;55.2;52.8;57;July;56.4;51;54;57.6;August;63;58.8;60.6;61.8;September;55.8;57.6;49.8;47.4;69;October;56.4;53.4;54.6;54.6;75;November;71.4;71.4;65.4;67.8;85.2;December;117.6;114;102;100.2;121.8;Managerial;Report;Prepare a report for the managers of the Carlson Department;Store that summarizes your findings, forecast, and recommendations. Include the following;a);An;estimate of sales for Carlson Department Store had there been no hurricane;b);An;estimate of countywide department store sales had there been no hurricane;c);An;estimate of lost sales for the Carlson Department Store for September through;December;d);In;addition, use the countywide actual department stores sales for September;through December and the estimate in part (2) to make a case for or against;excess storm-related sales.;e);How;accurate are the above models?

 

Paper#52973 | Written in 18-Jul-2015

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