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CITM 501 Spring/Summer 2014




Question;CITM 501;Spring/Summer 2014;Homework Assignment 3;Due June 17, 2014 @5 PM via Bb;ABCis now considering;adding two more lines (in addition to their already existing CRM line) totheir;offering: data warehousing and data backup solutions. The VP of operations that;will be overseeing these three lines has a yearly operating budget of $;1,500,000. ABC makes roughly $0.3 per year for each dollar they spend;(which accounts for personnel, bandwidth, hardware and software and other;overhead costs) on CRM services. Some small-scale market research suggests that;these figures will be $0.27 for data warehousing, and $0.25 for data backup;services.;The company has a;monthly capacity of 4 TB (4,000,000 MB) that they should now dedicate to these;two new lines in addition to the already existing CRM line. So far, roughly;every dollar (per year) spent on the CRM services leads to monthly transactions;that require 1.8 MB of data transfer. They expect these figures will be 1.3 MB;for data warehousing, and 1.9 MB for data backup services.;In;addition, processing of every 1MB on CRM requires 1.85 minutes of the capacity;of the computing machinery. These figures are 2.25 minutes for both data;warehousing and data backup services. ABC will have a cluster of 20;dedicated computers that run around the clock to provide this capacity.;ABCwants to offer a;balanced portfolio, therefore, they want the budget allocated to each ofthe;three offerings to be at most 40% of their total spending for the three;services.;Your task is to;create a LP model to advice the VP of operations how to allocate their budget;between these three offerings.;Do not try to solve the problem, just;model it.;Submit your model;in a MS Word document. The file name should begin with your first initial;ending with #3 (i.e. _ 3.docx, e.g. n;mengesha#3.docx)


Paper#53147 | Written in 18-Jul-2015

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