Managerial Decision Modeling

Andrew-Carter, Inc.

1. Evaluate the various configurations of operating and closed plants that will meet weekly demand. Determine which configuration minimizes total costs.

Based on the model valuation on sheets A-C Inc Case #1, A-C Inc Case #2 and A-C Inc Case #3, we can conclude that if we do want to proceed with closure of one of the plants then the cost is minimized by closing Plant #2.

1. Discuss the implications of closing a plant.

As you can see that the when we close a plant the total cost jumps. So it probably is not a good idea to close down the plant but run them at lower capacity and minimize cost on distribution. Also, these are non-linear models when we incorporate overtime production costs as well as non-operating costs. So, it would make sense to use non-linear solver with overtime production cost and non-operating cost as variable inputs.

Below are some of the more practical implications of closing any plant:

1. Benefits:

• Lowered Operating Cost
• Lowered Inventory Management Cost
• Increased Workforce Productivity leading to lowered salary costs

1. Challenges:

• Cost of termination of workforce from closing plant
• Cost of increasing workforce in existing plants to meet overtime costs
• Cost of shifting of staff
• Adjustment of output rates in the still open plants
• Possibility of negative effect on reputation of the company

Northwest General Hospital

1. What is your recommendation for handling the distribution of trays from the three serving stations?

Based on the model valuation on sheet Northwest General Hospital, we can make the following recommendations for the distribution of trays:

Station 5A should server 55, 5, 60 and 80 trays to Wing 2, Wing 3, Wing 5 and Wing 6 respectively

Station 3G should server 80 and 145 trays to Wing 1 and Wing 3 respectively

Station 1S should server 65 and 210 trays to Wing 2 and Wing 4 respectively

Ranch Development Project

1. What is the least expensive way to connect all homes with water and sewer lines? Assume that minimizing total distance will also minimize total costs.

Based on the model details given to us in the graph, we can iterate over all the nodes as follows:

Iteration 1: select node at minimum distance. (1)  -> (5)                    (2)

Selected Nodes: 1, 5

Iteration 2: select node at minimum distance. (5)  -> (6)                    (2)

Selected Nodes: 1, 5, 6

Iteration 3: select node at minimum distance. (6)  -> (7)                    (2)

Selected Nodes: 1, 5, 6, 7

Iteration 4: select node at minimum distance. (1)  -> (2)                    (3)

Selected Nodes: 1, 2, 5, 6, 7

Iteration 5: select node at minimum distance. (2)  -> (3)                    (1)

Selected Nodes: 1, 2, 3, 5, 6, 7

Iteration 6: select node at minimum distance. (3)  -> (4)                    (1)

Selected Nodes: 1, 2, 3, 4, 5, 6, 7

Iteration 7: select node at minimum distance. (7)  -> (12)                  (4)

Selected Nodes: 1, 2, 3, 4, 5, 6, 7, 12

Iteration 8: select node at minimum distance. (12)  -> (11)                 (2)

Selected Nodes: 1, 2, 3, 4, 5, 6, 7, 11, 12

Iteration 9: select node at minimum distance. (3)  -> (8)                        (5)

Selected Nodes: 1, 2, 3, 4, 5, 6, 7, 8, 11, 12

Iteration 10: select node at minimum distance. (8)  -> (9)                (2)

Selected Nodes: 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, 12

Iteration 11: select node at minimum distance. (5)  -> (10)                (5)

Selected Nodes: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12

Iteration 12: select node at minimum distance. (9)  -> (13)                (7)

Selected Nodes: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13

Iteration 13: select node at minimum distance. (13)  -> (14)                (4)

Selected Nodes: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14

Iteration 14: select node at minimum distance. (14)  -> (15)                (4)

Selected Nodes: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15

Iteration 15: select node at minimum distance. (13)  -> (18)                (6)

Selected Nodes: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 18

Iteration 16: select node at minimum distance. (18)  -> (19)                (2)