The final project is an opportunity for you to showcase what you have learned this term. There are five different scenarios, each of which describes a situation requiring the application of a technique we learned this term. You must apply the technique and describe the final result or decision; including any caveats and the rationale for selecting the technique. Your grade will be based on your selection of the appropriate technique, the proper application of the technique, your conclusion, and the evidence you provide to support your decisions.
MM305 Final Project Problems
1. Modern Electronics specializes in manufacturing modern electronic components. It also builds the equipment that produces the components. Modern Electronics is considering building a new facility but the estimated profits would be impacted by the type of market that develops. The probability for a strong market is 0.3; for a fair market is 0.5; and for a poor market is 0.2. You are responsible for advising the president of Modern Electronics on the type facility that should be built or to not build a facility at all. The table shows the estimated profits under each market and for each size facility.
| Estimated Profits | ||
| Strong Market | Fair Market | Poor Market |
Build a large facility | 550,000 | 110,000 | -310,000 |
Build a medium-size facility | 300,000 | 129,000 | -100,000 |
Build a small facility | 200,000 | 100,000 | -32,000 |
Do not build a facility | 0 | 0 | 0 |
Using the information in the table above develop a recommendation for your president. Be sure to explain why you are making the recommendation and you must include a recommendation that maximizes profits and a recommendation that minimizes loss.
2. Consulting income at Kaplan Associates for the period February – July has been as follows:
Month | Income ($1,000) |
February | 70.0 |
March | 68.5 |
April | 64.8 |
May | 71.7 |
June | 71.3 |
July | 72.8 |
Use Exponential smoothing to forecast August income. Assume that the initial forecast for February is $65,000. The smoothing constant should be α = 0.1.
3. Morgan Machines specializes in developing weed-harvesting equipment that is used to clear small lakes of weeds. Morgan Machines is contemplating the construction of a machine that would harvest weeds on narrow rivers and waterways. The activities and time in weeks necessary to build one of these experimental machines are shown in the table below.
Activity | Immediate Predecessors | Time in Weeks |
A | none | 6 |
B | none | 5 |
C | A | 3 |
D | A | 2 |
E | B | 4 |
F | B | 6 |
G | C,E | 10 |
H | D,F | 7 |
a. Using the information from the table provide the earliest start, earliest finish, latest start, latest finish, and slack for each activity.
b. What is the critical path for this project?
4. Small boxes of NutraFlakes cereal are labeled “net weight 10 ounces.” Each hour, random samples of size n = 4 boxes are weighed to check process control. Five hours of observations yielded the following:
| Weight | |||
Time | Box 1 | Box 2 | Box 3 | Box 4 |
9 A.M. | 9.8 | 10.4 | 9.9 | 10.3 |
10 A.M. | 10.1 | 10.2 | 9.9 | 9.8 |
11 A.M. | 9.9 | 10.5 | 10.3 | 10.1 |
Noon | 9.7 | 9.8 | 10.3 | 10.2 |
1 P.M. | 9.7 | 10.1 | 9.9 | 9.9 |
Using these data and the information in the Control Chart Limits Factors Table below (if you are doing it by hand), construct limits for xbar- and R-charts. Is the process in control? What other steps should the QC department follow at this point?
Control Chart Limits Factors | |||
Sample Size n | Mean Factor A2 | Upper Range D4 | Lower Range D3 |
2 | 1.880 | 3.628 | 0 |
3 | 1.023 | 2.574 | 0 |
4 | 0.729 | 2.282 | 0 |
5 | 0.577 | 2.114 | 0 |
6 | 0.483 | 2.004 | 0 |
7 | 0.419 | 1.924 | 0.076 |
8 | 0.373 | 1.864 | 0.136 |
9 | 0.337 | 1.816 | 0.184 |
10 | 0.308 | 1.777 | 0.223 |
12 | 0.266 | 1.716 | 0.284 |
5. The road system around the hotel complex in Tuscaloosa, Alabama, (node 1) to Bryant-Denny Stadium (node 11) at the University of Alabama, is shown in the network below. The numbers by the nodes represent the traffic flow in hundreds of cars per hour. What is the maximum flow of cars from the hotel complex to Bryant-Denny stadium on a football Saturday?

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