Working with the aggregate planning model formulation using a linear programming model to determine an optimal production policy. Attachments in Excel.

Part I During the next four months Shoeco must meet, on time, the following demands for pairs of shoes: 300 in month 1; 500 in month 2; 100 in month 3; and 100 in month 4. At the beginning of month 1, 50 pairs of shoes are on hand, and Shoeco has three workers. A worker is paid $1500 per month. Each worker can work up to 160 hours a month before he or she receives overtime. A worker may be required to work up to 20 hours of overtime and is paid $25 per hour for overtime. It takes four hours of labor and $5 of raw material to produce a pair of shoes. At the beginning of each month workers can be hired or fired. Hiring costs are $1600 per worker and firing costs are $2000 per worker. At th... click for more

Minimum and maximum of a function

To find the minimum or maximum of a function that is not constrained, that is, there are no restrictions on range of the function, you take the derivative of the function, set it equal to zero, and solve for the variable. The intuition is that the derivative is the instantaneous slope of the function. A minimum or maximum occurs when the instantaneous slope equals 0. a) Using Excel, find the minimum, x*, of f(x) = x2 + 2. What is f(x*)? Calculate f(x) for x = -2 to 2 at 0.1 intervals. Plot f(x). b) Calculate the derivative of f(x), f'(x). Set it equal to zero and solve for x.

Business Analysis

a. Estimate the net cash flow after tax at the beginning of Year 1 b. Estimate the net cash flow after tax in Year 4 c. Management believes that relative to today's prices the average inflation rate is expected to be 8% per annum over the next 12 years. What is the Year 3 inflation-adjusted net cash flow after tax? d. Estimate the appropriate discount rate to perform a net present value analysis in real terms.

Understanding mean error, mean square error, and mean absolute percentage error.

Three of the most common measures of forecast accuracy are: mean error, mean square error, and mean absolute percentage error. Briefly describe the circumstances when you think each might be the most appropriate measure for selecting the 'best' trend curve.

Statistical significance

In the context of hypothesis testing regarding one mean, the test (Z or t) may be statistically significant at the 5% level, but not significant in a practical sense at all. Illustrate the meaning of this statement by citing 3 examples from any area of interest.