Captain Borders Corp. manufacturers fishing equipment. Currently, the company has a plant in Los Angeles and a plant in New Orleans. William Borders, the firm's owner, is deciding where to build a new plant-Philadelphia or Seattle. Use the following table to find the total shipping costs for each potential site. Which should Borders select?

	WAREHOUSE
PLANT	PITTSBURGH	ST. LOUIS	DENVER	CAPACITY
Los Angeles	$100	$75	$50	150
New Orleans	$80	$60	$90	225
Philadelphia	$40	$50	$90	350
Seattle	$110	$70	$30	350
Demand	200	100	400

Find an initial solution to the following transportation problem.

Using the stepping-stone method, find the optimal solution. Compute the total cost.

Find an initial solution to the following transportation problem.

Use the intuitive lowest-cost approach. What is its total cost?

The three blood banks in Seminole County, Florida, are coordinated through a central office that facilitates blood delivery to four hospitals in the region. The cost to ship a standard container of blood from each bank to each hospital is shown in the table below. Also given are the biweekly number of containers available at each bank and the biweekly number of containers of blood needed at each hospital. How many shipments should be made biweekly from each blood bank to each hospital so that total shipment costs are minimized?

A small rural county has experienced unprecedented growth over the past 6 years, and as a result, the local school district built the new 500-student North Park Elementary School. The district has three older and smaller elementary schools: Washington, Jefferson, and Lincoln. Now the growth pressure is being felt at the secondary level. The school district would like to build a centrally located middle school to accommodate students and reduce busing costs. The older middle school is adjacent to the high school and will become part of the high school campus.

What other factors should be considered before building a school?

A hotel has to schedule its receptionists according to hourly loads. Management has identified the number of receptionists needed to meet the hourly requirement, which changes from day to day. Assume each receptionist works a four-hour shift. Given the following staffing requirement in a certain day, use the first-hour principle to find the personnel schedule:

Period

$$\begin{array}{cccccccccccc} \text{ 8 A.M. } & \text { 9 A.M. } & 10 \text { A.M. } & \text{ 11 A.M. } & \text { Noon } & \text { 1 P.M. } & \text { 2 P.M. } & \text { 3 P.M. } & 4 \text { P.M. } & \text { 5 P.M. } & 6 \text { P.M. } & 7 \text { P.M. } \\ \text{Requirements}&2 & 3 & 5 & 8 & 8 & 6 & 5 & 8 & 8 & 6 & 4 & 3\\ \text{Assigned}\\ \text{On duty}\\ \end{array}$$

Chuck’s Custom Boats (CCB) builds luxury yachts to customer order. CCB has landed a contract with a mysterious New York lawyer (Mr. T). Relevant data are shown on the next page. The complication is that Mr. T wants delivery in 32 weeks or he will impose a penalty of $375 for each week his yacht is late. Note: No activity can be crashed more than two weeks.

Develop a crashing schedule.

A hotel has to schedule its receptionists according to hourly loads. Management has identii ed the number of receptionists needed to meet the hourly requirement, which changes from day to day. Assume each receptionist works a four-hour shift. Given the following staffing requirement in a certain day, use the first-hour principle to find the personnel schedule:

Which of these is NOT an advantage of outsourcing?

a. cost savings

b. potential creation of future competition

c. accessing outside technology

d. gaining outside expertise

The following payoff table provides profits based on various possible decision alternatives and various levels of demand at Robert Klassan's print shop:

The probability of low demand is $0.4$, whereas the probability of high demand is $0.6$.

What is the expected value with perfect information (EVwPI)?

A warehouse manager at Mary Beth Marrs Corp. needs to simulate the demand placed on a product that does not fit standard models. The concept being measured is "demand during lead time," where both lead time and daily demand are variable. The historical record for this product, along with the cumulative distribution, appear in the table. Random numbers have been generated to simulate the next 5 order cycles: they are $91,45,37.65$. and $51$ . What are the five demand values? What is their average?

Howard Weiss, Inc., is considering building a sensitive new radiation scanning device. His managers believe that there is a probability of $0.4$ that the ATR $\mathrm{Co}$. will come out with a competitive product. If Weiss adds an assembly line for the product and ATR Co. does not follow with a competitive product, Weiss's expected profit is $\$ 40,000$; if Weiss adds an assembly line and ATR follows suit, Weiss still expects $\$ 10,000$ profit. If Weiss adds a new plant addition and ATR does not produce a competitive product, Weiss expects a profit of $\$ 600,000$; if ATR does compete for this market, Weiss expects a loss of $\$ 100,000$.

Compute the expected value of perfect information.

The following payoff table provides profits based on various possible decision alternatives and various levels of demand at Robert Klassan's print shop:

The probability of low demand is $0.4$, whereas the probability of high demand is $0.6$.

Calculate the expected value of perfect information for this situation.

Andrew Thomas, a sandwich vendor at Hard Rock Cafe's annual Rockfest, created a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd):

The probabilities associated with the states of nature are $0.3$ for a big demand, $0.5$ for an average demand, and $0.2$ for a small demand.

Compute the expected value of perfect information (EVPI).