Tuesday, 23 June 2015

The Dorton University president has asked the OM department to assign eight biology professors (A, B, C, D, E, F, G, and H) to eight offices (numbered 1 to 8 in the diagram) in the new biology building.

The Dorton University president has asked the OM department to assign eight biology professors (A, B, C, D, E, F, G, and H) to eight offices (numbered 1 to 8 in the diagram) in the new biology building.

Picture

The following distances and two-way flows are given:

 
DISTANCES BETWEEN OFFICES (FEET)
 
1
2
3
4
5
6
7
8
1 10 20 30 15 18 25 34
2   10 20 18 15 18 25
3     10 25 18 15 18
4       34 25 18 15
5         10 20 30
6           10 20
7             10
8              


 
TWO-WAY FLOWS (UNITS PER PERIOD)
 
A
B
C
D
E
F
G
H
A 4 0 0 6 0 0 0
B   0 0 0 5 0 5
C     0 0 0 0 6
D       1 0 0 0
E         3 0 0
F           2 0
G             1
H              


a.
If there are no restrictions (constraints) on the assignment of professors to offices, how many alternative assignments are there to evaluate?
    
  40,320

The biology department has sent the following information and requests to the OSCM department:

Offices 1, 4, 5, and 8 are the only offices with windows.
A must be assigned Office 1.
D and E, the biology department co-chairpeople, must have windows.
H must be directly across the courtyard from D.
A, G, and H must be in the same wing.
F must not be next to D or G or directly across from G.

b. How many possible solutions (assignments of faculty to offices) satisfy all of the stated constraints?

  Number to possible solutions  

Assume the solution is as follows:

A-1
B-2
G-3
H-4
COURTYARD
E-5
F-6
C-7
D-8

c. What is the total flow-distance cost measure of this solution?

  Total flow-distance cost  


Explanation:

Friday, 22 May 2015

The Summitt Petroleum Corporation will purchase an asset that qualifies for three-year MACRS depreciation. The cost is $180,000 and the asset will provide the following stream of earnings before depreciation and taxes for the next four years:

The Summitt Petroleum Corporation will purchase an asset that qualifies for three-year MACRS depreciation. The cost is $180,000 and the asset will provide the following stream of earnings before depreciation and taxes for the next four years: Use Table 12-12.

 
   
Year 1$96,000  
Year 2 110,000  
Year 3 48,000  
Year 4 46,000  


 
The firm is in a 35 percent tax bracket and has a cost of capital of 12 percent. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

 
a.
Calculate the net present value. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places.)

 
  Net present value$   

 
b.Under the net present value method, should Summitt Petroleum Corporation purchase the asset?
  
 Yes

 
Explanation: