9.-Chap-12 Assignment DTUT [PDF]

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Quantitative Methods for Business_ Ms. Dang Thi Uyen Thao

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Please read the following instructions carefully before working on the assignment • • • • • •

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PROCESS IS MORE IMPORTANT THAN RESULT No extra point for this assignment Late submission will be deducted 10 points per day Scanning is required Work in groups of two, and individuals may work alone if they wish to do so Let yourself struggle with problems for a while before looking up the answer using other resources. What you turn in should reflect your own understanding of the assignment but not the capability of copying from a solution manual. A copied answer is considered plagiarism and is marked zero with no excuse. Please attach the information below on the top of the submitted answer paper. The scale for Contribution is from 1 to 5, in which 1 describes minimum and 5 describes maximum commitment.

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QUANTITATIVE METHODS FOR BUSINESS Ms. Dang Thi Uyen Thao INDIVIDUAL/PAIR ASSIGNMENT CHAPTER 12 dd/mm/yy Full name & ID

Contribution

QUESTION 1 ★☆☆☆☆ Mr. Guǎngzhōu, the manager of Guǎngdōng Stadium has reached a decision after months investigating, to build up a first-class stadium. He planned to enter the skybox business- providing luxury boxes with the best views of the event through glass panels and located at the lowest ring of seats, nearest to the playing court. Mr. Guǎngzhōu also included the expand of stadium capacity up to 21,000 seats with more rows of common seating, built-in dormitory rooms for players and a palatial office appropriate for coaches of the champion team. The requirement was to get the construction start immediately. Last year, Guǎngdōng Stadium signed a contract with Guǎngdōng University of Technology about holding their charity match, and the contract penalty of $10,000 per day for running late is nothing compared to the long-built brand name of Guǎngdōng Stadium if the upcoming game is delayed or cancelled. The estimation was that there will be 270 days until the upcoming game.

Quantitative Methods for Business_ Ms. Dang Thi Uyen Thao

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The process typically begins with a revision on tax and insurance structuring to prevent unwanted consequences during the construction (1). This is followed by two tasks: an installation of precast components that serve as the foundation for the new stadium (2); and a site excavation to create more stadium seats and skyboxes (3), silultaneously. After the laying of the stadium concrete foundation, work on the electrical installation of lights, interior wiring and lathes will take place (4). And then, the on-site quality inspection of this electrical construction is provided right after (5). When finishing the site excavation for expanding seats and skyboxes, they can start to construct on the “vertical circulation” scheme, which makes use of staircases, ramps, lifts, and escalators (6). The task that involves works on stadium plumbing pipe problems will takes place only when the electrical installation and the vertical circulation construction have both finished (7). After plumbing, they could remove the existing paint from the stadium bowl top and undersid and renew with the new design (8). After renewing the appearance, one specialized team will oversee an important part of residential structures of heating, ventilation, and air conditioning (HVAC) installation (9), while another design team working on carpet tiles that meet the function and sustainability goals (10) at the same time. When finishing carpeting tasks, another quality inspection team is sent to the carpeting site right after (11). The last step needs to be done before getting the construction done is some final detail works and cleanup activities, which is only started after the carpeting inspection and HVAC installation have been both completed (12). The information below is provided for each task, in accordingly order: optimistic, most likely, pessimistic time estimates (days), days that can be saved using outsourced labor, and crash cost per day (1): 20, 30, 40, 10, $1,400 (2): 20, 65, 80, 20, $500 (3): 50, 60, 100, 20, $4,000 (4): 30, 50, 100, 10, $1,850 (5): 25, 30, 35, 10, $9,500 (6): 1, 1, 1, 0, $0 (7): 25, 30, 35, 10, $1,900 (8): 10, 20, 30, 12, $2,000 (9): 20, 25, 60, 10, $2,000 (10): 8, 10, 12, 10, $6,000 (11): 1, 1, 1, 0, $0 (12): 20, 25, 60, 8, $2,500 1. Develop a network drawing for Guǎngdōng Stadium 2. Determine the critical path. How long is the project expected to take? 3. Mr. Mr. Guǎngzhōu discusses with the project team continuously about how the project is going on. He claims that if there are less than 75% sure about finishing this stadium in less than 270 days, he will outsource labor to speed up the project.

Quantitative Methods for Business_ Ms. Dang Thi Uyen Thao

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What is their decision on project crashing? Describe the crashing project and the additional expense since the new target date is of 240 days. QUESTION 2 ★★☆☆☆ Mumbai LLC., a new established subsidiary of India Co., is about businesses prospering through strong leaders and independence. In general, they will rigorously handle capital allocation and work to make sure each business is executing well, where India Co., the parent corporation, will provide financial supports separately and in cases needed. Mr. Mumbai, the chief financial officer of Mumbai LLC, has been assigned to monitor the new construction project. Some of the information on the activities is shown in the following table: Months Activity A B C D E F G H I J K L

Max

Most likely

Min

Immediate predecessors

8 6 12 10 11 9 6 8 10 6 4 13

9 7 14 15 14 10 7 10 11 7 7 14

10 8 16 20 17 11 14 12 12 8 10 21

_ _ _ A C B, D, E B, D, E F F G, H I, J G, H

Normal cost 1,350 1,225 1,540 900 504 2,050 448 1,500 935 840 210 960

Months can be saved 1 1 2 2 3 1 2 3 1 5 2 2

Crash cost 1,380 1,270 1,590 920 525 2,125 464 1,620 950 965 222 984

1. Construct a network for this project. 2. Determine the critical path of the project. How soon can Mumbai LLC get the project done? 3. What is the probability that the project will be finished in 65 months or less? 4. While Mr. India, CEO of India Co., wishes to access the performance of their subsidiaries, Mr. Mumbai expects to set the due date for the completion of the project so that there is a 95% chance of finishing on schedule. What should this due date be? 5. The amount of idle money available of Mumbai LLC. Is about 500 thousands dollar. Mr. Mumbai intends to borrow to finance their project. Typically, in small and medium sized projects, a single loan is obtained to cover the total amount. However, for the new project, Mr. Mumbai believes that it may be wise to split the total borrowing into monthly amounts. Approved by Mr. India, from the first day of the project, Mr. Mumbai can borrow 200 thousand dollars per month with zero interest rate. The line of credit lasts until the last minute of project.

Quantitative Methods for Business_ Ms. Dang Thi Uyen Thao

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With the strong financial support from their parent, could Mr. Mumbai manage the cash

flows so that the project will proceed as planned? Ms. Uyen Thao advises you to calculate monthly budget based on both earliest and latest time. 6. To get the higher performance on India Co.’s subsidiaries evaluation ranking, Mr. Mumbai wishes to complete the project earlier than normal procedures about 6 months. Mr. Mumbai intends to hire more seasonal employees at an extra cost. The additional cost and the time that can be saved are provided in the table.

Please show the crashing process and the expense that incurs. QUESTION 3 ★★★☆☆ Chemicals cause pollution, and the weeds seem to grow faster after chemicals have been used. One of Karachi’s friends showed him how to kill weeds in his large backyard with only householduse white vinegar and without using harmful chemicals The guidance including six activities that are necessary to an effective weed eradication is summarized with the time-cost information for each activities. Pakistan- Karachi’s wife requires him to finish the process in 110 hours to keep up with the yearend BBQ party. Karachi can speed up the weed-killing process by asking for extra help at an additional expense. Since Pakistan created a spending allowance for Karachi each month, please help Karachi finish the process by his wife’s deadline with the minimum possible additional expense. Ms. Uyen Thao assumes that there is a single linear, continuous function between the crash duration and normal duration time.

Activity

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Description Start sorting out the grasses and plants and flowers you are growing because there are many types of weeds that need a corresponding dose of white vinegar. At the same time, you can prepare sufficient quantities of white vinegar with 5% acetic acid concentration to ensure the eradication of large numbers of weeds over a large area After preparaing the vinegar with the right concentration, you can divide the weeds into two groups for simultaneous eradication. For the easy-to-eradicate weed, you can dilute the vinegar and add 10 ml of dishwashing liquid to help the vinegar stick to the grass.

Normal duration (hours)

# of hours saved

Normal cost

Additional cost for less time

120

20

12,000

2,000

20

5

1,800

1,000

40

10

16,000

6,000

Quantitative Methods for Business_ Ms. Dang Thi Uyen Thao

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5

6

Then, you pour the mixture into a garden sprayer with a long nozzle to make it easier to spray weeds over a large area. For the more-difficult-to-eradicate weed, you can pour a mixture of pure acid with salt into a spray bottle. After finishing pouring the mixture into two separate sprayers, choose a sunny day to spray the weed, because when the grass has been exposed to the sun for at least a few hours, the acetic acid will be more effective and makes the grass to dry out quickly.

5

30

10

1,400

600

50

10

3,600

1,200

60

15

13,500

4,500

Please describe the crashing process and the expense that incurs.

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