Jonathan Pinedo Operations Management 2/28/13 Models# 20-30 20 Easy two variable question.

21. Wheat is harvested in the Midwest and stored in grain elevators in three different citiesKansas City, Omaha, and Des Moines. These grain elevators supply three flour mills, located in Chicago, St. Louis, and Cincinnati. Grain is shipped to the mills in railroad cars, each of which is capable of holding one ton of wheat. Each grain elevator is able to supply the following number of tons (i.e., railroad cars) of wheat to the mills on a monthly basis: Grain Elevator 1. Kansas City 2. Omaha 3. Des Moines Total Supply 150 175 275 600 tons

Each mill demands the following number of tons of wheat per month Mill Demand A. Chicago 200 B. St. Louis 100 C. Cincinnati 300 Total 600 tons The cost of transporting one ton of wheat from each grain elevator (source) to each mil (destination) differs according to the distance and rail system. These costs are shown in the following table. Grain Elevator 1. Kansas City 2. Omaha 3. Des Moines A. Chicago $6 7 4 B. St. Louis $8 11 5 C. Cincinnati $10 11 12

This is how much should go to each Mill Grain Elevator 1. Kansas City (150) 2. Omaha (175) 3. Des Moines (275) A. Chicago (200) 0 0 200 B. St. Louis (100) 25 0 75 C. Cincinnati (300) 125 175 0

22. Assigning External Wholesalers to Financial Consultants. The investment company American Funds has many different external wholesalers that work for various regions of Southern California. They want to know what would be the best way to match their wholesalers with some of the major financial representatives in the areas. My goal is to assign each external wholesaler to a representative with whom they have the best rapport with. I used a scale of 1-100, 1 being best rapport, 100 being the worst. Bill Adam Bruce Chris Lauren Eddie Brian Representatives San Diego-Mike Los Angeles- John Riverside- Brett Burbank- William Thousand Oaks- Lee Murrieta- Nancy San Bernardino- Joe 12 33 12 15 42 40 12 54 45 54 37 32 71 34 34 87 76 37 18 78 65 87 27 23 65 77 76 23 54 34 87 26 23 82 44 89 76 44 96 55 90 23 98 65 62 23 87 44 12 Wholsalers

The bolded numbers is going to be the most optimal form of assigning wholesalers to the different representatives.

23. Network model beginning with acquiring a client under our Rep. Michael L. Bishop for a Retirement Rollover account to investment his money with us at Financial Network. Steps 1. 2. 3. 4. 5. 6. Schedule a meeting with prospective client (5 days) Convince person to be our client(usually a retiree)(1 days) Prepare and send paperwork to clients company to transfer funds(6 days) Receive lump sum of either check our account direct deposit(5 days) Open up account at Financial network(4 days) Use cash balance and invest into recommended allocations(1 day) Immediate Predecessor -1 2 2 2 4,5 Duration (Days) 5 1 6 6 4 1

Steps 1 2 3 4 5 6

The critical path is 1

24. Part-time worker saves over $800/quarter. At my job, we have two main administrative assistants, my coworker and myself. Once a quarter, we have to get reports done and mail them out to the clients. It usually takes over two weeks to complete the mailing. Instead of my boss tying my coworkers and my hands up with printing, stuffing, sealing, and stamping, he has a part-time worker do all the arts and crafts for only $10/hr, compared with paying $20 plus per hour for menial tasks. If it takes 80 hours to complete this project, and my boss is saving at least $10/hr, this amounts to over $800 saved per quarter. This way, I am still able to proceed with my job and my boss gets all this quarterly reporting done for half the cost. 25. People relax more at restaurants if they feel they are being attended to. People feel more anxious if they don't know how long they have to wait to sit down and eat at a restaurant. Restaurant customers may be annoyed when they realize they have to wait, but if your hostess gives them some idea of how long the wait will be, they are more likely to relax. Adding their names to a waiting list or providing them with vibrating/visual paging devices assures them that they won't be forgotten. Allow customers to look at menus before a table opens up. Restaurants that have a bar can use this area for a queue into the dining room, with the added advantage of increased revenue. Patrons are more likely to relax when they feel service has begun. 26.

27. La Sierra University uses a graphic rating-scale to rate professors. My job does not do performance analysis ratings nor have I ever been evaluated. But at La Sierra University, we do evaluate teachers every quarter using what I believe to be a graphic rating-scale, or numbered scale. It goes from 1-5, or poor to average to outstanding and students let the teachers know how they performed in each category. One of the drawbacks to using this scale is that people do not take it seriously. Some mark all 5s to be lazy, or all 4s. Also, a rating of 4 could be similar to a rating of 5 for someone else, so that issue is also present. But this method of rating is fast and easy, and that is why people use it. 28. Oakland As produced 20 straight wins with the not-so-good players. The movie Moneyball depicts the 2002 Oakland As who used the strategy of the same name moneyball to drop all the best players they had that season with the biggest contracts (Jason Giambi and Johnny Damon) and pick up no-name players, but who were qualified in a certain key area. This strategy was thought to be nuts, because in baseball, the teams with the most money usually get the best players (aka Yankees). Although they did not win the world series that year, they set an American league record of a 20 game win streak, with only Chicago cubs being better with a 21 win streak set in 1935. The strategy of moneyball valued out in productivity.

29. Military war games as a simulation. The use of simulators was extensively used in preparation for the first Gulf War. In order to fully prepare troops to go out into battle and combat, the military used mock fights known as war-games to simulate what it is like to be in the middle of the action and prepare. The intent of this type of simulation is to prepare the soldier or aviator for war. Simulation of this type is as real as it gets without going to war. There are many advantages to using a simulator over a live piece of equipment. The cost of operating a KC-135 air refueling tanker is approximately $5,000/hour, whereas the operation of the simulator is roughly $300 500 dollars/hour. Other advantages are safety issues. In a war-game, everything is accounted for and there are no external forces like in a real war zone.

30. Non-zero sum game- Stabilizing world currency. I heard a report recently on NPR on how a UN official wanted all the worlds governments to work together to stabilize their currency. Thats fine if everybody complies, because there will be a universal currency and for the most part they all come out a winner. But, if one government artificially suppresses the currency to make their products cheaper (like China has been accused), then it wont work. For example, if China does suppress the currency and makes their products cheaper, they will win out every time. Either everybody works together, or its a currency free-for-all. Once one company moves away from the stabilized currency, every one will follow because there would be no point of using this world currency. This is an example of game theory.