THIS CLASS PROJECT INCLUDES TWO CASES, BOTH OF WHICH MUST BE COMPLETED
FOR FULL CREDIT!!!!!!!  .  MAKE SURE TO ANSWER ANY QUEST-
IONS POSED IN THE CASES, AND INCUDE A SUMMARY AND CONCLUSIONS

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MGMT. 4625-01    SERVICE SECTOR OPERATIONS MGMT.   WINTER ’15

                       CLASS PROJECT

THE CLASS PROJECT BELOW INCLUDES TWO CASES, BOTH OF WHICH
NEED TO BE COMPLETED FOR FULL CREDIT.  WRITEUPS FOR BOTH
PROJECTS MUST BE INCLUDED IN YOUR SUBMISSION.  FOR EACH
CASE, MAKE SURE TO INCLUDE A BRIEF INTRODUCTION, A FORM-
ULATION OF THE PROBLEM, RELEVANT CALCULATIONS, AND A
BRIEF SUMMARY OR RESULTS AND CONCLUSIONS AS RELEVANT.

10 PTS. CASE I/ THE MIKELJON STUDIOS OF HAYWARD
THE MIKELJON STUDIOS OF HAYWARD IS ATTEMPTING TO DETERMINE
WHICH OF A SERIES OF PROPOSED MOVIES TO PRODUCE FOR THE
COMING YEAR.  THE PROPOSED NAME OF EACH FILM, ITS RATING,
THE TYPE OF MOVIE, PRODUCTION COST, AND EXPECTED BOX OFFICE
GROSS FOR EACH FILM IS AS GIVEN BELOW.  NOTE THAT ALL VALUES
ARE IN $ MILLIONS.
                                                EXPECTED BOX
      MOVIE               RATING  TYPE    COST  OFFICE GROSS

ALVIN AND THE AARDVARK      G     KIDS   $ 6 M     $12 M
THE PRINCE OF FROGS         G     KIDS     9        17
LIFE IS A CELEBRATION      PG     DRAMA   11        20
ADVENTURES OF A DOG         G     KIDS    13        24
PRINCE OF HARDER ROAD      PG     DRAMA   15        28
THE ARMADILLO I KNEW       PG-13  COMEDY  12        27
HOLMES OF BAKER STREET     PG-13  DRAMA   14        31
EDGE OF THE UNIVERSE        R     ACTION  16        34
THE MAJOR WORE GREEN        R     DRAMA    9        29
WHEN IN HAYWARD            PG     ACTION  16        38
WOLFMAN OF ALCATRAZ         R     COMEDY  18        42
TROUBLE IN THE ZOO         PG-13  ACTION  20        46
FARLEY GOES TO FRESNO      PG     COMEDY  22        50
BILLY BEATS BACKGAMMON      R     DRAMA   16        46
THE TABBY IN TORTUGA        G     KIDS    14        48

THE OPERATIONS MANAGER FOR THE MOVIE PRODUCTION COMPANY
WOULD LIKE TO ASIST IN MAKING A RECOMMENDATION OF WHICH OF
THE MOVIES TO PRODUCE FOR THE COMING YEAR.  IT IS DESIRED
TO MAXIMIZE TOTAL NET EXPECTED PROFIT FOR THE MOVIES SCHED-
ULED FOR PRODUCTION.  NOTE THAT NET PROFIT IS THE DIFFER-
ENCE BETWEEN BOX OFFICE GROSS AND COST.  THE FOLLOWING
CONSTRAINTS ARE ESTABLISHED FOR THE MOVIE SELECTION:

– THERE IS ONLY A BUDGET OF $135 M FOR ALL THE MOVIES TO
BE PRODUCED.

– AT LEAST TWO PG RATED MOVIES MUST BE PRODUCED.

– AT LEAST ONE PG-13 MOVIE MUST BE PRODUCED.

– AT LEAST ONE G RATED MOVIE MUST BE PRODUCED.

– AT LEAST TWO R RATED MOVIES MUST BE PRODUCED.

– AT LEAST ONE KIDS MOVIE MUST BE PRODUCED.

– AT LEAST TWO DRAMAS MUST BE PRODUCED.

– NO MORE THAN FOUR DRAMAS CAN BE PRODUCED.

– AT LEAST ONE COMEDY MUST BE PRODUCED.

– AT LEAST TWO ACTION MOVIES MUST BE PRODUCED.

– WE DO NOT WISH TO PRODUCE BOTH “THE ARMADILLO I KNEW”
  AND “WOLFMAN OF ALCATRAZ”.

– THE DECISION REGARDING “WHEN IN HAYWARD” AND “FARLEY
  GOES TO FRESNO” SHOULD BE THE SAME.

A) FORMULATE THIS AS A BINARY (0,1) PROBLEM.  MAKE SURE TO
DEFINE YOUR VARIABLES AND WRITE YOUR OBJECTIVE FUNCTION
AND CONSTRAINTS.

B) THE OPERATIONS MANAGER WISHES TO RECOMMEND THAT SELECTION
OF PROPOSED FILMS THAT WILL COME IN UNDER BUDGET AND MEET THE
REQUIREMENTS INDICATED ABOVE.  DETERMINE THE SELECTION OF
FILMS YOU WOULD RECOMMEND FOR PRODUCTION AND THE EXPECTED
MAXIMUM NET PROFIT FOR THIS CHOICE.  (NOTE THAT YOU SHOULD
NOT NEED THE COMPUTER TO DO THIS!!!!!)  MAKE SURE TO SUMM-
ARIZE YOUR RECOMMENDATIONS TO MANAGEMENT!!!!
MAKE SURE TO SHOW ANY CALCULATIONS AS APPROPRIATE.

10 PTS. CASE II) THE GRAMERCY RYE STORAGE LOCATION PROBLEM

THE GRAMERCY COMPANY IS INTERESTED IN DETERMINING A LOCATION
FOR RYE GRAIN STORAGE AT ONE OF A NUMBER OF POSSIBLE SITES. 
THE OPERATIONS MANAGER FOR GRAMERCY IS INTERESTED IN CHOOSING
THE SITE WHICH WILL MINIMIZE TOTAL MONTHLY COST TO THE COMPANY.
THE LOCATIONS, FIXED MONTHLY COSTS, AND MONTHLY VARIABLE COSTS
PER BUSHELS ARE AS GIVEN BELOW.  DETERMINE THE PREFERENCE
OF SITE AND THE TOTAL MONTHLY COST FOR THIS SITE IN ORDER TO
MINIMIZE TOTAL MONTHLY COST.

                   FIXED MONTHLY           VARIABLE COST
SITE                  COST ($)             PER BUSHEL ($)

WILMINGTON            $ 12,000                $15  
TOLSON                  16,000                 12
MARTINSVILLE            22,000                 10
CLAREMONT               27,000                  9
DULLSVILLE              35,000                  8
CLEMSON                 41,000                  7
DERBYSHIRE              43,000                  6
CARSTAIRS               45,000                  5

DETERMINE THE APPROPRIATE SITE TO CHOOSE FOR THE RYE STORAGE
FACITIITY IN ORDER TO MINIMIZE MONTHLY COST UNDER THE FOLLOWING
SCENARIOS:

A) A DESIRED MONTHLY RYE STORAGE OF 3,000 BUSHELS

B) A DESIRED MONTHLY RYE STORAGE OF 8,000 BUSHELS

SHOW YOUR WORK AND CONCLUSIONS.