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Growth&Income; Growth &Income; Stock & Bond Bond Bond 6.45% 7.05% 6.90% 5.20% 5.

ID: 1113158 • Letter: G

Question

Growth&Income; Growth &Income; Stock & Bond Bond Bond 6.45% 7.05% 6.90% 5.20% 5.90% 10 Case Problem1 ASW Publishing, Inc., a small publisher of college textbooks, must make a decision garding which books to publish next year. The books under consideration are following table, along with the projected three-year sales expected from each book: re- listed in the Book Subject Business calculus Finite mathematics General statistics Mathematical statistics Business statistics Finance Financial accounting Managerial accounting English literature German Projected Sales (1000s) 20 30 15 10 25 18 25 50 20 30 Type of Book New Revision New New Revision New New Revision New New

Explanation / Answer

Answer:

Management Report

TO:                  ASW Publishing, Inc. Management
FROM:            Your Name
DATE:             Current Date
SUBJECT:      Publication Strategy Analysis and Recommendations

Section of Report

Statement of the Business Problem.. 4

Other requirements. 4

Constraints Applied on Strategy. 4

Assumptions in analysis. 4

Decision Variables. 5

Analysis, Results and Recommendations. 6

Appendices. 10

Statement of the Business Problem

Other requirements

Constraints Applied on Strategy

Assumptions in analysis

Fixed costs and the sales revenue per unit are approximately equal for all books

Decision Variables

Here are the 0/1 decision variables.

Value

Book

Decision Variable

Not selected for publication

Selected for publication

Business Calculus

BusCalc

0

1

Finite Math text

FinMath

0

1

General Statistics text

GenStat

0

1

Mathematics Statistics text

MathStat

0

1

Business Statistics text

BusStat

0

1

Finance text

Finance

0

1

Financial Accounting text

FinAcct

0

1

Managerial Accounting text

ManAcct

0

1

English Literature text

EngLit

0

1

German text

German

0

1

Analysis, Results and Recommendations

Requirement Case One:

If it would be advantageous to do so, Susan can be moved off another project to allow her to work 12 more days.

Optimal Solution for this Requirement is provided as follows:

Constraints Applied: Please check Appendix A for constraints

Decisions For book publication

Object Function value: 73.000

Decision Variable

Value

BusCalc

0

FinMath

1

GenStat

0

MathStat

0

BusStat

1

Finance

1

FinAcct

0

ManAcct

0

EngLit

0

German

0

Slack Value obtained:

Constraint

Slack/Surplus

1

34

2

16

3

10

4

1

5

1

6

0

Findings:

Analysis and Recommendations:

Expected Sales are less. Thus this strategy is not advantageous

Result: This publication Strategy is not recommended

Requirement Case 2:

If it would be advantageous to do so, Monica can also be made available for another 10 days

Optimal Solution for this Requirement is provided as follows:

Constraints Applied: Please check Appendix B for constraints

Decisions For book publication

Object Function value: 80.000

Decision Variable

Value

BusCalc

0

FinMath

1

GenStat

0

MathStat

0

BusStat

0

Finance

0

FinAcct

0

ManAcct

1

EngLit

0

German

0

Slack Value obtained:

Constraint

Slack/Surplus

1

44

2

0

3

10

4

2

5

0

6

0

Findings:

Analysis and Recommendations:

Sales are more, but John is not used, therefore, this strategy is not advantageous.

Result: This publication Strategy is not recommended.

Optimal Solution to increase sales and make better use of all resources

Optimal Solution for this Requirement is provided as follows:

Constraints Applied: Please check Appendix C for constraints

Decisions For book publication

Object Function value: 105.000

Decision Variable

Value

BusCalc

0

FinMath

1

GenStat

0

MathStat

0

BusStat

1

Finance

0

FinAcct

0

ManAcct

1

EngLit

0

German

0

Slack Value obtained:

Constraint

Slack/Surplus

1

34

2

0

3

4

4

1

5

0

6

0

Findings:

Analysis and Recommendations:

Sales are more 105,000 books. Monica and Susan are now moved to other projects

Result: This publication Strategy is recommended.

Recommendations for Requirement Case 3:

Appendices

APPENDIX A:

Maximum Publications possible:

Book

Publishing numbers

Business Calculus

20

Finite Math text

30

General Statistics text

15

Mathematics Statistics text

10

Business Statistics text

25

Finance text

18

Financial Accounting text

25

Managerial Accounting text

50

English Literature text

20

German text

30

Requirement Case 1:

Constraint

/ Decision Variable

1

2

3

4

5

6

BusCalc

30

40

0

0

0

1

FinMath

16

24

0

0

0

1

GenStat

24

0

30

1

0

0

MathStat

20

0

24

1

0

0

BusStat

10

0

16

1

0

0

Finance

0

0

14

0

0

0

FinAcct

0

24

26

0

1

0

ManAcct

0

28

30

0

1

0

EngLit

40

34

30

0

0

0

German

0

50

36

0

0

0

<60

<40

<40

<2

<1

=1

APPENDIX B:

Maximum Publications possible:

Book

Publishing numbers

Business Calculus

20

Finite Math text

30

General Statistics text

15

Mathematics Statistics text

10

Business Statistics text

25

Finance text

18

Financial Accounting text

25

Managerial Accounting text

50

English Literature text

20

German text

30

Requirement Case 2:

Constraint

/ Decision Variable

1

2

3

4

5

6

BusCalc

30

40

0

0

0

1

FinMath

16

24

0

0

0

1

GenStat

24

0

30

1

0

0

MathStat

20

0

24

1

0

0

BusStat

10

0

16

1

0

0

Finance

0

0

14

0

0

0

FinAcct

0

24

26

0

1

0

ManAcct

0

28

30

0

1

0

EngLit

40

34

30

0

0

0

German

0

50

36

0

0

0

<60

<52

<40

<2

<1

=1

Value

Book

Decision Variable

Not selected for publication

Selected for publication

Business Calculus

BusCalc

0

1

Finite Math text

FinMath

0

1

General Statistics text

GenStat

0

1

Mathematics Statistics text

MathStat

0

1

Business Statistics text

BusStat

0

1

Finance text

Finance

0

1

Financial Accounting text

FinAcct

0

1

Managerial Accounting text

ManAcct

0

1

English Literature text

EngLit

0

1

German text

German

0

1