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 NewExplanation / 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
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