Reference no: EM13508313

1) Given the pipeline fluid flows indicated below, determine the maximum flow from Node 1 to Node 5.

	From Node	To Node	Fluid Flow
1	1	2	300
2	2	1	0
3	1	3	0
4	3	1	150
5	1	4	200
6	4	1	200
7	1	5	100
8	5	1	100
9	2	4	200
10	4	2	200
11	3	4	250
12	4	3	300
13	3	5	300
14	5	3	250
15	4	5	100
16	5	4	0

2. Two models of a product - Regular (X) and Deluxe (Y) - are produced by a company.  A linear programming model is used to determine the production schedule.  The formulation is as follows:

                        Maximize profit = 50X + 60Y

                        Subject to:               8X + 10Y <= 800 (labor hours)

                                                           X + Y<= 120 (total units demanded)

                                                           4X +10Y<= 500 (raw materials)

                                                           X, Y >= 0

            The optimal solution is X=100, Y=0.

            Which of these constraints is redundant?

2.  Given that the MAD for the following forecast is 2.5, what is the actual value in period 2?

Period	Forecast	Actual
1	100	95
2	110
3	120	123
4	130	130

3. Andre Candess manages an office supply store. One product in the store is computer paper.  Andre knows that 10,000 boxes will be sold this year at a constant rate throughout the year. There are 250 working days per year and the lead-time is 3 days. The cost of placing an order is $30, while the holding cost is $15 per box per year. How many units should Andre order each time to minimize his annual inventory cost?

4. Demand for a product is constant, but the lead time fluctuates. The demand during the lead time is normally distributed with a mean of 40 and a standard deviation of 4.  If they have calculated a reorder point of 45.12 units, what service level are they assuming?