Reference no: EM132919535

MA609 Business Analytics and Data Intelligence - Melbourne Institute of Technology

Learning Outcome 1: Demonstrate advanced and integrated understanding of business and data Intelligence for organisational decision-making.
Learning Outcome 2: Analyse critically, reflect on and synthesise techniques of data visualisation and data mining.
Learning Outcome 3: Demonstrate advanced and integrated understanding of business analytical models.
Learning Outcome 4: Critically analyse, synthesise and reflect on decision analysis techniques to develop optimal strategy.

SECTION A:

Background and Content:
ABC purchased land that will be the site of a new luxury apartments. ABC commissioned preliminary architectural drawings for three different projects: one with 30, one with 60, and one with 90 condominiums.

The financial success of the project depends upon the size of the apartments and the chance event concerning the demand for the condominiums. The statement of the ABCdecision problem is to select the size of the new apartments that will lead to the largest profit given the uncertainty concerning the demand for the apartments.

Consider the following problem with three decision alternatives and two states of nature with the following payoff table representing profits:

Assessment Tasks:

Answer all Threequestions below.
Show in the tables how decision makers with different approaches will make decisions:
1. Explain optimistic approach and using a table show how a decision maker will make a decision and which option he/she will choose.

2. Explain conservative approach and using a table show how a decision maker will make a decision and which option he/she will choose.

3. Explain minimax regret approach and using a table show how a decision maker will make a decision and which option he/she will choose. Note that you will need two tables for this approach.
 
SECTION B:

Using below table calculate the expected value (EV) for each decision. In the first step you will need to create the decision tree. In decision tree you will need to appropriately demonstrate nodes and arches. In the next step you will need to show EMV for each arch coming out of decision arch. Calculate the EMV for each arch and make a decision.Probability that the demand will turn out to be strong is 0.8 and for it to be weak is 0.2.

Assessment Tasks:
Answer all Threequestions below.

1. Draw the decision tree with appropriate demonstration of nodes for states of nature and decision nodes.

2. Draw the decision tree with appropriate demonstration of arches for states of nature and decision nodes.

3. Calculate payoffs for each path in the tree. Hint: You will have to calculate in total of six payoffs.

SECTION C:

The CitruSun Corporation ships frozen orange juice concentrate from processing plants in Eustis and Clermont to distributors in Miami, Orlando, and Tallahassee. Each plant can produce 20 tons of concentrate each week. The company has just received orders of 10 tons from Miami for the coming week, 15 tons for Orlando, and 10 tons for Tallahassee. The cost per ton for supplying each of the distributors from each of the processing plants is shown in the following table.

The model has been done and after solving the problem, sensitivity analysis is given in below table:

Assessment Tasks:

Answer all Three questions below.

Considering sensitivity analysis table answer all questions below.

1. If objective function for Eustis Miami decreases by 10 points what would be the impact on the optimal solution?

2. Which constraints are binding? Why?

3. Should the company increase shipped Tallahassee? If so what would be the impact on the optimal solution?

SECTION D:

Forbelt Corporation has a one-year contract to supply motors for all refrigerators produced by the Ice Age Corporation. Ice Age stocks the motors at four locations around the country: Boston, Dallas, Los Angeles, and St. Paul. Plans call for the following number (in thousands) of motors to be received at each location:

Boston                 50

Dallas                   70

Log Angeles        60

St. Paul                 80

Forbelt's three plants are capable of producing the motors. The plants and production capacities (in thousands) are as follows:

Denver                 100

Atlanta                 100

Chicago                              150

Because of varying production and transportation costs, the profit that Forbelt earns on each lot of 1000 units depends on which plant produced the lot and which destination it was shipped to. The following table gives the accounting department estimates of the profit per unit (shipments will be made in lots of 1000 units):

With profit maximization as a criterion, Forbelt's management wants to determine how many motors should be produced at each plant and how many motors should be shipped from each plant to each destination.

Assessment Tasks:

Answer all Three questions below.

1. Develop a network representation of this problem (draw the diagram).

2. Develop a linear programming model indicating objective function.

3. Develop a linear programming model indicating constraints.

Attachment:- Business Analytics And Data Intelligence.rar