...Executive Summary The Problem: Merton Truck Company has been experiencing difficulties related to their financial performance, and they do not know which is the optimal product mix to maximize profits and performance. Group 2 was asked to make recommendations and analyze the given situation to eliminate the difficulties and come up with the right product mix and the optimal solutions considering different alternatives and scenarios. The Solution: Linear Programming was used to analyze the different alternatives to arrive at the optimal solution. The optimal product mix was calculated to be 2000 units of model 101 and 1000 units of model 102. In the next pages you will see the answers to the different questions asked which shows how different alternatives and interpretations could affect the optimal solution and the final decision. Recommendations and conclusion: We recommend that Merton Truck Company adopt the suggest solutions in our analysis in order to achieve better financial results and impose new policies later on to avoid such setbacks in the future. Following our recommendations, the firm should be able to maximize the profits using the optimal product mix. Model Description The Problem Merton Truck Company is not optimizing contribution from its truck lines especially model 101. The company is contemplating stopping the production of model 101 trucks. Management is in a dilemma on what approach to take in resolving this problem. In addition, two of its...
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...Memorandum To: Richard Merton, President, Merton Truck Company From: Khushdeep Kaur Date: October 22, 2013 ------------------------------------------------- RE: Merton truck company financial performance and product mix concerns Introduction: As requested an analysis was done to find out the most suitable product mix for Merton Truck Company in an effort to find out the combination that maximizes contribution and whether Truck 101 is really losing money or not. Analysis also aimed at finding out that whether the company should rent additional capacity by purchasing additional engines from an outside supplier to relieve the capacity problem in the engine assembly department. The calculations were based on the revenue for each model, machine hours required for each job, total machine hours available per month and variable cost per truck. Discussion: Currently Merton’s is producing 1000 model 101 trucks per month and 1500 model 102 trucks per month. At this level Model 102 assembly and engine assembly were operating at capacity and metal stamping at 83.3% capacity and Model 101 assembly at 40% capacity. Data used for analysis: Data regarding given capacity of the engine assembly line, machine hours availability and requirement for completing various manufacturing jobs, standard product costs for each model and the overhead budget for 2012. Method: For finding the product mix that maximizes contribution a linear programming model was prepared using, maximize monthly...
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...In the summer of 1988, Merton Truck Company (“Merton”) was struggling with financial performance. A manufacturer of two specialized trucks (model 101 and model 102), Merton was conflicted with how to manage production and improve financial results. The executive team offered many different options to improve performance, but many were conflicted. For example, the sales manager suggested cancelling all production of model 101 trucks, whereas the controller suggested increasing model 101 production and curtailing model 102 production. To determine the best course of action for the company, an in-depth analysis of their current practices and optimal position is required. Currently, Merton produces 1,000 of Model 101 trucks and 1,500 of Model 102 trucks. The company is constrained by monthly machine hours available in their production facilities for each activity (SEE EXHIBIT 1). The contribution margins for each model are $3,000 for Model 101, $5,000 for Model 102 (SEE EXHIBIT 2). Each model provides contribution margin, so increasing production in any capacity should increase overall profits. However, the decision on which product to increase production of has caused some internal conflict because of the allocation of shared resources. At the moment, the production facilities are maximizing the engine assembly capacity. This is a shared resource by both Model 101 production and Model 102 production. On one hand, Model 101 production has lower contribution margin ($3,000), but...
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...Merton Trucks Case Note Abstract We discuss Merton Trucks [Dhe90a] as a case to introduce linear programming in the MBA program. This case adapted from Sherman Motor Company case, was used to introduce Linear Programming formulations as well as duality. Refer to the teaching note [Dhe90b]. Our approach differs from the approach suggested by Dhebar [Dhe90b]. First, our audience consists pre-dominantly of engineers with not too much work experience. As a result, handling math and algebra is relatively easy. Explaining the algebraic formulation, graphical approach and using the Excel solver do not consume that much time. Second, because this case is used during the first week of the MBA program, students are still unfamiliar with the case methodology and we spend significant time in understanding case facts. The circular logic used in allocating fixed costs based on the product mix that in turn is used in deciding the product mix takes some time to understand. Third, because of the participant background, they have difficulty in translating the model to the specific business situation and interpreting the trade-offs involved in various what-if analyses that are prompted by the case questions. We return to the case when we teach duality. After explaining duality, we analyze the case to show how some of the questions and what-if analyses can be simplified using duality. This note is based on our experiences with teaching three large batches of students in our MBA programs. 1 1 Without...
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...Operations Research Assignment 1: Merton Truck Company Submitted to Professor Sumit Kumar By Sneh Chandel PGPX 2015-16 Roll No – 1503010 On 27/01/2015 Problem 1 1. (a) The best product mix can be found out by plotting out the corner points of graph obtained to maximize function p = 3000x + 5000y – 8600000 The above function was derived by subtracting cost price of ‘Truck model 101’ & ‘Truck Model 102’ from sales price of ‘Truck model 101’ & ‘Truck Model 102’. Sales price is quoted in text as $39,000 for ‘Model 101’ and $38,000 for ‘Model 102’ Cost Price of truck was obtained from following table: | | | Model 101 | | | Model 102 | Direct Materials | | | $24000 | | | $20000 | Direct Labor | | | | | | | | Engine assembly | 1200 | | | 2400 | | | Metal Stamping | 800 | | | 600 | | | Final Assembly | 2000 | | | 1500 | | Total Direct Labor | | | $4000 | | | $4500 | Overhead | | | | | | | | Engine Assembly | 2525 | | | 4850 | | | Metal stamping | 3480 | | | 3080 | | | Final Assembly | 6200 | | | 3500 | | | | | 12205 | | | 11430 | Total | | | 40205 | | | 35930 | & the below table to calculate the variable overhead for individual trucks: Department | Variable overhead/unit 101 | Variable overhead/unit 102 | Engine assembly | 2100 | 4000 | Metal stamping | 2400 | 2000 | Model 101 Assembly | 3500 | | Model 102 Assembly | | 2500 | Total | 8000 |...
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...Movie Analysis Sociology 3620 (Criminology) Criminological Theories in "Empire" The movie "Empire" is a dramatization of the life in the shoes of one of four heroin dealers in the New York City area known as South Bronx. It is a story told by Victor Rosa, the main character referred to by many as Vic, as the viewer follows him around the city The movie begins by naming all the main drug dealers and their territories across the South Bronx region, Victor's territory noticeably bigger than the others. Out of the four competitors, we only see one that Victor has any trouble with later in the movie and that is the drug dealer known as Tito. Tito is another successful, Hispanic drug dealer who sells his product in the territory just south of Victor. Due to the location of these two territories it isn't uncommon to see a pedlar cross into another dealers area of sales. The first outbreak of violence between the two gangs erupts after Victor is informed by an appointed leader in his crew that one of Tito's men had been witnessed selling their product across the "invisible line". Usually these gang leaders wouldn't handle business themselves but when it comes to cutting into their profits, that is when the leader of the crew must make a statement by taking matters into their own hands. Victor and two of his men show up on the street corner where they find Tito's men continuing to push their product. The two members Victor arrived with proceed to raise their weapons at two...
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...concerning events, and there is always room for improvement in the identification, analysis, recommendation, and implementations of a safety-centric environment. #1 There are seven key elements in Mission Valley’s approach to safety that have evolved since Paul O’Neill became the CEO of Alcoa in June 1987. * Safety is a top priority Immediately upon his arrival, Mr. O’Neill announced that his top priority for the company would be safety. It has been shown that Health, Safety, and Environment (HS&E) is more accepted and more easily enforced when driven from the top of an organization down. * Line managers’ involvement in safety The Mission Valley Works site covers 120 acres and employs 3,850 people, but there are only five employees whose job function is exclusively HS&E. Therefore, it is crucial that line managers spend a significant amount of their time concentrating on HS&E related issues. * Investigating the root causes of injuries Mission Valley’s approach to an incident investigation included assembling a diverse team of operators and supervisors, the development of a list of root causes, implementation of corrective actions, and tracking how the corrective actions benefit the plant. * Standard Operation Procedures (SOP’s) The Alcoa case study listed several examples of SOP’s that had been introduced or updated including: Powered Industrial Trucks, Lockout/Tagout, Proper Attire, and Personal Protective Equipment. * Joint Safety...
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...Chapter 1: Understanding Sociology Multiple Choice 1. Which of the following was the main concern of Kelsey Timmerman in his book Where Am I Wearing? A. why people wear different styles in different locales B. differences in fashion across cultures C. the people who make our clothing D. pirating in the fashion industry Answer: C Type: I 2. The scientific study of social behavior and human groups is known as A. psychology. B. political science. C. anthropology. D. sociology. Answer: D Type: D 3. Sociology A. is the scientific study of social behavior and human groups. B. focuses primarily on how social relationships influence people’s behavior. C. focuses on how societies develop and change. D. all of these Answer: D Type: D 4. The awareness that allows people to comprehend the link between their immediate, personal social settings and the remote, impersonal social world is called A. the sociological imagination. B. anthropology. C. a theory. D. verstehen. Answer: A Type: D 5. ____________ is most closely associated with the concept of the sociological imagination. A. Émile Durkheim B. Max Weber C. Karl Marx D. C. Wright Mills Answer: D Type: S 6. A key element in the sociological imagination is the ability to view one’s own society ...
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...------------------------------------------------- Lessons learnt from unintended consequences of innovations in technology ------------------------------------------------- Individual Assignment: MT5014 Systems Approach to Technology and Innovation Ravi Raman – A0008484A Abstract There have been many great innovations over the course of human history and they had many unintended consequences to the human society and to the technology in general. The study of unintended consequence has been quite limited in the current day. This paper is a study of unintended consequences of the key technological innovation from 18th century to early 20th century. This paper details the technological innovation from holistic thinking perspective and critically analysis the unintended consequences of the innovations. * Table of Contents 1. Introduction 4 1.1 What is an unintended consequence? (Karl-Erik Sveiby Pernilla Gripenberg, 2009) 4 1.2 Kinds of unintended consequences (Andrews, 2005) 5 2 Nuclear Energy 7 2.1 Concept Map 7 2.1.1 Nuclear Fission Reaction 7 2.1.2 Nuclear Energy development history 7 2.2 Problem 8 2.3 Holistic Thinking Perspective 8 2.4 Technology Innovation 10 2.5 Managing Innovation & Moving to Market 11 2.6 Complexity Management 12 2.7 Quantitative 12 3 Internal Combustion Engine - Automobile industry till early 20th Century 14 3.1 Concept Map 14 3.1.1 History of Internal Combustible Engine 14 3.2 Problem 15 3.3 Holistic Thinking...
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...In sociology, the iron cage is a term coined by Max Weber for the increased rationalization inherent in social life, particularly in Western capitalist societies. The "iron cage" thus traps individuals in systems based purely on teleological efficiency, rational calculation and control. Weber also described the bureaucratization of social order as "the polar night of icy darkness".[1] The original German term is stahlhartes Gehäuse; this was translated into "iron cage", an expression made familiar to English language speakers by Talcott Parsons in his 1930 translation of Weber's The Protestant Ethic and the Spirit of Capitalism.[2] This translation has recently been questioned by certain sociologists and interpreted instead as the "shell as hard as steel".[2][3] Weber wrote: “ | In Baxter’s view the care for external goods should only lie on the shoulders of the 'saint like a light cloak, which can be thrown aside at any moment.' But fate decreed that the cloak should become an iron cage."[4] | ” | Weber became concerned with social actions and the subjective meaning that humans attach to their actions and interaction within specific social contexts. He also believed in idealism, which is the belief that we only know things because of the meanings that we apply to them. This led to his interest in power and authority in terms of bureaucracy and rationalization. Rationalization and bureaucracy[edit] Weber states, “the course of development involves… the bringing in of calculation...
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...International Journal of Banking and Finance Volume 9 | Issue 1 Article 3 6-5-2012 Modelling and forecasting volatility in the gold market Stefan Trück Macquarie University, stefan.trueck@mq.edu.au Kevin Liang Macquarie University Follow this and additional works at: http://epublications.bond.edu.au/ijbf Recommended Citation Trück, Stefan and Liang, Kevin (2012) "Modelling and forecasting volatility in the gold market," International Journal of Banking and Finance: Vol. 9: Iss. 1, Article 3. Available at: http://epublications.bond.edu.au/ijbf/vol9/iss1/3 This Journal Article is brought to you by the Faculty of Business at ePublications@bond. It has been accepted for inclusion in International Journal of Banking and Finance by an authorized administrator of ePublications@bond. For more information, please contact Bond University's Repository Coordinator. Trück and Liang: Forecasting volatility in the gold market International Journal of Banking and Finance, Volume 9 (Number 1), 2012: pages 48-80 MODELLING AND FORECASTING VOLATILITY IN THE GOLD MARKET Stefan Trück and Kevin Liang Macquarie University, Australia _____________________________________________ Abstract We investigate the volatility dynamics of gold markets. While there are a number of recent studies examining volatility and Value-at-Risk (VaR) measures in financial and commodity markets, none of them focuses on the gold market. We use a large number of statistical models to model...
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...Starting: 29 June 2014 Application Deadline: Early Decision 28 February 2014 Regular Decision 15 April 2014 (Batch 5) (Classes conducted on-campus as well as off-campus) Certificate Programme on Business Analytics and Intelligence BATCH 5 in god We trust, All Others Must Bring data - W edwards deming he theory of bounded rationality proposed by nobel laureate Herbert Simon is evermore significant today with increasing complexity of the business problems; limited ability of human mind to analyze alternative solutions and the limited time available for decision making. introduction of enterprise resource planning (eRP) systems has ensured availability of data in many organizations; however, traditional eRP systems lacked data analysis capabilities that can assist the management in decision making. Business Analytics is a set of techniques and processes that can be used to analyse data to improve business performance through fact-based decision making. Business Analytics is the subset of Business intelligence, which creates capabilities for companies to compete in the market effectively. Business Analytics is likely to become one of the main functional areas in most companies. Analytics companies develop the ability to support their decisions through analytic reasoning using a variety of statistical and mathematical techniques. thomas devonport in his book titled, “competing on analytics: the new science of winning”, claims that a significant proportion of high-performance...
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........................................................................17 3. Valuation of Explorations properties ...................................................................20 3.1. Appraised Value Method (Cost Approach) ...................................................23 3.2. Comparable Transactions (Market Approach) ..............................................24 4. Cycle importance in valuation of metals and mining companies .......................29 5. Discounted Cash Flow ............................................................................................35 5.1. Introduction ...................................................................................................35 5.2. Inputs and Mechanics of DCF analysis ........................................................36 5.3. Discount Factor...
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...Introduction To Sociology II notes by Mutangi G T Sociology is the study of human social life. Because human social life is so expansive, sociology has many sub-sections of study, ranging from the analysis of conversations to the development of theories to try to understand how the entire world works. This chapter will introduce you to sociology and explain why it is important, how it can change your perspective of the world around you, and give a brief history of the discipline. History Sociology is a relatively new academic discipline. It emerged in the early 19th century in response to the challenges of modernity. Increasing mobility and technological advances resulted in the increasing exposure of people to cultures and societies different from their own. The impact of this exposure was varied, but for some people included the breakdown of traditional norms and customs and warranted a revised understanding of how the world works. Sociologists responded to these changes by trying to understand what holds social groups together and also explore possible solutions to the breakdown of social solidarity. Early Sociological Studies Early sociological studies considered the field to be similar to the natural sciences like physics or biology. As a result, many researchers argued that the methodology used in the natural sciences were perfectly suited for use in the social sciences, including Sociology. The effect of employing the scientific method and stressing empiricism was the...
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...Research Notes and Comments A Bibliographical Essay on Decision Making IT has been said that administration is the critical organizational process, making possible production, procurement, and the rest; that leadership is the heart of administration; and that decision making is the key to leadership. Inherent in these statements are some remarkably accurate characterizations of current administrative theory. One thing they seem to imply is a coherence and a unity in administrative theory which do not seem to exist. When one attempts to assay the literature dealing with a concrete administrative process such as decision making, he discovers this. Divergent approaches to the study of decision making show that there are conflicting conceptions of its nature and function. And these probably are symptoms of a more fundamental conflict in contemporary administrative theory. Administration and leadership as foci for study have traditionally been the concern of historians, occasional novelists, and students of management, public and private. A generation ago these people had articulated a consistent, rather comprehensive conception of leadership, and especially administration. The Papers of Gulick and Urwick, for example, were regarded by many of us as a major conceptual achievement setting forth a twentieth-century theory of organization. Even as these ideas were gaining acceptance, however, the concepts that would replace them were emerging. After World War I, even before the ...
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