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Question 3 only part A & B.

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BUS107e Quantitative Methods Assignment 2 – Group-based Assignment January 2017 Presentation BUS107e Assignment 2 Group-based Assignment This assignment is worth 30% of the final mark for BUS107e Quantitative Methods. The cut-off date for this assignment is 19 April 2017, 2355 hrs. This is a group-based assignment. You should form a group of 3 members from your seminar group. Each group is required to upload a single report to MyUniSIM via your respective seminar group. Please elect a group leader. The responsibility of the group leader is to upload the report on behalf of the group. It is important for each group member to contribute substantially to the final submitted work. All group members are equally responsible for the entire submitted assignment. If you feel that the work distribution is inequitable to either yourself or your group mates, please highlight this to your instructor as soon as possible. Your instructor will then investigate and decide on any action that needs to be taken. It is not necessary for all group members to be awarded the same mark. SIM UNIVERSITY Assignment 2 – Page 2 of 6 BUS107e Assignment 2 Important Note: Grading of TMA/GBA/ECA Submissions Marks awarded to your assignment are based on the following guidelines: 1. 80% of the marks are allocated to the content of your answers:  The marks awarded to what your answers cover depend on the extent to which they cover the key points that correctly and comprehensively address each question.  The key points should be supported by evidence drawn from course materials and, wherever relevant, from other credible sources. 2. 20% of the marks are allocated to the presentation of your answers: Wherever applicable, the marks awarded to how your answers are presented depend on the extent to which your answers:  form a sound reasoning by developing those key points in a clear, logical and succinct manner;  provide proper and adequate in-text citations and referencing to content drawn from course materials and other credible sources;  strictly follow APA formatting and style guidelines1, in particular for:  in-text citations and end-of-report references;  the identification of figures and tables;  use, wherever relevant, the specialised vocabulary and terminology commonly used in discussions about the topic(s) covered by each question;  provide a reference or bibliography at the end of the main report;  include the less relevant details in an Appendix;  use sentence constructions that are grammatically and syntactically correct;  are free from spelling mistakes; present the workings, numerical formulations and results in a logical manner that follows the APA formatting and style guidelines;  design and present graphs, diagrams and plots that follow the APA formatting and style guidelines;  are highly original;  have proper formatting, which may:  include a properly formatted cover page;  respect the answer length/word count set out in the assignment guidelines, if any is prescribed;  present answers in paragraphs with proper spacing and page margins;  include page numbers and appendices, if necessary. 1 You can find a short tutorial on the APA formatting and style guidelines here: https://is.gd/mgEOnC . Additional details (pertaining to tables and figures) can be found here: https://is.gd/O4vDdT . SIM UNIVERSITY Assignment 2 – Page 3 of 6 BUS107e Assignment 2 Question 1 GG Manufacturing is the distributor for medical grade freezer. Their two signature products are: Ultra Freeze and Nano Freeze, whose profits are $9000 and $12000, respectively. The company showroom has a maximum storage capacity of 50 cubic feet and each freezer takes up 5 cubic feet of storage. To secure the freezer, a special locking mechanism has to be attached to the freezer. Ultra Freeze requires 15 of such locking mechanism, while Nano Freeze requires 8 such locking mechanisms. In total, there are 120 locking mechanism available in the showroom. Every freezer in the showroom needs to be protected with protection panel, where each unit of Ultra Freeze needs 1 while Nano Freeze needs 2 of such panel. There are only 16 protection panels available in the showroom. The sales team also cautioned that due to the uncertain economic situation, the daily demand for each type of freezer is expected to cap at 7 units each. (a) Based on the above scenario, develop the case as a linear programming model to determine the ideal units of freezer to be stocked up daily. (10 marks) (b) Apply graphical and simultaneous equation approach to solve the linear programming model. You are required to identify the feasible region, solve for each corner point and identify the optimal solution. (18 marks) (c) Solve for the sensitivity output using Microsoft Excel Solver. (3 marks) (d) Interpret the reports and discuss the following scenarios (without re-solving it using Microsoft Excel Solver): (i) If the profit on Nano Freeze is reduced to $6000, explain if there will be any changes to the original optimal mix and total profit? (3 marks) (ii) The maximum storage capacity turns out to be actually 45 cubic feet instead of 50 cubic feet. How will this affect the solution? (6 marks) Question 2 Since 2009, there are eight rounds of cooling measures being introduced by the Singapore Government with the objective of easing the property market. There are differing views among the property analysts on whether now is a good time to enter the market, especially homes in the Core Central Region (CCR). Homes in the Core Central Region (CCR) are commonly referred to as high-end or luxury homes. According to the Urban Redevelopment Authority (URA), the CCR comprises postal districts 9, 10, 11, Downtown Core and Sentosa. Some analysts argue that price has already bottomed while some analysts view that the price will cool further. Table 1 shows the Property Price Index (PPI) of Non-Landed Properties in CCR (by quarter) from 2008 Q1 to 2016 Q2. SIM UNIVERSITY Assignment 2 – Page 4 of 6 BUS107e Assignment 2 Your relative whom is keen to purchase his second property in the CCR seeks your recommendation. Table 1: Industries in PPI Quarter 2008-Q1 2008-Q2 2008-Q3 2008-Q4 2009-Q1 2009-Q2 2009-Q3 2009-Q4 2010-Q1 2010-Q2 2010-Q3 2010-Q4 2011-Q1 2011-Q2 2011-Q3 2011-Q4 2012-Q1 Price Index 131.3 131.2 127.6 119.4 100 94.8 109.2 117.2 122.4 128.9 131 133.9 135.3 137.5 138.5 139.2 138.4 Quarter 2012-Q2 2012-Q3 2012-Q4 2013-Q1 2013-Q2 2013-Q3 2013-Q4 2014-Q1 2014-Q2 2014-Q3 2014-Q4 2015-Q1 2015-Q2 2015-Q3 2015-Q4 2016-Q1 2016-Q2 Price Index 139.2 139.4 140.3 141.2 140.9 140.5 137.6 136.2 134.2 133.1 131.9 131.4 130.6 129 128.6 129 129.4 Refer to the data file provided. The data file contains the monthly industry sector sales performance from January 2013 to June 2016. The base year is 2009 (2009 Q1 = 100). Source: https://data.gov.sg/dataset/price-indices-of-non-landed-properties-by-locality (a) Use the PPI values in Table 1 to analyse and discuss your observations. (15 marks) (b) Develop an overall conclusion of your analysis by i. Justifying an appropriate forecasting model for the PPI, ii. Deriving the forecasting model and forecasting the PPI up to 2017 Q4, iii. Discussing the potential pitfalls and stating your recommendations. (15 marks) Question 3 A local fashion retailer is seeking a new retail outlet in the neighbourhood estate. The property agent recommended two possible sites. One of the sites (Site A) is near to the bus interchange and is relatively small, while the other site (Site B) is further away but has a larger floor area. SIM UNIVERSITY Assignment 2 – Page 5 of 6 BUS107e Assignment 2 If the retailer opens the store at Site A and demand is good, the store will generate an annual profit of $200,000. If demand is low, the retailer will lose $40,000 per annum. If the retailer opens at Site B and demand is high, the store will generate an annual profit of $320,000, but the store will lose $120,000 per annum if demand is low. The retailer also has the option of not opening the new retail outlet. The retailer believes that there is a 55 percent chance that demand will be high. The retailer is offered a market research study by the property agent. The probability of a good demand given a favourable study is 0.85 while the probability of a good demand given an unfavourable study is 0.1. There is a 70 percent chance that the study will be favourable. (a) Determine, using the decision tree approach, whether the retailer should purchase the market research study. Show the decision tree and compute the expected values for all relevant nodes. (26 marks) (b) Determine the maximum amount the retailer would be willing to pay for this study. (4 marks) ---- END OF ASSIGNMENT ---- SIM UNIVERSITY Assignment 2 – Page 6 of 6
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Question 3
A local fashion retailer is seeking a new retail outlet in the neighborhood estate. The property agent
recommended two possible sites. One of the sites (Site A) is near to the bus interchange and is relatively
small, while the other site (Site B) is further away but has a larger floor area.
If the retailer opens the store at Site A and demand is good, the store will generate an annual profit of
$200,000. If demand is low, the retailer will lose $40,000 per annum. If the retailer opens at Site B and
demand is high, the store wi...


Anonymous
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