LP5.2 Assignment: Final Exam – 4 problems @ 50 points each /200 points This assignment will assess all of the competencies on the course syllabus. Directions The Final Exam consists of four problems; each problem was custom designed to simulate realworld issues organizations face on a routine basis. These problems also reflect the key techniques/concepts taught in MA6600. Knowledge of Excel QM/POM, or any applicable software is essential for successful completion of this exam. Carefully read each problem prompt and thoroughly study the assignment rubrics to ensure you understand how each problem will be graded. Scenario: In all four problem-prompts described below, you have graduated from NAU and landed a very competitive job as an Operations Manager in a small startup company. The firm is a medical device manufacturer; it develops and manufactures trans catheter aortic valve replacement systems. Problem 1 The firm is planning on receiving a regulatory permission to sell its product in different regulated markets. The details are presented in Table 1. The marketing department conducted research and summarized the cost and duration of processing the application, the odds of a positive outcome, and the sales opportunities. Deciding what market the firm should enter is based on the potential profit generated over a 24-month period. You need to decide which market the firm should start the regulatory approval process. Carefully read the grading criteria on the LP5.2/Problem 1 Assignment Rubric to ensure you understand how this problem will be graded. Table 1: Summary of Marker Research Agency Name Processing Fee USA FDA 248 K Average Processing Approval time (months) Chance 5 0.8 EU MDD 300 K 1 0.85 China CFDA 82K 3 0.9 Japan PMDA 320K 12 0.9 India CDSCO 47K 5 0.95 Annual Sales per market $1,000,000 per month $700,000 per month $660,000 per month $250,000 per month $470,00 per month Problem 2 In order to be competitive in local markets, the firm is considering setting up operations in China. One of factors that will impact the decision-making is the predicted sales volume in China in 2020. It is assumed that the growth in sales volume is 100% correlated with the GDP growth in China. For Problem 2, predict the annual sales in China in 2020. Carefully read the grading criteria on the LP5.2/Problem 2 Assignment Rubric to ensure you understand how this problem will be graded. Table 2: Estimated Sales in China in 2017 Market Annual Sales in 2017 China $7,920,000 Table 3: GDP Growth Rate Per Market (in percent) Year China EU 2005 11.4 1.9 2006 12.7 2.2 2007 14.2 1.6 2008 9.7 0.2 2009 9.4 -0.5 2010 10.6 1.7 2011 9.5 2.1 2012 7.9 -4.4 2013 7.8 0.4 2014 7.3 3.1 2015 6.9 3.3 2016 6.1 2.1 Problem 3 As Operations Manager, you would like to estimate the cycle time of the manufacturing process. The developed aortic valve replacement system includes an automatic tip. The tip is molded to the shaft of the delivery catheter system, utilizing an injection-molding process. There are two injection-molding machines available for this operation. The shafts are being supplied to the injection molding work cell with the rate (i.e., arrival rate) of six (6) shafts per minute. The injection-molding cell processes the shafts with service rate of four (4) per minute. You are required to estimate the average time that would be required to complete molding operation for the one unit. Set up and solve the problem using Excel QM or POM. Hint: Utilize queuing theory Problem 4 As Operations Manager, you would like to know which product mix needs to be manufactured. The firm manufactures two models of the trans catheter aortic valve replacement system: the system which is equipped with 23 mm valves and the system which is equipped 29 mm valves. The expected profit for 23mm system is $300 per unit, while profit for 29mm system is $360 per unit. The firm utilizes aortic valves bought from an external supplier. There is a supply restriction for both of 23 mm and 29mm valves. The current suppler of valves cannot supply more than 300 units of 23 mm valves per week and no more than 600 units of 29 mm valves per week. The manufacturing time for one 23 mm aortic valve system is 1.6 hours per week. The manufacturing time for one 29 mm aortic valve system is 1.8 hours per week. There are 1520 hours of total manufacturing time available per week. Determine how many units of 23 mm aortic valve system and 29 mm aortic valve system the firm needs to manufacture per week to maximize profit. Hint: Set up and solve the problem as Linear or Integer Programming problem using Excel QM, POM, or Solver. MA6600 – LP5.2 Assignment Rubric Final Exam (4 problems @ 50 points each / 200 points total) PROBLEM 1: 50 points possible CATEGORY Maturity of the Developed Model 40% of total points (20 maximum points) Problem 1 Report 40% of total points (20 maximum points) Mechanics/ APA Formatting 20% of total points (10 maximum points) Exceptional (A) Meets Requirements (B) Needs Improvement (C) Insufficient (F) The provided model either in mathematical form, Excel QM/ POM, or any relevant software incorporates all applicable information provided in the problem. Selected model is justifiable and conceptually correct. The provided model in Excel QM/ POM is conceptually correct. The model does not utilize all applicable information provided in the problems. The provided model in Excel QM/ POM is conceptually correct. However, it is not the optimal solution. The model includes some information provided in the problems. Model is conceptually incorrect or missing. (20 – 18 points) Report provides detailed and clear explanation of the selected decision tree model. (13 – 0 points) (17 – 16 points) (15 – 14 points) Provides explanation of how most of the decision tree model is developed. Provides generic or one-dimensional explanation of how decision tree model is developed. No explanation. (13 – 0 points) (17 – 16 points) (20 – 18 points) Chooses words for their precise meaning and uses an appropriate level of specificity. Sentence style fits audience and purpose. Sentences clearly structured and carefully focused. Almost entirely free of spelling, punctuation, and grammatical errors. Correctly use APA formatting, proper referencing. Generally uses words accurately and effectively, but may be too general. Sentences are clear, structured, and focused, though some may be awkward or ineffective. Errors may annoy the reader but do not impede understanding. Correctly uses APA formatting, proper referencing. (8 – 7 points) (6 points) (15 – 14 points) Uses relatively vague and general words, may use some inappropriate language. Sentence structure generally correct, but sentences may be wordy, unfocused, repetitive, or confusing. Contains several mechanical errors. Formatting and referencing errors. (5 points) Misuse of words throughout. Awkward sentences throughout. Difficult to attach a thought process. Poorly punctuated, misspelled words, grammatically abusive. Fail to use required formatting style and proper referencing. (6 - 0 points) PROBLEM 2: 50 points possible CATEGORY Maturity of the Developed Model 40% of total points (20 maximum points) Problem 2 Report 40% of total points (20 maximum points) Mechanics/ APA Formatting 20% of total points (10 maximum points) Exceptional (A) Meets Requirements (B) Needs Improvement (C) Insufficient (F) The provided model either in mathematical form, Excel QM/ POM, or any relevant software incorporates all applicable information provided in the problem. Selected model is justifiable and conceptually correct. The provided model in Excel QM/ POM is conceptually correct. The model does not utilize all applicable information provided in the problems. The provided model in Excel QM/ POM is conceptually correct. However, it is not the optimal solution. The model includes some information provided in the problems. Model is conceptually incorrect or missing. (20 – 18 points) Report provides detailed and clear explanation of the selected regression model. Provides thorough justification of the model. (13 – 0 points) (17 – 16 points) (15 – 14 points) Report explanation of the selected regression model. The justification of the selected model is not complete. Report explanation of the selected regression model. Key elements of the justification are missing. (17 – 16 points) (15 – 14 points) (20 – 18 points) Chooses words for their precise meaning and uses an appropriate level of specificity. Sentence style fits audience and purpose. Sentences clearly structured and carefully focused. Almost entirely free of spelling, punctuation, and grammatical errors. Correctly use APA formatting, proper referencing. Generally uses words accurately and effectively, but may be too general. Sentences are clear, structured, and focused, though some may be awkward or ineffective. Errors may annoy the reader but do not impede understanding. Correctly uses APA formatting, proper referencing. Uses relatively vague and general words, may use some inappropriate language. Sentence structure generally correct, but sentences may be wordy, unfocused, repetitive, or confusing. Contains several mechanical errors. Formatting and referencing errors. (8 – 7 points) (6 points) (5 points) No explanation. (13 – 0 points) Misuse of words throughout. Awkward sentences throughout. Difficult to attach a thought process. Poorly punctuated, misspelled words, grammatically abusive. Fail to use required formatting style and proper referencing. (4 -0 points) PROBLEM 3: 50 points possible CATEGORY Maturity of the Developed Model 40% of total points (20 maximum points) Exceptional (A) Meets Requirements (B) Needs Improvement (C) Insufficient (F) The provided model either in mathematical form, Excel QM/ POM, or any relevant software incorporates applicable information provided in the problem. Selected model is justifiable and conceptually correct. The provided model either in mathematical form, Excel QM/ POM, or any relevant software incorporates is conceptually correct. The model does not utilize all applicable information provided in the problems. The provided model in Excel QM/ POM is conceptually correct. However, it is not the optimal solution. Model is conceptually incorrect or missing. (13 – 0 points) The model includes some information provided in the problems. (15 – 14 points) (17 – 16 points) Problem 3 Report 40% of total points (20 maximum points) Mechanics/ APA Formatting 20% of total points (10 maximum points) (20 – 18 points) Report provides detailed and clear explanation of the selected queuing model. Provides thorough justification of the model. Report explanation of the selected queuing model. The justification of the selected model is not complete. Report explanation of the selected queuing model. Key elements of the justification are missing. (17 – 16 points) (15 – 14 points) (20 – 18 points) Chooses words for their precise meaning and uses an appropriate level of specificity. Sentence style fits audience and purpose. Sentences clearly structured and carefully focused. Almost entirely free of spelling, punctuation, and grammatical errors. Correctly use APA formatting, proper referencing. Generally uses words accurately and effectively, but may be too general. Sentences are clear, structured, and focused, though some may be awkward or ineffective. Errors may annoy the reader but do not impede understanding. Correctly uses APA formatting, proper referencing. Uses relatively vague and general words, may use some inappropriate language. Sentence structure generally correct, but sentences may be wordy, unfocused, repetitive, or confusing. Contains several mechanical errors. Formatting and referencing errors. (8 – 7 points) (6 points) (5 points) No explanation. (13 – 0 points) Misuse of words throughout. Awkward sentences throughout. Difficult to attach a thought process. Poorly punctuated, misspelled words, grammatically abusive. Fail to use required formatting style and proper referencing. (4 -0 points) PROBLEM 4: 50 points possible CATEGORY Maturity of the Developed Model 40% of total points (20 maximum points) Exceptional (A) Meets Requirements (B) Needs Improvement (C) Insufficient (F) The provided model is in mathematical form, Excel QM/ POM, or any relevant software; model incorporates all applicable information provided in the problem. Selected model is justifiable and conceptually correct. The provided model is in mathematical form, Excel QM/ POM, or any relevant software; model incorporates most applicable information provided in the problem (some information is missing or incorrect). The model does not utilize all applicable information provided in the problems. The provided model is in mathematical form, Excel QM/ POM, or any relevant software; model incorporates little applicable information provided in the problem. The optimal solution is missing; however, the model includes some information provided in the problems. Model is conceptually incorrect or missing. (20 – 18 points) (13 – 0 points) (15 – 14 points) Problem 4 Report 40% of total points (20 maximum points) Mechanics/ APA Formatting 20% of total points (10 maximum points) (20 – 18 points) (17 – 16 points) Report provides explanation of the selected linear programming model for solving product mix problem. Some justification information is not presented. Report provides explanation of the selected linear programming model for solving product mix problem. Key justification information is not presented. Chooses words for their precise meaning and uses an appropriate level of specificity. Sentence style fits audience and purpose. Sentences clearly structured and carefully focused. Almost entirely free of spelling, punctuation, and grammatical errors. Correctly use APA (17 – 16 points) Generally uses words accurately and effectively, but may be too general. Sentences are clear, structured, and focused, though some may be awkward or ineffective. Errors may annoy the reader but do not impede understanding. Correctly uses APA (15 – 14 points) Uses relatively vague and general words, may use some inappropriate language. Sentence structure generally correct, but sentences may be wordy, unfocused, repetitive, or confusing. Contains several mechanical errors. Formatting and referencing errors. Report provides detailed and clear explanation of the selected linear programming model for solving product mix problem. No explanation. (13 – 0 points) Misuse of words throughout. Awkward sentences throughout. Difficult to attach a thought process. Poorly punctuated, misspelled words, grammatically abusive. Fail to use required formatting style and proper referencing. (4 -0 points) formatting, proper referencing. formatting, proper referencing. (8 – 7 points) (6 points) (5 points)