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Executive Summary and Proposed Changes to Management Technical Report

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Project Grading 25% Executive Summary, 25% Technical Report, 50% for the correctness of your solution and the technique used. You work for a consulting firm and have been assigned to work for Sers, which sells big screen TV’s. Since more TV’s are sold on weekends, Sers is closed on Monday and Tuesday of every week. For plasma TV’s the average demand during a week is as follows: 0 TVs demanded 10% of the time 1 TVs demanded 20% of the time 2 TVs demanded 40% of the time 3 TVs demanded 25% of the time 4 TVs demanded 5% of the time The contract with the supplier states that they can only order on Monday morning and that the TV’s will arrive by Wednesday morning. You have a maximum ability to store 12 TVs in your store. Every TV sells for $2,000. The order cost is $700 per TV, plus a $500 fixed ordering cost. Each TV held in inventory costs $50 per week. If a customer comes in and you don’t have a TV in stock, then the TV is specially ordered and delivered to their house for $1,500. In addition, you estimate a penalty of $300 due to the likelihood of the customer not returning. Sers currently has a QR inventory policy (quantityreorder) (Also known as a S,s inventory policy) with Q=12 and R=7. As long as the inventory at the end of the day is R or more, then no order is placed. If the inventory is strictly less than R, then an order is placed so that the store opens with Q items (i.e. Sers will open on Wednesday with 12 TV’s on hand.) Sers has asked your company to evaluate this policy and determine optimal values for Q and R. As a simplification of the model, Sers has agreed that the demand from week to week is constant and that the demand from week to week is memoryless. The memoryless property would be that a high/low demand this week does not change the demand for the following week. Follow a similar format as the previous projects (1 page executive summary and a technical report). Technical Writing Help Executive Summary – A short letter or page to a business executive that summarizes the project, your methods and most importantly your recommendations. -Not technical, assume the executive knows money, not engineering 1st paragraph (33%) – Get the Exec’s attention. Why should he/she care? 1. State the problem 2. State one sentence recommendation – What are you trying to convince the person to do? 3. State the reason or benefit of the recommendation: “By implementing our suggestions, we predict a cost savings of …” or “ an increase in revenue of..” 2nd – xth Paragraph – How did you arrive at your recommendation? 1. What were the methods? (Without being too technical, software, linear programming, etc.) 2. What worked best? 3. Why go with your recommendation? “Project X is projected to generate the most revenue of the alternatives” Conclusion (33%) 1. Restate recommendation. 2. Restate benefit of recommendation 3. Future work. You want to be hired again. Find something that remains lacking in their system or a future project based on your analysis. Technical Report – Longer, more in-depth paper guiding an engineer through your analysis. After reading the technical report, the engineer should be able to repeat your methods and arrive at the same conclusion. 1st section – Introduction 1-2 paragraphs – Problem statement Methods Used Recommendation Anticipated benefits 2nd Section – Assumptions Make clear the assumptions you make in your analysis (eg. Constant demand, arrival times follow these distributions, maximum investment amount, minimum adjusted return rate, etc.) Next Sections – Methods and Analysis Go through every step of the methods you applied to reach your conclusion. Again, the engineer should be able to replicate what you did exactly and reach the same conclusion. Describe decision variables, sets and parameters. Describe the objective function in English, then give the mathematical notation. Describe each constraint in English followed by the math. Analysis. Analyze the output of the computer. Recommendation and conclusions Clearly identify what you recommend the company do. Some solutions are best represented with words AND figures/tables. (Calendars, production schedules, projected profit graphs, percent of resource utilization over time, etc.) State projected outcomes – “Our analysis projects a cost savings of…” Based on the analysis, which method worked best / what you learned from the analysis Restate Recommendation Projected Outcome of accepting recommendation “This will save…” or “This will boost profits by…%” Future work. Find something that remains lacking in their system or a future project based on your analysis.
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