Module 2 Assignment: Part 1: Estimating Utilities at MTSULiveHere (MO-2.4) MTSULiveHere is making several apartments available for new leases. Renters will frequently call the staff to receive quotes for rental expenses, including electricity and pets. As pet food prices have been fluctuating the last few years, customers have become more conscious of the price per pound and its impact on their total cost of housing. As a potential service to its renters, MTSULiveHere has modified its Rental workbook to include information on its apartments’ electricity usage and average amount of food the renter’s pets consume. All that remains to be added is a more detailed analysis of the interaction between pet food prices and total cost of housing, and the amount of pet food per week consumed and its impact on the total cost of housing. Complete the following: 1. Open the workbook named Rental.xlsx file and save it as MTSURental(your last name).xlsx. 2. Examine the Analysis worksheet and apply appropriate range names to cells D17:D20. 3. In cells A23:A28, enter the following cities in Tennessee: Murfreesboro, Smyrna, Manchester, Nashville, Franklin, and Woodbury. Use Wolfram data types to set these to cities. In B23:B28, import the cities’ population, and in C23:C28, import the median household income. 4. In D23:28, calculate the ratio of each cities’ media household income to Murfreesboro’s median household income. Murfreesboro will have a ratio of 1 (its income divided by itself), and other cities will be > 1 when the income is higher than Murfreesboro’s. Assume that MTSULiveHere keeps the rental rates for its apartments based on the differences in income in the cities as compared to Murfreesboro (meaning that cities with a greater household income will charge more for rent). You decide that you’d like to live in Smyrna. If Murfreesboro charges $1000 per month for rent, calculate the rental price for Smyrna in cell D7 (use an outside reference for the $1000 base rate, Label in cell F16, the rate in cell G16). 5. Set up the structure of a one-variable data table on the Analysis worksheet that shows the apartment rental price, electricity charge, pet food expense, and projected housing expense given changes in the average price of pet food from $1.50 to $3.10 by increments of $0.20. 6. Instruct Excel to complete the one-variable data table. HINT: To complete the one-variable data table successfully, be sure to select the correct data table range. If you instruct Excel to complete an incorrect range, you cannot just delete any “extra” results that might have appeared at the bottom or right of the intended data table area. When you try to do so, you will receive the “Cannot change part of a data table” error message. You cannot delete only some results from a filled-in data table; you must delete all results values from a one-variable data table if you want to delete any results. 7. Add headings and basic formatting to the data table so it has a more professional appearance. 8. A few rows below the one-variable data table, create the structure for a two-variable data table that shows the total projected housing expense given the interaction between average pet food prices from $1.50 to $3.10 by increments of $0.20 and pounds of food consumed per week from 5 to 25 by increments of 2 pounds per week. 9. Instruct Excel to complete the two-variable data table. 10. Add headings and some basic formatting to the data table so it has a more professional appearance. 11. Save and close the MTSURental.xlsx workbook. Part 2: Managing Purchases for MTSU Toy Company (MO-2.3, 2.4) Blue Raider Toy Company is planning a huge promotion for Mighty Toys action figures during the upcoming holiday season. As the company’s purchasing manager, your job is to determine the best way to purchase these toys from the manufacturer at the lowest price. After contacting the Mighty Toys manufacturer, you learned that volume discounts and discounts for preseason orders are available on the Mighty Toys product line. You need to determine the best product mix based on the following information. The Blue Raider Urban Adventure set is the first item that most people will buy. Customers can also purchase the optional Super Action kit, which can be attached to the Blue Raider Urban Adventure set. Another companion set, the Blue Raider Outdoor set, has an optional Hiking kit that customers can purchase separately. The marketing director for MTSU Toy Company, Betty Wright, wants to allocate the purchasing budget of $100,000 maximum among the four toys. Since the Super Action kit and the Hiking kit are accessories, Betty does not want to purchase more Super Action kits than Blue Raider Urban Adventure sets and does not want to purchase more Hiking kits than Blue Raider Outdoor sets. She also wants to purchase at least half as many Blue Raider Outdoor sets as Blue Raider Urban Adventure sets. The minimum number of any specific toy to be purchased is 250. She wants you to purchase at least 7,250 total items. All purchases must be for a whole item – no fractions of an item can be purchased. Since you are purchasing the Mighty Toys early, you must consider the cost of storing the toys in the MTSU Toy warehouse until the holiday sales season begins. Your objective is to maximize the profit on all four toys. Complete the following: 1. Open the workbook named Mighty.xlsx and save it as MightyToys(your last name).xlsx. 2. Create a new worksheet called Lookup to the right of Purchase Plan. In the Lookup sheet, create a table that has monetary information on each of the toys: a. Blue Raider Urban Adventure Set has a retail price of $19.95, a unit cost of $15.36, and a storage cost of $.15. b. Super Action Kit has a retail price of $14.95, a unit cost of $14.21, and a storage cost of $.10. c. Blue Raider Outdoor Set has a retail price of $16.95, a unit cost of $13.77, and a storage cost of $.25. d. Hiking Kit has a retail price of $11.95, a unit cost of $10.03, and a storage cost of $.15. 3. On the Purchase Plan sheet, write the formulas that will populate the retail price, unit cost, and storage cost per unit in their respective cells. 4. Write the formulas that calculate the gross revenue (number purchased multiplied by the retail price), the total unit cost (unit cost multiplied by the number purchased), the total storage cost 5. 6. 7. 8. 9. 10. (storage cost per unit multiplied by the number purchased), the total cost (total unit cost plus total storage cost), and the profit (gross revenue minus the total cost) for each of the toys. Write the formulas to add the total number of toys purchased in cell B8, the total cost in cell I8, and the total profit in cell J8. Check that formulas entered in Step 4 link the objective cell (total profit) with the variable cells. Add sample values to the variable cells to ensure that your worksheet is set up correctly and produces the expected results. Create a constraints list in the worksheet that identifies the constraints in this problem. Format all monetary fields as currency with two decimal places. Use Solver to determine the best way to purchase the Mighty Toys sets and kits and maximize the profit. Produce an answer report of your final solution. Use the answer report to recommend additional changes that might maximize the total profit. Place your recommendations in a cell on the answer report worksheet. Save and close the MightyToys.xlsx workbook. Part 3: Determining Inventory Levels for MTSU Auto (MO-2.1, 2.2) Another profitable facet of MTSU Auto’s business is supplying parts for auto repairs. The most critical component of the parts supply business is having enough of the right parts on hand so that repair shops can receive same-day delivery. The key to profits is minimizing the number of parts that need to be warehoused while also ensuring that sufficient parts are on hand to meet orders. Since each warehouse distribution center serves a different set of customers with different needs, each center must be considered separately. Distribution centers have a five-day lead time for ordering parts. The lead time must be taken into consideration when determining target inventory levels. The costs involved in warehousing the parts include the working capital tied up in the inventory (the cost of each part) as well as the space to store the part. These costs can be substantial. On the other hand, alternative “generic” parts are often available from rival suppliers and keeping the auto repair centers supplied and customers satisfied is critical. One of the most problematic items to supply and store are bearings. This part is both high volume and relatively large, taking up considerable warehousing space. A bearing is also relatively expensive. Analyzing bearing needs is a good place for MTSU to start, specifically in one of its largest distribution centers such as Central Pittsburg, which serves 10 major customers. You have been asked to analyze the bearing inventory level requirements for this center, including simulating demand based on 30-day historical extremes, calculating a target inventory level based on this simulation, and then comparing simulated values to actual values from the past five days from the targeted warehouse. Complete the following: 1. Open the workbook named Parts.xlsx and then save it as MTSU Parts Analysis(your last name).xlsx. 2. Modify the format of the data on the BearingData worksheet so that zero values are displayed with a 0 instead of the default dash, aligned on the right side of the column. 3. On the BearingData worksheet, take the existing 30-day data for these bearings for each customer to calculate the high and low limits of the bearing demand by customer. 4. On a new worksheet named Simulation, use the high and low limits you just calculated to simulate daily requirements for each customer to obtain a combined daily requirement. Assume that the daily requirements will vary for each customer randomly between the high and low limits you have calculated from the existing 30-day data for that customer. Generate the data for 180 instances (days) for each customer, and then copy the results as values (paste special – as values) to another new worksheet names Simulation Data 1. We copy the data over because the function used to create these numbers will run every single time you make a change to your workbook, changing the numbers. By pasting the values in another sheet, we prevent the accidental changing of the values generated. 5. On the Simulation Data 1 worksheet, in an adjacent column to the simulation data, calculate the total demand by day (for all 10 customers). Use this daily demand total data to calculate the overall mean, mode, median, and standard deviation for the combined requirements of all 10 customers. Use cell shading to clearly identify your calculation area. 6. Extend your analysis (on the same worksheet) to include a ranking of the data (1 to 180) so that the day with the least total demand has a rank of 1. (HINT: Use the RANK.EQ formula) Again, use cell shading to clearly identify columns with your calculations. 7. To the right of the data, create a listing of the top and bottom five daily combined demands from the 180 simulated instances (HINT: Use the LARGE and SMALL formulas). Clearly identify this listing using borders and shading. 8. Recommend a target inventory level needed for a five-day period based on the following: to be on the cautious side, assume each day’s supply will be equal to the average daily demand for all locations combined, plus three standard deviations. Since the mean and standard deviations might not already be integers, round the daily demand up to the nearest whole number. Then, use this calculated daily demand (average plus 3 standard deviations) to calculate demand over a five-day period. Place this recommendation just below the top/bottom analysis, again clearly identifying it. Add the label Bearing Recommended to identify the cell containing the actual value. 9. The warehouse manager has tracked a total of five different parts over the past five days, recording for each shipment the value of the part and the number of days it was in storage. One of these tracked parts is the bearing you have just analyzed. The data has been compiled in a workbook named Demand.xlsx. Each line item represents a single shipment of one item. Copy the data from the Demand.xlsx workbook to your workbook and place it on a worksheet named Actual Demand. 10. On the same worksheet, summarize the data to determine the number shipped by part, the total values of those shipments by part, and the average number of days that part was stored, using the format shown in the table below Item Description # Items Shipped Bearings Timing Belts Air Filters Fan Belt Electronic Board blank blank blank blank blank Total Dollar Value of Items Shipped blank blank blank blank blank Average # Days Held in Inventory blank blank blank blank blank In the # Items Shipped column, write a formula to determine the number of bearings shipped. Write the formula so that it can be copied down the column to automatically determine the number of timing belts shipped, the number of air filters shipped, and so on. In the Total Dollar Value of Items Shipped column, write a formula to determine the value of all bearings shipped. Again, write the formula so that it can be copied down the column to automatically determine the value of timing belts, air filters, and so on. In the Average #Days Held in Inventory column, write a formula to determine the average number of days bearings shipped were held in inventory; again, write the formula so that it can be copied down the column. 11. Based on the recommended inventory level you previously calculated for bearings, would you have had enough bearings in the warehouse to cover these orders? Place your answer in a cell below your analysis on the Actual Demand worksheet. Clearly identify this answer and highlight it in yellow. 12. Double-check all values and formulas for correct implementation. Include sufficient formatting and titles to clearly identify the worksheet elements. 13. Save and close the MTSU Parts Analysis.xlsx workbook.