Chapter 10 – Operations Analytics

Chapter 10 Lab

Lab 10.6 Excel Solution

Lab 10.6 Excel Screenshots Submission:

COST TABLE
Station 1 Station 2 Station 3
Employee 1 64 32 38 LEGEND
Employee 2 47 58 29 performance measure? cost
Employee 3 57 19 49 decisions to be made? employee assignment to station (Yes = 1, No = 0)
constraints? Supply (=1) must equal Demand (=1)
goal? minimize total cost
ASSIGNMENT TABLE
Station 1 Station 2 Station 3 Station Assigned Supply
Employee 1 0 0 0 1= 1
Employee 2 0 0 0 1= 1
Employee 3 0 0 0 1= 1

Employees Assigned 1 1 1
= = = Total Cost
Demand 1 1 1 171

Lab 10.6 Excel Assessment

Questions 1-5 Answer

Assessmen
171
t1 What is the total cost of the optimal solution?
Assessmen In the optimal solution, which station is Employee 1
Station 2
t2 assigned to? Enter the station number.
Assessmen In the optimal solution, which station is Employee 2
Station 3
t3 assigned to? Enter the station number.
Assessmen
6
t4 How many constraints were defined in the Solver?
Minimiz
Assessmen e total
t5 What is the goal in this problem? cost

Lab 10.6 Excel Analysis Questions

1. Define a constraint in an optimization problem. What are the

constraints in this lab? What are other examples of constraints?

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.

1
Chapter 10 – Operations Analytics

Constraints are the restrictions or guidelines that limit the possible solutions
to an optimization issue. Examples of limitations in this lab include caps on
the maximum number of employees that can be allocated to each station or
specified requirements for staff assignments. Other examples of limits are
minimum/maximum output levels, schedule restrictions, and budgetary
restraints.
2. Define a performance measure in an optimization problem. How do
performance measures compare to KPIs? What is the performance
measure of interest in this lab?
Similar to cost, time, or efficiency, a performance measure assesses how
well an optimization problem is solved. Performance measures and KPIs
(Key Performance Indicators) can be similar, however KPIs usually track
broader business outcomes rather than specific optimization outputs. In this
lab, the performance metric of interest could be either "total cost" or
"assignment efficiency," depending on the challenge's objective.
3. Why is optimization an important prescriptive analytics technique for
Eagle Golf and other companies? Identify three other uses of
optimization.
Businesses like Eagle Golf use optimization to make data-driven decisions
that optimize resource allocation, cut expenses, and boost performance.
Supply chain management, production scheduling, and inventory
management are three other applications of optimization.

Alternate Lab 10.6 Excel Solution

Lab 10.6 Excel Submission:

COST TABLE
Station 1 Station 2 Station 3
Employee 1 36 49 31 LEGEND
Employee 2 50 20 47 performance measure? cost
Employee 3 35 29 32 decisions to be made? employee assignment to station (Yes = 1, No = 0)
constraints? Supply (=1) must equal Demand (=1)
goal? minimize total cost
ASSIGNMENT TABLE
Station 1 Station 2 Station 3 Station Assigned Supply
Employee 1 0 0 0 1= 1
Employee 2 0 0 0 1= 1
Employee 3 0 0 0 1= 1

Employees Assigned 1 1 1
= = = Total Cost
Demand 1 1 1 88

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.

2
Chapter 10 – Operations Analytics

Alt Lab 10.6 Assessment

Questions 1-15 Answer
Assessment 1 What is the total cost of the optimal solution? 88
In the optimal solution, which station is
Employee 1 assigned to? Enter the station Station 3
Assessment 2 number.
In the optimal solution, which station is
Employee 2 assigned to? Enter the station Station 2
Assessment 3 number.
In the optimal solution, which station is
Employee 3 assigned to? Enter the station
Assessment 4 number. Station 1
Linear
Assessment 5 Which solving method was used? programming
What performance measure is the focus of
Assessment 6 this problem? Cost
Assignment
What type of optimization problem is this?
Assessment 7 optimization
How many constraints were defined in the
6
Assessment 8 Solver?
Minimize total
Assessment 9 What is the goal in this problem? cost
Assessment Which is the name assigned to the cell range
station
10 I11:I13?
Assessment Which is the name assigned to the cell range
11 C4:E6? Cost Table
Assessment Which is the name assigned to the cell range Assignment
12 C11:E13? Table
Assessment Which is the name assigned to the cell range Employees
13 C15:E15? Assigned
Assessment Which is the name assigned to the cell range
Demand
14 C17:E17?
Which is the name assigned to the cell I17? Total cost
Assessment

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.

3
Chapter 10 – Operations Analytics

15

Alt Lab 10.6 Excel Analysis Questions

1. What additional prescriptive analytics technique(s) would you

recommend that Eagle Golf Company perform?
Think of suggesting additional methods like simulation for testing scenarios,
what-if analysis for planning, and predictive analytics (demand forecasting).

2. Summarize your findings. Write a memo with your recommendations to

Eagle Golf’s management.
Highlighting how efficient staff assignments lower operating expenses.

3. What assumptions must hold for the employee station assignments to be

correct?
Common presumptions include the accuracy of station availability and cost
data, and the capacity of all employees to operate at any station without
regard to skill limitations.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.