This case is a good introductory linear-programming case; it introduces the notion of constraint exploitation and provides practice in deciding between alternative forecasting techniques (including exponential smoothing). The case contains a decision-uncertainty structure. A production planner must determine whether or not to take a contract for future delivery of a specified product at a stated price. The decision will affect the production mix in future periods. Uncertainty surrounding the future market price of the product is crucial. In the B case (UVA-QA-0391) a second constraining resource is introduced to the decision environment.
Estimated Submission On |