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Compact case
Case
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Reference no. UVA-QA-0364
Published by: Darden Business Publishing
Originally published in: 1988
Version: 10 August 2010
Revision date: 25-Jul-2023

Abstract

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 a second constraining resource is introduced to the decision environment.
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Abstract

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 a second constraining resource is introduced to the decision environment.

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