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Bay Oil produces two types of fuel (regular and super) by mixing three ingredients. The major distinguishing feature of the two products is the octane level required. Regular fuel must have a minimum octane level of 90, whereas super must have a level of at least 100. The cost per barrel, octane levels, and available amounts (in barrels) for the upcoming two-week period appear in the following table, along with the maximum demand for each end product and the revenue generated per barrel.

Ingredient Cost/Barrel Octane Available (barrels)

1 $16.50 100 160,000

2 $14.00 87 400,000

3 $17.50 110 350,000

Revenue/Barrel Max Demand (barrels)

Regular $18.50 400,000

Super $20.00 550,000

Develop and solve a linear programming model to maximize contribution to profit. (Assume Ri is the amount of ingredient i used in producing regular, and Si is the amount of ingredient i used in producing Super. Use the units of barrels and dollars for all answers.)

Max _________________

s.t.

Input 1 Capacity_______

Input 2 Capacity___________

Input 3 Capacity_________

Max Demand for Regular___________

Max Demand for Super________

Required Octane Level, Regular___________

Required Octane Level, Super_______________

R1, R2, R3, S1, S2, S3 = 0

What is the optimal contribution to profit?
Report your values for R1, R2, R3, S1, S2, S3.

(R1, R2, R3, S1, S2, S3) = ( ____________)

What is the maximum profit (in dollars)?

 
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Chapter 13 Assignment The following diagram describes the basic relationship between motivation (effort) and performance (ob performance). Click on each tab to reveal examples of the three components of motivation Factor 1 Effort Factor 2 Effort Factor 3 Effort Performance I am going to do whatever I can in the next two hours to get this presentation done. Each of these factors is either an example of Initiation of effort, direction of effort, or persistence of effort-the three components of motivation. The factor that is an example of initiation of effort is because the person in this scenarios Factor 2 Even though the remainder of this assignment will rector fotivation, there are two additional determinants of job performance. The following equation is frequently used to represent job perfor Job Performance – Motivation x Ability Situdomar constraints Factor Which of the following can you inter from this equation? Developing employee skills is the best way to increase sob performance The combination of motivation and ability impact job performance to a greater degree than situational constraints Job performance is more than a function of effort, people must also have the skills and resources to perform their jobs, Putting policies in place that impact job performance is the most effective way to motivate employees Chapter 13 Assignment The following diagram describes the basic relationship between motivation (effort) and performance (ob performance). Click on each tab to reveal examples of the three components of motivation Factor 1 Effort Factor 2 Effort Factor 3 Effort Performance I am going to do whatever I can in the next two hours to get this presentation done. Each of these factors is either an example of initiation of effort, direction of effort, or persistence of effort-the three components of motivation. The factor that is an example of initiation of effort is because the person in this scenario is deciding how long to work on the presentation vation, there are two additional determinants of job performance. The following choosing to focus his or her work efforts on the presentation deciding how much effort to put into the presentation traints Which of the following can you inter from this equation? O Developing employee skills is the best way to increase job performance The combination of motivation and ability impact job performance to a greater degree than situational constraints Job performance is more than a function of effort, people must also have the skills and resources to perform their jobs. Putting policies in place that impact job performance is the most effective way to motivate employees Q Search Chapter 13 Assignment Abraham Maslow, Clayton Alderfer, and David McClelland have each presented a well-known theory regarding the number and types of needs Categories. Maslow’s Hierarchy of Needs Theory presents live categories of needs, whereas Alderfer’s ERG Theory collapses Maslow’s categories Into three Provide the missing category labels from Maslow’s theory for the following work scenarios, and answer the related question on Alderfer’s theory Work Example Getting along with coworkers and bosses Maslow’s Need Category Alderfer’s ERG Theory Alderfer renamed the need for getting along with coworkers and bostes into the category of needs Getting a promotion for a job well done Securing another position after being let go from a previous job McClelland’s Learned Needs Theory argues for a slightly different set of needs that motivate people: alation, achievement, and the need for power Determine whether each of the following examples desenvben a person with a high need for atuation, achievement, or power Need Example Rosangel your manager, wants everyone to like her, so she brings lunch for everyone in the office on Fridays Danny, a former, works all night harvesting crops because he wants to bring the freshest possible produce to market
 
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Process analysis Consider the following process for handling claims for disability insurance at an insurance company called Insurelt. What steps can you extract from this process? Classify these steps into VA, BVA and NVA. When a claim is received, a junior claims officer first enters the claim details into the insurance information system and performs a basic check. Next, the claim is moved to a senior claims officer who performs an in-depth assessment of the reported disability and estimates the monthly benefit entitlement (i.e. how much monthly compensation is the claimant entitled to, and for what period of time). In the case of short-term disability benefits, the senior claims handler can perform the benefit assessment without requiring further documentation and notifies the customer of the outcome via e-mail or postal mail. In the case of long-term disability claims (more than three months), the senior claims handler requires a full medical report in order to assess the benefit entitlements. The process for obtaining the medical report is explained below. Once the senior claims handler has received the medical report, they can assess the benefits entitlement. The senior claims handler then notifies the customer of the outcome of the assessment and their monthly entitlement if applicable. The decision is recorded in the insurance information system. In case a claim gives rise to an entitlement, a finance officer triggers the first entitlement payment manually and schedules the monthly entitlement for subsequent months. When a medical report is required, a junior claims handler contacts the customer (by phone or e-mail) to notify them that their claim is being assessed, and to ask the customer to send a signed form authorizing Insurell to request medical reports from their health provider. Once the authorization has been received, the junior claims handler sends (by post) a request for medical reports to the health provider together with the insurer’s letter of authorization. Hospitals reply to Insurell either by post or in some cases via e-mail.
 
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The Airline case presents background information on the airline industry, the starting situation of your company, and opportunities for expansion Below are a few guide questions to consider as you read the case Be prepared to discuss these as well as other questions in class.

How many aircraft does your company have?How many routes do you serve?
What market opportunities do you have?
How can your firm differentiate itself from the competition?

How many functional areas can you identify in your company? What are the main decisions for each?
What kinds of aircraft are available for acquisition?
What are the two major ways you can finance your aircraft acquisitions?
Name three different ways you can measure success for your firm. What decisions will have the biggest impact on each measure?
 
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