MGOC10 Case Problem 5 "Duke Energy Coal Allocation"

Assignment 2.Worth: 10%. Due: The beginning of your class in the week of March 27 (that is, 11:10 am on March 27 for Section L01, 3:10 pm on March 27 for Section L02, 1:10 pm on March 28 for Section L03). The best is to submit your assignment in class. If that is not possible, you can also use the Management drop box on the second floor of Instructional Centre.

You should write managerial report for the following case problem:
Chapter 4, Case Problem 5 “Duke Energy Coal Allocation”, Pages 207-209 in the 13th edition, or pages 209-211 in the 14th edition.

Please address questions 1,4,5,6 from the case problem (skip questions 2 and 3). Then address the following additional Question 7: Suppose that Duke Energy learns that the energy content of the coal from Cyprus Amax is actually 14,000 BTUs per pound. What will be the total cost to purchase, deliver, and process the coal under the optimal procurement plan for this situation?
Note: the ton used in the problem is the short ton (1 ton = 2000 lb)

The assignment should be done in groups of 2-3 people (3 people per group is preferred, 2 people in a group is also allowed). On the front page, put your name, student number, course (MGOC10 “Analysis for Decision Making”), professor’s name (Igor Averbakh), and list your section (e.g., L01, L02, L03). It is allowed to have teammates from different sections.
Your managerial report should have the following structure:
1) Executive summary (at most one page);
2) Detailed report.
The executive summary is the summary of your MAIN findings: this is what your boss would read first, and if (s)he doesn’t like it, (s)he may not want to read the rest. So, it must be very clear and polished.

The detailed report should include all details of the model, then answer the questions posed in the book (questions 1,4,5,6, as specified above), then address Question 7 stated above, and then address whatever else you want to include in your analysis. (It is expected that you will address some issues of your choice in addition to what is requested in the book; this additional analysis should be clearly identified.) The additional analysis should be in a separate and clearly identified section. The detailed report should make clear references to computer outputs that must be also included.
Your assignments must be typed. Handwritten assignments will not be accepted. Quality of presentation is an important component in evaluation.

The assignment will be graded based on correctness, logic, completeness, clarity and quality of presentation, and overall impression (yes, in real life reports not only have to be correct, but also should make good impression!)
You should use the Excel solver for this assignment. Detailed explanations on how to use the solver are available in the book. Also, Appendix A in the book has some basic material on spreadsheet models.

My policy with respect to assignments is that neither the professor nor the T.A. will give you ANY help with using the software – this you should figure out yourself as a group, to make the setting closer to a real-life project. Nor will we help with any specific questions about your problem. However, general conceptual questions about the course material are very welcome.