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\title{Operations Research}
\author{Homework 9}
\date{Due in class Tuesday, November 28, 2017}
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\begin{enumerate}

\item An airplane manufacturer is contracted to produce a small number
of a particular type of airplane during the coming years.  The
manufacturer will need to decide each year whether to set up a
production run with a fixed set-up cost of EUR\,1\,000\,000 per run.
During each production run, the manufacturer can make at most 6
airplanes.  If an airplane is not delivered during the year it is
produced, it will incur a holding cost of EUR\,100\,000 per year.  The
number of airplanes required are $r_1=1$, $r_2=6$, $r_3=2$, and
$r_4=3$ during each of the years.

Which production schedule(s) minimize the total cost for setup and
storage? 

\item A chip manufacturer produces CPUs that are so complex that it is
  impossible to test every single function of the CPU in a production
  run, but it is possible to design a test that finds a defect with
  probability $p<1$.  Moreover, $\tfrac9{10}$ of all CPUs that are
  produced are defective.  What value of $p$ is needed to guarantee
  that 99\% of all CPUs shipped work?
\end{enumerate}

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