2).Model the following problem with integer programming. Breezy Airlines is consideringthe purchase of new long-, medium-, and short-range planes. The costs would be: $67M perlong-range plane; $51M per medium-range plane; and $35M per short-range plane. The boardof directors has authorized a maximum commitment of $1.4 billion for these purchases. Theestimated net annual profit (including capital recovery costs) is $4.2M per long-range plane, $3Mper medium-range plane, and $2.3M per short-range plane. Furthermore, they will be able to trainenough pilots to crew 30 new airplanes (of any kind).

Let, L = Number of long-range planes to be purchased M = Number of medium-range planes to be…

Answered: 2) Model the following problem with…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 30P

See similar textbooks

Similar questions

what is the expected payoff $____
Answer please with correct option
PROBLEM The Seminole Company wishes to apply the Miller-Orr model to manage its cash investment. Seminole’s management has determined that the cost of either investing in or selling marketable securities is $200. By looking at Seminole Company’s past cash needs, they have determined that the variance of daily cash flows is $10,000. Seminole Company’s opportunity cost of cash, per day, is estimated to be 0.05%. Seminole management has figured, based on their experience dealing with the cash flows of the company, that there should be a cushion— a safety stock—of cash of $20,000. 1. How much is the variance of daily cash flows? (Use a number, no decimal value, no commas, no currency, no space) * 2. How much is the opportunity cost of cash, per day? (Use a number, must be in decimal form. eg. 6.3%/100, encode 0.063 , no commas, no currency, no space) * 3. How much is the cost per transaction? (Use a number, no decimal value, no commas, no currency, no space) * PLEASE ANSWER ALL QUESTIONS.…
7. Your company is considering the introduction of a new product line. The initial investment required for this project is $500,000, and annual maintenance costs are anticipated to be $35,000. Annual operating cost will be in direct proportion to the level of production at $8.50 per unit, and each unit of product can be sold for $50.00. If the project has a life of 7 years, what is the minimum annual production level for which this project is economically viable? Work this problem on an after-tax basis. Assume 5-year SL depreciation (SV5=0), MV7 = 0, an effective income tax rate of 40%, and an after-tax MARR of 10% per year.
kindly do solve accurately and exact with correct formuas thanks..with complete steps
2. A toy manufacturer has three different mechanisms that can be installed in a doll that it sells. The different mechanisms have three different setup costs (overheads) and variable costs and, therefore, the profit from the dolls is dependent on the volume of sales. The anticipated payoffs are as follows. Light Demand 0.25 $325,000 $300,000 -$400,000 Heavy Demand 0.3 Probability Wind-up action Pneumatic action Electrical action Moderate Demand 0.45 $190,000 $420,000 S170,000 $400,000 $800,000 $240,000 a. What is the EMV of each decision alternative? b. Which action should be selected? c. What is the expected value with perfect information? d. What is the expected value of perfect information? e. What is the expected opportunity loss?
A battery manufacturing plant has been ordered to cease discharging acidic waste liquids containing mercury into the city sewer system. As a result, the firm must now adjust the pH and remove the mercury from its waste liquids. Quotations from three firms are included in the following table of costs. Bidder Installed Cost Annual Operating Cost Annual Income from Mercury Recovery Salvage Value Foxhill $ 70,000 $5000 $6500 $10,000 Instrument Quicksilver 50,000 5000 2500 0 Almaden 90,000 5000 7800 10,000 If the installation will last 15 years and money is worth 12%, which equipment should be purchased?
5. A telephone company purchased a microwave equipment for P6 Million with a salvage value of P600,000.00 over a period of 5 years and pay lump sum of P400,000.00 for maintenance cost. Minimum attractive rate of return is 16% annually. Compute the annual cost of investment of purchasing the microwave equipment. A. P1,592,362.54 B. P1,695,452.87 C. P1,803,374.41 D. P1,346,121.25
Help me solve this one, rush!!
2. Consider a bidding problem similar to that presented in class. You can still either bid high or low on either the dam or highway project, or you can not prepare a bid. However, the probabilities and outcomes are given in Tables 2.1 and 2.2. Table 2.1 Probabilities and profits of bid results Project Probability Conditional Profit [$] Bid Type of Result Upon Bid of Bid of Result High Win 0.20 Table 2.2 Lose 0.80 -50,000 Dam Low Win 0.40 Table 2.2 Lose 0.60 -50,000 High Win 0.10 Table 2.2 Lose 0.90 -100,000 Highway Low Win 0.20 Table 2.2 Lose 0.80 -100,000 Table 2.2 Outcome and probabilities, conditional on winning the bid Probability Possible of Outcome Project Bid Profit [$], if Bid is Type of Bid Upon Outcome Won High 600,000 0.60 High -100,000 0.40 Dam Low 300,000 0.70 Low -200,000 0.30 1,200,000 0.60 High High -200,000 0.40 Highway Low 600,000 0.70 Low -300,000 0.30 a(i) Consider that you want to maximize the Expected Value (EV) of profit. Draw the decision tree and "work the…
1. Kirsten is trying to decide where to go for her well-earned vacation. She would like to camp, but if the weather is bad, she will have to go to a motel. Given the costs and probabilities of bad weather given below, which destination should she choose? Camping cost Motel cost Probability of bad weather Nevada $21.2 $80.9 0.2 Oregon $15.9 $84.6 0.4 California $30 $95 0.1 a. California, because its EMV = $33.14 b. Nevada, because its EMV = $33.14 c. California, because its EMV = $36.5 d. Any of the 3 choices. e. Oregon, because its EMV = $43.38 f. Nevada, because its EMV = $43.38 g. None of the 3 choices. h. Oregon, because its EMV is $36.50.
3

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS