4. Themethod for solving the transportation problem calculates theimprovement index for any unused square by adding up the positive and negative costs along a closedpath.5. A solution to the cost minimization transportation problem is optimal when all unused squares have animprovement index which is either6. In the transportation problem, squares which are in the solution because they have some value placedin them are calledsquares, while those which do not are calledsquares.7. In a transportation problem where total supply equals total demand, acondition issaid to exist.

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Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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(Problem 1) A manager of Drexel Clothing Company has to make a decision on shipping. There are two shippers, A and B. Both offer a two-day rate: A for $500 and B for $525. In addition, A offers a three-day rate of $450 and a nine-day rate of $325 and B offers a four-day rate of $400 and a seven-day rate for $375. Annual holding costs are 25% of unit price. Four hundred boxes are to be shipped, and each box has a price of $250. The shipping charges are for the entire batch of 400 boxes. Which shipping alternative would you recommend? Explain.
The distribution of daily demand for rental trucks at a vehicle rental company is shown in the following table: Relative Frequency Demand 0.07 0 0.14 1 0.15 2 0.14 3 0.12 4 0.08 5 0.3 6 Trucks are rented by the day only and the company makes $14 per rented truck per day. The rental company keeps four trucks at this location. Assuming that the stocking decision is optimal, what is the implied range of excess cost per truck per day? a. 0 and 186 b. 8.58064 and 14 c. 14 and 24.8889 d. 6 and 8.58064 e. 34.2759 and 79.3333
Valencia products makes automobile radar detectors and assembles two models. Laser stop and Speedbuster both models use the same electronic components after reviewing the components required and the profit for each model, the firm found the following linear optimization model for profit, where L is the number of LaserStop models produced and S is the number of Speedbuster models produced. Implement the linear optimization model on a spreadsheet and use. Solver to find an optimal solution. Interpret the optimal solution, identify the binding constraints and verify the values of the slack variables . Maximize profit = 123 L + 139 S 19 L + 11 S < 4,000 (availability of component A) 6 L + 9 S < 35000 (availability of component B) L > 0 and S > 0 The optimal solution is to produce how many Laser stop models ? And how many Speedbuster models ? The maximum possible profit is ? Component A is or is not a binding…
A company manufactures a product at its plants in C and D; then ships the product to its four distribution centers in K, L, M, and N. The transportation costs per unit (in dollars per unit) are as follows: from C to K, L, M, and N: 10, 5, 9, and 20. from D to K, L, M, and N: 2, 8, 30, and 10. The monthly demand from K, L., M, and N are: 3000, 1400, 4000, and 1200 units, respectively. On the other hand, the monthly capacity at plants C and D are: 4100 and 5800 units, respectively. Develop a linear programming model that can be used to determine the distribution plan that will minimize total monthly transportation cost. Use Excel Solver to find the optimal solution The optimal solution shows that the total monthly transportation cost is dollars.
A trucking firm handles four commodities for a particular distributor. Total shipments for the commodities in the years 2000 and 2015, as well as the prices in the year 2000, are reported in the following table. Commodity Shipments Price/Shipment2000 2000 2015 A 120 90 $1,200 B 86 73 $1,800 C 35 50 $2,000 D 60 70 $1,500 Develop a weighted aggregate quantity index with a 2000 base. (Round your answer to the nearest integer.) I2015 = ______
Problem 4-17 Hemmingway, Inc., is considering a $5 million research and development (R&D) project. Profit projections appear promising, but Hemmingway's president is concerned because the probability that the R&D project will be successful is only 0.50. Furthermore, the president knows that even if the project is successful, it will require that the company build a new production facility at a cost of $20 million in order to manufacture the product. If the facility is built, uncertainty remains about the demand and thus uncertainty about the profit that will be realized. Another option is that if the R&D project is successful, the company could sell the rights to the product for an estimated $25 million. Under this option, the company would not build the $20 million production facility. FIGURE 4.16 DECISION TREE FOR HEMMINGWAY, INC. Start R&D Project ($5 million) Do Not Start the R&D Project Successful 0.5 Not Successful 0.5 3 Building Facility ($20 million) Sell Rights Profit ($…
allons of deionized water from each wholesaler to each distribution center is shown in the following table: Question Viewer a. Which of the following statements regarding setting up the tableau for the optimal solution for this problem is true? B. The sum of supply capacities is greater than the sum of demands, so a dummy distribution center is needed. C. The sum of supply capacities is less than the sum of demands, so a dummy wholesaler is needed. b. What is the total cost of the solution? The optimal cost is $ ((Enter your response rounded to the nearest dollar.)
Problem 2 Suppose that for years East Campus' short-run Phillips Curve was such that each 1 percentage point increase in its unemployment rate was associated with a 2-percentage point decline in its inflation rate. Then, during several recent years, the short-run pattern changed such that its inflation rate rose by 3 percentage points for every 1 percentage point drop in its unemployment rate. Graphically, did East Campus' Phillips Curve shift upward or did it shift downward?
A company has three existing warehouses to which it will ship furniture from a new factory whose location must be decided. The factory will receive raw materials from its wood supplier and fabric supplier. The annual number of shipments, shipment costs and the location of the suppliers and warehouses are shown below Existing facilities Annual L to or from fact cost Coordinate location Wood supplier 120 10 (100, 400) Fabric supplier 200 10 (800,700) Ware h 1 61 10 (300, 600) Ware h 2 40 10 (200, 100) Ware h 3 70 10 (600, 200) Using the median load answer the following questions –Where the factory should be located to minimize annual transportation cost –What will be the minimum annual transportation cost
A chef must decide how many chocolate lava cakes to prepare for the upcoming Mother's Day Dinner special. The chef can either prepare 50, 100, or 150 lava cakes. Assume that demand for the lava cakes can be 50, 100, or 150. Each dish costs $5 to make and is priced at for $7 on the menu. Unsold cakes are donated to a nearby charity center. Assume that there is no opportunity cost for lost sales. Which alternative should be chosen based on the maximax criterion?
2.) Your business provides technical support for very complex and specialized machinery used by companies throughout the country, and you currently have support centers at 5 locations. However, due to a poor market, you have been forced to close your centers in Houston and San Diego. You will have to relocate all of your technicians in these two centers to your other three centers in Cleveland, Seattle, and Charlotte. Due to the varying costs of living in each city, and travel and retraining times, the cost for relocating an employee varies depending on where the employee is moving. These costs are given in the following table: To: From: Cleveland Seattle Charlotte $5,000 | $7,000 $7,000 $4,000 $6,000 $8,000 Houston San Diego You currently have 40 employees in Houston and 55 employees in San Diego, which all need to be relocated. Cleveland is able to take in at most 35 relocated employees, Seattle can take in at most 32 employees, and Charlotte is able to take in at most 50 employees.…
eBook Problem 8-21 (Algorithmic) Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. The profit per night for each type of room and rental class is as follows: Room Type 1 Type II Rental Class Super Saver $37 $18 Explain. Deluxe $40 $33 Variable SuperSaver rentals allocated to room type I SuperSaver rentals allocated to room type II Deluxe rentals allocated to room type I Deluxe rentals allocated to room type II Business rentals allocated to room type II Is the demand by any rental class not satisfied? Business Type 1 rooms do not have wireless Internet access and are not available for the Business rental class. Round Tree's management makes a forecast of the demand by rental class for each night in the future. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. The demand forecast for a particular night is 125 rentals in the Super Saver…

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