8.- A small construction company specializes in the construction andsale of family homes. The firm offers two basic types of houses, modelA and model B. Model A houses require 4,000-man hours, 2 tons ofstone, and 2,000 board feet of lumber. Model B houses require 10,000hours of work, 3 tons of stone, and 2,000 board feet of lumber. Due tolong lead times for ordering supplies and a shortage of skilled and semi-skilled workers in the area, the company will be forced to rely on its ownresources on the next construction season. It has 400,000 hours of work,150 tons of stone and 200,000 boards of lumber. What is thecombination of Model A and Model B, that the firm should build if ModelA has profits of $3,000 per unit and Model B $6,000 per unit?a) Formulate the objective function and the restrictions.

The firm should build a combination of Model A and Model B that would maximize its profits. In this…

Answered: 8.- A small construction company…

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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MA Training (MAT) is a national organisation which provides private tuition courses in accounting. The courses are generally attended by individuals who work as bookkeepers for other companies and who want to develop their practical skills. None of the attendees is aiming towards any professional qualification or examination. Courses are run on basic bookkeeping, value added tax, payroll, credit control, company administration and basic business management. Other bespoke courses, run on demand, are charged out at higher than normal rates. MAT has six branches nationwide with individual branch managers. Head office is situated at Nottingham and has responsibility for company accounting, payroll and inventory ordering activities. Individual branch managers have responsibility for all other areas of the business, such as pricing, product mix and staffing. Each branch rents its premises (a national company policy) and staff numbers range from 4 in Newcastle to 18 in Cardiff. Staff are…
requirements over a typical six-month periöd are as 1 4 5. 6 Requirement 750 800 750 600 900 700 Produce # of Employees Hire Layoff Beginning Inventory Ending Inventory Average Inventory The current workforce level is 4 workers. Production rate is 150/worker/month. The following costs apply:Wages = $2,000/worker/month Hiring cost - $200/worker Layoff Cost = $250/worker Inventory holding cost = $1/unit/month Back ordering cost - $2/unit/month If a Level strategy is used, what is the total inventory cost, which includes inventory holding cost and back ordering cost? First, you need to determine the quantity to produce every period. 00s O O 1100 O 450 O 900 3. 2.
Evaluate the ethical dilemmas in inventory optimization, particularly concerning product shelf life, waste reduction, and environmental impact.
This is a model most suitable when inventory is filled in in the first Monday of each month only at fixed intervals.
Fuego Limited is a table-glass retailer located in Vancouver. The company purchases glasses from Anderson PLC. The details of the table glasses are as follows: The purchase price per glass – $3,000 Cost of an order - $500 The annual cost of carrying a glass - 2% of the purchase price Monthly Demand - 1,250 Units The company has been offered a discount of 1% on the price of a table glass if the lot size is 3,000 table glasses at a time. Required: i. Calculate the Economic Order Quantity. ii. Calculate the total inventory cost. iii. Draw a graph and discuss the behavior of the total inventory holding cost, total ordering cost, and total cost for the given scenario. iv. Advise whether the quantity discount offer can be accepted (Assume that the inventory carrying cost does not vary according to the discount policy)
Mancuso's Music Store is a small business that sells instruments, books, stands, and other music-related products. The owner always likes to have extra music stands in storage in case a large order arrives suddenly - typically 2 weeks' worth of sales. When an order is placed, the delivery takes 5 business days to arrive. The owner has studied working capital management and estimates that the economic order quantity for music stands is 1500 for each time an order is placed. The fixed cost of an order is $210 and the carrying cost per stand per year is $1.70. How many music stands will the store have in stock immediately after a shipment arrives? Assume the store is closed on Sundays (a 6-day business week), holidays, and a few vacation days, so that the store has 300 business days per year. Give your answer rounded to the nearest whole number of music stands. Do not include comma separators in your answer.
Costco also employs a just-in-time inventory management system, which includes sharing data directly with many of its largest suppliers. Companies like Kimberly-Clark calculate re-order points in real time and send new inventory, as needed, to replenish store shelves. Costco also works to redesign product packaging to squeeze more bulky goods onto trucks and shelves, reducing the number of orders Costco needs to place with suppliers.Occasionally, the company leverages its 75 million square feet of warehouse space to reduce purchasing costs. For example, when Procter & Gamble recently announced a 6% price increase for its paper goods, Costco bought 258 truckloads of paper towels at the old rate and stored them using available capacity in its distribution centers and warehouses.These inventory management techniques have allowed Costco to succeed in tough times while others have failed. Costco turns its inventory nearly 12 times a year, far more often than other retailers. With many…
Susan manages the packaging supplies for the New Zealand distributorship of AllBirds product lines. It;s her job to order all the shoe boxes that house each pair of shoes (whether going to retail stores, or shipping directly to consumers via the online store). She purchases shoe boxes from a local printing supplier. The NZ distributor ships on average 325 boxes of shoes each month. Boxes cost $2.25 each, and each order costs $18 to process. Because of limited storage space, Susan's manager wants to charge inventory holding at 25% of the unit cost. The lead time is 7 days. Assume 360 working days per year. Calculate the following: a. Economic order Wuantity b. Reorder Point (assuming no safety stocks) c.Number of orders-per-Year d.Total annual cost e.If storage space was so limited, Susan estimates that inventory holding cots would only be 15% of unit cost. How would that change total annual costs?
7. Maribel is considering installing ice cream stalls on Turtle Beach. The length of the beach is 5 miles long. On average, in a week, there are 1,000 subathers that come to the beach and each value an icecream at $5. Transportation costs are $2.5. Each icecream costs $0.5 to make and there are $40 as a fixed maintenance cost per stall. A )Find the optimal number of stalls for Maribel? B) What is the profit at optimal number of stalls?
Exercise 2: The demand per year (D) for product X is 12,100 units. The costs of placing an order (S) are $4.50. The unit cost (C) of the item is $25.00. The maintenance cost (H) per unit per year is 30% of the item's cost. 1. Use the economic order quantity (EOQ) model to determine: *Optimal quantity to order* The expected number of orders*Optimal time between orders*The total annual cost of maintaining that optimal amountNOTE: Show calculations of how you arrived at each amount 2. Answer, what are the potential benefits of using EOQ analysis for inventory management? How can you help businesses strike a balance between inventory holding costs and ordering costs?
Only Qno1 solve complete solutions not extra guidelines answers okk
Windmire Company manufactures and sells to local wholesalers approximately 300,000 units per month at a sales price of $4 per unit. Monthly costs for the production and sale of this quantity follow.

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