A brewery produces regular beer and a lower-carbohydrate "light" beer. Steady customers of the brewery buy 10 units of regular beer and 15 unitsof light beer monthly. While setting up the brewery to produce the beers, the management decides to produce extra beer, beyond that needed tosatisfy customers. The cost per unit of regular beer is $29,000 and the cost per unit of light beer is $50,000. Every unit of regular beer brings in$200,000 in revenue, while every unit of light beer brings in $500,000 in revenue. The brewery needs at least $15,000,000 in revenue, and hasdetermined that the total demand will be at least 48 units of beer. Complete parts (a) and (b)BELED(a) How much of each type of beer should be made so as to minimize total production costs?units of light beer should be made, for a minimum total cost of $units of regular beer and(Type integers or decimals.)(b) Suppose the minimum revenue is increased to $15,700,000. Use shadow costs to calculate the total production cost.The shadow cost of production is $ The increased minimum revenue corresponds to a total production cost of $(Type integers or decimals.)

Let the number of regular beer units produced be R and light beer units be L. Minimum Regular beer…

Answered: A brewery produces regular beer and a…

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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A company that manufactures laser printers for computers has monthly fixed costs of 177000 and variable costs of 650 per unit produced. The company sells the printers for 1250 per unit. How many printers must be sold each month for the company to break even? please solve
Dairy company SG is producing milk at a fixed rate of 5,000 gallons/hour. The total customer order over a day is 100,000 gallons of milk. This demand is distributed evenly from 8:00 am to 6:00 pm. If there is no milk available, customers will wait until enough is produced to satisfy your orders. The company starts to produce at 8 am with 25,000 gallons in finished goods inventory. In the end, after that all the demand has been met, the plant continues producing until the stock of products finished is restored to 25,000 gallons. When answering the following questions, please address the trucks / milk as a continuous flow process. Start by drawing a graphic indicating how much milk is in stock and how much milk is “on hold” throughout the day. a) At what time of day will customers have to wait for their orders to be filled? b) At what time will customers stop waiting? c) Suppose the milk is collected in trucks with a capacity of 1,250 gallons each. What is the maximum number of trucks…
A toy manufacturer uses 51,920 rubber wheels per year for its popular dump truck series. The firm makes its own wheels, which it can produce at a rate of 800 per day. The toy trucks are assembled uniformly over the entire year. Carrying cost is $1.30 per wheel per year. Setup cost for a production run is $44. The firm operates 236 days per year. Determine the following: a. Optimal run size (Round your answer to a whole number, following normal rules of rounding.) b. Use your final answer from part a to determine minimum total annual cost for carrying and setup. (Round your answer to a whole number.) c. Cycle time for the optimal run size (Round your answer to two decimal points.) d. Run time (Round your answer to two decimal points.)
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.
A manufacturing company faces an uncertain demand for its product at an average of 10,000 units per year. Selling price of the product is IDR. 1.500.000,-. The cost of holding per unit per year is estimated at ID. 350.000,-. Profit of the product is IDR. 300,000,- per unit. If the company could not meet the demand, then the profit will be lost. Ordering lead time is approximately 7 days, and the demand during lead time follows a uniform distribution of 30 to 200 units. a. Determine order quantity and reorder points to minimise the total cost b.Determine the review period and maximum inventory to minimise the total cost
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BicycleBro is a retailer that sells bicycles. The company had been operating for 30 days (1 month). By the end of 1 month it wants to measure its performance in terms of Inventory turnover and Days of inventory. Below is the information that the company has collected from its warehouse and accounting department Stock Count Sheet Item code Stock on hand Stock count week (week number when employees counted the stock on hand) 100 30 week1 200 10 week1 100 10 week3 200 20 week3 Inventory valuation Item code Value per unit (in $) 100 1000 200 2000 Bicycles sold by end of month Item code Units sold 100 5 200 10 Given the information above find What is the total inventory turnover rate for given period? What is the total Inventory Days of Sales for given period?
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