b)Stock Level200TimeDDiagram above shows the stock level of a purchase model for a particular product sold by aretail store. Given that the quantity ordered results in minimised the total relevant inventorycosts. The stock holding costs are RM18 per year of stock value and the ordering cost isRM36 on each occasion. Assume that there are 250 working days per year.(i)Determine the average stock level of the product.(ii)Compute the annual demand of the product.State two additional assumptions need for above model to determine the totalnumber of orders per year. Hence find the value of D in the diagram.(iii) A company produces two products, A and B daily. Each product A and B produced willresults RM160 and RM200 in profit, respectively. The production of product A and B isdepending on the availability of limited resources. The resource required to produce a unit ofproduct A and B, and the total resources available per day are as follows.a)Resource RequirementsProduct ATotal available perdayResourceProduct BLabour (hr)Material (kg)Storage (m²)241802404021602400180120(i)Formulate the linear programming problem.Storage is a non-binding constraint. Solve the linear programming problemsimultaneously to obtain the optimal mix and the maximum profit.(ii)Compute the shadow price of an additional increase in the total labour hoursavailable per day. The overtime payment is RM15 per hour increase in labour hours.Is it worthwhile for the company to increase the total labour hours available per day?Justify your answer.(ii)

Note: - Since the exact question that has to be answered is not specified, we will answer the first…

Answered: A company produces two products, A and…

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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Materials requirement planning is most closely linked with which capacity module? Group of answer choices Rough cut capacity planning Capacity requirement planning Resource planning Master capacity scheduling
(1) This DC value-adding activity allows it to receive full truckloads of one product and ship full truckloads of various products to customers. a. allocation b. mixing c. assembly d. kitting (2) As Q increases for EOQ, the cost per order: a. increases b. decreases c. stays the same d. cannot be determined
2. Four products are processed sequentially on three machines in an aircraft maintenance workshop. The following Table 1 gives the operational data of the problem. Machine 1 2 3 Unit selling price ($) Table 1: Operational data for the problem Manufacturing time (hr) per unit Cost per hr Product Product Product Product $ 1 3 4 10 2 4 2 5 1 2 4 2 1 55 45 37 75 2323 70 Capacity (hr) 500 380 450 (a) Formulate the problem as a Linear Programming (LP) problem (b) Determine the optimal product-mix in the production schedule and the optimal profit
Exercise 3: Daily demand for a product of a computer manufacturer is 400,000 units. The company, on average, makes $150 net profit for each computer. The current fill rate is 86%. About 70% of their incomplete orders are back-ordered, and the rests are cancelled. The company is considering to improve the fill rate to 90% whose estimated daily additional operating cost (e.g.,improving the warehousing and transportation) is $2,000,000. What should be the minimum back-order cost to make this investment reasonable?
Qty Standard Labor Hour Raw Material В Standard Labor 2 Hours Raw Material INDEPENDENT DEMAND Period 1 2 3 4 5 6 Total Product A 1,000 1,000 1,000 1,000 1,000 1,000 6,000 Product B 500 500 ,500 500 16. Products A and B are produced on two different dedicated production lines. If both lines work on the same shift schedule, the ratio of workers on line A to workers on line B is A. 2:1 В. 2:3 С. 2:5 D. 4:1
There is no alternative place inside plant premises to store the increased salt consumption. Also the existing storage area cannot be modified and expanded further. Moreover, with the due expansion coming up in next 1 year, the salt consumption will Increase by approx. 50%. 1) Suggest the solution & Innovative way to better utilize the existing space and alternatives for storage area of Salt avoiding any stock-out situation to arise. Nor the plant capacity to be curtailed due to low stock of Salt. Suggestion can be made in terms of new Technology to be adopted and any other Out of Box thinking!
A town reports that it has 20 weeks-of-supply of road salt. What is its months-ofsupply? (Assume 4.33 weeks per month.)
7:12 A company produces three products A,B, and C. The products are processed through three machines as follows Standard Standard Standard ProductAnnual demand Time on m/c 1Time on m/c 2Time on m/c 3 A 600 350 8 2 1000 1 12 10 If there are 250 working days per year and the company plans to work one seven hours shift per day, then compute the number of machines required.
The Donald Fertilizer Company produces industrial chemi-cal fertilizers. The projected manufacturing requirements (inthousands of gallons) for the next four quarters are 90, 60,90, and 140, respectively. A level workforce is desired, relyingonly on anticipation inventory as a supply option. Stock-outs and backorders are to be avoided, as are overtime andundertime.a. Determine the quarterly production rate required to meettotal demand for the year, and minimize the anticipationinventory that would be left over at the end of the year.Beginning inventory is 0.b. Specify the anticipation inventory that will be produced.c. Suppose that the requirements for the next four quartersare revised to 60, 90, 140, and 90, respectively. If total de-mand is the same, what level of production rate is needednow, using the same strategy as part (a)?
A small textile company makes several types of sweat-ers. Demand is very seasonal, as shown by the follow-ing quarterly demand estimates. Demand is estimated interms of standard hours of production required.An hour of regular time costs the company $12. Employees are paid $18 per hour on overtime, andlabor can be subcontracted from the outside at $14per hour. A maximum of 1000 overtime hours isavailable in any month. A change in the regular level of production (increase or decrease) incurs a one-time cost of $5 per hour for adding or subtracting anhour of labor. It costs 2 percent per month to carry an hour of finished work in inventory. Materials and overhead costs in inventory are equal to the directlabor costs. At the beginning of the fall quarter,there are 5000 standard hours in inventory and theworkforce level is equivalent to 10,000 standardhours.a. Suppose management sets the level of regular work-ers for the year equal to the average demand andsubcontracts out the rest. What is…
d CE Additional Algo 5-11 Attrition Losses and Yields A process has three resources and two types of flows. The first flow has a demand of 20 units per day, and the second flow has a demand of 40 units per day. The first flow type visits all three resources, while the second flow type only visits the first and the third resources. The capacity is 100 units per day at the first resource, 40 units per day at the second resource, and 70 units per day at the third resource. 1. What is the demand total for each resource? Note: Do not round intermediate calculations. Resource Resource 1 Resource 2 Resource 3 Resource Resource 1 Resource 2 Resource 3 Type 1 20 20 20 Implied Utilization Actual Flow Rate 1 Actual Flow Rate 2 Type 2 2. What is the implied utilization for each resource? Note: Round your answers to 2 decimal places. 40 TO 40 Demand Total 3. What is the actual flow rate for each flow? Note: Round your answers to 2 decimal places.
T F Capacity is the degree to which input resourcesare physically changed by the conversion process.

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