A group of Physicians must build an addition to their existing private clinic. They are considering three different sized additions: a small addition, a medium addition and a large addition. If the medical demand is high (there is a favorable market) theywould realize a net profit of $100,000 with a large addition, a net profit of $40,000 with a medium addition and a net profit of $10,000 with a small addition.If the medical demand is low (there is an unfavorable market) they would realize a net loss of $40,000 with the large addition, a net loss of $10,000 with the medium addition and a net profit of $5,000 with the small addition. The physicians have areliable forecast indicating a 40% probability of the high medical demand. Using the expected monetary value, what should they do and what is the expected value of that decision?a. $7,000 Smallb. $61,000 Smallc. $64,000 Larged. $22,000 Medium

Let L, M, and S be the events of building a large, medium, and small addition, respectively. Let H…

Answered: A group of Physicians must build an…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Store A and Store B compete for the business of the same customer base. Store A has 55% of the business and Store B has 45 %. Both companies intend to expand to increasse their market share. If both expand, or neither expand, they expect theri market share to remain the same. If Store A expands and Store B does not, the Store A"A share increases to 65%. If Store B expands and Store A doesnt, then Store A's share drops to 50%. Determine which strategy, to expand or not, each company should take.
Federated Electronics, Ltd., manufactures display screensand monitors for computers and televisions, which it sellsto companies around the world. It wants to construct a new warehouse and distribution center in Asia to serve emerg-ing markets there. It has identified potential sites in the port cities of Shanghai, Singapore, Pusan, Kaohsiung, and HongKong and has estimated the possible revenues for each(minus construction costs which are higher in some citieslike Hong Kong). At each site the projected revenues are primarily based on these factors, (1) the economic condi-tions at the port including the projected traffic, infrastruc-ture, labor rates and availability; and expansion and modernization; and (2) the future government situationwhich includes the political stability, fees, tariffs, duties,and trade regulations. Following is a payoff table thatshows the projected revenues (in $ billions) for six years given the four possible combinations for positive and nega-tive port and…
A small paint company specializes in two types of exterior paint: latex and enamel paint. It requires 10 labor-hours per 100 liters of latex paint and 15 labor-hours per 100 liters of enamel paint. It is assumed that the company works only 40 hours per week, does not hire additional labor, and does not engage in overtime work. From 1 liter of latex paint, a profit of 5 units is obtained, while from 1 liter of enamel paint, a profit of 10 units is obtained. The owner of the company prioritizes the objectives in the following order: Avoiding overtime work Maintaining a weekly profit of at least 1000 units Producing a minimum of 700 liters of enamel paint each week to meet the demand of an existing customer Formulate the goal programming model for the company.
A manufacturer can sell product 1 at a profit of $2/unit and product 2 at a profit of $5/unit. Three units of raw material are needed to manufacture 1 unit of product 1, and 6 units of raw material are needed to manufacture 1 unit of product 2. A total of 120 units of raw material are available.If any of product 1 is produced, a setup cost of $10 is incurred, and if any of product 2 is produced, a setup cost of $20 is incurred. Formulate an IP to maximize profits.
The E-JEM Company produces two types of laptop computer bags. The regular version requires $32 in capital, 4 hours of labor, and sells for $41. The deluxe version requires $38 in capital, 6 hours of labor, and sells for $52. How many of each type of bag should the company produce in order to maximize their revenue if they have $2100 and 300 labor hours available? ..... The company should make regular laptop bags and deluxe bags to maximize revenue.
Case Whole Foods Market Grows Through Mergers and Acquisitions Over three decades ago, four businesspeople who had experience in retailing natural foods through food stores believed that there was a demand for a supermarket for natural foods. As a result, in 1980 in Austin, Texas, they founded the first Whole Foods Market store in a building that had around 10,000 square feet and a staff of 19. This store was quite large compared to health food stores at the time. By 1984, the company was successful enough to expand to Houston and Dallas. In 1988, they purchased the Whole Food Company in New Orleans and expanded there. The next year, they moved into the West Coast with a store in Palo Alto, California. Even though the company has built a number of its own stores, much of the company growth has come through mergers and acquisitions, many of which came in the 1990s in such places as North Carolina, Massachusetts, Rhode Island, both Northern and Southern California, and Michigan. After…
The Inn at Penn has 150 rooms with standard queen size beds and two rates: a full price of $200 and a discount price of $ 120. To receive the discount price, a customer must purchase the room at lease two weeks in advance ( this helps to distinguish between the business travelers, who value the flexibility of booking late and leisure travelers who tend to book early). For a particular Wednesday night, the hotel estimates that the demand from the leisure travelers could fill the whole hotel while the demand from business travelers follows a uniform distribution over [ Number of rooms demanded Probability 10-25 0.05 26-41 0.10 42-57 0.20 58-73 0.30 74-89 0.20 90-105…
Hoosier Power needs to determine a capacity expansion plan to meet Bloomington’s power needs for thenext 20 years. The current capacity is 5000 kwh. The demand for the current year is 4000 kwh, and demand is expected to increase by 1000 kwh in each succeeding year. At the beginning of each year, Hoosier Power must determine the amount of capacity to add, given the following inputs: ■ Any year in which capacity is added, a fixed cost of $120,000 is incurred plus a cost of $120 per kwh of capacity. ■ At most 10,000 kwh of capacity can be added in a single year. ■ It costs $25 per year to maintain a unit of capacity. ■ It costs $12 per year to produce a kwh. ■ If production does not meet demand, a shortage cost of $80 per kwh short is incurred. Develop a linear integer model to help Hoosier Power minimize its costs for the next 20 years.
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