Based on 3.10 problem 3: James Beerd bakes cheese cakes and Black Forest cakes. During any month he can bake at most 65 cakes. The cost per cake and the demands for cake, which must be met on time, are listed in the Table. It costs $ 1.50 to hold a cheesecake, and $ 1.20 to hold a Black Forest cake, in inventory for a month. Set up the LP and then determine the minimum cost to meet the demand. Month1 Month1 Month2 Month2 Month3 Month3 Demand Cost/cake Demand Cost/cake Demand Cost/cake 9 30 10.2 20 11.4 7.5 30 8.4 10 10.2 TYPE cheesecake 42 BlackForest 20 The minimum cost subject to the conditions is

Based on 3.10 problem 3: James Beerd bakes cheese cakes and Black Forest cakes. During any month he can bake at most 65 cakes. The cost per cake and the demands for cake, which must be met on time, are listed in the Table. It costs $ 1.50 to hold a cheesecake, and $ 1.20 to hold a Black Forest cake, in inventory for a month. Set up the LP and then determine the minimum cost to meet the demand. Month1 Month1 Month2 Month2 Month3 Month3 Demand Cost/cake Demand Cost/cake Demand Cost/cake 9 30 10.2 20 11.4 7.5 30 8.4 10 10.2 TYPE cheesecake 42 BlackForest 20 The minimum cost subject to the conditions is

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...

See similar textbooks

Similar questions

Ray Holt seeks an investment for his new business. The investor will bear all the costs(fixed + variable) and wants a rate of return of at least Y%. For the business fixed cost is Fc, selling price of a unit is Sp, and Cost of production of a unit is Cp. How many units, x, should Ray Holt maketo meet the investor’s rate of return requirement? If the requested rate of return is 10%, fixed cost is $10,000, selling price is $5, and cost of production is $3, how many units should be made?
Demand for stereo headphones and music players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for this year was as follows: MONTH DEMAND (UNITS) January 4,150 February 4,250 March 3,950 April 4,350 May 4,950 June 4,650 July 5,250 August 4,850 September 5,350 October 5,650 November 6,250 December 5,950 a. Using linear regression analysis, what would you estimate demand to be for each month next year? Using a spreadsheet, follow the general format in Exhibit 3.8. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. To be reasonably confident of meeting demand, Nina decides to use 3 standard errors of estimate for safety. How many additional units should be held to meet this…
Green Gardens' owner has asked your advice about a possible problem at his business. Over the last 6 months the large-sized lawn and garden inventory (ie, tables, chairs, planters, etc.) has appeared to be short. The inventory records that employees use to determine what is on hand show that more inventory is available than can actually be located. This has cause frustration and mis-trust in the inventory records for the sales employees. The owner realizes that the problem is bigger than just frustrated employees. He is afraid that inventory is being stolen, a problem he didn't think possible given that these are large items that are not easily moved. Requirements: Provide the owner with two internal controls that he could implement to reduce the likelihood of theft of the lawn and garden inventory.
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
A jewelry manufacturer is creating a routine order schedule for some new products: J66 and J67. J66 can be ordered any time. J67 is set up to be ordered every 4 weeks. The company is closed 2 weeks out of a 52 week year otherwise it is open. Given the following, show me the calculation (I have provided the final answer) the questions at the end: J66 acceptable stockout risk = 2.5%, lead time = 2 weeks, ordering cost =$70, annual holding cost = 30%, unit cost =$15, standard deviation = 4 units per week, and average weekly demand is 60 units. J67 acceptable stockout risk = 2.5%, lead time = 2 weeks, ordering cost =$30, annual holding cost = 30%, unit cost =$20, standard deviation = 5 units per week, and average weekly demand is 70 units. I know the reorder point for j67 is 153 units on hand. 1) Show me the math to come up with the 153 units answer. 2) What is the reorder point for the J66? (I know the answer is 306 units so show me the calculation), 3) If the J67 has 110 units on…
1. HP produces printers for sale in Europe in its Vancouver, Canada factory. Printers sold in different countries differ in terms of the power outlet as well as the language manuals. Currently HP assembles and packs printers for sale in individual countries. The distribution of weekly demand in different countries is normally distributed with mean an standard deviation as shown in the Table below. Assume demand in different countries to be independent. Given that the lead time from the Vancouver factory is six weeks, how much total safety inventory does HP require in Europe if it targets a cycle service level of 95 percent? Country France/Benelux UK/Ireland Germany Italy/Spain/Portugal Demand Forecast 3000 4000 4000 2500 Standard Deviation 2000 2200 1250 800 EAMO2 ad of el how A utarase sit themsi What if HP decides to build a central distribution center (DC) in Europe. It will ship base printers (without power supply) to the new DC. When an order is received, the DC will assemble…
The beginning stock of a product is 200 units (On hand stock =200 unites). Safety Stock level is 50 unites. It is desirable to prepare a 12-week Master Production Schedule. MPS is 400 units. The Demand forecast and Customer order quantities for the 12 periods are given in the table below. Determine the Master Production Schedule and Available to promise amount (ATP) in a way that maintains the amount of safety stock. Demand Forecast Customer Order 1 2 3 4 5 6 70 60 90 90 110 120 80 120 120 110 110 100 90 7 130 80 8 150 50 9 140 40 10 145 0 11 180 0 12 190 0
Butch (Stinky) Rose's counterfeit Chanel No. 22.5 racket has run into difficulties: It seems that the authentic Chanel No. 22.5 perfume is selling for less than his counterfeit perfume. However, he has managed to reduce his fixed costs to zero, and his overall costs are now $800 per gram plus $30 per gram transportation costs and commission. (The perfume's smell is easily detected by specially trained Chanel Hounds, and this necessitates elaborate packaging measures.) He therefore decides to sell the perfume for $820 per gram to undercut the competition. Specify Stinky's profit function, P(x), where x is the quantity (in grams) of perfume he buys and sells. P(x) = Calculate how much perfume should pass through his hands per day in order that he break even. g:
James Calender is the buyer for "Joe's Radio Hut", a local electronics chain that has developed a loyal customer base with its quality service and competitive pricing. Due to the short selling lives of electronics products, James has only a single opportunity to order the new GO multifunction photo printer and hair dryer. The item sells for $139.24 and the per unit cost is $128.93. Any units remaining at the end of the season must be disposed of at a cost of $18.04. Demand for the item is believed to be normally distributed with a mean 605 and standard deviation 145.2. What is the cost of shortage? (specify answer to 2 decimal places)What is the critical fractile? (specify answer to 3 decimal places)What is the cost minimizing order quantity? (specify answer as a whole number)
LPM Corp. produces and sells two types of frozen burgers, Turkey Burgers and Veggie Burgers. In the most recent month, the firm sold 12,000 Turkey Burgers and 8,000 Veggie Burgers. Turkey Burgers sold for $14.00 per box and variable costs were $7.40 per box. The Veggie Burgers sold for $16.00 per box and variable costs were $8.25 per box. The fixed expenses of the entire company were $41,160. If the sales mix were to shift toward the Turkey Burgers product line with total sales volume remaining constant at 20,000, the overall break-even point for the entire company:
A local manufacturer of Toys produces several toys. Among the most popular is Elsa Doll. Suppose that there are currently 100 Elsa Doll in inventory and that there are customer orders that have been committed and must be filled. Suppose that a production lot size of 150 Elsa Dolls. The weekly forecasts for the eight weeks are 176, 172, 50, 130, 40, 120, 132, and 135 respectively. The customer orders for weeks 1, 2, 3 through 8 are the 88, 86, 25, 65,20, 51, 0, 0 respectively. Using the standard principles of Master Production Schedule (MPS) along with Available-To-Promise (ATP) for the Elsa Dolls, what is the Available to promise (ATP) level in week 2 Select one: O a. 150 b. 79 O c. 39 O d. 0 Oe. None is correct Next page
Becky Shelton, a teacher at kemp middle school is in charge of ordering the T-shirts to be sold for the school's annual fund-raising project the t-shirts are printed with a special kemp school logo. In some years the supply of T-shirts has been insufficient to satisfy the number of sales orders. In other years, T-shirts have been left over. excess T-shirts are normally donated to some charitable organization. T-shirts cost the school $7 each and are normally sold for $14 each. Ms Shelton has decided to order 790 shirts. Required 1) if the school receives actual sales orders for 715 shirts, what amount of profit will the school earn?what is the cost of waste due to excess inventory? 2) If the school receives actual sales orders for 830 shits, what amount of profit will the school earn? What amount of opportunity cost will the school incur? a) Profit $1,050 waste due to excess inventory b) Profit opportunity cost