Four products are processed sequentially on three machines. The following table gives the pertinentdata of the problem.Manufacturing time (hr) per unitMachineCost of hrProduct 1Product 2Product 3Product 4Capacity($)10(hr)1234500232238034731450Unit Selling Price ($)75705545Formulate the problem and find the optimum solution. After solving the problem, please generatingSensitivity Report.What should happen, if the capacity of Machine 1 is increased to 550 hours?ANone of aboveBThe profit is increased by $165The profit is increased by $375DThe profit remains same

Find Solution using Voggel's Approximation method, also find optimal solution using modi method,…

Answered: Four products are processed…

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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Can you help me to solve this question? The case study provides in image. This subject is about Retail and Service Logistics. Service output: On the basis of generic supply chain service outputs (location, lot size, waiting time and product variety) discuss how the competing retailers (Food-Town and the new supermarket chain) perform/ will perform in the level of each service output provided to customers.
What is CAPACITY REQUIREMENTS FORECASTING?
Please do not give solution in image format thanku Bob's candle factory is considering three different manufacturing options. Option A uses hand labor with fixed costs of $10,000 and variable costs of $2.75/candle. Option B uses a combination of hand and automation with fixed costs of $15,000 and variable costs of $1.10/candle. Option C is highly automated with fixed costs of $20,000 and variable costs of $0.75/candle. a. If demand for Bob's candles is 2500, which option should he pick, and what is the cost? b. If demand for Bob's candles is 4500 which option should he pick, and what is the cost?
Number of Pickers (per Hour) 0 1 2 3 4 5 6 7 8 9 Total Strawberry Output (Boxes per Hour) 0 5 10 14 17 19 20 20 18 15 Price of Total Strawberries Revenue (per Box) (per Hour) $2 2 2 2 2 2 2 2 2 2 $0 10 20 28 34 38 40 40 36 30 Marginal Revenue New Price of Product Strawberries $10 10 8 6 + NO + -4 -6 $4 4 4 4 4 4 4 4 4 4 New Total Revenue (per Hour) How many pickers would be hired at $12 an hour after the price change? picker(s) New Marginal Revenue Product
You are the operations manager for Louisiana Oysters, Inc. The company has designed new "Oyster shucking" knife that is expected to reduce risk of injury to the user. Your firm plans to begin production of these knives soon. Either of two machines, A or B could be used for in-house production. Machine A would have a fixed cost of $6000 and a variable cost of $5 per knife produced, and machine B would have a fixed cost of $9600 but a variable cost of $3 per knife. Each knife is expected to sell for $15. Determine the Range of annual “Volume of Business“[Q], for which each of the two alternative machines would be optimal i.e. best. Hint: Compute various break-even points for your evaluation
How did they get 48?
What do you understand by capacity planning? Explain the decision tree modeling for capacity expansion
OPERATIONS MANAGEMENT A retail shopping chain decided to improve its customer service, productivity and reduce its transportation costs by shifting its existing central warehouse to a new location. For this purpose, the company collected data of its existing three retail shops as shown in Table 1. Table-1 Sales Volume X and Y Coordinates Location (in Units) of the location Location - 1 36 (8, 4) Location – II 29 (4, 9) Location IlI 15 (5, 5) Question-1: Evaluate the data in Table - 1 to arrive at the coordinates of new central warehouse which is supposed to be optimum and improve the productivity of this retail chain Explain all the steps. A grocery shop based in UAE found that its inventory strategy of ordering the raw material is not appropriate. Due to this, the company's productivity has been consistently decreasing in the recent past and the production also stopped many times due to the non-availability of raw material and increased the stock-out costs and total inventory cost.…
Deforrest Marine Motors manufactures engines for the speedboat racing circuit. As part of their annual planning cycle, they forecasted demand for the next four quarters. The number of available days of production and the anticipated demand are given below. Employees Production Rate Production Cost Backorder Cost Overtime Cost Overtime Limit Demand Q1 2,400 6,019,000 They also estimated many of the costs required to conduct operations planning. Some of these key figures are listed below. 30 70 units/employee/quarter Q2 2,200 $1,000/unit $200/unit/quarter $1,500/unit <= 25% of Reg. Production Q3 1,700 Q4 1,800 Hire Cost Fire Cost Subcontracting Cost Subcontracting Limit Inventory Cost Initial Inventory $1,200/employee $800/employee $1,800/unit 400 units maximum $100/unit/quarter 280 units Deforrest Marine Motors wishes to maintain the current number of employees for the entire year to follow a level strategy balanced with inventory and backorders as needed. What is the total cost of this…
Hickory Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years. 1 2 3 4 5 86 90 Year Forecast demand Currently the manufacturer has seven machines that operate on a two-shift (eight hours each) basis. Thirty days per year are available for scheduled maintenance of equipment with no process output. Assume there are 250 workdays in a year. Each manufactured good takes 20 minutes to produce. a. What is the effective capacity of the factory? Round your answer down to the nearest whole number. units, year b. Given the five-year forecast, how much extra capacity is needed each year? Use a minus sign to enter an answer, if there is excess capacity, Round your answers to the nearest whole number. Year 1 Additional machines needed 2 1 24 Extra capacity needed (units) C. Does the firm need to buy more machines? If so, how many? When? If your answer is zero, enter "0". Round your answers up to the nearest whole number. 4 3 4 5 PE
Use the following for the next 2 questions: A company forecasts that it will ship 120,000 boxes of product in June. The product has a monthly turnover of 3. The company plans to use its facility to ship 80,000 boxes and the balance of the 40,000 boxes will ship from a rented facility. Space may be rented for a charge of $7 per box per month with an in-and-out handling charge of $0.45 per box shipped. 1. What is the rented (fixed) storage cost for June? - $280,000 - $180,000 - $42,500 - $250,000 - $93,333 - $153,333 - $173,333 2. What is the rented variable cost for June? - $33,333 - $43,333 - $6,000 - $38,000 - $18,000 - $28,000 - $23,333

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