Answered: if the profit for the coffee table is…

Name: if the profit for the coffee table is increased from $ 9 to $ 15, what
Uploaded: 2024-03-20T06:57:05.000Z
Channel: Bartleby
Description: if the profit for the coffee table is increased from $ 9 to $ 15, what is the new optimal solution? (also, you should show the process of how to get new optimal solution)

Business

Operations Management

if the profit for the coffee table is increased from $ 9 to $ 15, what is the new optimal solution? (also, you should show the process of how to get new optimal solution)

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter11: Simulation Models

Section: Chapter Questions

Problem 63P: It costs a pharmaceutical company 75,000 to produce a 1000-pound batch of a drug. The average yield...

See similar textbooks

Similar questions

It costs a pharmaceutical company 75,000 to produce a 1000-pound batch of a drug. The average yield from a batch is unknown but the best case is 90% yield (that is, 900 pounds of good drug will be produced), the most likely case is 85% yield, and the worst case is 70% yield. The annual demand for the drug is unknown, with the best case being 20,000 pounds, the most likely case 17,500 pounds, and the worst case 10,000 pounds. The drug sells for 125 per pound and leftover amounts of the drug can be sold for 30 per pound. To maximize annual expected profit, how many batches of the drug should the company produce? You can assume that it will produce the batches only once, before demand for the drug is known.
A firm that plans to expand its product line must decide whether to build a small or a large facilityto produce the new products. If it builds a small facility and demand is low, the net present valueafter deducting for building costs will be $400,000. If demand is high, the firm can either maintainthe small facility or expand it. Expansion would have a net present value of $450,000, and maintaining the small facility would have a net present value of $50,000.If a large facility is built and demand is high, the estimated net present value is $800,000. If demandturns out to be low, the net present value will be – $10,000.The probability that demand will be high is estimated to be .60, and the probability of low demandis estimated to be .40.a. Analyze using a tree diagram.
A firm that plans to expand its product line must decide whether to build a small or a large facilityto produce the new products. If it builds a small facility and demand is low, the net present valueafter deducting for building costs will be $400,000. If demand is high, the firm can either maintainthe small facility or expand it. Expansion would have a net present value of $450,000, and maintaining the small facility would have a net present value of $50,000.If a large facility is built and demand is high, the estimated net present value is $800,000. If demandturns out to be low, the net present value will be – $10,000.The probability that demand will be high is estimated to be .60, and the probability of low demandis estimated to be .40. 1- Compute the EVPI 2- Determine the range over which each alternative would be best in terms of the value of P ( low demand )
How do you know when an optimal solution has been reached?
Company XYZ produces and sells scientific calculators. The company is currently producing and selling 10,000 units. At this level, the fixed expenses were $10,500. In order to expand sales, the company plans to reduce the selling price by $2, which is expected to improve unit sales by 40% and achieve fixed cost savings of $8,000. Given that the company does not pay commissions to its sales people, the variable expenses per unit are expected to remain the same. What would be the impact on profit? O a. Decrease by $5,000 O b. No change OC. Decrease by $6,000 O d. Increase by $1,000 O e. Increase by $2,000
Millie wants to install a new carpet in the living room of her house. She calculated the square footage of the room and then multiplied it by a set cost factor to estimate the cost. This is an example of_________ Group of answer choices Parametric estimating Three-point estimating Bottom-up estimating Analogous estimating
Need help only with finding the optimal solution
Your town is considering updating one of the local parks. They created a linear program that had the following constraints: 1. Spend no more than $100,000 2. Spend no more than $50,000 on new playground equipment 3. Put in at least three basketball courts After running the linear program, the town saw that the program was infeasible. The town has decided to make constraints 1 & 2 goals, instead of hard constraints. How many decision variables would need to be added to the town's linear program, in order to turn it into a goal program with two soft constraints that allow deviation in both directions?
A car company is planning the introduction of a new electric car. There are two options for production. One is to produce the electric car at the company’s existing plant in Illinois, sharing production with its other products that are currently being produced there. If the sales of the electric car are moderate, this will work out well as there is significant capacity to produce all of the products there. However, if sales of the electric car are strong, this option would necessitate Adding a 3rd shift, which would lead to significantly higher costs. Another option is to build a new plant in Ohio. The new plant would have sufficient capacity to meet whatever level of demand for the new car. However, if sales of the new car not strong, the plant would be underutilized and less efficient. Since this is a new product, sales are hard to predict. The forecast indicates there is a 60% chance of strong sales (annual sales of 100,000), and 40% chance of moderate sales (annual sales of…
Your objective function is the following MAX 15 A + 10 B Find the endpoints for an iso-profit line of $600
An electronics firm is currently manufacturing an item that has a variable cost of $0.50 per unit and a selling price of $1.10 per unit. Fixed costs are $15,000. Current volume is 30,000 units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $5,600. Variable cost would increase to $0.65 and the selling price would be revised to $1.30 with the expectation that the volume would be 50,000 units as a result of a higher-quality product. If the firm does not add new equipment, its profit will be =_____ dollars (round your response to the nearest whole number and include a minus sign if the profit is negative).
The Rotary Club is holding a pizza sale to finance outreach projects. The Club made an agreement to purchase pizza from Pizza Hut at a 30% discount which the Rotary Club can thên resell for a profit. It is expected that of the 500 families in the community, at most 70% will buy Pizza. Based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. They also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. The standard price (before discount) for the cheese, pepperoni and vegetarian is $12, $15 and $14, respectively. The Rotary Club makes a profit of 10%, 15% and 20%, respectively, for each cheese, pepperoni, and vegetarian pizza they resell Formulate a linear programming model that would determine the optimal solution.