A bicycle component manufacturer produces hubs for bike wheels. Two processes are possible for manufacturing. Assumethat the daily demand for hubs allows all defect-free hubs to be sold. Additionally, tested or rejected hubs cannot be sold.Find the process that maximizes profit per day if each part is made from $5 worth of material and can be sold for $31. Bothprocesses are fully automated, and variable overhead cost is charged at the rate of $39 per hour.Production rateDaily production timePercent of parts rejected based on visualinspectionProcess 133 parts/hour5 hours/day18%Process 214 parts/hour8 hours/day8%

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College Algebra (MindTap Course List)

12th Edition

ISBN:9781305652231

Author:R. David Gustafson, Jeff Hughes

Publisher:R. David Gustafson, Jeff Hughes

Chapter6: Linear Systems

Section6.8: Linear Programming

Problem 5SC: If during the following year it is predicted that each comedy skit will generate 30 thousand and...

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If during the following year it is predicted that each comedy skit will generate 30 thousand and each musical number 20 thousand, find the maximum income for the year. A television program director must schedule comedy skits and musical numbers for prime-time variety shows. Each comedy skit requires 2 hours of rehearsal time, costs 3000, and brings in 20,000 from the shows sponsors. Each musical number requires 1 hour of rehearsal time, costs 6000, and generates 12,000. If 250 hours are available for rehearsal and 600,000 is budgeted for comedy and music, how many segments of each type should be produced to maximize income? Find the maximum income.
Suppose that a firm can produce a part it uses for $520 per unit, with a fixed cost of $25,000. The company has been offered a contract from a supplier that allows it to purchase the part at a cost of $544 per unit, which includes transportation. The key outputs in the model are the difference in these costs and the decision that results in the lower cost. Assume that the production volume is uncertain. Suppose the manufacturer has enough data and information to estimate that the production volume will be normally distributed with a mean of 1,000 and a standard deviation of 85. Use a 100-trial Monte Carlo simulation to find the average cost difference and percent of trials that result in manufacturing or outsourcing as the best decision. Please include table showing both the cost difference and decision for each trial. Please include the Excel worksheet with all the details with your answer.
A large national producer of canned foods plans to purchase 100 combines that are to be customized for its needs. One of the parts used in the combine is a replaceable blade for harvesting corn. Spare blades can be purchased at the time the order is placed for $100 each, but will cost $1,000 each if purchased at a later time because a special productionrun will be required.It is estimated that the number of replacement blades required by a combine over its useful lifetime can be closely approximated by a normal distribution with mean 18 and standard deviation 5.2. The combine maker agrees to buy back unused blades for $20 each. How many spare blades should the company purchase with the combines?
They'll offer a variety of chips from that factory, and they'll have to figure out how much capacity to devote to each one. Consider the possibility that they will sell two chips. Phoenix is a brand-new architecture created just for 7 nm technology, whereas RedDragon is the same architecture as their 10 nm BlueDragon. Consider a profit of $15 per defect-free chip forRedDragon. Phoenix will benefit $30 for each defect-free chip. The diameter of each wafer is 450mm. a. How much profit do you make on each wafer of Phoenix chips?
Cox Electric makes electronic components and has estimated the following for a new design of one of its products: Fixed Cost = $3,000 Material cost per unit = $0.15 Labor cost per unit = $0.10 Revenue per unit = $0.65 Production Volume = 12,000 Per-unit material and labor cost together make up the variable cost per unit. Assuming that Cox Electric sells all it produces, build a spreadsheet model that calculates the profit by subtracting the fixed cost and total variable cost from total revenue, and answer the following questions. (a) Construct a one-way data table with production volume as the column input and profit as the output. Breakeven occurs when profit goes from a negative to a positive value; that is, breakeven is when total revenue = total cost, yielding a profit of zero. Vary production volume from 5,000 to 50,000 in increments of 5,000. In which interval of production volume does breakeven occur? to units
At the beginning of the year a company estimated that 20.000 direct labor hours would be required for the period's estimated level of production. The company also estimated $140 000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $150 per direct laber-hour Asume that Job X used $200 in direct materials, $280 of drect labor, and 20 direct labor hours. What is the total job cost for Job X" O O 540000 $60.00 SYMUD
Sleep-EZ Manufacturing Company produces high end home furniture. Sleep-EZ must determine how many units of its Recline-O-Matic chairs to produce each month for the next 3 months. The beginning inventory of finished chairs on August 1 is 100 units. Demand for the chairs is expected to be 1,500 units in August, 2,400 units in September, and 1,800 units in October. Sleep-EZ wants to have 275 completed chairs on hand at the end of October. Production cost is $1,000 per chair in August and is expected to increase by 10% each month. In addition, storage cost from one month to the next is $80 per chair. Due to raw material and labor constraints, the maximum number of chairs Sleep-EZ can produce each month is 2,400, 1,600, and 2,200, respectively. Prepare and solve a linear programming model to determine the production schedule for August, September, and October that will minimize total cost while meeting demand in each month. (Hint: Remember Beg Inv + Prod - Sales = End Inv. You can create…
The AMA makes electric bike investment. One out of every 50 electric bike is faulty, but AMA doesn't know which ones are faulty until a buyer complains. Suppose AMA makes a 150 Php profit on the sale of any working electric bikes, but suffers a loss of 4000 Php for every faulty gadget because they have to repair the unit. Check whether AMA can expect a profit in the long term.
A plant is introducing time standards in one of its production departments. The department employs 96 workers. The average wage rate in the department is $13/hr, including fringe benefits. The workweek is 40 hr (2000 hr/yr). The average number of batches produced each year by a worker is 50 (1 batch/week), and the average batch size is 1196 parts. When time standards are used, the productivity increase is expected to be 18%. The application speed ratio of the work measurement techniques to be used is 150. The annual salary of each analyst is $51.5,000, including fringe benefits. Determine the annual savings in direct labor cost if the department's workload after standards are introduced is the same as before, meaning that fewer workers will be required. O 286000 $ O 520000 $ O 364000 S O442000 $
Approaching the month of Ramadan, PT Prima Sehat predicts that there will be an increase in demand for electronic goods, both TVs and microwaves. All of these electronic products have the same processing process, but have different processing times. For TV requires 4 hours of electronic processing and 2 hours of assembly. While the microwave requires 3 hours of electronic processing time and 1 hour of assembly. Of the current capacity, there is a working time for electronics as much as 240 hours, and per work time as much as 100 hours. The profit for each product is 7 (in tens of thousands) and 5 (in tens of thousands). Please use the simplex method linear programming method to solve the above case
A mining company exploits two types of minerals, its starting cost is $ 100,000. The cost per kg is $ 100 and $ 150 respectively. For safety, the overall maximum inventory should be 80,000 kg. Product 2 that requires a maximum inventory of $ 2,000,000 invested in warehouse. Consider that the monthly demand is 40,000 and 30,000 units respectively. The weekly cost of the inventory rate is 10% for the average inventory. The total inventory turnover policy must be greater than or equal to 50 (remember that inventory turnover is defined as the annual demand for all items expressed in dollars, divided by the average total inventory investment). Formulate the problem as a mathematical model that minimizes the total annual cost.
A certain company is interested in maximizing the monthly profit from two of its products, designated I and II. To manufacture these products the company uses a type of machine that has an availability of 200 machine-hours per month and a hand type of workforce with an availability of 240 man-hours per month. To produce a unit of product I, 5 machine hours and 10 labor hours are required, while for the product II, 4 hours of labor are used. Demand for 20 units is expected per month of product I and 45 units of product II. A profit per unit of US$ 10.00 is calculated for product I and US$ 6.00 for product II. Determine the quantities of each product which must be manufactured per month, for the maximum monthly profit.

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