Problem 2 The AB manufacturing company has two kinds of products: A and B. They earn$180 profit for each Product A and $90 profit for each Product B. To produce Products A and B,the company needs three resources: Q, R, S. Each unit of Product A consumes 6 units of ResourceQ and 2 units of Resource R. Each unit of Product B consumes 8 units of Resource Q and 3 unitsof Resource S. The AB manufacturing company only can use 48 units of Q, 12 units of R and 12units of S per day.ResourceᎡSProfit per unitProduct A620180Product B Resource Available∞03904812121. Formulate a linear program and use the simplex algorithm to solve it.2. Write down a linear programming model to determine the minimum total amount the insur-ance company should pay to AB manufacturing when they lose all the available resource.(Hint: consider the relationship between this LP for the insurance company and the originalLP for the AB company).3. What are the shadow prices for each resource? Which is the most "scarce" resource for ABmanufacturing?

Objective Functions and Constraints: Based on the given details, the objective…

Answered: Problem 2 The AB manufacturing company…

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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33 White & Becker Tools (W&B) requires 2,000 elec- tric motors next month for its product line of weed trimmers. Each motor is composed of three com- ponents: a coil, a shaft, and housing. W&B has the capability to produce these components or purchase them from an outside vendor. The costs of produc- ing them and purchasing them are shown in the following table. COMPONENT Coil Shaft Housing DEPART- MENT PRODUCTION COST PER UNIT Fabrication 0.5 Molding 0.4 Inspection 0.2 $2.60 $1.80 $1.40 The components that are produced by W&B must pass through three departments: fabrication, molding, and inspection. The number of hours each component requires in each department and the total number of hours available next month in each department are shown in the following table: 0.2 0.7 0.3 PURCHASE COST PER UNIT COIL SHAFT HOUSING AVAILABILITY (HR.) (HR.) (HR.) (HR.) $3.12 $2.16 $1.68 0.6 0.3 0.4 3,000 3,000 1,800 In order to determine the number of components that will be produced and the number…
QMB Apparel, Inc is a local clothing company that produces two types of shirt: Polo Shirts (P) & Dress Shirts (D). The profit contributions for each shirt and the associated production restrictions (in number of minutes available) are listed below: Polo Shirts (P) Dress Shirts (D) $25 $30 Profit per Unit Cutting Sewing Inspection Polo Shirts (P) Dress Shirts (D) Number of Minutes Available 40 50 1,200 40 1,100 20 1,050 60 70 Using the information in the tables above, what is the optimal amount of Polo Shirts (P) and Dress Shirts (D) that QMB Apparel should produce to maximize it's profits? 40 Polo Shirts (P) & 10 Dress Shirts (D) 5 Polo Shirts (P) & 20 Dress Shirts (D) 30 Polo Shirts (P) & 0 Dress Shirts (D) O0 Polo Shirts (P) & 48 Dress Shirts (D) 010 Polo Shirts (P) & 40 Dress Shirts (D)
1
Problem 2. An electric switch manufacturing company has to choose one of three different assembly methods. Method A will have first cost of $ 40,000, an annual operating cost of $9,000 and a service life of 2 years. Method B will cost $80,000 to buy and will have an annual operating cost of $6,000 over its 4 year service life. Method C will cost $130,000 initially with an annual operating cost of $4,000 over its 8-year life. Methods A and B will have no salvage value, but method C will have some equipment worth an estimated $12,000. Which method should be selected? Use present worth analysis at an interest rate of 10% per year.
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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Q46 Mixing Company manufactured 2,500 units of its only product during 2022. The inputs for this production are as follows: 550 pounds of Material A at a cost of $2.50 per pound 400 pounds of Material H at a cost of $3.75 per pound 700 direct labor hours at $60 per hour The firm manufactured 3,920 units of the same product in 2021 with the following inputs: 700 pounds of Material A at a cost of $2.20 per pound 560 pounds of Material H at a cost of $3.50 per pound 600 direct labor hours at $58 per hour The partial operational productivity of Material A in 2021 is: Multiple Choice 5.60 units per pound. 0.44 units per pound. 4.67 units per pound. 5.18 units per pound. 0.51 units per pound.

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