1. A manufacturing company is engaged in producing three types of products: X, Y andZ. The production department produces, each day, components sufficient to make 50units of X, 25 units of Y and 30 units of Z. The management is confronted with theproblem of optimizing the daily production of the products in the assemblydepartment, where only 100-man-hours are available daily for assembling theproducts. The following additional information is availableType of ProductProfit ContributionAssembly Time perProduct (Hrs)per Units ofProducts (in PhP)1200.8Y2001.74502.5The company has a daily order commitment for 20 units of product X and a total of15 units of products Y and Z. Formulate this problem as an LP model so as to maximize thetotal profit. Using simplex method, find the number of units of product X, Y and Z to productto maximize total profit.

The image contains a linear programming (LP) problem for a manufacturing company producing three…

Answered: The company has a daily order…

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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L. Houts Plastics is a large manufacturer of injection-molded plastics in North Carolina. An investigation of the company's manufacturing facility in Charlotte yields the information presented in the table below. How would the plant classify these items according to an ABC classification system? (Round dollar volume to the nearest whole number and percentage of dollar volume to two decimal places.) Item number 2349 should be classified as Item Code 1289 2347 2349 2363 2394 2395 6782 7844 8210 8310 9111 Item number 8210 should be classified as L. Houts Plastics Charlotte Inventory Levels Avg. Inventory (units) Value ($/unit) 3.75 420 300 120 60 60 322576 20 12 4.00 2.50 1.80 1.75 2.25 1.15 2.05 2.00 2.00 3.00 Dollar Volume 1,200 300 105 23 25 % of Dollar Volume 34.72 8.68 3.04 0.67 0.71 14 18 3,456 For the following three questions, consider only items 1289, 2349, and 8210 from the above table for relative classification (these are some of the items for which you computed the metrics).…
A small mail-order company uses 19,500 boxes a year. Holding cost rate is 19 percent of unit cost per year, and ordering cost is $27 per order. The following quantity discounts are available. Number of Boxes Price per Box 1,000 to 1,999 $1.20 2,000 to 4.999 1.15 5,000 to 9,999 1.10 10,000 or more 1.05 a. Determine the optimal order quantity. Optimal order quantity 2, 297 Numeric Response 1. Edit Unavailable. 2,297 incorrect.boxes b. Determine the number of orders per year. (Round the final answer to 1 decimal place.) No. of orders per year 8.4 Numeric Response 2. Edit Unavailable. 8.4 incorrect.
Suppose that a product with an annual demand of 2400 units, a setup cost per production run of $8, and a holding cost of $1 per unit per year. With 200 working days in a year, conisder the following ordering plans: 1) order 600 units once each quarter and all 600 units will be delivererd in a single day 2) order 200 units once each month and all 200 units will be delivered in a single day 3) order 120 units each 6-month, and each order will be delivered over a period of 60 days a) Calculate the annual holding and setup costs associated with each plan b) When items arrive in one batch, what is the optimal order quantity to minimize overall costs?
LP Model Formulation Please make sure that your answers in LP Model Formulation are composed of Decision Variables, Objective Function and Constraints. 1. RDB caterer must prepare from five fruit drinks in stock 500 gal of a punch containing at least 20 percent orange juice, 10 percent grapefruit juice, and 5 percent cranberry juice. If inventory data are as shown below, formulate the LP model that will enable RDB caterer to determine how much of each fruit drink to use to obtain the required composition at minimum total cost. Orange Juice,% Cranberry Supply, gal Cost ($) / gal Grapefruit Juice,% Juice,% Drink A 40 40 200 1.5 Drink B 5 10 20 400 0.75 Drink C 100 100 2.00 Drink D 100 50 1.75 Drink E 800 0.25
Fixed-order-interval. This type of problem can be recognized when an order interval is given (e.g.,inventory is ordered every 10 days) along with the demand rate, lead time, and quantity on hand atorder time. Use Formula 13–16 to find the optimal order size.A lab orders a number of chemicals from the same supplier every 30 days. Lead time is five days.The assistant manager of the lab must determine how much of one of these chemicals to order. Acheck of stock revealed that eleven 25-milliliter (ml) jars are on hand. Daily usage of the chemical isapproximately normal with a mean of 15.2 ml per day and a standard deviation of 1.6 ml per day. Thedesired service level for this chemical is 95 percent.a. How many jars of the chemical should be ordered?b. What is the average amount of safety stock of the chemical?
How Tyler should plan on ordering the flour for his bakery. Based on the attached: How much should Tyler plan on ordering the flour for his bakery? When should Tyler order the flour for his bakery
The Economic Order Quantity (EOQ) model is a classical model used for controlling inventory and satisfying demand. Costs included in the model are holding cost per unit, ordering cost and the cost of goods ordered. The assumptions for that model are that only a single item is considered, that the entire quantity ordered arrives at one time, that the demand for the item is constant over time, and that no shortages are allowed. Suppose we relax the first assumption and allow for multiple items that are independent except for a restriction on the amount of space available to store the products. The following model describes this situation: Let Dj = annual demand for item j Cj = unit cost of item j Sj = cost per order placed for item j i = inventory carrying charge as a percentage of the cost per unit W = the maximum amount of space available for all goods wj = space required for item j The decision variables are Qj, the amount of item j to order. The model is:…
Production Quantity Model A stew production facility sells the stew in an adjoining store. Demand for the stew is 32 gallons per day. Both the store and production facility operate 310 days per year. The company can produce 128 gallons per day. It costs $1200 to set up a production run. The stew is stored at an annual cost of $20 per gallon. The company wants to use the optimal order quantity. (Round the order quantity to an integer value) What is the maximum inventory level? How many production runs will be required each year? What is the total annual carrying cost? If the store places an order to the production facility for 1000 gallons of stew (not necessarily the economic order quantity), how many gallons of stew will be sold during the order receipt period?
53. Average demand for a particular item is 1,200 units per year. It costs $100 to place an ordem for this item, and it costs $24 to hold one unit of this item in inventory for one year. If the fixed order-interval model is chosen in this instance, how often (on average) will this item be ordered a) Once a month b) Once every other month c) Twice a month d) Twice every three months e) Three times every two months 54. The EOQ model is most relevant for which one of the following? a) Ordering items with dependent demand b) Determination of safety stock c) Ordering perishable items d) Determining fixed interval ordering quantity e) Determining fixed order quantity 55. What type of process would a paper mill be most likely to use? a) Continuous flow b) Project c) Job shop d) Flow shop 56. The transportation model method that is used to evaluate location alternatives minimizes t a) sources b) destinations c) capacity d) shipping costs
Ray wishes to determine the optimal order quantity for its best-selling bike in his bike store. Ray pays the supplier a wholesale price of $118 each for this bike. Ray has estimated the average daily demand for this bike is 23 units. The store opens 304 days a year. The cost to carry one bike in the store for a whole year is 8% of the unit bike cost. Ray has estimated that, on average, the order processing cost, i.e., ordering cost, with the bike supplier each time is $152, and it roughly takes 20 working days to receive the order from the supplier. Ray wishes to avoid the stock-out situation with a probability of 95%, and this requires Ray to carry a safety stock of 30 bikes in the store. What is the optimal order quantity (EOQ value) that Ray should order each time from the bike supplier to minimize his long-run inventory cost?
1) To order less than 2,000 the vendor quotes $1.80 per piece. Orders between 2001 to 5,000 are $1.60 per piece and 5,001-10,000 it's $1.40. Any orders above 10,000 the price drops to $1.25. Ordering costs are $200 per order and to store the materials we have a 5% storage costs from UC catering. Our estimated annual demand is 15,000 pieces. If we contract to place orders annually with the vendor for 10,001 pieces each time to get the S1.25 price, what is my total cost for the year? 2) To order less than 2,000 the vendor quotes $1.80 per piece. Orders between 2001 to 5,000 are S1.60 per piece and 5,001-10,000 it's S1.40. Any orders above 10,000 the price drops to $1.25. Ordering costs are $200 per order and to store the materials we have a 5% storage costs from UC catering. Our estimated annual demand is 15,000 pieces. What is the optimal Order Qty ?
Daily demand of a chemical at an oil refinery is normally distributed with a mean of 60 litres and a standard deviation of 7. The supplier reliably delivers the chemical by maintaining a constant lead time of 1 week. There are no delivery charges from the supplier. Sales occur throughout the year. An order placement requires one hour of an administrative employee who is paid $20 per hour. Receiving and storing a chemical shipment requires two workers to work for half an hour. Workers are paid $12 per hour each. Chemical’s purchase price is $500 per litre. Annual cost of capital is 5%. Other holding costs are estimated to be $0.5 per litre. Find the order quantity and the reorder point to satisfy a 95% service level during the lead time. (Round answers to 2 decimal places.)

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The company has a daily order commitment for 20 units of product X and a total of 15 units of products Y and Z. Formulate this problem as an LP model so as to maximize the total profit. Using simplex method, find the number of units of product X, Y and Z to product to maximize total profit.