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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Please solve this. Lebar Daun Sdn Bhd is planning to use the economic order quantity model to determine the optimal order levels of raw materials. Material Z is consumed evenly over the year and the current usage is 120,000 units. The material is purchased in boxes and each box contains 12 units of material Z, at a price of RM252 per box. A safety stock of 200 boxes is kept. The cost of placing and handling orders is estimated to be RM6,300, which is based cost incurred for similar orders that have already made. The cost of RM6,300 was for 30 orders. The inflation of 2 per cent should be added to the above ordering costs. Besides, the company estimates to be charged the transporation cost of RM15 per order. It should be assumed that ordering costs change in proportion to the number of orders place. Other costs which relate to material Z such as insurance, interest and space costs for a year, were calculated at 15 % of the purchase price. Required: a. Calculate the order quantity that…
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
Please help solve correctly. Subject Management Accounting
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?
1)
The annual demand, ordering cost, and the inventory carrying cost rate for a certain item are D = 960 units, S= $5/order, and I= 20% of item price. Current price is $19.2 per unit (without any discount). Price is established by the following quantity discount schedule. What should the order quantity be in order to minimize the total annual cost? Show your work Order Quantity 1 to 50 51 to 100 Price No discount 20% discount 40% discount o, 101 and up What should the order quantity be in order to minimize the total annual cost? Show your work. D-960 S-55 1-20% CURRENT PRICE-19.20
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 model enables O a. determination of safety stock O b. determining fixed order quantities O c. ordering items with dependent demand O d. determining fixed interval order quantities O e. ordering perishable items
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:…

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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.