Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN: 9781305627734
Author: Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher: Cengage Learning
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Chapter 11, Problem 16P
Consider the following network representation of a transportation problem:
The supplies, demands, and transportation costs per unit are shown on the network. What is the optimal (cost minimizing) distribution plan?
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A farmer has recently acquired a 110 hectares piece of land. He has decided to grow
Wheat and barley on that land. Due to the quality of the sun and the region's
excellent climate, the entire production of Wheat and Barley can be sold. He wants
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labor requirements according to the data shown below:
Variety
Cost (Price/Hec)
Net Profit (Price/Hec)
Man-days/Hec
Wheat
100
50
10
Barley
200
120
30
The farmer has a budget of US$10,000 and an availability of 1,200 man-days during
the planning horizon. In addition, the farmer would like to get a profit of at least $3000.
Generate the mathematical model for the optimal usage of land area to produce
wheat and barley. Using graphical method to optimize land usage, how many
hectares are to be used for wheat and barley.
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Myrtle Air Express decided to offer direct service from Cleveland to Myrtle Beach. Management must decide between a full-price service using the company’s new fleet of jet aircraft and a discount service using smaller capacity commuter planes. It is clear that the best choice depends on the market reaction to the service Myrtle Air offers. Management developed estimates of the contribution to profit for each type of service based upon two possible levels of demand for service to Myrtle Beach: strong and weak. The following table shows the estimated quarterly profits (in thousands of dollars):
Demand for Service
Service
Strong
Weak
Full price
$960
-$490
Discount
$670
$320
1. Suppose that the probability of strong demand is 0.8 and the probability of weak demand is 0.2. What is the optimal decision using the expected value approach?Optimal Decision:
Use graphical sensitivity analysis to determine the range of demand probabilities for which each of the decision…
Chapter 11 Solutions
Essentials of Business Analytics (MindTap Course List)
Ch. 11 - Kelson Sporting Equipment, Inc., makes two types...Ch. 11 - The Sea Wharf Restaurant would like to determine...Ch. 11 - Blair Rosen. Inc. (BR) is a brokerage firm that...Ch. 11 - Round Tree Manor is a hotel that provides two...Ch. 11 - Industrial Designs has been awarded a contract to...Ch. 11 - Vollmer Manufacturing makes three components for...Ch. 11 - Photon Technologies, Inc., a manufacturer of...Ch. 11 - The Westchester Chamber of Commerce periodically...Ch. 11 - The management of Hartman Company is trying to...Ch. 11 - The employee credit union at State University is...
Ch. 11 - The Atlantic Seafood Company (ASC) is a buyer and...Ch. 11 - The Silver Star Bicycle Company will manufacture...Ch. 11 - The Clark County Sheriff’s Department schedules...Ch. 11 - Bay Oil produces two types of fuel (regular and...Ch. 11 - Consider the following network representation of a...Ch. 11 - Refer to the transportation problem described in...Ch. 11 - Aggie Power Generation supplies electrical power...Ch. 11 - The Calhoun Textile Mill is in the process of...Ch. 11 - Refer to the Calhoun Textile Mill production...
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- A manufacturing plant produces computer mice, keyboards, and video game consoles. Thesales price, per-unit cost, per-unit labor usage, per-unit machine-time usage, and monthlydemand are given in the following table (also in worksheet):Each month, a total of 13,000 labor hours and 3,000 hours of machine time are available. How much of each product will maximize profit? Find and record the optimal amount of each product What is the maximized amount of profit? Mice Keyboards Console Sale Price 10 20 16 Cost to Produce 2 9 7 Labor usage/unit (hours) 0.2 0.3 0.24 Machine time/unit (hours) 0.04 0.055 0.04 Monthly demand 15000 29000 11000arrow_forwardGiven the Information in the below table's, calculate the total cost if you choose the: i) Level Strategy with average production per day. ii) Chase strategy for the production. Month Expected Demand Production Days Jan 600 22 Feb 800 18 March 900 21 April 1000 21 Inventory carrying cost $5 per unit per month Subcontracting cost per unit $20 per unit Average Pay rate $10 per hour ($80 per day) Over time Pay rate $17 per hour (above 8 hours) Labour-hours to produce a unit 1.6 hours per unit Cost of increasing daily production rate $300 per unit Cost of decreasing daily production rate $600 per unitarrow_forwardPueblo Production Company manufactures 50000 high-definition televisions each year. Pueblo is considering purchasing the glass screens from an outside source rather than producing them internally. The following data relate to the glass screens: Cost per screen from outside supplier $32.5 Internal costs per screen Direct materials 17.5 Direct labor 8.25 Variable overhead 2.6 Total fixed overhead 67000 Avoidable fixed overhead 50400 Should Pueblo purchase or produce the screens, and what is the savings associated with the decision? (a) Purchase the screens and save $157100. (b) Produce the screens and save $157100. (c) Produce the screens and save $207500. (d) Purchase the screens and save $207500.arrow_forward
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