Essentials of Business Analytics (MindTap Course List)
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 12, Problem 1P

STAR Co. provides paper to smaller companies with volumes that are not large enough to warrant dealing directly with the paper mill. STAR receives 100-feet-wide paper rolls from the mill and cuts the rolls into smaller rolls of widths 12, 15, and 30 feet. The demands for these widths vary from week to week. The following cutting patterns have been established:

Chapter 12, Problem 1P, STAR Co. provides paper to smaller companies with volumes that are not large enough to warrant

Trim loss is the leftover paper from a pattern (e.g., for pattern 4, 2(12) + 1(15) + 2(30) = 99 feet used results in 100 – 99 = 1 foot of trim loss). Demands this week are 5,670 12-foot rolls, 1,680 15-foot rolls, and 3,350 30-foot rolls. Develop an all-integer model that will determine how many 100-foot rolls to cut into each of the live patterns in order to meet demand and minimize trim loss (leftover paper from a pattern).

Expert Solution & Answer
Check Mark
To determine

To create an all-integer model.

Explanation of Solution

In order to create an all-integer model let’s assume that:

xj be the number of 100 foot wide rolls using cutting pattern j,  j =1, 2, 3, 4, 5

The all-integer model will be:

Min 10x1+ 10x2+ 4x3+ x4+ x5

s.t.

0x1+ 0x2+ 8x3+ 2x4+ 7x5   56706x1+ 0x2+ 0x3+  x4 + x5 16800x1+ 3x2+ 0x3+ 2x4 + 0x5 3350   x1, x2, x3, x4, x50

The solution for the model will be:

Formula:

Essentials of Business Analytics (MindTap Course List), Chapter 12, Problem 1P , additional homework tip  1

Solver:

Essentials of Business Analytics (MindTap Course List), Chapter 12, Problem 1P , additional homework tip  2

Output:

Essentials of Business Analytics (MindTap Course List), Chapter 12, Problem 1P , additional homework tip  3

Trim Loss will be 2007 feet

PatternNumber used
10
20
30
41675
5332

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STAR Co. provides paper to smaller companies with volumes that are not large enough to warrant dealing directly with the paper mill. STAR receives 100-feet-wide paper rolls from the mill and cuts the rolls into smaller rolls of widths 12, 15, and 30 feet. The demands for these widths vary from week to week. The following cutting patterns have been established. Min s.t. 12-ft Pattern Number 15-ft 30-ft 1 2 P1, P2, P3 P4 P5 ≥ 0 3 4 5 12-ft 15-ft 30-ft Trim Loss (ft) 0 0 8 3 7 6 0 0 0 1 C 3 0 2 0 10 Trim loss is the leftover paper from a pattern (e.g., for pattern 4, 3(12) + 0(15) + 2(30) = 96 feet used results in 100 - 96 = 4 foot of trim loss). Orders in hand for the coming week are 5,680 12- foot rolls, 1,690 15-foot rolls, and 3,360 30-foot rolls. Any of the three types of rolls produced in excess of the orders in hand will be sold on the open market at the selling price. No inventory is held. 10 Formulate an integer programming model that will determine how many 100-foot rolls to cut…
Joe Henry’s machine shop uses 2,500 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: Annual demand: 2,500 Holding cost per bracket per year: $1.50 Order cost per order: $18.75 Lead time: 2 days Working days per year: 250 a) Given the above information, what would be the economic order quantity (EOQ)? b) Given the EOQ, what would be the average inventory? What would be the annual inventory holding cost? c) Given the EOQ, how many orders would be made each year? What would be the annual order cost? d) Given the EOQ, what is the total annual cost of managing the inventory? e) What is the time between orders? f ) What is the reorder point (ROP)?
3. What did the field in Figure 5-3 cost if it sold for $6,225 per acre? 4,225 ft 1,800 ft 5,000 ft
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