Operations and Supply Chain Management, 9th Edition WileyPLUS Registration Card + Loose-leaf Print Companion
9th Edition
ISBN: 9781119371618
Author: Roberta S. Russell
Publisher: Wiley (WileyPLUS Products)
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 14.S, Problem 9P
Summary Introduction
To determine: the optimal mix of the components to maximize the profit of the refinery by formulating and solving linear programming.
Introduction: Linear programming is used to obtain the best possible outcome from the given real-world problem which is subjective to constraints and inequalities. It is used to make decisions based on business objectives. It is used in business planning, industrial engineering, and physical science. Express the real-world problem into the mathematical expression to get the optimal solution from the linear programming.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
The Fish House (TFH) in Norfolk, Virginia, sells fresh fish and seafood. TFH receives daily shipments of farm-raised trout from a nearby supplier. Each trout costs $2.45 and is sold for $3.95. To maintain its reputation for freshness, at the end of the day TFH sells any leftover trout to a local pet food manufacturer for $1.25 each. The owner of TFH wants to determine how many trout to order each day. Historically, the daily demand for trout is: Demand 10 11 12 13 14 15 16 17 18 19 20 Probability 0.02 0.06 0.09 0.11 0.13 0.15 0.18 0.11 0.07 0.05 0.03 a. Construct a payoff matrix for this problem. b. How much should the owner of TFH be willing to pay to obtain a demand forecast that is 100% accurate? give a clear explanation for (b)
In the past, Peter Kelle's tire dealership in Baton Rouge sold an average of
1,000 radials each year. In the past 2 years, 200 and 260, respectively were
sold in fall, 340 and 300 in winter, 150 and 175 in spring, and 300 and 275
in summer. With a major expansion planned, kelle projects sales next year
to increase to 1,200 radials.
Based on next year's projected sales, the demand for each season is going
to be (enter your responses as whole numbers):
Season
Fall
Demand
In the past, Peter Kelle's tire dealership in Baton Rouge sold an average of 1,000 radials each year. In the past 2 years, 240 and 240, respectively were sold in fall, 350 and 320 in winter,150 and165 in spring, and 340 and 195 in summer. With a major expansion planned, Kelle projects sales next year to increase to 1,200 radials.
Based on next year's projected sales, the demand for each season is going to be (enter your responses as whole numbers):
Fall:
Winter:
Spring:
Summer:
Chapter 14 Solutions
Operations and Supply Chain Management, 9th Edition WileyPLUS Registration Card + Loose-leaf Print Companion
Ch. 14.S - Prob. 1QCh. 14.S - Prob. 2QCh. 14.S - Prob. 3QCh. 14.S - Prob. 4QCh. 14.S - Prob. 5QCh. 14.S - Prob. 6QCh. 14.S - Prob. 7QCh. 14.S - Prob. 8QCh. 14.S - Prob. 1PCh. 14.S - The Tycron Company produces three electrical...
Ch. 14.S - Prob. 3PCh. 14.S - The Pinewood Cabinet and Furniture Company...Ch. 14.S - The Mystic Coffee Shop blends coffee on the...Ch. 14.S - Prob. 6PCh. 14.S - Prob. 7PCh. 14.S - Prob. 8PCh. 14.S - Prob. 9PCh. 14.S - Prob. 10PCh. 14.S - Prob. 11PCh. 14.S - Prob. 12PCh. 14.S - Prob. 13PCh. 14.S - Prob. 14PCh. 14.S - Prob. 15PCh. 14.S - Prob. 16PCh. 14.S - Prob. 17PCh. 14.S - Prob. 18PCh. 14.S - Prob. 19PCh. 14.S - Prob. 20PCh. 14.S - Prob. 22PCh. 14.S - Prob. 23PCh. 14.S - Prob. 24PCh. 14.S - Prob. 25PCh. 14.S - Prob. 27PCh. 14.S - Prob. 28PCh. 14.S - Prob. 1.1CPCh. 14.S - Prob. 1.2CPCh. 14.S - Prob. 1.3CPCh. 14.S - Prob. 1.4CPCh. 14.S - Prob. 1.5CPCh. 14.S - Prob. 1.6CPCh. 14.S - Prob. 1.7CPCh. 14.S - Prob. 1.8CPCh. 14.S - Prob. 1.9CPCh. 14.S - Prob. 2.1CPCh. 14 - Prob. 1.1ASCCh. 14 - Prob. 1.2ASCCh. 14 - Supply and Demand in the Spirits Industry A...Ch. 14 - Supply and Demand in the Spirits Industry A...Ch. 14 - Supply and Demand in the Spirits Industry A...Ch. 14 - Disneys Magic Numbers Sales and operations...Ch. 14 - Disneys Magic Numbers Sales and operations...Ch. 14 - Prob. 1QCh. 14 - List several alternatives for adjusting capacity....Ch. 14 - Prob. 3QCh. 14 - How do linear programming, the linear decision...Ch. 14 - Prob. 5QCh. 14 - What options are available for altering the...Ch. 14 - Prob. 7QCh. 14 - Prob. 8QCh. 14 - Explain the process of collaborative planning. How...Ch. 14 - Prob. 11QCh. 14 - Prob. 12QCh. 14 - Prob. 1PCh. 14 - Prob. 2PCh. 14 - Prob. 3PCh. 14 - Prob. 4PCh. 14 - Mamas Stuffin is a popular food item during the...Ch. 14 - Prob. 6PCh. 14 - Slopes Sleds (SS) makes skis, snowboards, and...Ch. 14 - Prob. 8PCh. 14 - Midlife Shoes, Inc, is a manufacturer of sensible...Ch. 14 - Design a production plan for Mamas Stuffin in...Ch. 14 - Design a production plan for FansForYou in Problem...Ch. 14 - Prob. 16PCh. 14 - Prob. 17PCh. 14 - Prob. 18PCh. 14 - Prob. 19PCh. 14 - Prob. 20PCh. 14 - Prob. 21PCh. 14 - Prob. 22PCh. 14 - How many units are available-to-promise in period...Ch. 14 - Complete the available-to-promise table below.Ch. 14 - Complete the available-to-promise table below.Ch. 14 - Calculate the available-to-promise row in the...Ch. 14 - Complete the following table. How many Bs are...Ch. 14 - Managers at the Dew Drop Inn are concerned about...Ch. 14 - Prob. 29PCh. 14 - Prob. 30PCh. 14 - Prob. 31PCh. 14 - Prob. 32PCh. 14 - The Forestry Club sells Christmas trees each year...Ch. 14 - Prob. 34PCh. 14 - Tariott Hotel rents rooms for 125 a night that...Ch. 14 - Prob. 36PCh. 14 - Prob. 1.1CPCh. 14 - Prob. 1.2CPCh. 14 - Prob. 1.3CP
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Lemingtons is trying to determine how many Jean Hudson dresses to order for the spring season. Demand for the dresses is assumed to follow a normal distribution with mean 400 and standard deviation 100. The contract between Jean Hudson and Lemingtons works as follows. At the beginning of the season, Lemingtons reserves x units of capacity. Lemingtons must take delivery for at least 0.8x dresses and can, if desired, take delivery on up to x dresses. Each dress sells for 160 and Hudson charges 50 per dress. If Lemingtons does not take delivery on all x dresses, it owes Hudson a 5 penalty for each unit of reserved capacity that is unused. For example, if Lemingtons orders 450 dresses and demand is for 400 dresses, Lemingtons will receive 400 dresses and owe Jean 400(50) + 50(5). How many units of capacity should Lemingtons reserve to maximize its expected profit?arrow_forwardSeas Beginning sells clothing by mail order. An important question is when to strike a customer from the companys mailing list. At present, the company strikes a customer from its mailing list if a customer fails to order from six consecutive catalogs. The company wants to know whether striking a customer from its list after a customer fails to order from four consecutive catalogs results in a higher profit per customer. The following data are available: If a customer placed an order the last time she received a catalog, then there is a 20% chance she will order from the next catalog. If a customer last placed an order one catalog ago, there is a 16% chance she will order from the next catalog she receives. If a customer last placed an order two catalogs ago, there is a 12% chance she will order from the next catalog she receives. If a customer last placed an order three catalogs ago, there is an 8% chance she will order from the next catalog she receives. If a customer last placed an order four catalogs ago, there is a 4% chance she will order from the next catalog she receives. If a customer last placed an order five catalogs ago, there is a 2% chance she will order from the next catalog she receives. It costs 2 to send a catalog, and the average profit per order is 30. Assume a customer has just placed an order. To maximize expected profit per customer, would Seas Beginning make more money canceling such a customer after six nonorders or four nonorders?arrow_forwardIt costs a pharmaceutical company 75,000 to produce a 1000-pound batch of a drug. The average yield from a batch is unknown but the best case is 90% yield (that is, 900 pounds of good drug will be produced), the most likely case is 85% yield, and the worst case is 70% yield. The annual demand for the drug is unknown, with the best case being 20,000 pounds, the most likely case 17,500 pounds, and the worst case 10,000 pounds. The drug sells for 125 per pound and leftover amounts of the drug can be sold for 30 per pound. To maximize annual expected profit, how many batches of the drug should the company produce? You can assume that it will produce the batches only once, before demand for the drug is known.arrow_forward
- Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand will grow at 5% a year. If the company builds a plant that can produce x units of Wozac per year, it will cost 16x. Each unit of Wozac is sold for 3. Each unit of Wozac produced incurs a variable production cost of 0.20. It costs 0.40 per year to operate a unit of capacity. Determine how large a Wozac plant the company should build to maximize its expected profit over the next 10 years.arrow_forwardScenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?arrow_forwardScenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?arrow_forward
- HERO Corporation is considering three options for managing its data processing operation: continuing with its own staff, hiring an outside vendor to do the managing (referred to as outsourcing), or using a combination of its own staff and an outside vendor. The cost of the operation depends on future demand. The annual cost of each option (in thousands of pesos) depends on demand as follows: Demand Demand Demand Staffing Options High Medium Low Own staff 352 325 300 Outsider vendor 450 300 150 Combination 400 325 250 If the decision maker knows nothing about the probabilities of the four states of nature, what is the recommended decision using:i. the optimistic approach and the conservative approach iii. the minimax regret approach iv. the Laplace methodarrow_forwardThe Marketing Manager of Dotcom Limited has conducted a market research on the price-demand relationship for its consumer durable Product-V which has been recently launched. The price-demand pattern will be as follows: Price per unit (Rs.) 16.650 16.050 14.400 13.050 Product-V is manufactured in batches of 1.000 units. The production manager of Dotcom Limited has also researched and studies the pattern and believes that 50% of the variable manufacturing cost would have a learning effect. This learning curve effect will continue up to 4.000 units of production at constant rate But after 4.000 units of production unit variable manufacturing cost would be equal to the unit cost at the 4 batch. The manufacturing unit cost of the first batch will be Rs. 6.600 of which only 50% is subjected to learning and experience curve effect. The average unit variable of all 4 batches will be Rs 6.180 The price and maximum contribution at which Dotcom Limited should sell Product-V is: Rs.14,400, Rs.…arrow_forwardHudson Corporation is considering three options for managing its data processing operation: continuing with its own staff, hiring an outside vendor to do the managing (referred to as outsourcing), or using a combination of its own staff and an outside vendor. The cost of the operation depends on future demand. The annual cost of each option (in thousands of dollars) depends on demand as follows: Demand Staffing Options High Medium Low Own staff 650 650 600 Outside vendor 900 600 300 Combination 800 650 500 If the demand probabilities are 0.2, 0.5, and 0.3, which decision alternative will minimize the expected cost of the data processing operation? What is the expected annual cost associated with that recommendation? Expected annual cost = $fill in the blank 2 Construct a risk profile for the optimal decision in part (a). The input in the box below will not be graded, but may be reviewed and considered by your instructor.arrow_forward
- Futura Company purchases the 79,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $12.60 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company’s chief engineer is opposed to making the starters because the production cost per unit is $13.30 as shown below: Per Unit Total Direct materials $ 6.00 Direct labor 3.20 Supervision 1.90 $ 150,100 Depreciation 1.20 $ 94,800 Variable manufacturing overhead 0.40 Rent 0.60 $ 47,400 Total product cost $ 13.30 If Futura decides to make the starters, a supervisor would have to be hired (at a salary of $150,100) to oversee production. However, the company has sufficient idle tools and machinery such that no new equipment would have to be purchased. The rent charge above is based on space utilized in the plant. The total rent on the plant…arrow_forwardHudson Corporation is considering three options for managing its data processing operation: continuing with its own staff, hiring an outside vendor to do the managing (referred to as outsourcing), or using a combination of its own staff and an outside vendor. The cost of the operation depends on future demand. The annual cost of each option (in thousands of dollars) depends on demand as follows: Demand Staffing Options High Medium Low Own staff 600 550 350 Outside vendor 900 650 450 Combination 700 600 400 a. If the demand probabilities are 0.4, 0.25, and 0.35, which decision alternative will minimize the expected cost of the data processing operation? Own Staff What is the expected annual cost associated with that recommendation? If required, round your answer to the nearest thousand of dollars. Expected annual cost = $ ___________arrow_forwardDigital Controis, Inc. (DCI), manufactures two models of a radar gun used by police to monitor the speed of automobiles. Model A has an accuracy of plus or minus 1 mile per hour, whereas the smaller model B has an accuracy of plus or minus 3 miles per hour. For the next week, the company has orders for 100 units of model A and 150 units of model B. Although DCI purchases all the electronic components used in both models, the plastic cases for both models are manufactured at a DCI plant in Newark, New Jersey. Each model A case requires 4 minutes of injection-molding time and 6 minutes of assembly time. Each model B case requires 3 minutes of injection-molding time and 8 minutes of assembly time. For next week, the Newark plant has 600 minutes of injection-molding time avallable and 1,080 minutes of assembly time availab The manufacturing cost is $10 per case for model A and $6 per case for model B. Depending upon demand and the time avalable at the Newark plant, DCI occasionally…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning