Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)
12th Edition
ISBN: 9781259580093
Author: William J Stevenson
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 19, Problem 13P
Summary Introduction
To determine: The number of units of each product on a daily basis to achieve the maximum profit.
Introduction:
Linear programming:
Linear programming is a mathematical modeling method where a linear function is maximized or minimized taking into consideration the various constraints present in the problem. It is useful in making quantitative decisions in business planning.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Because of its labor contract, a company must hire enough labor for 100 units ofproduction per week on one shift or 200 units per week on two shifts. It cannot hire,lay off, or assign overtime. During the fourth week, workers will be available fromanother department to work part or all of an extra shift (up to 100 units). There is aplanned shutdown for maintenance in the second week, which will cut production tohalf. Develop a production plan. The opening inventory is 200 units, and the desiredending inventory is 300 units
Cox Electric makes electronic components and has estimated the following for a new design of one of its products.
Fixed cost = $23,750
Material cost per unit = $0.17
• Labor cost per unit = $0.12
• Revenue per unit = $0.67
Note that fixed cost is incurred regardless of the amount produced. Per-unit material and labor cost together make up the variable
cost per unit. Assuming that Cox Electric sells all that it produces, profit is calculated by subtracting the fixed cost and total variable
cost from total revenue.
Construct an appropriate spreadsheet model to find the profit based on a given production level and use the spreadsheet model to
answer these questions.
(a) Construct a one-way data table with production volume as the column input and profit as the output. Breakeven occurs when
profit goes from a negative to a positive value; that is, breakeven is when total revenue = the total cost, yielding a profit of
zero. Vary production volume from 0 to 100,000 in increments of 10,000.…
A small consulting firm has an overhead rate of 200% of direct labor charged to each job. The materials cost (including travel and other direct costs) for a particular job is $10,000, and the direct labor is$20,000. What is the total job cost for this job?
Chapter 19 Solutions
Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)
Ch. 19 - For which decision environment is linear...Ch. 19 - What is meant by the term feasible solution space?...Ch. 19 - Explain the term redundant constraint.Ch. 19 - Prob. 4DRQCh. 19 - Prob. 5DRQCh. 19 - Prob. 6DRQCh. 19 - Prob. 1PCh. 19 - Prob. 2PCh. 19 - Prob. 3PCh. 19 - A small candy shop is preparing for the holiday...
Ch. 19 - A retired couple supplement their income by making...Ch. 19 - Solve each of these problems by computer and...Ch. 19 - Prob. 7PCh. 19 - For Problem 6b: a. Find the range of feasibility...Ch. 19 - Prob. 9PCh. 19 - Prob. 10PCh. 19 - Prob. 11PCh. 19 - The manager of the deli section of a grocery...Ch. 19 - Prob. 13PCh. 19 - A chocolate maker has contracted to operate a...Ch. 19 - Prob. 15PCh. 19 - Prob. 16PCh. 19 - Prob. 1.1CQCh. 19 - Prob. 1.2CQCh. 19 - Prob. 1.3CQCh. 19 - Prob. 2.1CQCh. 19 - Prob. 2.2CQCh. 19 - Prob. 2.3CQCh. 19 - Prob. 2.4CQ
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
- Terry, Inc., makes gasoline storage tanks. All production is done under contract. The company makes three basic models, but each model must be adapted to customer specifications for the location of outlets, insulation, and paint. It takes from three to six months to complete a tank. How should Terry account for the income for the business?arrow_forwardCan you help me with these three review questions A sports manufacturer produces skateboards and rollerblades. The same wheels are used for both products. For the next week, the master production schedule for skateboards shows a need for 147 units, while the master production schedule for rollerblades shows a need of 149 pairs. 4 wheels are required to manufacture a skateboard, and 8 wheels are required to manufacture one pair of rollerblades. What are the gross requirements for wheels to meet the requirements on the master production schedules for the next week?arrow_forwardA company offers ID theft protection using leads obtained from client banks. Three employees work 40 hours a week on the leads, at a pay rate of $12 per hour per employee. Each employee identifies an average of 3,400 potential leads a week from a list of 4,600. An average of 6 percent of potential leads actually sign up for the service, paying a one-time fee of $80. Material costs are $1,500 per week, and overhead costs are $9,300 per week. Calculate the multifactor productivity for this operation in fees generated per dollar of input.arrow_forward
- You are required to implement the production level method for the following scenario. Four products, each a different colour, are manufactured over one week in a production facility. . You need to manufacture 1500 blue, 750 red, 750 green and 1000 yellow products per week. The plant works 2 shifts per day, 5 days a week. How many of each product should be produced each day? 600 blue, 300 red, 300 green, 400 yellow 300 blue, 150 red, 150 green, 200 yellow 800 per day 150 blue, 75 red, 75 green, 100 yellowarrow_forwardA company has the following demand data for the last three years of sales for their popular product B. There are currently 5 workers assigned to the production line, each capable of producing approximately 8 units per month. It is assumed that each month has the same number of production days. They can hire more workers at a hiring and training cost of $800 per worker. If they layoff any workers, the unemployment cost is $2,000 per worker. The product has a standard production cost (labor, material, and overhead) of $300 per unit. The extra cost to produce one unit on overtime is $50 and the maximum overtime is two units per month per worker. They can use inventory but it will cost them $25 per unit per month for any unit in inventory at the end of the month. Failure to meet market demand typically will imply the customer will buy from another supplier, and therefore cost the company $100 in profit. They currently have 0 units in inventory. a. Use the demand data to develop a forecast…arrow_forwardJack Jones, the materials manager at Precision Enterprises, is beginning to look for ways to reduce inventories. A recent accounting statement shows that the inventory investment for raw materials is $4,100,400, for work-in-process is $6,538,000, and for finished goods is $2.964,000. This year's cost of goods sold will be about $18,148.000. Assume that there are 52 business weeks per year a. Express total inventory as weeks of supply. The weeks of supply is weeks. (Enter your response rounded to one decimal place.) b. Express total inventory as inventory tums. The inventory turnover is turns per year. (Enter your response rounded to one decimal place.)arrow_forward
- A company offers ID theft protection using leads obtained from client banks. Three employees work 40 hours a week on the leads, at a pay rate of $12 per hour per employee. Each employee identifies an average of 3,400 potential leads a week from a list of 4,800. An average of 7 percent of potential leads actually sign up for the service, paying a one-time fee of $90. Material costs are $1,400 per week, and overhead costs are $8,900 per week. Calculate the multifactor productivity for this operation in fees generated per dollar of input. (Round your answer to 2 decimal places.) Do you have any suggestions for increasing the productivity of the three employees or for this task?arrow_forwardBetter Products, Inc., manufactures three products on two machines. In a typical week, 40 hours are available on each machine. The profit contribution and production time in hours per unit are as follows: Category Profit/unit Machine 1 time/unit Machine 2 time/unit Product 1 Product 2 $30 0.5 1.0 hr hr $50 2.0 1.0 Product 3 $20 0.75 Two operators are required for machine 1-thus, 2 hours of labor must be scheduled for each hour of machine 1 time. Only one operator is required for machine 2. A maximum of 100 labor-hours is available for assignment to the machines during the coming week. Other production requirements are that product 1 cannot account for more than 50% of the units produced and that product 3 must account for at least 20% of the units produced. (c) What is the value (in $) of an additional hour of labor? 0.5 (a) How many units of each product should be produced to maximize the total profit contribution? What is the projected weekly profit (in $) associated with your…arrow_forwardZhu Manufacturing is considering the Introduction of a family of new products. Long-term demand for the product group is somewhat predictable, so the manufacturer must be concemed with the risk of choosing a process that is inappropriate. Faye Zhu is VP of operations. She can choose among batch manufacturing or custom manufacturing, or she can invest in group technology, Zhu won't be able to forecast demand accurately until after she makes the process choice. Demand will be classified into four compartments: poor, fair, good, and excellebt The table below indicates the payoffs (profits) associated with each processidemand combination, as well as the probabilities of each long-term demand level: Demand Poor Fair Good Excellent Probability Batch Custom 0.15 0.40 -$300,000 $100,000 $1,200,000 $800,000 $400,000 $00,000 0.30 $1,200,000 $750,000 $500,000 0.15 $1,300,000 $800,000 $2,200,000 Group technology a) The alternative that provides Zhu the greatest expected monetary value (EMV) is…arrow_forward
- evelop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 9,700; winter, 8,000; spring, 7,000; summer, 11,700. Inventory at the beginning of fall is 485 units. At the beginning of fall you currently have 35 workers, but you plan to hire temporary workers at the beginning of summer and lay them off at the end of summer. In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring only if overtime is necessary to prevent stockouts at the end of those quarters. Overtime is not available during the fall. Relevant costs are hiring, $80 for each temp; layoff, $160 for each worker laid off; inventory holding, $5 per unit-quarter; backorder, $10 per unit; straight time, $5 per hour; overtime, $8 per hour. Assume that the productivity is 0.5 unit per worker hour, with eight hours per day and 60 days per season. In each quarter, produce to the full output of your regular workforce, even if that…arrow_forwardWork−in−Process Inventory has a debit balance of $84,000 and Manufacturing Overhead has a credit balance of $10,000. If an additional $54,000 of direct labor and $1,000 of indirect labor are incurred during production, what is the balance of Work−in−Process Inventory? A. $30,000 B. $9,000 C. $138,000 D.arrow_forwardA local firm manufactures children’s toys. The projected demand over the next four months for one particular model of toy robot is (given) Assume that a normal workday is eight hours. Hiring costs are $350 per worker and firing costs (including severance pay) are $850 per worker. Holding costs are $4.00 per aggregate unit held per month. Assume that it requires an average of 1 hour and 40 minutes for one worker to assemble one toy. Shortages are not permitted. Assume that the ending inventory for June was 600 of these toys and the manager wishes to have at least 800 units on hand at the end of October. Assume that the current workforce level is 35 workers. Find the optimal plan by formulating as a linear program.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,
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,