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
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Question
Chapter 19, Problem 16P
a)
Summary Introduction
To determine: The marginal value of a pound of pine and the appropriate price range.
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.
b)
Summary Introduction
To determine: The maximum price the store would be justified in paying for the additional bark.
c)
Summary Introduction
To determine: The marginal value of labor and the range within which it is feasible.
d)
Summary Introduction
To determine: The additional machine time that can be used in this operation.
e)
Summary Introduction
To determine: The manager’s choice if he can obtain either the additional pine bark or storage space.
f)
Summary Introduction
To determine: The change in decision variables if the profit on chips is changed.
g)
Summary Introduction
To determine: The change in decision variables when the profits is increased to $7 per bag for chips and decreased by $0.60 for nuggets.
h)
Summary Introduction
To determine: The change in decision variables for the different changes made in the composition
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The Gorman Manufacturing Company must decide whether to manufacture a component part at its plant or purchase the component part from a supplier. The resulting profit is dependent upon the demand for the product. The following payoff table shows the projected profit (in ten thousand of pesos):
state of nature
state of nature
state of nature
Decision Alternative
Low Demand
S1
Medium DEmand
S2
High demand
S3
Manufacture, d1
-100
200
500
Purchase, d2
50
225
350
The state-of-nature probabilities are P(s1 ) = 0.35, P(s2 ) = 0.35, and P(s3) = 0.30.
a. Use a decision tree to recommend a decision
b. Use EVPI to determine whether XY Manufacturing Company should attempt to obtain a better estimate of demand.
c. What is the probability that the market research report will be favorable?
A test market study of the potential demand for the product is expected to report either a favorable (F) or unfavorable (U) condition. The relevant conditional probabilities are as follows:
P…
What combination of x and y will yield the optimum for this problem?
Maximize Z = $3x + $15y
Subject to:
Multiple Choice
x= 0, y=4
x= 0, y=3
x= 0, y=0
x= 2y=0
O x=1,y=25
2x + 4y ≤ 12
5x + 2y ≤ 10
At a small but growing airport, the local airline company is purchasing a new tractor for a
tractor-trailer train to bring luggage to and from the airplanes. A new mechanized luggage
system will be installed in 3 years, so the tractor will not be needed after that. However,
because it will receive heavy use, so that the running and maintenance costs will increase
rapidly as the tractor ages, it may still be more economical to replace the tractor after 1 or 2
years. The following table gives the total net discounted cost associated with purchasing a
tractor (purchase price minus trade-in allowance, plus running and maintenance costs) at the
end of year i and trading it in at the end of year j (where year O is now).
i
012
1
$13,000
j
2
$28,000
$17,000
3
$48,000
$33,000
$20,000
The problem is to determine at what times (if any) the tractor should be replaced to minimize
the total cost for the tractors over 3 years.
(a) Formulate this problem as a minimum cost flow problem by showing the…
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
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