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Solve each of these problems by computer and obtain the optimal values of the decision variables and the objective function.
a.
b.
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Chapter 19 Solutions
Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)
- The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon spawn during a 24-hour period and must be canned immediately. Tinkan has the following agreement with the salmon industry. The company can deliver as many cans as it chooses. Then the salmon are caught. For each can by which Tinkan falls short of the salmon industrys needs, the company pays the industry a 2 penalty. Cans cost Tinkan 1 to produce and are sold by Tinkan for 2 per can. If any cans are left over, they are returned to Tinkan and the company reimburses the industry 2 for each extra can. These extra cans are put in storage for next year. Each year a can is held in storage, a carrying cost equal to 20% of the cans production cost is incurred. It is well known that the number of salmon harvested during a year is strongly related to the number of salmon harvested the previous year. In fact, using past data, Tinkan estimates that the harvest size in year t, Ht (measured in the number of cans required), is related to the harvest size in the previous year, Ht1, by the equation Ht = Ht1et where et is normally distributed with mean 1.02 and standard deviation 0.10. Tinkan plans to use the following production strategy. For some value of x, it produces enough cans at the beginning of year t to bring its inventory up to x+Ht, where Ht is the predicted harvest size in year t. Then it delivers these cans to the salmon industry. For example, if it uses x = 100,000, the predicted harvest size is 500,000 cans, and 80,000 cans are already in inventory, then Tinkan produces and delivers 520,000 cans. Given that the harvest size for the previous year was 550,000 cans, use simulation to help Tinkan develop a production strategy that maximizes its expected profit over the next 20 years. Assume that the company begins year 1 with an initial inventory of 300,000 cans.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_forwardCalculating outcomes as equally likely would BEST describe: O a. Maximax criterion O b. Laplace criterion O c. Regret criterion Od. Maximin criterion Determining the average payoff for each alternative and choosing the one with the BEST payoff is the approach called: ea, maximax O b. minimax regret O c. laplace Od maximin 2arrow_forward
- Pls help ASAP for botharrow_forwardIan Langella faces a decision how large his gasoline station should be. The annual returns wil l depend on both the size of his station and number of marketing factors related to the oil in dustry and demand for gasoline. Ian develop a careful analysis based on the following table: Size of first station Market condition Market conditon Market conditon Good Fair Poor Small 50,000 20,000 -10,000 Medium 80,000 30,000 -20,000 Large 100,000 30,000 -40,000 Very large 300,000 25,000 -160,000 Develop a decision table for this decisionarrow_forwardScenario You are going to plant a rectangular flower bed consisting of tulips in the middle surrounded by daisies on the outside. You have the same amount of each flower and will need an equal area for each. You want the border of daisies to be uniform around the tulips in the middle, as shown in the diagram below:arrow_forward
- Q2. Solve the given LP problem on the right by (LP): Max Z = 2X1 + 4X2 %3D using The Graphical Solution Method. a) Find the optimal solution, determine the solution type. b) Find the optimality range for the changes in the objective coefficient c2. c) Find the feasibility range for the changes in the Right Hand Side (RHS) of one st. 3X1 + 2X2 < 12 Xị + 2X2 s 8 2X1 + X2 2 2 X1, X2 2 0 of the binding constraints.arrow_forwardConsider the following LP problem: Min 6X+ 27Y Subject to : 2 X + 9Y => 25, and X + Y <= 75. Pick a suitable statement for this problem: a. X=37.5, Y=37.5 is the only optimal solution. b. Optimal Obj. function value is 75 c. X = 0, Y = 0 is the only optimal solution. d. Optimal Obj. function value is 0arrow_forward3 II | Here are the changes to the original problem and the revised conditions for this decision-making problem: With a favorable market, John Thompson thinks a large facility would result in a net profit of $195,000 to his firm. If the market is unfavorable, the construction of a large facility would result in $185,000 net loss. A small plant would result in a net profit of $110,000 in a favorable market, but a net loss of $25,000 would occur if the market was unfavorable. Doing nothing would result in $0 profit in either market conditions. a) Create a decision table, b) What is your recommendation if you would apply the Maximax criterion (Optimistic)? Follow the guidance from your textbook and create a table. c) What is your recommendation if you would apply the Maximin Criterion (Pessimistic)? Follow the guidance from your textbook and create a table. d) What is your recommendation if you would apply the Criterion of Realism (Hurwicz Criterion) with a coefficient of realism a =…arrow_forward
- Using the grid technique to determine the least-cost location (warehouse) for this problem: Tons Rate X - Coordinates Y – Coordinates S1 200 0.5 2 14 S2 300 0.6 6 10 M1 100 1 2 2 M2 100 2 10 14 M3 100 1 14 18 M4 100 2 14 6 The Grid center coordination is ____ and _____ (round the results to 1 decimal place) Group of answer choices (9.9; 7.8) (5.5; 6.9) (8.7; 10.5) (10.5; 6.4) (9.9; 8.9)arrow_forwardIn 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 Demandarrow_forward1. The marketing research department of company has recommended to the Decision-making department to launch three varieties of Chips. The Department manager has to decide one of the types of Chips to be launched under the following estimated payoffs for various levels of sales: Estimated levels of sales(in thousands) a=8 b=7 c=2 Type of Chips Potato chips 50 + a 10 + b 10 d=9 20 +c | Jack fruit chips 55 Banana chips 5 +b+c 20 + b * a 10 + 2a 1+d What will be the manager's decision under the following decision criteria's? а. Minimax Regret criterion b. Hurwicz Alpha criterion (a=0.2)arrow_forward
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,