Spreadsheet Modeling and Decision Analysis: A Practical Introduction to Business Analytics
7th Edition
ISBN: 9781285418681
Author: Cliff Ragsdale
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 2, Problem 16QP
a)
Summary Introduction
To formulate: An LP model for the problem.
b)
Summary Introduction
To sketch: The feasible region for the problem.
c)
Summary Introduction
To calculate: The optimal solution using level
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Digital 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…
A manufacturer has a production facility that requires 10,237 units of component JY21 per year.
Following a long-term contract, the manufacturer purchases component JY21 from a supplier with
a lead time of 6 days. The unit purchase cost is $31.4 per unit. The cost to place and process an
order from the supplier is $168 per order. The unit inventory carrying cost per year is 12.2 percent
of the unit purchase cost. The manufacturer operates 250 days a year. Assume EOQ model is
appropriate. If the manufacturer uses a constant order quantity of 1,053 units per order, what is
the annual holding cost?
Use at least 4 decimal places.
Machine A costs Rs 45,000 and its operating costs are estimated to be Rs 1,000 for the first year increasing by Rs 10,000 per year in the second and subsequent years.Machine B costs Rs 50,000 and operating costs are Rs 2,000 for the first year, increasing by Rs 4,000 in the second and subsequent years.If at present we have a machine of type A, should we replace it with B? if so when?Assume that both machines have no resale value and their future costs are not discounted.
Chapter 2 Solutions
Spreadsheet Modeling and Decision Analysis: A Practical Introduction to Business Analytics
Ch. 2 - Prob. 1QPCh. 2 - Prob. 2QPCh. 2 - Prob. 3QPCh. 2 - Prob. 4QPCh. 2 - Prob. 5QPCh. 2 - Prob. 6QPCh. 2 - Prob. 7QPCh. 2 - Prob. 8QPCh. 2 - Prob. 9QPCh. 2 - Prob. 10QP
Ch. 2 - Prob. 11QPCh. 2 - Prob. 12QPCh. 2 - Prob. 13QPCh. 2 - Prob. 14QPCh. 2 - Prob. 15QPCh. 2 - Prob. 16QPCh. 2 - Prob. 17QPCh. 2 - Prob. 18QPCh. 2 - Prob. 19QPCh. 2 - Prob. 20QPCh. 2 - Prob. 21QPCh. 2 - Prob. 22QPCh. 2 - Prob. 23QPCh. 2 - Prob. 24QPCh. 2 - Prob. 25QPCh. 2 - American Auto is evaluating their marketing plan...Ch. 2 - Prob. 1.1CCh. 2 - Prob. 1.2CCh. 2 - Prob. 1.3CCh. 2 - Prob. 1.4CCh. 2 - Prob. 1.5CCh. 2 - Prob. 1.6CCh. 2 - Prob. 1.7CCh. 2 - Prob. 1.8CCh. 2 - Prob. 1.9CCh. 2 - For the Lines They Are a-Changin (with apologies...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, management and related others by exploring similar questions and additional content below.Similar questions
- 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_forwardAssume 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_forwardIn a large microelectronics plant, the assembly cell for circuit boards has a demand for 250 units an hour. Two feeder cells supply parts A and B to the assembly cell (one A and one B for each board). Standard containers that look like divided trays are used. A container will hold 24 As or 10 Bs. It takes 10 minutes to fill up a container with As and 24 minutes to fill up a container with Bs. Transit time to the assembly cell is 5 minutes for both A and B. No safety factor is used. Set up a kanban control system for the assembly process.arrow_forward
- There is an upstream Picking department that feeds two downstream Packing departments: Pack Singles and Pack Multis. Those Packing departments feed to a Shipping department that loads the outgoing trucks. 40% of your Pick volume goes to Pack Singles and has a packing rate of 104 units per labor hour (uph). 60% of the Pick volume goes to Pack Multis and has a pack rate of 215 units per labor hour. Your pickers pick both Single and Multi items throughout the day at an overall average rate of 114 units per labor hour. All units that are packed in both processes go through the Ship process at a rate of 570 units per hour. You have 102 people today for all 4 departments and you absolutely must pack 47,880 units in Pack Multis Items to meet a customer promise metric. How do you allocate labor to balance the flow in your department if you work a 10 hour shift? Do not assume breaks or lunches in your answer. Redirect 1: You now need to process all of the Pack Singles Volume in the first 5…arrow_forwardAt 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…arrow_forwardAt 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 B 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 shortest-path problem by drawing a…arrow_forward
- What are the problems that may appear in the following shelving system: Narrow racking systems Wide aisle racking systems Movable racking systems Drive racking systems And how can these problems be solved?arrow_forwardA manufacturing cell makes three models of a product – AKC1011, BC0001, and AC0102. The daily demand for the three products are as follows: 200 of AKC1011, 500 BC0001, and 300 of AC0102. Develop a balanced mixed-model sequence that should be repeated throughout the day in order to meet demand.arrow_forwardLaredo Leather Company’s production manager, Jack Murray, has been under pressure from the company president to reduce the cost of conversion. In spite of several attempts to reduce conversion costs, they have remained more or less constant. Now Murray is faced with an upcoming meeting with the company president, at which he will have to explain why he has failed to reduce conversion costs. Murray has approached his friend, Jeff Daley, who is the corporate controller, with the following request: “Jeff, I’m under pressure to reduce costs in the production process. There is no way to reduce material cost, so I’ve got to get the conversion costs down. If I can show just a little progress in next week’s meeting with the president, then I can buy a little time to try some other cost-cutting measures I’ve been considering. I want you to do me a favor. If we raise the estimate of the percentage of completion of October’s inventory to 60 percent, that will increase the number of equivalent…arrow_forward
- A computer recycler sells computer enclosures to a computer remanufacturer. To meet monthly expected demand, the remanufacturer needs 2.000 enclosures. The recycler utilizes a four-step disassembly process with scrap rates given as follows: d1=0.08, d2=0.05, d3=0.05, and d4=0.03. How many computers must be recycler receive each month in order to meet the remanufacturer’s demand?arrow_forwardIn a large microelectronics plant, the assembly cell for circuit boards has a demand for 300 units an hour. Two feeder cells supply partsA and B to the assembly cell (one A and one B for each board). Standard containers that look like divided trays are used. A container will hold 22 As or 13 Bs. It takes 13 minutes to fill up a container with As and 22 minutes to fill up a container with Bs. Transit time to the assembly cell is 5 minutes for both A and B. No safety factor is used. Kanbans to be circulated Between Process A and Assembly cell? Kanbans to be circulated Between Process B and Assembly cell?arrow_forwardBimala is interested in buying a new house and has found a house she likes in Surry Hills. Bimala comes to you for advice about which of the following items would pass to her automatically if she buys the house: • A plastic bird bath which rest on the ground in the back garden; • A concrete swimming pool in the back garden; • A tapestry attached by small tapestry nails to the wall of the living room; and • A barbecue on wheels on the back deck. Advise Bimala. In your advice, please ensure that you refer to relevant case law. *NOTE: This is business law question. can you write more details about the question and answer.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,