![MindTap Business Statistics for Ragsdale's Spreadsheet Modeling & Decision Analysis, 8th Edition, [Instant Access], 2 terms (12 months)](https://s3.amazonaws.com/compass-isbn-assets/textbook_empty_images/large_textbook_empty.svg)
MindTap Business Statistics for Ragsdale's Spreadsheet Modeling & Decision Analysis, 8th Edition, [Instant Access], 2 terms (12 months)
8th Edition
ISBN: 9781337274876
Author: Cliff Ragsdale
Publisher: Cengage Learning US
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 3, Problem 27QP
A manufacturer of prefabricated homes has decided to subcontract four components of the homes. Several companies are interested in receiving this business, but none can handle more than one subcontract. The bids made by the companies for the various subcontracts are summarized in the following table.
Assuming all the companies can perform each subcontract equally well, to which company should each subcontract be assigned if the home manufacturer wants to minimize payments to the subcontractors?
- a. Formulate an LP model for this problem.
- b. Create a spreadsheet model for this problem and solve it using Solver.
- c. What is the optimal solution?
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
ABC Construction Company is awarded a contract to build a residential housing complex for XYZ Developers. The parties agree to a
fixed price for the entire project, and the contract specifies that ABC Construction will be paid a lump sum upon completion.
However, during the construction process, unexpected changes in material prices and labor costs significantly increase the
expenses for ABC Construction. The company finds itself facing financial difficulties as it struggles to cover the additional costs
without exceeding the fixed contract price.
In this scenario, how does the lump-sum contract protect ABC Construction Company's interests? What options does ABC
Construction have to address the increased project costs while adhering to the terms of the contract? How can ABC Construction
negotiate with XYZ Developers to ensure a fair resolution and avoid incurring losses?
Hint: Please note that the answer to this case-based question would focus on the advantages and considerations…
The director collected $3000 amount as funds for the tournament on the condition that the amount will be spent on buying prices and trophies and for the two-day tournament and also arranging food for people participating in the tournament. The funds were collected as donations from the people.
However, the manager of the club said that as the club is struggling in making profits, $1500 would be spent on the tournament, and the remaining $1500 will be considered as pure profits. This was not acceptable by the person who arranged the funds for the tournament after convincing people that the entire amount will only be used on the tournament.
1. Was it right in challenging my manager? Should I have handled this differently?
The director collected $3000 amount as funds for the tournament on the condition that the amount will be spent on buying prices and trophies and for the two-day tournament and also arranging food for people participating in the tournament. The funds were collected as donations from the people.
However, the manager of the club said that as the club is struggling in making profits, $1500 would be spent on the tournament, and the remaining $1500 will be considered as pure profits. This was not acceptable by the person who arranged the funds for the tournament after convincing people that the entire amount will only be used on the tournament.
1. Do you think the companies would have felt cheated if the golf course had pocketed theirdonations?
Chapter 3 Solutions
MindTap Business Statistics for Ragsdale's Spreadsheet Modeling & Decision Analysis, 8th Edition, [Instant Access], 2 terms (12 months)
Ch. 3 - Prob. 1QPCh. 3 - Prob. 2QPCh. 3 - Prob. 3QPCh. 3 - Prob. 4QPCh. 3 - Prob. 5QPCh. 3 - Prob. 6QPCh. 3 - Refer to question 19 at the end of Chapter 2....Ch. 3 - Prob. 8QPCh. 3 - Prob. 9QPCh. 3 - Prob. 10QP
Ch. 3 - Prob. 11QPCh. 3 - Prob. 12QPCh. 3 - Prob. 13QPCh. 3 - Prob. 14QPCh. 3 - Prob. 15QPCh. 3 - Prob. 16QPCh. 3 - Prob. 17QPCh. 3 - Tuckered Outfitters plans to market a custom brand...Ch. 3 - Prob. 19QPCh. 3 - Prob. 20QPCh. 3 - Prob. 21QPCh. 3 - Prob. 22QPCh. 3 - Prob. 23QPCh. 3 - Prob. 24QPCh. 3 - Prob. 25QPCh. 3 - Prob. 26QPCh. 3 - A manufacturer of prefabricated homes has decided...Ch. 3 - Prob. 28QPCh. 3 - Prob. 29QPCh. 3 - Prob. 30QPCh. 3 - Prob. 31QPCh. 3 - Prob. 32QPCh. 3 - Prob. 33QPCh. 3 - Prob. 34QPCh. 3 - Prob. 35QPCh. 3 - Prob. 36QPCh. 3 - Prob. 37QPCh. 3 - Prob. 38QPCh. 3 - Prob. 39QPCh. 3 - Prob. 40QPCh. 3 - Prob. 41QPCh. 3 - Prob. 42QPCh. 3 - Prob. 43QPCh. 3 - Prob. 44QPCh. 3 - A natural gas trading company wants to develop an...Ch. 3 - Prob. 46QPCh. 3 - The CFO for Eagle Beach Wear and Gift Shop is in...Ch. 3 - Prob. 48QPCh. 3 - Prob. 1.1CCh. 3 - Prob. 1.2CCh. 3 - Prob. 1.3CCh. 3 - Prob. 1.4CCh. 3 - Prob. 2.1CCh. 3 - Prob. 2.2CCh. 3 - Prob. 2.3CCh. 3 - Prob. 2.4CCh. 3 - Prob. 2.5CCh. 3 - Kelly Jones is a financial analyst for Wolverine...
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 Jennings Construction Company has decided to bid on the construction for each of the two phases of a large project. The bidding requirements are that the costs for each phase be submitted separately together with a transition cost for turning over the first phase of the program to a second contractor should Jennings not receive both awards or perform unsatisfactorily on the first phase. The evaluation for the award of the second phase will not be made until the first phase is near completion. How can the transition costs be identified in the strategic planning model?arrow_forwardAssume your company operates 60% of the wells in an aging field in Scurry County Texas. The field has reached the stage in its development where a waterflood is required or the field will quickly decline into a very large number of marginal wells. Your company has determined that a waterflood is feasible but it would require the cooperation of the other 40% of the operators in the field. Thus an unitization agreement is required. What would your strategy be for negotiating that agreement? What would be the steps required to have an approved unitization agreement in that field?arrow_forwardYou have decided to enter into a time and materials contract with a supplier for your project. The project will require two different types of labor categories, the first which charges $200 per hour and the second which charges $175 per hour. The project requires 50 hours of the first labor category and 40 of the second. You will also purchase $5,000 of tools and equipment with no fee and $25,000 of materials with a 2% fee added on. What will you owe on this contract? $47,000 $47,500 $41,750 $47.600arrow_forward
- Samoto Limited (SL) relies on an external supplier for production capacity. In order to gain access to a certain level of production capacity, SL will have to commit to an annual contract before the start of the operating period. The contract will stipulate the production capacity entitlement of SL. SL has a choice of three contracts: Contract Mega, Contract Upper, and Contract Soso. Regardless of the choice of contract, the company will be subject to three states of nature: high demand, medium demand and low demand. The net profits generated by each of the contracts under the three states of nature are as follows: Net profit (£000) High demand Medium demand Low demand Contract Mega Contract Upper Contract Soso 20,000 17,000 16,500 15,500 16,000 15,000 11,000 12,000 13,000 The probabilities of the states of nature are as follows: High demand Medium demand Low demand Probability 25% 45% 30% Required: a) Determine the choice of contract using the regret criterion.arrow_forwardIn the standard P-A model, P sets the parameters of the contract: the base pay k and the piece rate m. Suppose A would set the parameters. What statement is correct? Piece rate would be lower (to avoid spending too much effort) and base pay higher Piece rate would be the same and base pay higher (to extract a higher surplus) Both parameters would be the same Piece rate would be higher (to get a better pay per unit of effort) and base pay the samearrow_forwardThis assignment is about focuses on the marketing areas of services, internet services, and pricing strategies within the context of travel sites. The following web site provides reviews of various travel bidding strategy sites for priceline and hotwire: http://biddingfortravel.yuku.com/ http://www.betterbidding.com/ Basically, priceline.com and hotwire.com are two travel sites that permit patrons to acquire unknown hotels, cars, and airline flights at a known discount price offered by the website. Only after the final purchase (e.g., accepting a website offer for discounted price), does the patron know the specifics of exactly what they have obtained (e.g., the Name of the Hotel). To simplify things, let's focus on hotels for this assignment. The two sites above (better bidding and bidding for travel) provide consumers information regarding how to bid more effectively and expected outcomes within both priceline.com and/or hotwire.com. Please examine all four of these websites…arrow_forward
- Three companies A, B and C are in competition and are currently holding 30%, 30% and 10% of the total market share respectively. Company A retains 60% of its customers and losses 20% to B and 20% to C. Company B retains 70% of its customers and losses 10% to A and 20% to C. Company C retains 60% of its customers and losses 30% to B and 10% to A. Estimate the market share in the long run.arrow_forwardJoel Deaine, CEO of Deaine Enterprises Incorporated (DEI), is considering a special offer to manufacture a new line of women’s clothing for a large department store chain. DEI has specialized in designer women’s clothing sold in small, upscale retail clothing stores throughout the country. To protect the very elite brand image, DEI has not sold clothing to large department stores. The current offer, however, might be too good to turn down. The department store is willing to commit to a large order, which would be very profitable to DEI, and the order would be renewed automatically for two more years, presumably to continue after that point. Required: Determine Joel’s competitive strategy (cost leadership or differentiation) and use this strategy to analyze the choice Joel faces.arrow_forwardJoel Deaine, CEO of Deaine Enterprises Incorporated (DEI), is considering a special offer to manufacture a new line of women’s clothing for a large department store chain. DEI has specialized in designer women’s clothing sold in small, upscale retail clothing stores throughout the country. To protect the very elite brand image, DEI has not sold clothing to large department stores. The current offer, however, might be too good to turn down. The department store is willing to commit to a large order, which would be very profitable to DEI, and the order would be renewed automatically for two more years, presumably to continue after that point. Required: Explain two of the implementation tools covered in this chapter that Joel can use to implement his strategy.arrow_forward
- A 72-unit apartment building in Riverside, California was acquired for $36 million at a 7.0% cap rate with a 72% LTV fixed rate constant payment first mortgage loan at a 6.0% annual interest rate that was fully amortizing over 30 years. For tax depreciation purposes, the building improvements were determined to be 87% of the purchase price. If the building’s owner had a combined federal and state marginal income tax rate of 55%, what was the approximate first year after tax ROE? a. 6.5% b. 7.7% c. 7.0% d. 7.4%arrow_forward3. Main Street Cinema is a single-screen movie theater in a residential area. Main Street Cinema is a licensed exhibitor of Mega Pictures Distribution Company, meaning that it receives all its movies from and pays all rental fees to this larger corporation, as per the license agreement. Otherwise, Main Street Cinema is a small business that spends a considerable amount of money each year purchasing a wide variety of products from suppliers. Last year's spend analysis revealed the following: (Noteshaper Scenario #16) Purchasing Categories Daily Janitorial Services Upholstery and carpet cleaning Soft drinks Popcorn and Candy Toilet Paper & liquid soap (bathroom) Annual Expenditure $83,000 $28,000 $25,000 $33,000 $750arrow_forwardNylah and Toddare friends. Nylah is engaged and wants to have the wedding of her dreams, but she cannot afford it. Todd wants to help with this, so he tells Nylah he will give her $10,000 today, and she can pay him back in monthly installments of $100 beginning next month when she returns from her honeymoon. Nylah agrees and does have the wedding of her dreams. A month later, Todd asks Nylah for the first installment of $100. Nylah refuses. Todd sues Nylah. The court will a. order Nylah to pay Todd the money because there was consideration. b. not order Nylah to pay the money because there was nothing in writing. c. not order Nylah to pay the money because they are friends. d. order Nylah to pay Todd the money because there was noconsideration.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
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY