EBK PRACTICAL MANAGEMENT SCIENCE
5th Edition
ISBN: 9780100655065
Author: ALBRIGHT
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 3, Problem 29P
a)
Summary Introduction
To determine: The way to minimize the cost of meeting the demands for the next three weeks.
Introduction: In linear programming, the unbounded solution would occur when the objective function is infinite. If no solution satisfied the constraints, then it is said to be an unfeasible solution.
b)
Summary Introduction
To determine: The reasonable delta by revising the model that would induce positive production levels in week 3.
Introduction: In linear programming, the unbounded solution would occur when the objective function is infinite. If no solution satisfied the constraints, then it is said to be an unfeasible solution.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Products A,B, and C are sold door-to-door. A costs $ 3 per unit, take 10 minutes to sell (on the average) and
costs $0.50 to deliver to customer. B costs $ 5, takes 15 minutes to sell, and is left with the customer at the time
of sale. C costs $ 4, takes 12 minutes to sell, and costs $ 1 to deliver. During any week, a salesperson is allowed to
draw up to $ 500 worth of A,B,C (at cost) and is allowed delivery expenses not to exceeds $ 75. If a salesperson’s
selling time is not expected to exceed 30 hours (1,800 minutes) in a week, and if the salesperson profit (net after
all expenses) is $ 1 each on a unit of A and B and $ 2 on a unit of C, what combination of sales of A, B, and C
will lead to maximum profit, and what is the maximum profIt?
A manufacturer has a production facility that requires 15,604 units of component JY21 per year.
Following a long-term contract, the manufacturer purchases component JY21 from a supplier with a
lead time of 7 days. The unit purchase cost is $25.6 per unit. The cost to place and process an order
from the supplier is $121 per order. The unit inventory carrying cost per year is 10.5 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 2,640 units per order, what is the annual holding
cost?
Use at least 4 decimal places.
A Las Vegas, Nevada, manufacturer has the option to make or buy one of its component parts. The annual requirement is 20,000 units. A supplier is able to supply the parts for $10 per piece. The firm estimates that it costs $600 to prepare the contract with the supplier. To make the parts in-house, the firm must invest $50,000 in capital equipment, and the firm estimates that it costs $8 per piece to make the parts in-house.
Assuming that cost is the only criterion, use breakeven analysis to determine whether the firm should make or buy the item.
1. What is the breakeven quantity?
2. Should the manufacturer Make or Buy?
3. What is the cost savings using your decision in number 2 (above)? Show the total cost for each scenario then the savings amount.
Chapter 3 Solutions
EBK PRACTICAL MANAGEMENT SCIENCE
Ch. 3.6 - Prob. 1PCh. 3.6 - Prob. 2PCh. 3.6 - Prob. 3PCh. 3.6 - Prob. 4PCh. 3.6 - Prob. 5PCh. 3.6 - Prob. 6PCh. 3.6 - Prob. 7PCh. 3.6 - Prob. 8PCh. 3.6 - Prob. 9PCh. 3.7 - Prob. 10P
Ch. 3.7 - Prob. 11PCh. 3.7 - Prob. 12PCh. 3.7 - Prob. 13PCh. 3.7 - Prob. 14PCh. 3.7 - Prob. 15PCh. 3.7 - Prob. 16PCh. 3.7 - Prob. 17PCh. 3.8 - The Pigskin Company produces footballs. Pigskin...Ch. 3.8 - The Pigskin Company produces footballs. Pigskin...Ch. 3.8 - The Pigskin Company produces footballs. Pigskin...Ch. 3.8 - Prob. 21PCh. 3.8 - Prob. 22PCh. 3.8 - Prob. 23PCh. 3.8 - Prob. 24PCh. 3 - Prob. 25PCh. 3 - Prob. 26PCh. 3 - Prob. 27PCh. 3 - Prob. 28PCh. 3 - Prob. 29PCh. 3 - Prob. 30PCh. 3 - Prob. 31PCh. 3 - Prob. 32PCh. 3 - Prob. 33PCh. 3 - Prob. 34PCh. 3 - Prob. 35PCh. 3 - Prob. 36PCh. 3 - Prob. 37PCh. 3 - Prob. 38PCh. 3 - Prob. 39PCh. 3 - Prob. 40PCh. 3 - Prob. 41PCh. 3 - Prob. 42PCh. 3 - Prob. 43PCh. 3 - Prob. 44PCh. 3 - Prob. 45PCh. 3 - Prob. 46PCh. 3 - Prob. 47PCh. 3 - Prob. 48PCh. 3 - Prob. 49PCh. 3 - Prob. 50PCh. 3 - Prob. 51PCh. 3 - Prob. 52PCh. 3 - Prob. 1CCh. 3 - Prob. 2.1CCh. 3 - Prob. 2.2CCh. 3 - Prob. 2.3CCh. 3 - Prob. 2.4CCh. 3 - Prob. 2.5CCh. 3 - Prob. 2.6CCh. 3 - Prob. 2.7CCh. 3 - Prob. 2.8C
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
- Assume 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_forwardCWD Electronics sells Televisions (TV), which it orders from the USA. Because of shipping and handling costs, each order must be for 5TVs. Because of the time it takes to receive an order, the company places an order every time the present stock drops to 5 TVs. It costs $50 to place anorder. It costs the company $500 in lost sales when a customer asks for a TV and the warehouse is out of stock. It costs $100 to keep each TV stored in the warehouse. If a customer cannot purchase a TV when it is requested, the customer will not wait until one comes in but will go to a competitor.The following probability distribution for demand for TV has been and the time required to receive an order once it is placed (lead time) has the following probability distribution: (Attached) The company has 3 TVs in stock. Orders are always received at the beginning of the week.Note that a lead time of 2 weeks imply that an order placed in week one will arrive in week 4. The time required to receive an order…arrow_forwardA company manufactures both mountain bikes and trail bikes. The cost of materials for a mountain bike is $60, and the cost of materials for a trail bike is $40. The cost of labor to manufacture a mountain bike is $80, and the cost of labor to manufacture a trail bike is $60. During a week in which the company has budgeted $1,800 for materials and $2,500 for labor, how many mountain bikes does the company plan to manufacture? mountain bikesarrow_forward
- Barbara Flynn sells papers at a newspaper stand for $0.40. The papers cost her $0.30, giving her a $0.10 profit on each one she sells. From past experience Barbara knows that: a) 20% of the time she sells 150 papers. b) 20% of the time she sells 200 papers. c) 30% of the time she sells 250 papers. d) 30% of the time she sells 300 papers. Assuming that Barbara believes the cost of a lost sale to be $0.05 and any unsold papers cost her $0.30 and she orders 250 papers. Use the following random numbers: 14, 4, 13, 9, and 25 for simulating Barbara's profit. (Note: Assume the random number interval begins at 01 and ends at 00.) Based on the given probability distribution and the order size, for the given random number Barbara's sales and profit are (enter your responses for sales as integers and round all profit responses to two decimal places): Random Number Sales Profit 14 4 13 9 25arrow_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_forwardIrwin’s sells a particular model of fan, with most of the sales being made in thesummer months. Irwin’s makes a one-time purchase of the fans prior to eachsummer season at a cost of $40 each and sells each fan for $60. Any fans unsoldat the end of the summer season are marked down to $29 and sold in a special fallsale. Virtually all marked-down fans are sold. The following is the number of salesof fans during the past 10 summers: 30, 50, 30, 60, 10, 40, 30, 30, 20, 40.a. Estimate the mean and the variance of the demand for fans each summer.b. Assume that the demand for fans each summer follows a normal distribution,with mean and variance given by what you obtained in part (a). Determine theoptimal number of fans for Irwin’s to buy prior to each summer season.c. Based on the observed 10 values of the prior demand, construct an empiricalprobability distribution of summer demand and determine the optimal numberof fans for Irwin’s to buy based on the empirical distribution.d. Based on your…arrow_forward
- A quarry uses five types of rocks to fulfill four orders. The gypsum content, availability of each type of rock, and the production cost per pound for each rock, as well as the size of each order and the minimum and maximum gypsum percentage in each order, are given below.Rock type-------Cost-------% gypsum-------Amount Available1-------------------$1.00-----------2.0%-----------5002-------------------$5.00-----------5.0%-----------6003-------------------$5.50-----------4.5%-----------7004-------------------$2.00-----------3.0%-----------4005-------------------$1.20-----------6.0%-----------450 Order No.--------------------1----------2----------3---------4Order Size------------------500------600------500------350Min % gypsum-----------3.5%-----3.8%-----4.0%-----3.6%Max % gypsum----------4.4%-----4.6%-----4.7%-----4.8%What is the cheapest way to fill the orders?arrow_forwardA manufacturing plant produces a product 'A' that requires one unit of 'B' and ½ unit of 'C'. Each unit of 'B' is comprised of one unit of 'D', two units of 'E', and one unit of 'F'. Each unit of 'C' requires ½ unit of 'G' and three units of 'H'. The manufacturing lead times for the components are as follows: 'A' - two weeks, 'B' - one week, 'C' - two weeks, 'D' - two weeks, 'E' - three weeks, 'F' - one week, 'G' - two weeks, 'H' - one week. There are 20 units in stock for each of these components. 100 units of 'A' are needed for delivery in seven weeks: a) Develop the product structure and indexed bill of materials for the product. b) Create a gross and net requirements plan for the manufacturer of the product.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
- FRUIT COMPUTER COMPANY Fruit Computer Company manufactures memory chips in batches of ten chips. From past experience, Fruit knows that 80% of all batches contain 10% (1 out of 10) defective chips, and 20% of all batches contain 50% (5 out of 10) defective chips. If a good (that is, 10% defective) batch of chips is sent to the next stage of production, processing costs of $4000 are incurred, and if a bad batch (50% defective) is sent on to the next stage of production, processing costs of $16000 are incurred. Fruit also has the alternative of reworking a batch at a cost of $4000. A reworked batch is sure to be a good batch. Alternatively, for a cost of $400, Fruit can test one chip from each batch in an attempt to determine whether the batch is defective. QUESTIONS 1.Determine a strategy so Fruit can minimize the expected total cost per batch. 2.Compute the EVSI and EVPI.arrow_forwardThe Fly-Right Airplane Company builds small jet airplanes to sell to corporations for use by their executives. To meet the needs of these executives, the company's customers sometimes order a custom design of the airplanes being purchased. When this occurs, a substantial start-up cost is incurred to initiate the production of these airplanes. Fly-Right has recently received purchase requests from three customers with short deadlines. However, because the company's production facilities already are almost completely tied up filling previous orders, it will not be able to accept all three orders. Therefore, a decision now needs to be made on the number of airplanes the company will agree to produce (if any) for each of the three customers. The relevant data are given in the next table. The first row gives the start-up cost required to initiate the production of the airplanes for each customer. Once production is under way. the marginal net revenue (which is the purchase price minus the…arrow_forwardCould someone please me with these three questions? A is question 1 B Is 2 and the last one is split but is only one question which is 3arrow_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,