Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337671989
Author: WINSTON
Publisher: Cengage
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Chapter 3, Problem 36P

a)

Summary Introduction

To determine: The way to minimize the acquiring cost.

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 investigate: The effect on total cost of increasing its minimum purchase requirements.

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.

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The following table contains figures on the monthly volume and unit costs for a random sample of 16 items from a list of 2,000 inventory items at a health care facility:   Item Unit Cost Usage Item Unit Cost Usage K34 $10 200 F99 20 60 K35 25 600 D45 10 550 K36 36 150 D48 12 110 M10 16 25 D52 15 110 M20 20 80 D57 40 120 Z45 80 200 N08 30 40 F14 20 300 P05 16 500 F95 30 800 P09 10 30 Determine the percentage of items in each category and the annual dollar value for each category for part b
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?
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