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 3, Problem 39QP
a)
Summary Introduction
To formulate: A linear programming model for the problem.
b)
Summary Introduction
To develop: A spreadsheet model and solve using solver.
c)
Summary Introduction
To identify: The optimal solution.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
As part of a campaign to promote its annual clearance sale, Excelsior Company decided to buy television advertising time on Station KAOS. Excelsior's television advertising budget is $111,000. Morning time costs $3000/min, afternoon time costs $1000/min, and evening (prime) time costs $12,000/min. Because of previous commitments, KAOS cannot offer Excelsior more than 6 min of prime time or more than a total of 25 min of advertising time over the 2 weeks in which the commercials are to be run. KAOS estimates that morning commercials are seen by 200,000 people, afternoon commercials are seen by 100,000 people, and evening commercials are seen by 600,000 people. How much morning, afternoon, and evening advertising time should Excelsior buy to maximize exposure of its commercials?
morning
min
afternoon
min
evening
min
The Fish House (TFH) in Norfolk, Virginia, sells fresh fish and seafood. TFH receives daily shipments of farm-raised trout from a nearby supplier. Each trout costs $2.45 and is sold for $3.95. To maintain its reputation for freshness, at the end of the day TFH sells any leftover trout to a local pet food manufacturer for $1.25 each. The owner of TFH wants to determine how many trout to order each day. Historically, the daily demand for trout is: Demand 10 11 12 13 14 15 16 17 18 19 20 Probability 0.02 0.06 0.09 0.11 0.13 0.15 0.18 0.11 0.07 0.05 0.03 a. Construct a payoff matrix for this problem. b. How much should the owner of TFH be willing to pay to obtain a demand forecast that is 100% accurate? give a clear explanation for (b)
A home improvement store sells hydrangea plants during the spring planting season. The hydrangeas cost the store $15 per unit, and sell to customers for $45, but any leftovers at the end of the season are salvaged to a local landscaper for $7/unit. A competitor has advertised that it guarantees 99% of customers find the product they’re looking for in stock. The competitor’s posted price for hydrangeas is $50, and they salvage to the same local landscaper for $7/ hydrangea plant. If the competitor’s advertised service level is correct for hydrangeas and they follow an optimal stocking policy, what does it imply their cost per hydrangea is?
Chapter 3 Solutions
Spreadsheet Modeling and Decision Analysis: A Practical Introduction to Business Analytics
Ch. 3 - Prob. 1QPCh. 3 - Prob. 2QPCh. 3 - Prob. 3QPCh. 3 - Prob. 4QPCh. 3 - Prob. 5QPCh. 3 - Prob. 6QPCh. 3 - Prob. 7QPCh. 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 - Tuckered Outfitters plans to market a custom brand...Ch. 3 - Prob. 18QPCh. 3 - Prob. 19QPCh. 3 - Prob. 20QPCh. 3 - Prob. 21QPCh. 3 - Prob. 22QPCh. 3 - Prob. 23QPCh. 3 - Prob. 24QPCh. 3 - Prob. 25QPCh. 3 - A manufacturer of prefabricated homes has decided...Ch. 3 - Prob. 27QPCh. 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 - A natural gas trading company wants to develop an...Ch. 3 - Prob. 45QPCh. 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
- 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_forwardSeas Beginning sells clothing by mail order. An important question is when to strike a customer from the companys mailing list. At present, the company strikes a customer from its mailing list if a customer fails to order from six consecutive catalogs. The company wants to know whether striking a customer from its list after a customer fails to order from four consecutive catalogs results in a higher profit per customer. The following data are available: If a customer placed an order the last time she received a catalog, then there is a 20% chance she will order from the next catalog. If a customer last placed an order one catalog ago, there is a 16% chance she will order from the next catalog she receives. If a customer last placed an order two catalogs ago, there is a 12% chance she will order from the next catalog she receives. If a customer last placed an order three catalogs ago, there is an 8% chance she will order from the next catalog she receives. If a customer last placed an order four catalogs ago, there is a 4% chance she will order from the next catalog she receives. If a customer last placed an order five catalogs ago, there is a 2% chance she will order from the next catalog she receives. It costs 2 to send a catalog, and the average profit per order is 30. Assume a customer has just placed an order. To maximize expected profit per customer, would Seas Beginning make more money canceling such a customer after six nonorders or four nonorders?arrow_forwardTom is a habitual shopper at garage sales. Last Saturday he stopped at one where there were several types of used building materials for sale. At the low prices being asked, Tom knew that he could resell the items in another town for a substantial gain. Four things stood in his way: he could only make one round trip to resell the goods; his pickup truck bed would hold only 1200 pounds; the pickup truck bed could hold at most 80 cubic feet of merchandise; and he had only $190 cash with him. He wants to load his truck with the mix of materials that will yield the greatest profit when he resells them. Formulate (define objective function and constraints) and solve this problem (using excel solver) as a linear program.arrow_forward
- An automotive warehouse stocks a variety of parts that are sold at neighborhoodstores. One particular part, a popular brand of oil filter, is purchased by thewarehouse for $1.50 each. It is estimated that the cost of order processing andreceipt is $100 per order. The company uses an inventory carrying charge based on warehouse for $1.50 each. It is estimated that the cost of order processing andreceipt is $100 per order. The company uses an inventory carrying charge based ona 28 percent annual interest rate.The monthly demand for the filter follows a normal distribution with mean280 and standard deviation 77. Order lead time is assumed to be five months.Assume that if a filter is demanded when the warehouse is out of stock, then thedemand is back-ordered, and the cost assessed for each back-ordered demand is$12.80. Determine the following quantities:a. The optimal values of the order quantity and the reorder level.b. The average annual cost of holding, setup, and stock-out associated…arrow_forwardULINE packaging supplies has a contract to fill 50 gallon barrels with gasoline for use by the U.S. Army. The machine that ULINE uses has an adjustable device that allows the average fill per barrel to be adjusted as desired. However, the actual distribution of fill volume from the machine is known to be normally distributed with a standard deviation equal to 0.5 gallons. The contract that ULINE has with the military calls for no more than 2 percent of all barrels to contain less than 49.2 gallons of gasoline. In order to meet this requirement, ULINE should set the mean fill to approximately 49.92 gallons. 00 True Falsearrow_forwardThe KooKee bakery uses roughly 3,400 pounds of baking powder a year. KooKee currently purchases 300 pounds of baking powder per order and pays $3 per pound. The supplier of the baking powder has announced that orders of 1,000 pounds or more will be filled at a discount price of $2 per pound. KooKee incurs a cost of $100 each time it submits an order and the annual holding cost is 17 percent of the purchase price per pound. If the supplier offered the discount at 1,500 pounds instead of 1,000 pounds, what order size would minimize total cost?arrow_forward
- Cogent Technology has computer stores on the West Coast. Their stores are set up like warehouse clubs focusing on high volume. Cogent Technology has a hub set up for their distribution. For instance, to serve the Silicon Valley area, a Cogent Technology warehouse is set up in San Jose to serve nearby stores. Cogent Technology warehouse managers generally purchase their items in bulk to get volume discounts from their vendors. Cogent Technology warehouse has an agreement with the vendors that they can return unsold inventory if it does not sell in six months. Cogent Technology has a policy of fulfilling all customer orders. In some cases when the store managers foresee a stockout situation, they are authorized to buy from other vendors rather than wait for the warehouse to deliver their items. In some cases, the prices bought directly by the store managers are cheaper than what the warehouses buy in bulk. A good example of a sellable item is tablets. Cogent Technology warehouses…arrow_forwardEmily works for a small software company and oversees software quality assurance. The company recently developed an inventory control system for a national clothing manufacturer. The system gathers sales information on an hourly basis from clothing retailers nationwide. This information is then used by all departments (including the accounting, shipping, and ordering departments) to control the functions of the clothing manufacturer. Emily suspects that the inventory functions of the system are not sufficiently tested, although they have passed all their contracted (legal) tests. However, she is pressured by her employers to sign off on the software. Whilst she is only required to perform tests which have been agreed to in the original contract, her considerable experience in software testing has led her to be concerned over the quality of the system. Her employers say that they will go out of business if they do not deliver the software on time. Emily knows that if any section of…arrow_forwardA 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_forward
- Pls help ASAP for botharrow_forwardVITRAN Bus Services purchases diesel fuel from Domino Gas Supply. In addition to fuel cost, Domino Gas Supply charges VITRAN Bus Services $250 per order to cover the expenses of delivering and transferring the fuel to VITRAN Bus Services storage tanks. The lead time for new shipment from Domino Gas Supply is 10 days, the cost of holding a gallon of fuel in the storage tanks is $0.04 per month, or $0.48 per year and the annual usage of fuel is 150,000 gallons. VITRAN Bus Services buses operate 300 days a year. What is the optimal order quantity for VITRAN Bus Services? How frequently should VITRAN Bus Services order to replenish the gasoline supply?arrow_forwardA barge company moves CoB freight between Memphis and New Orleans. Each barge tow is limited to 15 barges. The round trip takes 6 days. Forecasts call for 37 round trip tows per month. How many towboats does the company need to satisfy this demand? (Assume a month is 30 days.)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,