Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 3.7, Problem 10P
Summary Introduction
To determine: The effect when there is no maximum sales constraint.
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
After much anticipation Goople releases a new smartphone. In anticipation of the new phone, Goople's stock price
increases. However, once launched, the smartphone does even more than what was anticipated and buyers are buying
all of the phones available. Goople's phones are on back order for 8 months. The unexpectedly positive reaction to the
smartphone would
raise the present value and the price of the corporation's stock.
raise the present value and reduce the price of the corporation's stock.
reduce the present value and the price of the corporation's stock.
reduce the present value and raise the price of the corporation's stock.
Given scenario
A hospital is administering a polio vaccine (“polio drops”) to children under the age of 5 in Mexico. It costs the hospital $2 to purchase one shot, and they charge $3 for administering it to a child. Unused vaccines are destroyed. The hospital management needs to decide the number of vaccines to be ordered. Since the hospital has been administering these shots for the last 6 years (24 quarters), they have been able to compile the demand for the vaccine.
Determine the optimal service level and optimal order quantity, for the vaccine.
Quarter
Demand
1
15
2
18
3
21
4
15
5
17
6
22
7
20
8
16
9
22
10
18
11
25
12
15
13
26
14
29
15
16
16
30
17
17
18
25
19
18
20
16
21
19
22
23
23
20
24
15
"Nordlund Boat Company has been repairing, refitting, and building custom boats.
for over 60 years in the Pacific Northwest."
The company is located in Tacoma, Washington. One of the engine's most critical components is the
exhaust manifolds. The company purchases this item from the best manufacturers in the world. TJ is the
buyer in charge of managing this item.
TJ's purchasing agent currently submits an order release for this item every 4 weeks. The company's
annual demand is 400 units (2 units per working day). Nordlund's relatively low volume and quality focus,
rather than volume focus, means the company cannot take advantage of quantity discounts. The supplier
has agreed to deliver this item within 1 week following an order release. For this reason, Nordlund has
never had a shortage of exhaust manifolds. The total time between the release date and date of receipt
is 1 week or 5 working days.
The accounting has generated the following inventory-related costs. Procurement costs…
Chapter 3 Solutions
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. 1C
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
- Inventory can be very expensive for firms to hold and manage. One measure of how effective a firm is at managing their inventory is the inventory sales ratio (inventory/sales). Assume a firm has quarterly sales of 1 million and inventory is normally distributed with a mean of $500k and a standard deviation of $100k. simulate the expected inventory to sales ratio for 10,000 iterations. What is the expected mean inventory to sales ratio? What is the probability that the inventory sales ratio is less than 0.5?arrow_forwardYour company currently keeps a safety stock of 554 units of a particular product that has a lead time of 10 days. Records indicate that the weekly demand was as follows: 1176 955 780 1052 736 842 748 993 852 738 794 1444 1333 1372 1106 706 923 734 786 729 1357 1165 1277 683 1106 What is the current service level? Input your result as the decimal form and round to 4 decimal places. You are requested to recommend a safety stock that will ensure an average service level of 97.5%. The lead time is not expected to change. What safety stock would you recommend? (0 decimal places)arrow_forwardSamson Electronics assembles and then tests two models of notebook computers, FLEX and ION. For the coming month, the company wants to decide how many of each model to assemble and then test. No computers are in inventory from the previous month, and because the models are going to be changed after this month, the company doesn’t want to hold any inventory after this month. It believes the most it can sell this month are 600 FLEXs and 1,200 IONs. Each FLEX sells for $300 and each ION sells for $450. The cost of component parts for a FLEX is $150; for an ION it is $225. Labor is required for assembly and testing. There are at most 10,000 assembly hours and 3,000 testing hours available. Each labor hour for assembling costs $11 and each labor hour for testing costs $15. Each FLEX requires five hours for assembling and one hour for testing, and each ION requires six hours for assembling and two hours for testing. Samson Electronics want to know how many of each model it should produce…arrow_forward
- UC is catering an event on campus in TUC - that last time they did this they ran out of plastic silverware! We want to make sure we have enough and are looking at quantity discounts. To order less than 2,000 the vendor quotes $1.80 per piece. Orders between 2001 to 5,000 are $1.60 per piece and 5,001-10,000 it's $1.40. Any orders above 10,000 the price drops to $1.25. Ordering costs are $200 per order and to store the materials we have a 5% storage costs from UC catering. Our estimated annual demand is 15,000 pieces. What is the optimal Order Qty? 8,660 8,165 9,259 O9,798arrow_forwardYou are the president of XYZ Manufacturing company. You have recently learned about the following issue: A month ago, the company’s general manager (GM) told one of the line managers to produce an extra 15,000 units of a product so that there would be inventory in stock for the next time the item is ordered. Last week, the GM scolded the line manager for having 15,000 units of the item in stock. The GM told the line manager that producing excess inventory costs the company money and should never be done. The GM then puts the line manager on a performance plan. This is not the first time you have heard about the GM telling an employee to do one thing only to criticize him or her for doing it later. This employee feels very frustrated by this, but does not want to make a formal complaint because she has seen other employees lose their jobs or get demoted for questioning the GM. Create an outline that proposes a leadership solution to this issue. The outline should address the following:…arrow_forwardNational Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven-month periodwere as follows:Month Sales (000 units)Feb. 19Mar. 18Apr. 15May 20Jun. 18Jul. 22Aug. 20a. Plot the monthly data on a sheet of graph paperarrow_forward
- 3. irene sells fashion bags online. she gets each bag for P150.00 from a loca supplier. she then adds P100.00 as mark-up for each bag. how much is the selling price of each =bag? A. P200 b. P250 c. P300 d.P350arrow_forwardMamma Temte bakes six pies a day that cost $2 each to produce. On 31% of the days she sells only two pies. On 39% of the days, she sells 4 pies, and on the remaining 30% of the days, she sells all six pies. If Mama Temte sells her pies for $5 each, what is her expected profit for a dayʹs worth of pies? [Assume that any leftover pies are given away.]arrow_forwardIf the stock level for a SKU is currently 30 days worth and management decides to increase safety stock on the SKU from 14 days to 21 days, the resulting average stock level will be approximately 37 days 23 days 33.5 days 51 daysarrow_forward
- If y= 120 - 4x with y= product and x= price of product, what happens to the demand if the price is increased by 3 units? Multiple Choice increases by 12 units increases by 64 units decreases by 12 units decreases by 64 unitsarrow_forwardArdie Corporation uses 30,000 units. Each order placed is for 1,500 units. The stockout units is 300. Management is willing to accept a stockout probability of 40 percent. The stockout cost per unit is P3.20. What does the total stockout cost? choose the letter of the correct answera. P2,680.00b. P3,680.00c. P4,680.00d. P5,680.00e. P7,680.00arrow_forwardA purchaser of a $100,000 single-family home for her family refuses to close escrow after making a $10,000 deposit. She is entitled to Group of answer choices $3,000. $7,000. $10,000. nothingarrow_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,