Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Chapter 3.8, Problem 23P
Summary Introduction
To determine: The change in the optimal production
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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1. Solve the following exercise using dynamic programming: a company distributes an article with a demand of 15,000 articles per year, it is Considering that annual retention costs are $5 per item, it is estimated that the demand is delayed and this causes a cost of $10 per year. Everytime that an order is placed this causes costs of $50. The demand during the time of delivery follows a normal distribution with means of 200 units and a variance of 5 units.
4b.
Originally, the depositor intended to make two $100 withdrawals, the first in 2022 and the second in 2026, emptying an
account that earns 5% interest, compounded annually. Now, suppose the depositor changes their mind (i.e., does not make
these two withdrawals) and instead decides to empty the account with a single withdrawal in 2025. What is the withdrawal
amount that would empty the account? (The original data must be used; that is, the answer to [4a] may only be used to verify
the answer to this question.)
6. Ah Seng Coffeeshop needs to decide in November 2021 how many Chinese New Year cups to
order to sell at his coffeeshop. Because the cups are specially made for the year 2022 (year of the
tiger), those that are unsold by end of February 2022 are considered a loss. These specially-
designed cups sell for $23.95 and cost $6.75 each. Ah Seng is uncertain of the demand. He believes
that there is a 25% chance that they will sell 10,000 cups, a 50% chance that they will sell 15,000
and a 25% chance that they will sell 20,000.
a) Construct decision tree and cumulative risk profiles for the problem above using Precision Tree
b) Now, assume that any unsold cups are discounted and can be sold for $5 after February 2022.
How does this affect the decision?
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
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