Practical Management Science
6th Edition
ISBN: 9781337671989
Author: WINSTON
Publisher: Cengage
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
thumb_up100%
Chapter 4, Problem 76P
Summary Introduction
To determine: The cheapest way to fill orders.
Linear programming:
It is a mathematical modeling procedure where a linear function is maximized or minimized subject to certain constraints. This method is widely useful in making a quantitative analysis which is essential for making important business decisions.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
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?
Create spreadsheets and use Solver to determine the correct volumes to be produced to minimize cost for the following problem. Your company has two trucks that it wishes to use on a specific contract. One is a new truck the company is making payments on, and one is an old truck that is fully paid for. The new truck’s costs per mile are as follows: 54₵ (fuel/additives), 24₵ (truck payments), 36₵ (driver), 12₵ (repairs), and 1₵ (misc.). The old truck’s costs are 60₵ (fuel/additives), 0₵ (truck payments), 32₵ (rookie driver), 24₵ (repairs), and 1₵ (misc.). The company knows that truck breakdowns lose customers, so it has capped estimated repair costs at $14,000. The total distance involved is 90,000 miles (to be divided between the two trucks).
CWD 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…
Chapter 4 Solutions
Practical Management Science
Ch. 4.2 - Prob. 1PCh. 4.2 - Prob. 2PCh. 4.2 - Prob. 3PCh. 4.2 - Prob. 4PCh. 4.2 - Prob. 5PCh. 4.2 - Prob. 6PCh. 4.3 - Prob. 7PCh. 4.3 - Prob. 8PCh. 4.3 - Prob. 9PCh. 4.3 - Prob. 10P
Ch. 4.3 - Prob. 11PCh. 4.3 - Prob. 12PCh. 4.4 - Prob. 13PCh. 4.4 - Prob. 14PCh. 4.4 - Prob. 15PCh. 4.4 - Prob. 16PCh. 4.4 - Prob. 17PCh. 4.4 - Prob. 18PCh. 4.4 - Prob. 19PCh. 4.5 - Prob. 20PCh. 4.5 - Prob. 21PCh. 4.5 - Prob. 22PCh. 4.5 - Prob. 23PCh. 4.5 - Prob. 24PCh. 4.5 - Prob. 25PCh. 4.6 - Prob. 26PCh. 4.6 - Prob. 27PCh. 4.6 - Prob. 28PCh. 4.6 - Prob. 29PCh. 4.7 - Prob. 30PCh. 4.7 - Prob. 31PCh. 4.7 - Prob. 32PCh. 4.7 - Prob. 33PCh. 4.7 - Prob. 34PCh. 4.7 - Prob. 35PCh. 4.7 - Prob. 36PCh. 4.7 - Prob. 37PCh. 4.7 - Prob. 38PCh. 4.7 - Prob. 39PCh. 4.7 - Prob. 40PCh. 4.8 - Prob. 41PCh. 4.8 - Prob. 42PCh. 4.8 - Prob. 43PCh. 4.8 - Prob. 44PCh. 4 - Prob. 45PCh. 4 - Prob. 46PCh. 4 - Prob. 47PCh. 4 - Prob. 48PCh. 4 - Prob. 49PCh. 4 - Prob. 50PCh. 4 - Prob. 51PCh. 4 - Prob. 52PCh. 4 - Prob. 53PCh. 4 - Prob. 54PCh. 4 - Prob. 55PCh. 4 - Prob. 56PCh. 4 - Prob. 57PCh. 4 - Prob. 58PCh. 4 - Prob. 59PCh. 4 - Prob. 60PCh. 4 - Prob. 61PCh. 4 - Prob. 62PCh. 4 - Prob. 63PCh. 4 - Prob. 64PCh. 4 - Prob. 65PCh. 4 - Prob. 66PCh. 4 - Prob. 67PCh. 4 - Prob. 68PCh. 4 - Prob. 69PCh. 4 - Prob. 70PCh. 4 - Prob. 71PCh. 4 - Prob. 72PCh. 4 - Prob. 73PCh. 4 - Prob. 74PCh. 4 - Prob. 75PCh. 4 - Prob. 76PCh. 4 - Prob. 77PCh. 4 - Prob. 78PCh. 4 - Prob. 79PCh. 4 - Prob. 80PCh. 4 - You want to take out a 450,000 loan on a 20-year...Ch. 4 - Prob. 82PCh. 4 - Prob. 83PCh. 4 - Prob. 84PCh. 4 - Prob. 85PCh. 4 - Prob. 86PCh. 4 - Prob. 87PCh. 4 - Prob. 88PCh. 4 - Prob. 89PCh. 4 - Prob. 90PCh. 4 - Prob. 91PCh. 4 - Prob. 92PCh. 4 - Prob. 93PCh. 4 - Prob. 94PCh. 4 - Prob. 95PCh. 4 - Prob. 96PCh. 4 - Prob. 97PCh. 4 - Prob. 98PCh. 4 - Prob. 99PCh. 4 - Prob. 100PCh. 4 - Prob. 101PCh. 4 - Prob. 102PCh. 4 - Prob. 103PCh. 4 - Prob. 104PCh. 4 - Prob. 105PCh. 4 - Prob. 106PCh. 4 - Prob. 107PCh. 4 - Prob. 108PCh. 4 - Prob. 109PCh. 4 - Prob. 110PCh. 4 - Prob. 111PCh. 4 - Prob. 112PCh. 4 - Prob. 113PCh. 4 - Prob. 114PCh. 4 - Prob. 115PCh. 4 - Prob. 116PCh. 4 - Prob. 117PCh. 4 - Prob. 118PCh. 4 - Prob. 119PCh. 4 - Prob. 120PCh. 4 - Prob. 121PCh. 4 - Prob. 122PCh. 4 - Prob. 123PCh. 4 - Prob. 124PCh. 4 - Prob. 125PCh. 4 - Prob. 126PCh. 4 - Prob. 127PCh. 4 - Prob. 128PCh. 4 - Prob. 129PCh. 4 - Prob. 130PCh. 4 - Prob. 131PCh. 4 - Prob. 132PCh. 4 - Prob. 133PCh. 4 - Prob. 134PCh. 4 - Prob. 135P
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
- Software EG, a retail company, orders two kinds of software from TeleHard Software. Annually, Software EG sells 800 units of product 1 and 400 units of product 2. The unit purchasing cost is $30 per unit of product 1 and $25 per unit of product 2. It costs $5 to store a unit of either product for a year. The cost of placing an order for either product separately or both products together is $100. Software EG’s annual cost of capital is 14%. Determine a costminimizing ordering policyarrow_forwardProducts 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?arrow_forwardmoney borrowed for personal reasons; to be repaid within a specific time frame and with added interest money borrowed for the purchase of real estate; to be repaid within a specific time frame and with added interest money borrowed for business reasons; to be repaid within a specific time frame and with added interest money borrowed for the purchase of a vehicle; to be repaid within a specific time frame and with added interest : Business Loan :: Auto Loan :: Mortgage Loan :: Personal Loan 1 4 6. 8. 9. Finish Siarrow_forward
- You are in charge of purchases at the student-run used-book supply program at your college, and you must decide how many introductory calculus, history, and marketing texts should be purchased from students for resale. Due to budget limitations, you cannot purchase more than 750 of these textbooks each semester. There are also shelf-space limitations: Calculus texts occupy 2 units of shelf space each, history books 1 unit each, and marketing texts 5 units each, and you can spare at most 1,200 units of shelf space for the texts. If the used book program makes a profit of $20 on each calculus text, $8 on each history text, and $16 on each marketing text, how many of each type of text should you purchase to maximize profit? HINT [See Example 3.] calculus text(s) history text(s) marketing text(s) What is the maximum profit the program can make in a semester? $arrow_forwardYou are in charge of purchases at the student-run used-book supply program at your college, and you must decide how many introductory calculus, history, and marketing texts should be purchased from students for resale. Due to budget limitations, you cannot purchase more than 700 of these textbooks each semester. There are also shelf-space limitations: Calculus texts occupy 2 units of shelf space each, history books 1 unit each, and marketing texts 5 units each, and you can spare at most 1,200 units of shelf space for the texts. If the used book program makes a profit of $20 on each calculus text, $8 on each history text, and $16 on each marketing text, how many of each type of text should you purchase to maximize profit?arrow_forwardThe number of persons likely to die within a year, at each age, is calculated by actuaries on the basis of past experiences and made available as: a. Mortality tables b. Calculation tables c. Monetary tables d. Tariff tables For offering a group insurance scheme, we need a: a. Large group b. Heterogeneous large group c. Homogeneous large group d. Small grouparrow_forward
- Can you please solve this using solver with clear steps. please attche youe excel filearrow_forwardHELParrow_forwardAs 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 minarrow_forward
- 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.arrow_forwardHi... I'm having trouble with the following: Min Jee wants to combine the sales data from each of the art fairs. Switch to the Combined Sales worksheet, and then update the worksheet as follows: In cell A5, enter a formula without using a function that references cell A5 in the Madison Copy the formula from cell A5 to the range A6:A8 without copying the formatting. In cell B5, enter a formula using the SUM function, 3-D references, and grouped worksheets that totals the values from cell B5 in the Chicago:Madison Copy the formula from cell B5 to the range B6:B8 without copying the formatting. Copy the formulas and the formatting from the range B5:B8 to the range C5:E8. (Hint: You can ignore the error about empty cells because Min Jee will enter the Madison sales data later.)arrow_forwardA company makes three types of candy and packages them in three assortments. Assortment I contains 4 cherry, 4 lemon, and 12 lime candies, and sells for a profit of $4.00. Assortment Il contains 12 cherry, 4 lemon, and 4 lime candies, and sells for a profit of $3.00. Assortment III contains 8 cherry, 8 lemon, and 8 lime candies, and sells for a profit of $5.00. They can make 5,200 cherry, 4,000 lemon, and 6,000 lime candies weekly. How many boxes of each type should the company produce each week in order to maximize its profit (assuming that all boxes produced can be sold)? What is the maximum profit? Select the correct choice below and fill in any answer boxes within your choice. OA. The maximum profit is $ when boxes of assortment 1. boxes of assortment II and assortment III are produced. OB. There is no way for the company to maximize its profit boxes ofarrow_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,