Spreadsheet Modeling & Decision Analysis: A Practical Introduction To Business Analytics, Loose-leaf Version
Spreadsheet Modeling & Decision Analysis: A Practical Introduction To Business Analytics, Loose-leaf Version
8th Edition
ISBN: 9781337274852
Author: Ragsdale, Cliff
Publisher: South-Western College Pub
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Chapter 4, Problem 8QP
Summary Introduction

To determine: The sensitivity report using solver.

a)

Summary Introduction

To determine: The change in the optimal solution when the profit of Bike R decreased to $35.

b)

Summary Introduction

To determine: The change in the optimal solution when the profit of Bike Z decreased to $35.

c)

Summary Introduction

To interpret: The shadow price for the supply of polymer.

d)

Summary Introduction

To determine: The justification for the given statement.

e)

Summary Introduction

To determine: The new optimal level of profit for the given condition.

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Management of the Toys R4U Company needs to decide whether to introduce a certain new novelty toy for the upcoming Christmas season, after which it would be discontinued. The total cost required to produce and market this toy would be $500,000 plus $15 per toy produced. The company would receive revenue of $35 for each toy sold. Assuming that every unit of this toy that is produced is sold, write an expression for the profit in terms of the number produced and sold. Then find the break-even point that this number must exceed to make it worthwhile to introduce this toy. Now assume that the number that can be sold might be less than the number produced. Write an expression for the profit in terms of these two numbers. Formulate a spreadsheet that will give the profit in part b for any values of the two numbers. Write a mathematical expression for the constraint that the number produced should not exceed the number that can be sold.
A purchasing agent for a particular type of silicon wafer used in the production ofsemiconductors must decide among three sources. Source A will sell the siliconwafers for $2.50 per wafer, independently of the number of wafers ordered. Source Bwill sell the wafers for $2.40 each but will not consider an order for fewer than3,000 wafers, and Source C will sell the wafers for $2.30 each but will not acceptan order for fewer than 4,000 wafers. Assume an order setup cost of $100 and anannual requirement of 20,000 wafers. Assume a 20 percent annual interest rate forholding cost calculations.b. What is the optimal value of the holding and setup costs for wafers when theoptimal source is used?
A purchasing agent for a particular type of silicon wafer used in the production ofsemiconductors must decide among three sources. Source A will sell the siliconwafers for $2.50 per wafer, independently of the number of wafers ordered. Source Bwill sell the wafers for $2.40 each but will not consider an order for fewer than3,000 wafers, and Source C will sell the wafers for $2.30 each but will not acceptan order for fewer than 4,000 wafers. Assume an order setup cost of $100 and anannual requirement of 20,000 wafers. Assume a 20 percent annual interest rate forholding cost calculations.c. If the replenishment lead time for wafers is three months, determine the reorderpoint based on the on-hand level of inventory of wafers
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