Practical Management Science
5th Edition
ISBN: 9781305250901
Author: Wayne L. Winston, S. Christian Albright
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 4.6, Problem 27P
Summary Introduction
To run: A one-way sensitivity analysis to identify how much higher the selling price of drug D be so that company would produce it and how much lower the selling price of drug D be so that the company would stop producing it.
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 bhaliya
Three methods can be used for producing heat sensors for high-temperature furnaces. Method A will have a fixed cost of $140,000 per year and a production cost of $62 per part. Method B will have a fixed cost of $210,000 per year and a production cost of $28 per part. Method C will require the purchase of equipment costing $500,000. It will have a life of five years and a 25% of first cost salvage value. The production cost will be $53 per part. At an interest rate of 10% per year, determine the breakeven annual production rate between the two lowest cost methods.
Digital Controis, Inc. (DCI), manufactures two models of a radar gun used by police to monitor the speed of automobiles. Model A has an accuracy of plus or minus 1 mile per hour, whereas the
smaller model B has an accuracy of plus or minus 3 miles per hour.
For the next week, the company has orders for 100 units of model A and 150 units of model B. Although DCI purchases all the electronic components used in both models, the plastic cases for both
models are manufactured at a DCI plant in Newark, New Jersey. Each model A case requires 4 minutes of injection-molding time and 6 minutes of assembly time. Each model B case requires 3
minutes of injection-molding time and 8 minutes of assembly time. For next week, the Newark plant has 600 minutes of injection-molding time avallable and 1,080 minutes of assembly time availab
The manufacturing cost is $10 per case for model A and $6 per case for model B. Depending upon demand and the time avalable at the Newark plant, DCI occasionally…
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 - Prob. 81PCh. 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
- money 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_forwardBruin Properties is in escrow to buy a 175,000 square foot shopping center in Camarillo, California for $35,000,000. Bruin Properties can borrow $24,000,000 fixed rate fully amortizing over 30 years at a 6.0% annual interest rate with equal monthly payments of principal and interest or it can borrow $28,000,000 fixed rate fully amortizing over 30 years at a 7.0% annual interest rate with equal monthly payments of principal and interest. What is the incremental annual borrowing cost for the additional $4,000,000 loan amount if each loan would be outstanding for the full 30 year term? a.13.0% b.12.4% c.11.5% d. 7.0%arrow_forwardA manufacturer has a production facility that requires 10,237 units of component JY21 per year. Following a long-term contract, the manufacturer purchases component JY21 from a supplier with a lead time of 6 days. The unit purchase cost is $31.4 per unit. The cost to place and process an order from the supplier is $168 per order. The unit inventory carrying cost per year is 12.2 percent of the unit purchase cost. The manufacturer operates 250 days a year. Assume EOQ model is appropriate. If the manufacturer uses a constant order quantity of 1,053 units per order, what is the annual holding cost? Use at least 4 decimal places.arrow_forward
- Memanarrow_forwardMachine A costs Rs 45,000 and its operating costs are estimated to be Rs 1,000 for the first year increasing by Rs 10,000 per year in the second and subsequent years.Machine B costs Rs 50,000 and operating costs are Rs 2,000 for the first year, increasing by Rs 4,000 in the second and subsequent years.If at present we have a machine of type A, should we replace it with B? if so when?Assume that both machines have no resale value and their future costs are not discounted.arrow_forwardThere are two companies manufacturing drones. Company A manufactures mass market drones, while company B manufactures customised drones according to customers’ requirements. In 2020, company A produces 3,200 drones, 3% of which were found to be defective and cannot pass the quality check. Company A employs 5 workers working an average of 8 hours a day in the drone production, and they worked 200 working days in 2020.In contrast, company B produces 900 drones, 10% of which were found to be defective and cannot pass the quality check. Company B employs 3 workers working an average of 6 hours a day in the drone production, and they worked 170 days in 2020. (a) If the drone manufacturing is seen as a process, what is considered as the output of the production processes of companies A and B and why? (b) Measure the single-factor manpower productivity for the two companies. (c) Is it reasonable to compare the manpower productivity of the two companies and reach a conclusion that one company…arrow_forward
- Products 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_forwardIn a standard Cournot environment: All firms choose a price they will sell their products at simultaneously Firms choose whether they play quantities simultaneously as actions or prices All firms choose a quantity they supply simultaneously O Some firms choose quantity and some firms choose a pricearrow_forwardCompany ZWZ manufactures three products in a serial system; Product XA is manufactured in Stage 1, Product XB in Stage 2, and XC in Stage 3. Product XB has a sales potential in the market; hence, some of it can be sold at the end of Stage 2, and the remaining can be moved to Stage 3. The third stage produces Product XC, and then delivers it to customers. Two units of Product XA produced in Stage 1 are required for each unit of Product XB in Stage 2. In addition, four units of Product XB produced in Stage 2 are required for each unit of Product XC in Stage 3. Stage 1 can only use regular time; however, Stage 2 has the options of using regular time and overtime in manufacturing. On the other hand, Stage 3 has only one alternative, which is subcontracting. The pertinent data are provided below: Stage 2 Stage 1 11 No overtime No subcontracting No sales 0.07 Unit regular time cost (TL) Unit overtime cost (TL) Unit subcontracting cost (TL) Unit selling price (TL) Unit processing time (hrs)…arrow_forward
- Denmark Corporation sells computer equipment to businesses in the western region of the United States. Each month, the IT division at Demark Corporation prints monthly statements and sends them to the accounts receivable (AR) department, where a clerk mails them to the customers. This corporation's customers mail their payments back to Denmark, where a clerk in AR batches the checks and sends them to the cashier. The AR clerk then uses the payment stub to enter the payments into the computer, where the AR master data are updated to record the payment. Please use this to complete the diagrams and charts below. Please use excel or word for the diagrams. Problem 1. Please create a table of entities and activities Problem 2. Draw a context diagram to support the entities in problem 1. Problem 3. Draw a physical DFD. Please use MS products i.e. word or excel to create this diagramarrow_forwardA company makes parts that cost $35.00 in material and labor. 92% of the parts are produced defect free and are sold for full price at $110 each. 2% of the parts made must be scrapped. Scrap parts are sold for $8.00 each. The remaining 6% of the parts made must be reworked at a cost of $12.00 each. After rework 1% still must be scrapped and the other 5% is sold at a discounted price of $90 each. a. Draw the tree diagram showing the quality cost situation. b. Determine the earnings per part. c. Determine the cost of poor quality (COPQ). d. Determine the earnings per part and COPQ if the rework operation was shut down and the parts that required reworking were just sold for scrap instead.arrow_forwardNorth Platt Machinery Company manufactures a shaft that must fit inside a sleeve. The firm has just received an order of 53,000 units from Southernstar Exploration Company for $48 per unit. North Platt can manufacture the shaft at $18 per unit. Southernstar desires the diameter of the shaft to be 1.278 cm. The diameter of the shaft must not be less than 1.253 cm in order to fit properly inside the sleeve. To be able to insert the shaft into a sleeve without the use of force, the diameter cannot be larger than 1.303 cm. A defective shaft is discarded and a replacement has to be shipped via express freight to locations around the world. North Platt estimates that the average cost of handling and shipping a replacement shaft will be approximately $38. Shown below are the diameters from a sample of 100 shafts manufactured during a trial run: Diameter 1.235 1.243 1.253 1.261 1.265 1.273 1.275 Number of Units 2 3 4 3 3 4 7 Diameter 1.276 1.277 1.278 1.279 1.280 1.283 1.291 Number of Units 7…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,