Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Question
Chapter 4.7, Problem 23P
Summary Introduction
To determine:
Optimal number of wafers and source to be used for production.
Introduction:
Linear programming is a method to achieve desired outcome in a mathematical model with given constraint.
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Students have asked these similar questions
14. 12 The purchasing manager for the Atlantic Steel Company must determine a policy for
ordering coal to operate 12 converters. Each converter requires exactly 5 tons of coal per day
to operate, and the firm operates 360 days per year. The purchasing manager has determined
that the ordering cost is $80 per order and the cost of holding coal is 20% of the average dollar
value of inventory held. The purchasing manager has negotiated a contract to obtain the coal
for $12 per ton for the coming year.
a. Determine the optimal quantity of coal to receive in each order. (Ans: 1200 tons)
b. Determine the total inventory-related costs associated with the optimal ordering policy
(do not include the cost of the coal). (Ans: TC= $2880)
c. If 5 days of lead time are required to receive an order of coal, how much coal should be on
hand when an order is placed? (Ans= R=300 tons)
Assume that two years have passed, and the purchasing agent mentioned in Problem22 must recompute the optimal number of wafers to purchase and from whichsource to purchase them. Source B has decided to accept any size offer, but sells thewafers for $2.55 each for orders of up to 3,000 wafers and $2.25 each for the incremental amount ordered over 3,000 wafers. Source A still has the same price schedule, and Source C went out of business. Now which source should be used?
The purchasing manager for the Atlantic Steel Company must determine a policy for orderingcoal to operate 12 converters. Each converter requires exactly 5 tons of coal per day to operate,and the firm operates 360 days per year. The purchasing manager has determined that the orderingcost is $80 per order and the cost of holding coal is 20% of the average dollar value of inventoryheld. The purchasing manager has negotiated a contract to obtain the coal for $12 per ton forthe coming year. Determine the total inventory-related costs associated with the optimal ordering policy (do not include the cost of the coal).
Chapter 4 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 4.4 - Prob. 1PCh. 4.4 - Prob. 2PCh. 4.4 - Prob. 3PCh. 4.4 - Prob. 4PCh. 4.4 - Prob. 5PCh. 4.4 - Prob. 6PCh. 4.4 - Prob. 7PCh. 4.4 - Prob. 8PCh. 4.4 - Prob. 9PCh. 4.5 - Prob. 10P
Ch. 4.5 - Prob. 11PCh. 4.5 - Prob. 12PCh. 4.5 - Prob. 13PCh. 4.5 - Prob. 14PCh. 4.5 - Prob. 15PCh. 4.5 - Prob. 16PCh. 4.6 - Prob. 17PCh. 4.6 - Prob. 18PCh. 4.6 - Prob. 19PCh. 4.6 - Prob. 20PCh. 4.7 - Prob. 21PCh. 4.7 - Prob. 22PCh. 4.7 - Prob. 23PCh. 4.7 - Prob. 24PCh. 4.7 - Prob. 25PCh. 4.8 - Prob. 26PCh. 4.8 - Prob. 27PCh. 4.8 - Prob. 28PCh. 4.9 - Prob. 29PCh. 4.9 - Prob. 30PCh. 4 - Prob. 31APCh. 4 - Prob. 32APCh. 4 - Prob. 33APCh. 4 - Prob. 34APCh. 4 - Prob. 35APCh. 4 - Prob. 36APCh. 4 - Prob. 37APCh. 4 - Prob. 38APCh. 4 - Prob. 39APCh. 4 - Prob. 40APCh. 4 - Prob. 41APCh. 4 - Prob. 42APCh. 4 - Prob. 43APCh. 4 - Prob. 44APCh. 4 - Prob. 45AP
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