Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337671989
Author: WINSTON
Publisher: Cengage
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Chapter 5, Problem 67P

a)

Summary Introduction

To determine: The way to minimize the sum of penalty and shipping cost.

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 unfeasible solution.

b)

Summary Introduction

To determine: The way the change in penalty cost affects the optimal cost.

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 unfeasible solution.

c)

Summary Introduction

To determine: The way the change in warehouse capacity affects the optimal cost.

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 unfeasible solution.

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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).

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