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 6, Problem 87P
Summary Introduction
To develop: A linear integer model.
Introduction: The variation between the present value of the
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
The Toys-R-4-U Company has developed two new toys for possible inclusion in its productline for the upcoming Christmas season. Setting up the production facilities to beginproduction would cost $50,000 for toy 1 and $80,000 for toy 2. Once these costs arecovered, the toys would generate a unit profit of $10 for toy 1 and $15 for toy 2. Thecompany has two factories that are capable of producing these toys. However, to avoiddoubling the start-up costs, just one factory would be used, where the choice would bebased on maximizing profit. For administrative reasons, the same factory would be usedfor both new toys if both are produced. Toy 1 can be produced at the rate of 50 per hourin factory 1 and 40 per hour in factory 2. Toy 2 can be produced at the rate of 40 perhour in factory 1 and 25 per hour in factory 2. Factories 1 and 2, respectively, have500 hours and 700 hours of production time available before Christmas that could beused to produce these toys. It is not known whether these…
The net annual operating cost for a water treatment filtration plant for a semiconductor fabrication
line was estimated to be $1,900,000 per year. The estimate was based on the $200,000 per year
cost of a 1-MGD plant. The exponent in the cost-capacity equation is 0.75. The size of the larger
plant is nearest to:
41,009,300
32,052,560
20,600,020
20,120,162
Benny is the manager of an office-support business that supplies copying,
binding, and other services for local companies. He must replace a worn-out
copy machine that is used for black-and-white copying. He is considering two
machines, and each of these has a monthly lease cost plus a cost for each page
that is copied.
Machine 1 has a monthly lease cost of $619, and there is a cost of $0.040 per
page copied.
Machine 2 has a monthly lease cost of $685, and there is a cost of $0.025 per
page copied.
Customers are charged $.12 per page copied.
If Benny expects to make 75,000 copies per month, what would be the monthly
cost for each machine?
Chapter 6 Solutions
Practical Management Science
Ch. 6.3 - Prob. 1PCh. 6.3 - Prob. 2PCh. 6.3 - Solve Problem 1 with the extra assumption that the...Ch. 6.3 - Prob. 4PCh. 6.3 - Prob. 5PCh. 6.3 - Prob. 6PCh. 6.3 - Prob. 7PCh. 6.3 - Prob. 8PCh. 6.3 - Prob. 9PCh. 6.3 - Prob. 10P
Ch. 6.4 - Prob. 11PCh. 6.4 - Prob. 12PCh. 6.4 - Prob. 13PCh. 6.4 - Prob. 14PCh. 6.4 - Prob. 15PCh. 6.4 - Prob. 16PCh. 6.4 - Prob. 17PCh. 6.4 - Prob. 18PCh. 6.4 - Prob. 19PCh. 6.4 - Prob. 20PCh. 6.4 - Prob. 21PCh. 6.4 - Prob. 22PCh. 6.4 - Prob. 23PCh. 6.5 - Prob. 24PCh. 6.5 - Prob. 25PCh. 6.5 - Prob. 26PCh. 6.5 - Prob. 28PCh. 6.5 - Prob. 29PCh. 6.5 - Prob. 30PCh. 6.5 - In the optimal solution to the Green Grass...Ch. 6.5 - Prob. 32PCh. 6.5 - Prob. 33PCh. 6.5 - Prob. 34PCh. 6.5 - Prob. 35PCh. 6.6 - Prob. 36PCh. 6.6 - Prob. 37PCh. 6.6 - Prob. 38PCh. 6 - Prob. 39PCh. 6 - Prob. 40PCh. 6 - Prob. 41PCh. 6 - Prob. 42PCh. 6 - Prob. 43PCh. 6 - Prob. 44PCh. 6 - Prob. 45PCh. 6 - Prob. 46PCh. 6 - Prob. 47PCh. 6 - Prob. 48PCh. 6 - Prob. 49PCh. 6 - Prob. 50PCh. 6 - Prob. 51PCh. 6 - Prob. 52PCh. 6 - Prob. 53PCh. 6 - Prob. 54PCh. 6 - Prob. 55PCh. 6 - Prob. 56PCh. 6 - Prob. 57PCh. 6 - Prob. 58PCh. 6 - Prob. 59PCh. 6 - Prob. 60PCh. 6 - Prob. 61PCh. 6 - Prob. 62PCh. 6 - Prob. 63PCh. 6 - Prob. 64PCh. 6 - Prob. 65PCh. 6 - Prob. 66PCh. 6 - Prob. 67PCh. 6 - Prob. 68PCh. 6 - Prob. 69PCh. 6 - Prob. 70PCh. 6 - Prob. 71PCh. 6 - Prob. 72PCh. 6 - Prob. 73PCh. 6 - Prob. 74PCh. 6 - Prob. 75PCh. 6 - Prob. 76PCh. 6 - Prob. 77PCh. 6 - Prob. 78PCh. 6 - Prob. 79PCh. 6 - Prob. 80PCh. 6 - Prob. 81PCh. 6 - Prob. 82PCh. 6 - Prob. 83PCh. 6 - Prob. 84PCh. 6 - Prob. 85PCh. 6 - Prob. 86PCh. 6 - Prob. 87PCh. 6 - Prob. 88PCh. 6 - Prob. 89PCh. 6 - Prob. 90PCh. 6 - Prob. 91PCh. 6 - Prob. 92PCh. 6 - This problem is based on Motorolas online method...Ch. 6 - Prob. 94PCh. 6 - Prob. 95PCh. 6 - Prob. 96PCh. 6 - Prob. 97PCh. 6 - Prob. 98PCh. 6 - Prob. 99PCh. 6 - Prob. 100PCh. 6 - Prob. 1CCh. 6 - Prob. 2CCh. 6 - Prob. 3.1CCh. 6 - Prob. 3.2CCh. 6 - Prob. 3.3CCh. 6 - Prob. 3.4CCh. 6 - Prob. 3.5CCh. 6 - Prob. 3.6C
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
- AlwaysRain Irrigation, Inc. would like to determine capacity requirements for the next four years. Currently, two production lines are in place for making bronze and plastic sprinklers. Three types of sprinklers are available in both bronze and plastic: 90- degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. Management has forecast demand for the next four years as follows: Plastic 90 Plastic 180 Plastic 360 Bronze 90 Bronze 180 Bronze 360 1 (IN 0005) 33 14 51 6 4 10 YEARLY DEMAND 2 (IN 000s) 3 (IN 000s) 4 (IN 0005) 42 15 54 6 4 Plastic Demand for plastic sprinklers Percentage of capacity used Machine requirements Labor requirements Bronze Demand for bronze sprinklers Percentage of capacity used Machine requirements Labor requirements 12 54 18 61 5 6 14 Both production lines can produce all the different types of nozzles. The bronze machines needed for the bronze sprinklers require four operators and can produce up to 15,000 sprinklers. The plastic…arrow_forwardBenny is the manager of an office-support business that supplies copying, binding, and other services for local companies. He must replace a worn-out copy machine that is used for black- and-white copying. He is considering two machines, and each of these has a monthly lease cost plus a cost for each page that is copied. Machine 1 has a monthly lease cost of $639, and there is a cost of $0.030 per page copied. Machine 2 has a monthly lease cost of $747, and there is a cost of $0.045 per page copied. Customers are charged $.08 per page copied. a. What is the break-even point for each machine? b. If Benny expects to make 75,000 copies per month, what would be the monthly cost for each machine? (round your answers to the highest whole number)arrow_forwardThe Candle Company plans to open a new retail store in Portland, Maine. The store will sell specialty candles for an average of $10 each. The average variable costs per candle are as follows: Wax $4 Other additives $2 Base $1 The company is negotiating its lease for the new location. The landlord has offered two leasing options: Option A) a lease of $2,500 per month; or Option B) a monthly lease cost of $2,000 plus 10% of the company's monthly sales revenue. The lease option that is more attractive for the company under its current sales expectations is option B, the fixed lease payment plus sales based commission because it results in the lowest total lease costs The indifference point is The company expects to sell approximately 400 candles per month. Requirement 2. At what level of sales (in units) would the company be indifferent between the two lease options? Show your proof. candles. Begin by selecting the equation to determine the indifference point. (Abbreviations used" FC =…arrow_forward
- The principal at Selena Valley High School, Mr John Dixon, is concerned about the school’s enrolment figures for 2018. Until 2010, the school had experienced strong growth, but since 2013 the enrolment numbers for Year 7 have been less than half of what they were in 2010. The Selena Valley is 50 minutes east of Melbourne and has had a recent influx of young families, but prior to this influx it was a small area with solid growth figures. Selena Valley High School is a coeducational institution with strong links to the local area in terms of apprenticeships and vocational education. The enrolment numbers for 2016 were 378 students from Years 7 to 12. Answer the following questions. 1. What is the major issue Selena Valley High School faces as of 2018 in terms of its customer base? 2. Identify whether each of the following factors is part of the internal or external operating environment of Selena Valley High School, and describe the effect each of these could have on the marketing…arrow_forwardAlwaysRain Irrigation, Incorporated would like to determine capacity requirements for the next four years. Currently, two production lines are in place for making bronze and plastic sprinklers. Three types of sprinklers are available in both bronze and plastic: 90- degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. Management has forecast demand for the next four years as follows: Plastic 90 Plastic 180 Plastic 360 Bronze 90 Bronze 180 Bronze 360 1 (IN 000s) 33 15 46 4 5 7 Plastic Demand for plastic sprinklers Percentage of capacity used Machine requirements Labor requirements Bronze YEARLY DEMAND 2 (IN 0005) 45 16 55 9 5 Demand for bronze sprinklers Percentage of capacity used Machine requirements Labor requirements 11 Year 1 3 (IN 0005) Both production lines can produce all the different types of nozzles. The bronze machines needed for the bronze sprinklers require three operators and can produce up to 11,000 sprinklers. The plastic injection…arrow_forwardDawson Electronics is a manufacturer of high-tech control modules for lawn sprinkler systems. Denise, the CEO, is trying to decide if the company should develop one of the two potential new products, the Water Saver 1000 or the Greener Grass 5000. With each product, Dawson can capture a bigger market share if it chooses to expand capacity by buying additional machines. Given different demand scenarios, their probabilities of occurrence, and capacity expansion versus no change in capacity, the potential sale of each product are summarized in the included table. Click the icon to view the table. What is the expected payoff for the Water Saver 1000 and the Greener Grass 5000, with and without capacity expansion? The expected payoff for the Water Saver 1000 with the capacity expansion is $ integer.) The expected payoff for the Water Saver 1000 without the capacity expansion is $. (Enter your response as an integer.) ਗਿਆ (Enter your response as an The expected payoff for the Greener Grass…arrow_forward
- APC industries has been experiencing significant growth and has been having difficulty meeting customer demands recently. They are considering three options to address this issue. They can move to a larger facility, add a second shift or use a subcontractor to assist in production. The annual payoff of each option depends on if the current market continues to expand hold s steady or declines. The expected payoff for each combination is shown in the table below Option Expand Steady Decline Move to larger facility 250,000 125,000 -90,000 Add a second shift 175,000 80,000 -45,000 Subcontract 90,000 15,000 -10,000 Which option should APC choose with the Hurwicz criterion with α = 0.5? Using a minimax regret approach, what alternative should she choose? After reading about economic predictions, APC has assigned the probability that the market will be expanded, or be steady or be weak at 20%, 50%, and 30 %. Using expected monetary values, what option should be chosen, and what…arrow_forwardSmall City currently has 1,080,000 square feet of office space, of which 810,000 square feet is occupied by 3,000 employees who are mainly involved in professional services such as finance, insurance, and real estate. Small City's economy has been fairly strong in recent years, but employment growth is expected to be somewhat lower during the next few years, with projections of an increase of just 120 additional employees per year for the next three years. The amount of space per employee is expected to remain the same. However, a new 102,000 square foot office building was started before the recession and its space is expected to become available at the end of the current year (one year from now). No more space is expected to become available after that for quite some time. Required: a. What is the current occupancy rate for office space in Small City? b. How much office space will be absorbed each year for the next three years? c. What will the occupancy rate be at the end of each of…arrow_forwardAlwaysRain Irrigation, Inc. would like to determine capacity requirements for the next four years. Currently, two production lines are in place for making bronze and plastic sprinklers. Three types of sprinklers are available in both bronze and plastic: 90-degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. Management has forecast demand for the next four years as follows: YEARLY DEMAND 1 (IN 000s) 2 (IN 000s) 3 (IN 000s) 4 (IN 000s) Plastic 90 33 42 54 51 Plastic 180 14 15 18 17 Plastic 360 51 54 61 68 Bronze 90 6 5 14 Bronze 180 4 12 Bronze 360 10 12 14 17 Both production lines can produce all the different types of nozzles. The bronze machines needed for the bronze sprinklers require four operators and can produce up to 15,000 sprinklers. The plastic injection molding machine needed for the plastic sprinklers requires five operators and can produce up to 240,000 sprinklers. Three bronze machines and only one injection molding machine are…arrow_forward
- AlwaysRain Irrigation, Inc. would like to determine capacity requirements for the next four years. Currently, two production lines are in place for making bronze and plastic sprinklers. Three types of sprinklers are available in both bronze and plastic: 90-degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. Management has forecast demand for the next four years as follows: YEARLY DEMAND 1 (IN 000s) 2 (IN 000s) 3 (IN 000s) 4 (IN 000s) 54 Plastic 90 32 43 55 Plastic 180 14 18 15 18 Plastic 360 52 55 62 68 Bronze 90 Bronze 180 9. 10 7. 7. Bronze 360 14 14 16 Both production lines can produce all the different types of nozzles. The bronze machines needed for the bronze sprinklers require three operators and can produce up to 11,000 sprinklers. The plastic injection molding machine needed for the plastic sprinklers requires three operators and can produce up to 300,000 sprinklers. Three bronze machines and only one injection molding machine are…arrow_forwardPlease answer the question as quickly as possible A toy company has developed two new toys for possible inclusion in its product line for the upcoming Christmas season. Setting up the production facilities to begin production would cost $50,000 for toy 1 and $80,000 for toy 2. Once these costs are covered, the toys would generate a unit profit of $10 for toy 1 and $15 for toy 2. The company has two factories that are capable of producing these toys. However, to avoid doubling the start-up costs, just one factory would be used, where the choice would be based on maximizing profit. For administrative reasons, the same factory would be used for both new toys if both are produced. Toy 1 can be produced at the rate of 50 per hour in factory 1 and 40 per hour in factory 2. Toy 2 can be produced at the rate of 40 per hour in factory 1 and 25 per hour in factory 2. Factories 1 and 2, respectively, have 500 hours and 700 hours of production time available before Christmas that could…arrow_forwardMicromedia offers computer training seminars on a variety of topics. In the seminars each student works at a personal computer, practicing the particular activity that the instructor is presenting. Micromedia is currently planning a two-day seminar on the use of Microsoft Excel in statistical analysis. The projected fee for the seminar is $610 per student. The cost for the conference room, instructor compensation, lab assistants, and promotion is $8,160. Micromedia rents computers for its seminars at a cost of $135 per computer per day. (a) Develop a model for the total cost (C) to put on the seminar. Let x represent the number of students who enroll in the seminar. C = (b) Develop a model for the total profit (P) if x students enroll in the seminar. P = (c) Micromedia has forecast an enrollment of 50 students for the seminar. How much profit will be earned if their forecast is accurate? P(50) = $ (d) Compute the break-even point. X =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,