Practical Management Science
5th Edition
ISBN: 9781305734845
Author: WINSTON
Publisher: Cengage
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 6.4, Problem 22P
Summary Introduction
To modify: The model and find the optimal solution using solver.
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
write a linear program that will maximize profits. You don’t need to solve it. Hint: Define your variables as: Xij = tons of commodity i loaded into cargo hold j
Formulate and then solve a linear programming model of this problem, to determine how manycontainers of each product to produce tomorrow to maximize profits. The company makes fourjuice products using orange, grapefruit, and pineapple juice.Product Retail Price per QuartOrange juice $1.00Grapefruit juice .90Pineapple juice .80All-in-One 1.10The All-in-One juice has equal parts of orange, grapefruit, and pineapple juice. Each product isproduced in a one-quart size (there are four quarts in a gallon). On hand are 400 gallons of orangejuice, 300 gallons of grapefruit juice, and 200 gallons of pineapple juice. The cost per gallon is$2.00 for orange juice, $1.60 for grapefruit juice, and $1.40 for pineapple juice.In addition, the manager wants grapefruit juice to be used for no more than 30 percent of thenumber of containers produced. She wants the ratio of the number of containers of orange juice tothe number of containers of pineapple juice to be at least 7 to 5.
Chikana Company produces and sells rattan baskets. The number of drifts produced
are the corresponding total production costs for six months, which are representatives
for the year, are as follows:
Month
Units Produced
Production Costs
P 4,000
8,000
6,000
7,500
8,500
7,250
April
Мay
500
700
June
900
July
August
September
600
800
550
Required: Solve for the variable and fixed cost component using:
a.) High- Low Method
b.) Least- Squares Regression
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
- Tyler is hoping to get a lot of custom cake and cookie orders in his new bakery for various parties and celebrations. He considers keeping a stock of celebratory helium balloons in his bakery so that he can sell them alongside the cakes and cookies to add more value for his customers. However, he knows that the demand for custom goods as well as the balloons is like to be probabilistic in nature instead of deterministic. He is trying to create a model of how many balloons to order to keep in stock to minimize the costs of inventory in his little bakery. He identifies the following characteristics and needs your help in filling out the table given below the information. Ordering Cost is $14.00 per order Cost of balloons is $4.00 per balloon The bakery uses the 20% annual holding cost rate for all inventory The lead time for a new order of helium balloons is 14 days. Data from other bakeries indicate that the demand during the 14-day lead time follows a normal probability distribution…arrow_forwardA mixture of pellets is to be made containing x regular pellets, y large pellets and z extra large pellets. Cost, weight and volume data for each type of pellet are shown in the table. Is it possible to make mixture of 55 pellets at a cost of $0.85 if the mixture is to have 120 weight units and 130 volume units? If so, how many each type of pellet should be in the mixture? Pellet Type 5. Number of Cost per Pellet in Cents Weight Units per Pellet Volume Pellets Units per Pellet Regular Large Extra large 2 1 4 y 1 4 3arrow_forwardYou work for a small retail store. You must decide how many cases of kombucha to order. Twenty cases fit on a pallet and because of shipping costs, orders must be placed in multiples of 20. You can either order 20, 40, 60, 80 or 100 cases. Each case costs $15. If you order more than 1 pallet, you receive a discount of 5% per additional pallet ordered (2 pallets would be 5%, 3 would be 10%, etc). The cases can be sold for $25 each. Any that are left unsold can be sold to a discount store for $10. Your records suggest that the probability that you will sell 25 cases is 20%, 45 cases is 45%, 65 cases is 20% and 85 cases is 15%. a) Construct a payoff table to provide reflect the decisions and outcomes What would be your decision based on each of the following? Maximin Maximax Minimax regret Expected value Overall - what would you do? Why?arrow_forward
- Please explain constraints for the solver and the total production and hiring and firing costsarrow_forwardA sporting goods store sells footballs, basketballs, and volleyballs. A football costs $7, a baskeball costs $15, and a volleyball costs $3. On a given day, 8 times the number of footballs sold was the same as the number of volleyballs sold. They brought in a total of $3750 that day, and the money made from basketballs alone was $66 more than the money made from volleyballs alone. Let x, y, z be the number of footballs, basketballs, and volleyballs sold respectively. Create the matrix A that solves 3750 Ax b, where x= and b 66 A =arrow_forward“Good Intentions” (GI) company produces two products, which it sells on both a cash and credit basis. Revenues from credit sales will not have been received but are included in determining profit earned during the current six-month period. Sales during the next six months can be made either from units produced during the next six months or from the beginning inventory. Relevant information about products one and two is as follows. During the next six months, at most 150 units of product type 1 can be sold on a cash basis, and at most 100 units of product 1 can be sold on a credit basis. It costs £35 to produce each unit of product type 1, and each sells for £40. A credit sale of a unit of product 1 yields £0.50 less profit than a cash sale (because of delays in receiving payment). Two hours of production time are needed to produce each unit of product 1. At the beginning of the six-month period, 60 units of product 1 are in the inventory. During the next six months, at most 175 units…arrow_forward
- Develop an LP model to determine how much of each type of alloy should be produced, and find the solution using excel Solver, (Hint: Let x, be tons of ore i allocated to alloy k, and define wk as tons of alloy k produced.)arrow_forwardThe Chocochip Cookie Store bakes its cookies everymorning before opening. It costs the store 15¢ to bake eachcookie, and each cookie is sold for 35¢. At the end of the day, leftover cookies may be sold to a thrift bakery for 5¢per cookie. The number of cookies sold each day is describedby the discrete random variable in Table 22. a How many dozen cookies should be baked beforethe store opens?b If the daily demand (in dozens) for cookies is N(50, 400), how many dozen cookies should be baked? A de-scription of the N(m, s2 ) notation can be found in Sec-tion 1.7. c If the daily demand (in dozens) for cookies has adensity functionf(d) e5d0/50(d 0)how many dozen cookies should be baked? Demand(dozens) Probability20 .3030 .2040 .2050 .1560 .15arrow_forwardThe company produces two types of valves, each valve of the first type needs twice the time it takes to produce a valve of the second type. If production is limited to the second type only, then the company can produce (500) | A valve of this type. Market studies indicated the possibility of selling (150) type 1 valves and | (250) Type II valve. The profits for each valve of the first type are (8000) dinars and (5000) dinars of the second type. Determine the number of valves that can be produced for both types to maximize profits with the ecological and simplified methodarrow_forward
- Solve with matrixarrow_forwardCWD Electronics sells Televisions (TV), which it orders from the USA. Because of shipping and handling costs, each order must be for 5TVs. Because of the time it takes to receive an order, the company places an order every time the present stock drops to 5 TVs. It costs $50 to place anorder. It costs the company $500 in lost sales when a customer asks for a TV and the warehouse is out of stock. It costs $100 to keep each TV stored in the warehouse. If a customer cannot purchase a TV when it is requested, the customer will not wait until one comes in but will go to a competitor.The following probability distribution for demand for TV has been and the time required to receive an order once it is placed (lead time) has the following probability distribution: (Attached) The company has 3 TVs in stock. Orders are always received at the beginning of the week.Note that a lead time of 2 weeks imply that an order placed in week one will arrive in week 4. The time required to receive an order…arrow_forwardAssume the demand for a company's drug Wozac during the current year is 50,000, and assume demand will grow at 5% a year. If the company builds a plant that can produce x units of Wozac per year, it will cost $16x. Each unit of Wozac is sold for $3. Each unit of Wozac produced incurs a variable production cost of $0.20. It costs $0.40 per year to operate a unit of capacity. a. Determine how large a Wozac plant the company should build to maximize its expected profit over the next 10 years. Consider a capacity range from 40,000 to 80,000, at 5,000 unit increments. 80,000 b. Determine how large a Wozac plant the company should build to maximize its NPV over the next 10 years. Consider a capacity range from 40,000 to 80,000, at 5,000 unit increments, and assume a 10% discount rate. 40,000arrow_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,