EBK PRODUCTION AND OPERATIONS ANALYSIS
EBK PRODUCTION AND OPERATIONS ANALYSIS
7th Edition
ISBN: 9781478628385
Author: Olsen
Publisher: WAVELAND PRESS (ECONTENT)
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Chapter 6.5, Problem 12P

a)

Summary Introduction

Interpretation: convert the given problem into balanced problem by adding an appropriate row and column and find the optimal solution using solver.

Concept Introduction: one of the feasible solution is that the objective function ranges from maximum to minimum value depends upon the profit or loss of the cost problem is called optimal solution.. This kind of solution required by a company to solve the problem or to achieve the goal. This solutions that could maximize or minimize the profit or reduce the costs.

b)

Summary Introduction

Interpretation: Find the optimal solution using solver and inequality constraints.

Concept Introduction: For all kinds of optimization problem, there could be one or more than one optimal solutions and sometimes there is infinite number of optimal solutions are occurred. Optimal solution is the one type of feasible solution, which has the objective function reaches their goal.

c)

Summary Introduction

Interpretation: Compare the solutions in part a and part b and clarify the reason.

Concept Introduction: For all kinds of optimization problem, there could be one or more than one optimal solutions and sometimes there is infinite number of optimal solutions are occurred. Optimal solution is the one type of feasible solution, which has the objective function reaches their goal.

d)

Summary Introduction

Interpretation: Modify the model in Part b also resolve to find the optimal solution and clarify the objective value increased or decreased.

Concept Introduction: For all kinds of optimization problem, there could be one or more than one optimal solutions and sometimes there is infinite number of optimal solutions are occurred. Optimal solution is the one type of feasible solution, which has the objective function reaches their goal.

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Sam's Pet Hotel operates 51 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $11.00 per bag. The following information is available about these bags: > Demand 95 bags/week > Order cost $52.00/order > Annual holding cost = 25 percent of cost > Desired cycle-service level = 80 percent >Lead time 4 weeks (24 working days) > Standard deviation of weekly demand = 15 bags > Current on-hand inventory is 320 bags, with no open orders or backorders. a. Suppose that the weekly demand forecast of 95 bags is incorrect and actual demand averages only 75 bags per week. How much higher will total costs be, owing to the distorted EOQ caused by this forecast error? The costs will be $ higher owing to the error in EOQ. (Enter your response rounded to two decimal places.)
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