Operations Management
13th Edition
ISBN: 9780135173626
Author: HEIZER, Jay, RENDER, Barry, Munson, Chuck
Publisher: Pearson,
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Chapter 7, Problem 8P
Summary Introduction
To determine: The CAD software system that MB person must decide to rent.
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Davison Electronics manufactures three LED television monitors, identified as Model A, Model B, and Model C. Davison Electronics four manufacturing plants. Each model has its lowest possible production cost when produced at Plant 1. However, Plant 1 does not have the capacity to handle the total production of all three models. As a result, at least some of the production must be routed to the other manufacturing plants. The following table shows the minimum production requirements for next month, the plant capacities in units per month, and the production cost per unit at each plant:
Model
Production Cost per Unit
Minimum Production Requirements
Plant 1
Plant 2
Plant 3
Plant 4
A
$25
$28
$37
$34
48,000
B
$26
$35
$36
$41
75,000
C
$20
$31
$26
$23
60,000
Production Capacity
65,000
50,000
32,000
43,000
Davison’s objective is to determine the cost-minimizing production plan
Anecdotally, entrepreneurs frequently encounter two critical dilemmas in managing human resources: the timing of hiring and the decision regarding hiring a generalist versus a specialist for their growing venture. Deciding when to expand a team is crucial, as premature hiring (i.e., hiring too soon) can strain resources, while delayed hiring (i.e., hiring too late) might hinder growth opportunities. Moreover, the choice between hiring a generalist or a specialist depends on the specific needs and stage of the venture, with each option presenting distinct advantages and challenges. To address these issues, a management scholar seeks to identify the factors shaping the hiring cycle throughout the entrepreneurial journey and to understand the criteria for choosing between generalists and specialists at various stages of a venture. The scholar has assembled a sample of 20 experienced South African entrepreneurs who have encountered both failure and success in the financial technology…
3. [25 pts.] Four projects are available for investment. The projects require the cash flows and yield
the net present values (NPV) (in millions) shown in the following table.
Project
id.
1
2
Cash outflow at time
0 (million Lira)
8
8
NPV
(million Lira)
12
11
3
4
6
5
8
6
If 20 million Lira is available for investment at time 0, find the investment plan that maximizes NPV.
All investments are required to be 0 or 1 (fractional investment values are not permitted).
a. Formulate the mathematical model. (Write the decision variables, objective function and the
constraints.) [10 pts.]
b. Find the optimal solution by using Branch and Bound method (Draw the branch and bound
tree clearly, write also lower bounds(LB)) (Left branches x=0, right branches x =1) [15 pts.].
Chapter 7 Solutions
Operations Management
Ch. 7.S - Prob. 1DQCh. 7.S - Prob. 2DQCh. 7.S - Prob. 3DQCh. 7.S - How is actual, or expected, output computed?Ch. 7.S - Explain why doubling the capacity of a bottleneck...Ch. 7.S - Distinguish between bottleneck time and throughput...Ch. 7.S - Prob. 7DQCh. 7.S - Prob. 8DQCh. 7.S - Prob. 9DQCh. 7.S - Prob. 10DQ
Ch. 7.S - Explain how net present value is an appropriate...Ch. 7.S - Prob. 12DQCh. 7.S - What are the techniques available to operations...Ch. 7.S - Amy Xias plant was designed to produce 7,000...Ch. 7.S - For the past month, the plant in Problem S7.1,...Ch. 7.S - If a plant has an effective capacity of 6,500 and...Ch. 7.S - Prob. 4PCh. 7.S - Material delays have routinely limited production...Ch. 7.S - Prob. 6PCh. 7.S - Southeastern Oklahoma State Universitys business...Ch. 7.S - Under ideal conditions, a service bay at a Fast...Ch. 7.S - A production line at V. J. Sugumarans machine shop...Ch. 7.S - A work cell at Chris Ellis Commercial Laundry has...Ch. 7.S - The three-station work cell Illustrated in Figure...Ch. 7.S - The three-station work cell at Pullman Mfg., Inc....Ch. 7.S - The Pullman Mfg., Inc., three-station work cell...Ch. 7.S - Klassen Toy Company, Inc., assembles two parts...Ch. 7.S - Prob. 15PCh. 7.S - Prob. 16PCh. 7.S - Markland Manufacturing intends to increase...Ch. 7.S - Using the data in Problem S7.17. a. What is the...Ch. 7.S - Given the data in Problem S7.17, at what volume...Ch. 7.S - Janelle Heinke, the owner of HaPeppas!, is...Ch. 7.S - Prob. 21PCh. 7.S - Prob. 22PCh. 7.S - Prob. 23PCh. 7.S - Prob. 24PCh. 7.S - Prob. 25PCh. 7.S - As a prospective owner of a club known as the Red...Ch. 7.S - Prob. 27PCh. 7.S - James Lawsons Bed and Breakfast, in a small...Ch. 7.S - Prob. 33PCh. 7.S - Prob. 34PCh. 7.S - Prob. 35PCh. 7.S - What is the present value of 5,600 when the...Ch. 7.S - Prob. 37PCh. 7.S - Prob. 38PCh. 7.S - Bolds Gym, a health club chain, is considering...Ch. 7.S - Prob. 1VCCh. 7.S - Prob. 2VCCh. 7.S - Prob. 3VCCh. 7 - What is process strategy?Ch. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - What is process redesign?Ch. 7 - Prob. 5DQCh. 7 - Name the tour quadrants of the service process...Ch. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Identify manufacturing firms that compete on each...Ch. 7 - Identify the competitive advantage of each of the...Ch. 7 - Prob. 11DQCh. 7 - Identify the competitive advantage of each of the...Ch. 7 - Prob. 13DQCh. 7 - Prob. 14DQCh. 7 - Prob. 15DQCh. 7 - Explain what a flexible manufacturing system (FMS)...Ch. 7 - Prob. 17DQCh. 7 - Prob. 18DQCh. 7 - Prepare a flowchart tor one of the following: a....Ch. 7 - Prob. 14PCh. 7 - Prepare a time-function map for one of the...Ch. 7 - Prepare a service blueprint for one of the...Ch. 7 - Prob. 1PCh. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Ski Boards, Inc., wants to enter the market...Ch. 7 - Prob. 7PCh. 7 - Prob. 8PCh. 7 - Using Figure 7.6 in the discussion of value-stream...Ch. 7 - Metters Cabinets, Inc., needs to choose a...
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