Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 7.3, Problem 5P
Summary Introduction
To develop: A two-way solver table with elasticity and production capacity is inputs and the optimal price and profit as outputs.
Non-linear programming (NLP):
Non-linear programming (NLP) is used in complex optimization problems where the objectives or constraints or sometimes both are non-linear functions of the decision variables. A model can be termed as non-linear for more than one reason.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A firm wants to stop its sales agents from pricing too aggressively to make sales by requiring the agent to obtain a marketing manager’s permission to reduce price below a specific threshold. This solution would only work if
a) The marketing manager has no information about the matter at hand
b) The marketing manager can only get all the information on the case from the sales agent
c) Enough unbiased information is transferred to the manager to prevent an unprofitable price reduction
d) All of the above
Please clearly explain your answer
1. At a local Bed and Bath Superstore, the manager knows her customers will pay no more than $390 for a bedspread. The company wants a 40% markup on selling price. What is the most that the company can pay for a bedspread to realize the required markup?
3. As the marketer of your own professional services, you are responsible for price setting.
Thus, it is necessary that you think about your pricing policy.
a. Describe how a business professional might implement the following pricing policies in
the pricing of his or her services: negotiated price policy and fixed price policy.
b. Give and justify your views as to which of these pricing policies would be more
appropriate in an individual's professional services pricing.
Chapter 7 Solutions
Practical Management Science
Ch. 7.3 - Prob. 1PCh. 7.3 - Prob. 2PCh. 7.3 - Pricing Decisions at Madison The Madison Company...Ch. 7.3 - Prob. 4PCh. 7.3 - Prob. 5PCh. 7.3 - Prob. 6PCh. 7.3 - Prob. 7PCh. 7.3 - Prob. 8PCh. 7.3 - Prob. 9PCh. 7.3 - Prob. 10P
Ch. 7.3 - Prob. 11PCh. 7.3 - Prob. 12PCh. 7.3 - Prob. 13PCh. 7.3 - PRICING SUITS AT SULLIVANS Sullivans is a retailer...Ch. 7.3 - Prob. 15PCh. 7.4 - Prob. 16PCh. 7.4 - Prob. 17PCh. 7.4 - Prob. 18PCh. 7.4 - Prob. 19PCh. 7.4 - Prob. 20PCh. 7.4 - Prob. 21PCh. 7.4 - Prob. 22PCh. 7.4 - Prob. 23PCh. 7.5 - Prob. 24PCh. 7.5 - Prob. 25PCh. 7.5 - Prob. 26PCh. 7.5 - Prob. 27PCh. 7.6 - Prob. 28PCh. 7.6 - Prob. 29PCh. 7.6 - Prob. 30PCh. 7.6 - Prob. 31PCh. 7.6 - Prob. 32PCh. 7.6 - Prob. 33PCh. 7.6 - The method for rating teams in Example 7.8 is...Ch. 7.7 - Prob. 35PCh. 7.7 - Prob. 36PCh. 7.7 - Prob. 37PCh. 7.7 - The stocks in Example 7.9 are all positively...Ch. 7.7 - Prob. 39PCh. 7.7 - Prob. 40PCh. 7.7 - Prob. 41PCh. 7.7 - Prob. 42PCh. 7.8 - Given the data in the file Stock Beta.xlsx,...Ch. 7.8 - Prob. 44PCh. 7 - Prob. 45PCh. 7 - Prob. 46PCh. 7 - Another way to derive a demand function is to...Ch. 7 - Prob. 48PCh. 7 - If a monopolist produces q units, she can charge...Ch. 7 - Prob. 50PCh. 7 - Prob. 51PCh. 7 - Prob. 52PCh. 7 - Prob. 53PCh. 7 - Prob. 54PCh. 7 - Prob. 55PCh. 7 - Prob. 56PCh. 7 - A beer company has divided Bloomington into two...Ch. 7 - Prob. 58PCh. 7 - Prob. 59PCh. 7 - Prob. 60PCh. 7 - Prob. 61PCh. 7 - Prob. 62PCh. 7 - Prob. 63PCh. 7 - You have 50,000 to invest in three stocks. Let Ri...Ch. 7 - Prob. 65PCh. 7 - Prob. 66PCh. 7 - Prob. 67PCh. 7 - Prob. 68PCh. 7 - Prob. 69PCh. 7 - Prob. 70PCh. 7 - Based on Grossman and Hart (1983). A salesperson...Ch. 7 - Prob. 73PCh. 7 - Prob. 74PCh. 7 - Prob. 75PCh. 7 - Prob. 76PCh. 7 - Prob. 77PCh. 7 - Prob. 78PCh. 7 - Prob. 79PCh. 7 - Prob. 80PCh. 7 - Prob. 81PCh. 7 - Prob. 82PCh. 7 - Prob. 83PCh. 7 - Prob. 84PCh. 7 - Prob. 85PCh. 7 - Prob. 86PCh. 7 - Prob. 1.1CCh. 7 - Prob. 1.2CCh. 7 - Prob. 1.3CCh. 7 - Prob. 1.4C
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
- eBook Problem 7-15 Par, Inc., is a small manufacturer of golf equipment and supplies. Par's distributor believes a market exists for both a medium-priced golf bag, referred to as a standard model, and a high-priced golf bag, referred to as a deluxe model. The distributor is so confident of the market that, if Par can make the bags at a competitive price, the distributor will purchase all the bags that Par can manufacture over the next three months. A careful analysis of the manufacturing requirements resulted in the following table, which shows the production time requirements for the four required manufacturing operations and the accounting department's estimate of the profit contribution per bag: Product Standard Deluxe Cutting and Dyeing 7/10 1 Production Time (hours) Sewing ½ 516 Finishing 1 2/3 Inspection and Packaging 1/10 1/₁ Profit per Bag $10 $9 The director of manufacturing estimates that 630 hours of cutting and dyeing time, 600 hours of sewing time, 708 hours of finishing…arrow_forwardImplementing Price Strategy is the firm readiness to sell the product which would be effective if given an attractive price strategy listed below: a. Customary pricing is when one price is maintained over an extended period of time. Normally the price of the product will not be easily changed. The entrepreneur must consider the price of the product which is affordable to the majority of buyers. ex. A 1-peso candy. b. Variable pricing is when the price responds to cost fluctuations or differences in demand. The entrepreneur must consider the law of demand and supply. If there are sufficient supplies and few demands, the price will increase and vice versa. c. One-price policy is when the price is charged to all customers buying the product or service under similar conditions. The entrepreneur will set one price for all products available for sale even though they differ in design. d. Flexible pricing is based on the customer's ability to negotiate or buying power of the customer. The…arrow_forwardA price skimming strategy is most often used for a new product when: Question 43 options: a) its supply is greater than its demand. b) competition in the market is abundant. c) customers are unwilling to spend a large amount of money on the product. d) the product is perceived by the target market as having unique advantages.arrow_forward
- 15-8arrow_forwardQ3) Pricing in practice are influenced by the following, except a. customer demand b. competitor's action c. predatory pricing d. discretionary pricingarrow_forwardCamille forecasts to sell 575 units of the perfume she is selling by the first week of December. At the end of the 1st week of December, she was able to disposed 500 perfumes at Php150 each. Of these 500 units, she gave a total of 20 giveaways. The total cost for each perfume is Php120. Determine Camille’s net sales volume. * a. 75 b. 480 c. 500 d. 20 2. The amount of your product that you will need to produce and sell to cover total costs of production. * a. Break even sales volume b. Sales volume percentage c. Sales volumearrow_forward
- a. Knowing that price competition is very fierce in this market, is firms’ choices of maximumdifferentiation optimal? b. Imagine that entry in this market became easy and, as a consequence, many firms enteredwith ice creams with intermediate levels of smoothness between Ben&Jerry’s and Haagen-Dazs.How could you represent this situation and how will it affect prices and profits as more firmsentered? How would you expect the level of advertising to change ifentry took place in this market.b. Both firms advertise heavily to consumers. What do you think that is the effect of advertisingon competition in this market? Based on what you know about this market and the type of product, which type of advertising would you expect the firms to mostly engage in?arrow_forwardBased on the scenario, how can you define the importance of the price of a product in attractingcustomers?arrow_forwardPrice: What is the price for coca-cola What are some of the costs involved in making the product of coca cola How does the competition affect price (what are they charging) of the coca colaarrow_forward
- Case: AGUSTINE SCHOOL PROM Many children of high-income families in Cabanatuan City and Nueva Ecija are sent by their parents to study in exclusive schools in Manila. Unmindful of the costs, the parents maintain the view that real education has a high price tag. The public elementary schools as well as the public high schools are perceived, rightly or wrongly, as not being able to deliver the quality of educational services needed. Even if this is so, enrolment in public schools has swelled to more than 60 students per class. The rule in public schools, except college, is to accommodate everybody. Currently, the opening of Montessori and private elementary schools in the area has provided some relief to parents who want quality education for their children. The older private schools are now competing with the new Montessori and private elementary schools which charge higher tuition fees. Miss Jana Agustin is a teacher at the same time marketing officer to promote the school. She…arrow_forwardGeneral Transfer Pricing Rule; Goal Congruence American Motors Inc. is divided, for performance evaluation purposes, into several divisions. The Automobile Division of American Motorspurchases most of its transmission systems from another unit of the company. The TransmissionDivision’s incremental cost for manufacturing a standard transmission is approximately $1,350 perunit. This division is currently working at 75% of capacity. The current market price for a standardtransmission is approximately $1,875.Required1. Using the general transfer pricing rule presented in the chapter, what is the minimum price at which theTransmission Division would sell its output to the Automobile Division?a. $1,013b. $1,350c. $1,613d. $1,875arrow_forwardDemonstrate how the product life cycle, competition,distribution and promotion strategies, customers demands,the internet and extranets and perceptions of quality can affect price.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,
Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.