B.4. Consider the following linear programming problem:
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- Problem 10-21 (Algorithmic) United Express Service (UES) uses large quantities of packaging materials at its four distribution hubs. After screening potential suppliers, UES identified six vendors that can provide packaging materials that will satisfy its quality standards. UES asked each of the six vendors to submit bids to satisfy annual demand at each of its four distribution hubs over the next year. The following table lists the bids received (in thousands of dollars). UES wants to ensure that each of the distribution hubs is serviced by a different vendor. Which bids should UES accept, and which vendors should UES select to supply each distribution hub? Distribution Hub Bidder 1 2 3 4 Martin Products 190 165 120 240 Schmidt Materials 140 240 150 200 Miller Containers 215 210 145 235 D&J Burns 175 185 190 290 Larbes Furnishings 200 185 155 230 Lawler Depot 230 190 140 230 Bidder Decision Bid Martin Products Schmidt Materials Miller…arrow_forwardexample 1a 1.plot all the corner points for the feasible area. 2. Find the optimum solution to X= Y= VALUE Z=arrow_forward3. The Captain of a Cricket team has to allot 5 middle position to 5 batsmen. The average runs scored by each batsman at these positions are as follows Batting Positions III Batsmen II IV V P 40 40 35 25 50 27 50 42 30 16 25 R. 50 48 40 60 20 19 20 18 25 T 58 60 59 55 Find the assignment of batsmen to positions, which would give the maximum number of runs. If another batsman 'U' with the following average runs in batting positions as given below: Batting Positions: Average Runs: Is added to the team, should he be added to play in the team? If so, who should be replaced by him? II II IV V 45 52 38 50 49arrow_forward
- Q1. A manufacturing firm has discontinued production of a certain unprofitable product line. This created considerable excess production capacity. Management is considering to devote this excess capacity to one or more of three product 1,2 and 3. The available capacity on the machines which might limit output are given below: Machine type Milling machine Lathe Grinder Available time (in machine hours per week) 250 Milling Lathe Grinder 150 50 The number of machine hours required for each units of the respective product is given below; Machine type Productivity (in machine hours/unit) Product 1 Product 2 8 4 2 2 3 0 Product 3 3 0 1 The unit profit would be 20 birr, 6 birr and 8 birr for products 1,2 and 3. Find how much of each product the firm should produce in order to maximise profit ? Solve the problem by simplex method.arrow_forwardTheme Park (5S-7A) The lease of Theme Park, Inc., is about to expire. Management must decide whether to Renew the lease for another 10 years or to Relocate near the site of a proposed new motel. The town planning board is currently debating the merits of granting approval to the motel. A consultant has estimated the net present value of Theme Park's two alternatives under each state of nature as shown below. Suppose that the management of Theme Park, Inc., has decided that there is a 0.20 probability that the motel's application will be approved. Options Renew Relocate Alternative Renew Relocate Motel Approved a-1. If management uses maximum expected monetary value as the decision criterion, calculate expected monetary value for the alternatives "Renew" and "Relocate"! $ 400,000 2,000,000 O Renew O Relocate Motel Rejected $4,000,000 100,000 Expected Value a-2. Which alternative should it choose? b. If management has been offered the option of a temporary lease while the town planning…arrow_forwardProblem 16-15 (Algorithmic) Strassel Investors buys real estate, develops it, and resells it for a profit. A new property is available, and Bud Strassel, the president and owner of Strassel Investors, believes if he purchases and develops this property it can then be sold for $160,000. The current property owner has asked for bids and stated that the property will be sold for the highest bid in excess of $100,000. Two competitors will be submitting bids for the property. Strassel does not know what the competitors will bid, but he assumes for planning purposes that the amount bid by each competitor will be uniformly distributed between $100,000 and $150,000. Develop a worksheet that can be used to simulate the bids made by the two competitors. Strassel is considering a bid of $130,000 for the property. Using a simulation of 1000 trials, what is the estimate of the probability Strassel will be able to obtain the property using a bid of $130,000? Round your answer to 1 decimal place.…arrow_forward
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- A4 Answer b&carrow_forward1. A manufacturing company is engaged in producing three types of products: X, Y and Z. The production department produces, each day, components sufficient to make 50 units of X, 25 units of Y and 30 units of Z. The management is confronted with the problem of optimizing the daily production of the products in the assembly department, where only 100-man-hours are available daily for assembling the products. The following additional information is available Type of Product Profit Contribution Assembly Time per Product (Hrs) per Units of Products (in PhP) 120 0.8 Y 200 1.7 450 2.5 The company has a daily order commitment for 20 units of product X and a total of 15 units of products Y and Z. Formulate this problem as an LP model so as to maximize the total profit. Using simplex method, find the number of units of product X, Y and Z to product to maximize total profit.arrow_forwardLet’s consider the following LP problem: min Subject to: Solve the problem with the graphic method.arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,