Concept explainers
A
Interpretation:the objective function and constraints would be specified
Concept Introduction: Objective functions are the linear functions and the equalities or inequalities are the constraints. It is the condition of an optimization of problem.
B
Interpretation:using the computer package, the interpretation is to be solved
Concept Introduction:Objective functions are the linear functions and the equalities or inequalities are the constraints. It is the condition of an optimization of problem.
C
Interpretation: The amount should be paid for extra hour of capacity for department A and for Department B is to be determined.
Concept Introduction: Objective functions are the linear functions and the equalities or inequalities are the constraints. It is the condition of an optimization of problem.
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OPERATIONS MANAGEMENT CUSTOM ACCESS
- The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon spawn during a 24-hour period and must be canned immediately. Tinkan has the following agreement with the salmon industry. The company can deliver as many cans as it chooses. Then the salmon are caught. For each can by which Tinkan falls short of the salmon industrys needs, the company pays the industry a 2 penalty. Cans cost Tinkan 1 to produce and are sold by Tinkan for 2 per can. If any cans are left over, they are returned to Tinkan and the company reimburses the industry 2 for each extra can. These extra cans are put in storage for next year. Each year a can is held in storage, a carrying cost equal to 20% of the cans production cost is incurred. It is well known that the number of salmon harvested during a year is strongly related to the number of salmon harvested the previous year. In fact, using past data, Tinkan estimates that the harvest size in year t, Ht (measured in the number of cans required), is related to the harvest size in the previous year, Ht1, by the equation Ht = Ht1et where et is normally distributed with mean 1.02 and standard deviation 0.10. Tinkan plans to use the following production strategy. For some value of x, it produces enough cans at the beginning of year t to bring its inventory up to x+Ht, where Ht is the predicted harvest size in year t. Then it delivers these cans to the salmon industry. For example, if it uses x = 100,000, the predicted harvest size is 500,000 cans, and 80,000 cans are already in inventory, then Tinkan produces and delivers 520,000 cans. Given that the harvest size for the previous year was 550,000 cans, use simulation to help Tinkan develop a production strategy that maximizes its expected profit over the next 20 years. Assume that the company begins year 1 with an initial inventory of 300,000 cans.arrow_forwardA gold mining area in Lanao contains on average 1 ounce of gold per ton. Two methods of processing are available; method a cost 1.5m per ton and recovers 90% of gold: method b cost 1.3m per ton and recovers 80% of the gold. If gold can be sold for 2.4m per ounce which method is better and by how mucharrow_forwardThe Ace Manufacturing Company has orders for three similar products. Product Min A s.t. B C 1 2 Machine 3 Three machines are available for the manufacturing operations. All three machines can produce all the products at the same production rate. However, due to varying defect percentages of each product on each machine, the unit costs of the products vary depending on the machine used. Machine capacities for the next week and the unit costs are shown below. A A LB B Ic C Product 4 2 3 Orders (units) Machine 1 Capacity Product A Orders Machine 2 Capacity Product B Orders Machine 3 Capacity Product C Orders 1,800 X20 for all i, j. 700 1,100 Capacity (units) 1,400 (a) Develop the linear programming formulation of this problem. (Let x₁ be the number of units of product A produced by XA1 machine 1, x,, be the number of units of product i produced by machine j, etc.) 1,500 1,000 1 Machine $1.00 $1.30 $1.10 2 $1.20 $1.40 $1.00 $0.90 $1.20 $1.20 3 (b) Solve the transportation model for the…arrow_forward
- Because of its labor contract, a company must hire enough labor for 100 units ofproduction per week on one shift or 200 units per week on two shifts. It cannot hire,lay off, or assign overtime. During the fourth week, workers will be available fromanother department to work part or all of an extra shift (up to 100 units). There is aplanned shutdown for maintenance in the second week, which will cut production tohalf. Develop a production plan. The opening inventory is 200 units, and the desiredending inventory is 300 unitsarrow_forwardPrevost Chemicals manufactures an industrial solvent at its only processing plant. A liquid chemical and labor are the two primary inputs. All other resources are included in manufacturing overhead. The plant never has any work-in-process or finished goods inventories. Information from the previous four periods of production follows: Period 1 Period 2 Period 3 Period 4 Chemical input (gallons) 125,000 129,280 128,000 120,000 Labor input (hours) 12,500 11,200 15,000 10,100 Solvent sales (gallons) 110,000 113,120 120,000 103,020 Average price of chemical per gallon $ 2.00 $ 2.10 $ 1.95 $ 2.25 Average wage rate per hour 28.00 26.00 31.00 34.00 Average sales price per gallon 10.26 10.00 9.80 10.60 Manufacturing overhead (total) 236,000 245,312 245,400 243,080 Required: a. Compute the partial productivity measures for chemical for the four periods. b. Compute the partial productivity measures for labor for the four periods.arrow_forwardPrevost Chemicals manufactures an industrial solvent at its only processing plant. A liquid chemical and labor are the two primary inputs. All other resources are included in manufacturing overhead. The plant never has any work-in-process or finished goods inventories. Information from the previous four periods of production follows: Period 1 Period 2 Period 3 Period 4 Chemical input (gallons) 125,000 129,280 128,000 120,000 Labor input (hours) 12,500 11,200 15,000 10,100 Solvent sales (gallons) 110,000 113,120 120,000 103,020 Average price of chemical per gallon $ 2.00 $ 2.10 $ 1.95 $ 2.25 Average wage rate per hour 28.00 26.00 31.00 34.00 Average sales price per gallon 10.26 10.00 9.80 10.60 Manufacturing overhead (total) 236,000 245,312 245,400 243,080 Required: c. Compute the total factor productivity for the four periods.arrow_forward
- Company ZWZ manufactures three products in a serial system; Product XA is manufactured in Stage 1, Product XB in Stage 2, and XC in Stage 3. Product XB has a sales potential in the market; hence, some of it can be sold at the end of Stage 2, and the remaining can be moved to Stage 3. The third stage produces Product XC, and then delivers it to customers. Two units of Product XA produced in Stage 1 are required for each unit of Product XB in Stage 2. In addition, four units of Product XB produced in Stage 2 are required for each unit of Product XC in Stage 3. Stage 1 can only use regular time; however, Stage 2 has the options of using regular time and overtime in manufacturing. On the other hand, Stage 3 has only one alternative, which is subcontracting. The pertinent data are provided below: Stage 2 Stage 1 11 No overtime No subcontracting No sales 0.07 Unit regular time cost (TL) Unit overtime cost (TL) Unit subcontracting cost (TL) Unit selling price (TL) Unit processing time (hrs)…arrow_forwardA wood products firm uses available time at the end of each week to make goods for stock.Currently, two products on the list of items are produced for stock: a chopping board and a knifeholder. Both items require three operations: cutting, gluing, and finishing. The manager of thefirm has collected the following data on these products.TIME PER UNIT (MINUTES)Item Profit/Unit Cutting Gluing FinishingChopping board $2 1.4 5 12Knife holder $6 0.8 13 3The manager has also determined that, during each week, 56 minutes are available for cutting, 650minutes are available for gluing, and 360 minutes are available for finishing.a. Determine the optimal quantities of the decision variables if the goal is to maximize profit.b. Which resources are not completely used by your solution? How much of each resource isunused?arrow_forwardSalt & Pepper & Co (Salt & Pepper) is a firm of Chartered Certified Accountants which has seen its revenue decline steadily over the past few years. The firm is looking to increase its revenue and client base and so has developed a new advertising strategywhere it has guaranteed that its audits will minimise disruption to companies as they will not last longer than two weeks. In addition, Salt & Pepper has offered all new audit clients a free accounts preparation service for the first year of the engagement, as it is believed that time spent on the audit will be reduced if the firm has produced the financial statements. The firm is seeking to reduce audit costs and has therefore decided not to update the engagement letters of existing clients, on the basis that these letters do not tend to change much on a yearly basis. One of Salt & Pepper’s existing clients has proposed that this year’s audit fee should be based on a percentage of their final pre-tax profit. The…arrow_forward
- Materials Management $12.00 per purchase order Chemical Processing $7.50 per metric ton Molding $24.00 per direct labor hour Packaging $0.10 per unit Engineering designs show that the order will require direct materials that cost $540; direct labor cost will be $90. The order will require four purchas orders to be placed, use two metric tons of chemical base, and need eight direct labor hours. The size of the order is to produce 3,000 units of product. How to calculate the total production of the order?arrow_forwardA company plans to produce 25,000 units in a 3-month period. The months have 22, 21, and 20 working days, respectively. What should the average daily production be?arrow_forwardSapphire Farm is a business that trains and boards horses and educates young riders about horse care, nutrition, a product focusand riding. The farm provides both a learning and a fun environment for young equestrians and their families. It also hosts horse shows for beginning riders to help them build confidence in the show ring and to prepare them for local horse shows by running shows in accordance with the rules and regulations of the National Hunter Jumper Association. Feedback from the horseshow judges are provided to all riders so they can do better at their next meet. In addition, all warm-up and training areas are fenced and monitored by adults for the children's safety.According to the service-profit chain, the high-value service offered by Sapphire Farm LLC should lead to: A. congruent market response B. positive framing C. customer autonomy D. customer satisfaction E. a product focusarrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,