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IMSE 421 Homework 2
Name:
Mnahil Syed
QUESTION 1 (20 Points)
Acme Sealants specializes in producing silicone sealants and is considering switching its production to a new non-silicone material. The factory currently produces 1000 sealants per day, which are sold for $6.75 each. The cost of producing each sealant is $3.75. If Acme decides to switch to using the new non-
silicone material, they will be able to produce 500 units per day, selling each at a price of $10.00. The cost of producing each new sealant is $3.25.
Acme can only produce one type of sealant at a time. Calculate the opportunity cost of switching from the silicone sealant to the new non-silicone material. Hint: Consider the daily profit from producing each type of gasket and the lost profit from the forgone production of silicone gaskets.
Note: Profit = Quantity x (Selling Price - Cost of Production)
Daily Profit from producing silicone sealants:
Profit = 1000 x ($6.75 - $3.75) = $3000
Daily Profit from producing non-silicone sealants:
Profit = 500 x ($10.00 - $3.25) = $3375
Opportunity Cost from switching from the silicone sealant to the new non-silicone sealant:
$3000 - $3375 = -$375 (negative value indicates gain)
The opportunity cost of switching to the non-silicone material is $375, so Acme Sealants would gain $375 per day by switching to new non-silicone material.
1
1
QUESTION 2 (35 points)
Acme Storage totes in hardware stores where price and demand are related as shown below:
p = $60 – 0.04D
The fixed cost (C
F
) is $3,500 per month and the variable cost per toolbox (c
v
) is $35.
a)
How many totes should be produced each month to maximize profits? Provide an explanation.
Maximizing Profits Formula:
D
*
= (a – c
v
) / 2b
D
*
= ($60 – $35) / (2(0.04))
D
*
= 312.5 totes per month
Since we can not produce half of a tote, we round up and produce 313 totes each month to maximize profits.
b)
How much is the maximum profit each month? Provide an explanation.
Profit = - bD
2
+ (a – c
v
)D – C
f
Profit = -0.04(313)
2
+ ($60 - $35)(313) - $3,500
Profit = $406.24
The maximum profit is $406.24 if Acme Storage produces 313 totes.
2
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Related Questions
Question 1
An electronic component manufacturer has two facilities producing a range of
resistors. Facility 1 costs €2000 per day to operate. Facility 2 costs €2500 per day to
operate. The production capacities per day are as follows:
Facility 1
Facility 2
Orders
25,000
Resistors 1% tolerance:
400
300
Resistors 5% tolerance
300
400
27,000
Resistors 10% tolerance
200
500
30,000
How many days should the manufacturer operate each facility in order to minimise
its costs and still produce sufficient resistors to meet its orders?
a. Formulate the problem as a linear programming model (hint: let X1 represent
the number of days that Facility 1 should operate and X2 represent the number
of days that Facility 2 should operate).
b. Solve the problem using graphical linear programming (corner point)
techniques.
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Solve question 1 above using Excel. The graph and minimum cost result should
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Question 3
Knowing that the demand for wheat is inelastic, if all farmers voluntarily did not plant wheat on 10 percent of their land, then
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Ch. 11 Q13
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Question 16
The maximin criterion is a feature of which of the following environments?
O Decision-making under certainty
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Question 4.27
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Question Completion Status:
QUESTION 1
List nested geographic units used by the United States Census Bureau in order from largest to smallest.
v Blocks
v States
v Block groups
v Counties
v Tracts
Nation
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QUESTION 13
(Please use at least four significant figures in your calculations.)
$60
S-curve Turntables
$160
Hullabaloo Records
$40
$260
S-Curve Turntables manufactures turntables, and sells them through Hullabaloo Records, a chain of specialty record stores. For a model
year, they will manufacture their newest model of turntable, called "Orbitz", which will be sold through the record stores. It costs $60 for S-
Curve to manufacture the turntables, which it then sells to Hullabaloo for $160. Hullabaloo Records then sells the turntables at retail for
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1833 and a standard deviation of 1092.
What is the optimal order amount that will maximize the SUPPLY CHAIN'S expected profit?
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Question 16, Question 17, Question 18, Question 19, Question 20, Question 21
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Question Help
Tract
Tract
Coorainates
101
2,000
5,000
10,500
(24,44)
(25,24)
(52.45)
(52,18)
(80,48)
(70,20)
(90,25)
102
103
104
7.200
105
10,000
21,000
106
107
12,000
a) The center-of-gravity coordinates for the location of the proposed outlet in Mobile, Alabama should be:
x = 65.63 (round your response to two decimal places).
y = 29.69 (round your response to two decimal places).
%3D
b) Census tracts 103 and 105 are each projected to grow by 30% in the next year The new center-of-gravity coordinates for the location of the proposed outlet in
Mobile, Alabama should be:
orrect: 0
(round your response to two decimal places).
Enter vour answer in the answer box and then click Check Answer
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QUESTION ONE
Leeds Institute of Management Studies is a private business college that has been in existence for over ten (10) years. The institute has gained a good position in society through its provision of the training service. Upon conducting an analysis of the business environment, Leeds Management obtained information on the high demand for engineering programs.
Based on this information, Leeds Management decided to expand its service delivery to offer Engineering courses. Considering a number of issues that have to be put in place, Leeds Management projected that they would be able to offer the Engineering courses in five years beginning January 2025.
As Head HR, you have been mandated to match the human resource supply and demand, making it compatible with the achievement of the organisation’s future objectives.
REQUIRED:
Based on the above situation, conduct an HR plan for Leeds Institute of Management Studies which will ensure the success and achievement of its objectives.
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Listen
Your Algebra 2 teacher collected data on the number of days each student was
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The linear regression equation that models the data is ŷ=97.769-3.828x
where x represents the number of days absent and y represents the exam
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The correlation coefficient is r=-0.707 and the coefficient of determination is
=0.500.
What are the appropriate interpretations of the slope, y-intercept, correlation
coefficient, and coefficient of determination?
**HINT**
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y-intercept: 97.769
Correlation coefficient: r = -0.707
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decreases for every stu-
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The predicted % score a
student will achieve
based on having zero
absences in a semester.
a. correlation coefficient
b. y-intercept
c. slope
The relationship be-
tween the number of
days a student was ab-
sent and their corre-
sponding exam score.
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A department store has recorded the sales of the best selling can opener model during the last 6 months. Observed values of the can opener sales are:
Period
1
2
3
4
5
6
Sales
25
22
26
33
28
30
Use Holt’s double exponential smoothing with smoothing coefficients α=0.3, β=.15, S1=24.13 and G1=1.484 to calculate F1,2, G2 and S2.
F1,2 =
S2 =
G2 =
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Answer for (a)
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Evening
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25%
Wife
25%
30%
Husband
15%
25%
Single male
10%
Single female
15%
15%
None
35%
5%
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Subject to
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Blank 2 Add your answer
Blank 3 Add your answer
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ncorrect
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0.00 points out
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Because the trucks
* Flag question
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