Assignment: The Darby Company Manufactures and Distributors

(3 marks) c) Determine the optimal number of bus and train travelers. (2 marks) d) Say a train strike significantly reduced the number of trains available. By how much would the train capacity constraint have to fall for the optimal solution to be altered? (2 marks)

2.) Answer the following questions based on a reading of the above document and material from your textbook.

The two parts in this assignment will contribute equally to your grade and will be evaluated separately.

Answer the questions below. When you are finished, submit this assignment to your teacher by the due date for full credit.

* Use the profit maximization rule MR = MC to determine your optimal price and optimal output level now that you have market power. Compare these values with the values you generated in Assignment 1. Determine whether your price higher is or lower.)

Please save this document before you begin working on the assignment. Type your answers directly in the document. When you have finished, submit your work to your teacher.

14) Consider the following transshipment problem. The shipping cost per unit between nodes 1 and 2 is $10, while the shipping cost per unit between nodes 2 and 3 is $12. What is the objective function?

3) Using the budget Data, what was the total expected cost per unit if all manufacturing and shipping overhead (both variable and fixed) were allocate to planned production? What was the actual cost per unit of production and shipping?

A) if the right-hand side value of the constraint increases by 1 unit, the objective function value will increase by 5 units

The Wiethoff Company has a contract to produce 10000 garden hoses for a customer. Wiethoff has 4 different machines that can produce this kind of hose. Because these machines are from different manufacturers and use differing technologies, their specifications are not the same.

Halfway There—I included most of the ideas in the model response on the Student Answer Sheet.

8. I would like to remove allocated costs and fixed overheads and see what would be the variable cost. If this is done, you can see that the variable cost hovers around 7 FF. ( Not many of you have done this)

Please use the textbook, the PPT lecture handout of Chapter 1, and internet to answer the following six questions:

General Instructions: This is an optional group OR individual assignment. You have an option to do this assignment on your own or become part of the group. If you want to be in a group, go ahead and email me. If

The shadow prices for each of the constraints show how much the objective function would get better or worse by if the right hand side was increased by one unit. For instance if the total number of trucks needed for month 1 increased from 10 to 11, the cost would get better by $2485 or decrease by $2485 (since the shadow price is the negative of the dual price). The positive dual values for the long-term trucks show that using the long-term trucks instead of the short-term trucks actually