I need help please 4.Hilltop Coffee manufactures a coffee product by blending three types of coffee beans. The cost per pound and the available pounds of each bean are as follows:ВeanCost per Pound Available Pounds1$0.505002$0.706003$0.45400Consumer tests with coffee products were used to provide ratings on a scale of 0-100, with higher ratings indicating higher quality. Product quality standards for theblended coffee require a consumer rating for aroma to be at least 75 and a consumer rating for taste to be at least 80. The individual ratings Of the aroma and tastefor coffee made from 100% Of each bean are as follows:AromaRatingTasteВea nRating86285886075Assume that the aroma and taste attributes of the coffee blend will be a weighted average of the attributes of the beans used in the blend,a. What is the minimum-cost blend that will meet the quality standards and provide 1 000 pounds of the blended coffee product?b. What is the cost per pound for the coffee blend?c. Determine the aroma and taste ratings for the coffee blend.

Decision variables: Let x be no. of pounds of bean 1y be no. of pounds of bean 2z be no. of pounds…

Answered: 4.Hilltop Coffee manufactures a coffee…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter11: Simulation Models

Section: Chapter Questions

Problem 68P

See similar textbooks

Similar questions

PRICING SUITS AT SULLIVANS Sullivans is a retailer of upscale mens clothing. Suits cost Sullivans 320. The current price of suits to customers is 350. which leads to annual sales of 300 suits. The elasticity of the demand for mens suits is estimated to be 2.5 and assumed to be constant over the relevant price range. Each purchase of a suit leads to an average of 2.0 shirts and 1.5 ties being sold. Each shirt contributes 25 to profit, and each tie contributes 15 to profit. Determine a profit-maximizing price for suits. In the complementary-product pricing model in Example 7.3, we have assumed that the profit per unit from shirts and ties is given. Presumably this is because the prices of these products have already been set. Change the model so that the company must determine the prices of shirts and ties, as well the price of suits. Assume that the unit costs of shirts and ties are, respectively, 20 and 15. Continue to assume that, on average, 2.0 shirts and 1.5 ties are sold along with every suit (regardless of the prices of shirts and ties), but that shirts and ties have their own separate demand functions. These demands are for shirts and ties purchased separately from suit purchases. Assume constant elasticity demand functions for shirts and ties with parameters 288,500 and 1.7 (shirts), and 75,460 and 1.6 (ties). Assume the same unit cost and demand function for suits as in Example 7.3. a. How much should the company charge for suits, shirts, and ties to maximize the profit from all three products? b. The assumption that customers will always buy, on average, the same number of shirts and ties per suit purchase, regardless of the prices of shirts and ties, is not very realistic. How might you change this assumption, and change your model from part a accordingly, to make it more realistic?
If a monopolist produces q units, she can charge 400 4q dollars per unit. The variable cost is 60 per unit. a. How can the monopolist maximize her profit? b. If the monopolist must pay a sales tax of 5% of the selling price per unit, will she increase or decrease production (relative to the situation with no sales tax)? c. Continuing part b, use SolverTable to see how a change in the sales tax affects the optimal solution. Let the sales tax vary from 0% to 8% in increments of 0.5%.
Seas Beginning sells clothing by mail order. An important question is when to strike a customer from the companys mailing list. At present, the company strikes a customer from its mailing list if a customer fails to order from six consecutive catalogs. The company wants to know whether striking a customer from its list after a customer fails to order from four consecutive catalogs results in a higher profit per customer. The following data are available: If a customer placed an order the last time she received a catalog, then there is a 20% chance she will order from the next catalog. If a customer last placed an order one catalog ago, there is a 16% chance she will order from the next catalog she receives. If a customer last placed an order two catalogs ago, there is a 12% chance she will order from the next catalog she receives. If a customer last placed an order three catalogs ago, there is an 8% chance she will order from the next catalog she receives. If a customer last placed an order four catalogs ago, there is a 4% chance she will order from the next catalog she receives. If a customer last placed an order five catalogs ago, there is a 2% chance she will order from the next catalog she receives. It costs 2 to send a catalog, and the average profit per order is 30. Assume a customer has just placed an order. To maximize expected profit per customer, would Seas Beginning make more money canceling such a customer after six nonorders or four nonorders?
Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand will grow at 5% a year. If the company builds a plant that can produce x units of Wozac per year, it will cost 16x. Each unit of Wozac is sold for 3. Each unit of Wozac produced incurs a variable production cost of 0.20. It costs 0.40 per year to operate a unit of capacity. Determine how large a Wozac plant the company should build to maximize its expected profit over the next 10 years.
Based on the following sensitivity analysis, which of the following products would be considered most sensitive to changes or errors in the objective function coefficient? Variable Cells Cell Name Final Value Reduced Cost Objective Coefficient AllowableIncrease AllowableDecrease $B$2 Product_1 0 −2 25 10 5 $B$3 Product_2 175 0 25 10 14 $B$4 Product_3 0 −1.5 25 8 6 Constraints Cell Name Final Value Shadow Price Constraint R.H.Side AllowableIncrease AllowableDecrease $H$9 Resource_A 0 0 100 1E+30 100 $H$10 Resource_B 525 0 800 1E+30 275 $H$11 Resource_C 700 1.75 700 366.6666667 700 Choose the product Product 1 Product 2 Product 3
4. Spears Rowbuck has recorded the following sales figures. Calculate the seasonal indices for Thursday and Friday. Week 1 Week 2 Week 3 Week 4 Monday 43 51 40 66.0 Tuesday 45 41 57 58.6 Wednesday 22 37 30 34.7 Thursday 25 22 33 36.7 Friday 31 25 37 25.0 a. Thursday = 29.18, Friday = 29.50 b. Thursday = 0.2074, Friday = 1.1632 c. None of the other options. d. Thursday = 0.7678, Friday = 0.7763 e. Thursday = 0.6142, Friday = 0.6211
Consider a monopolistically competitive market with NN firms. Each firm's business opportunities are described by the following equations: Demand: Q=100N−PQ=100N−P Marginal Revenue: MR=100N−2QMR=100N−2Q Total Cost: TC=50+Q2TC=50+Q2 Marginal Cost: MC=2QMC=2Q How much profit does each firm make? a: 1,250/N*2−50 b: 2,500/N*2−50 c: 50+625/N*2 d: 1,875/N*2 In the long run, how many firms will exist in this market?
A goldsmith makes two types of jewelry. A model A ring is made with 1 g of gold and 1.5 g of silver and sells for 25 UM.Another model B ring sells for 30 UM and is made of 1.5 g of gold and 1 g of silver. If you only have 750 gof each metal, how many rings should be made of each type to obtain maximum profit?Requested:- Make Initial Table of the problem.- Obtain the Case Variables- Obtain the Objective Function- Get Restrictions- Create the Simplex Table- Obtain the Optimal Solution and the Slack Variables.Solve this operational research exercise.
2. Analyze the situation and answer the following questions. Ed and Barbara Bonneau started their wholesale sunglass distribution firm 30 years ago with $1,000 of their own money and $5,000 borrowed from a country banker in Ed’s hometown. The firm grew quickly, selling sunglasses and reading glasses to such companies as Wal-Mart, Eckerd Drugs, and Phar-Mor. In addition, the Bonneaus enjoyed using the company to do good things. For example, they had a company chaplain, who was available when employees were having family problems, such as a death in the family.Although the company had done well, the market had matured recently and profit margins narrowed significantly. Wal-Mart, for example, was insisting on better terms, which meant significantly lower profits for the Bonneaus. Previously, Ed had set the prices that he needed to make a good return on his investment. Now, the buyers had consolidated, and they had the power. Ed didn’t enjoy running the company as much as he had in the…
Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Standard Quantityor Hours Standard Priceor Rate Standard Cost Direct materials 2.30 ounces $ 26.00 per ounce $ 59.80 Direct labor 0.50 hours $ 14.00 per hour 7.00 Variable manufacturing overhead 0.50 hours $ 3.40 per hour 1.70 Total standard cost per unit $ 68.50 During November, the following activity was recorded related to the production of Fludex: Materials purchased, 12,500 ounces at a cost of $305,625. There was no beginning inventory of materials; however, at the end of the month, 2,800 ounces of material remained in ending inventory. The company employs 21 lab technicians to work on the production of Fludex. During November, they each worked an average of 150 hours at an average pay rate of $12.00 per hour.…
Consider the info provided below as well as the financial statements and answer the questions that follow.Pearson & Litt is a manufacturing company in the Eastern Cape. Their factory manufactures glass wine bottles for the Blue Valley Beer Co. For 2019 and 2020 respectively :Sales price per unit R15 and R19Variable cost per unit R6 and R7Fixed cost (FC) per annum R650 000 and R 855 500Fixed cost per unit R3 and R4Current assets R450 600 and R560 700Current liabilities R510 000 and R780 000Retained profit R21 809 and R17 600Net Sales R2 900 320 and R 3 100 100Cost of sales R390 000 and R475 000 Q.1 Calculate the break‐even point for Pearson & Litt for 2019 and 2020. Q.2 Compare the results of the 2019 and 2020 break‐even point and explain why there might be a difference.
1. An electronics firm is currently manufacturing an item that has a variable cost of 25Php/unit and aselling price of 50Php/unit. Fixed costs are 700,000Php. Current volume is 30, 000 units. The firmcan substantially improve the product quality by adding a new piece of equipment at an additionalfixed cost of 300,000Php. Variable cost would increase to 30Php/unit but volume should jump to50,000 units due to a higher-quality product. Should the company buy the new equipment?a. Yes, because it will gain a profit of 50,000Php.b. Yes, because it will gain a profit of 250,000Phpc. No, because it will gain a loss of 100,000Phpd. No, because it will not gain anything.e. None of the above

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

MARKETING 2018

Marketing

ISBN:

9780357033753

Author:

Pride

Publisher:

CENGAGE L

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

MARKETING 2018

Marketing

ISBN:

9780357033753

Author:

Pride

Publisher:

CENGAGE L

SEE MORE TEXTBOOKS