A company makes 2 products A and B from 2 resources. The products have the following resource requirements and produce the accompanying profits. The available quantity of resources is also shown in the table. Management has developed the following set of goals Product 1 2 avail resources labor (hr/unit) 3 2 150 material (ounce/unit) 1 2 200 Profit($/unit) 7 6 Goal 1: Produce approximately 40 units of product 1. Goal 2: Produce approximately 70 units of product 2. Goal 3: Achieve a profit over $400. Goal 4: Consume less than 150 hours of labor Goal 5: Consume less than 200 ounces of material If the manager now wants to implement the MINIMAX objective, what would be the new objective function and the
Q: Problem 2 22. The manager of a Burger Doodle franchise wants to determine how many sausage biscuits…
A: S = Number of Sausage biscuits to be produced H = Number of Ham biscuits to be produced Profit per…
Q: THE PRIMER INC. Primer Inc. offers plumbing and air conditioning services to customers in Kumasi,…
A: Ans - 1) Product package of Primer Inc. includes:- a) Tangible components:- Providing all the…
Q: A garden store prepares various grades of pine bark for mulch: nuggets (x1), mini-nuggets (x2),and…
A: Since we only answer up to 3 sub-parts, we'll answer the first 3. Please resubmit the question and…
Q: Company A produces a product called Gen, which is a type of tyre The following is the information…
A: The detailed solution to the given question is given in Step 2.
Q: Five projects are reviewed over a five-year period to evaluate the expected rate of return. The…
A: Computing the given data in excel using solver option:
Q: The monthly forecasts for Gravity Room Furniture Ltd. (GRF), a manufacturer of outdoor furniture, is…
A: Find the Given details below: Month Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Total…
Q: Briefly describe the planning techniques listed as follows, and give an advantage and…
A: In linear programming, unbounded solution would occur when the objective function is infinite. If no…
Q: Accompany makes two products (1&2) each product requires time on two machines (A&B). specification…
A: Linear programming, often known as linear optimization, is a method for obtaining the best result…
Q: CVP Analysis Lawn Master Company, a manufacturer of riding lawn mowers, has a projectedincome for…
A: 1.
Q: Fenerbahçe's authentic licensed products are sold by Fenerbahçe Sportif Inc.'s "Fenerium" stores…
A: Selecting a project makes it binary integer problem where 1 means project is selected and 0 means…
Q: Lemon Company makes products X and Y, with the following production constraints representing two…
A: Here, It is Linear Programming Problem, given that profit function or Objective Function Z=4*X+2*Y,…
Q: The East Midvale Textile Company produces denim and brushed-cotton cloth. The average production…
A: Production is considered as an act of making or manufacturing a product as per the customer or…
Q: The Wearever Carpet Company manufactures two brands of carpet-shag and sculptured-in 100-yard lots.…
A: (a) Let assume X1 and X2 be the number of lots of shag and sculpture carpets to be produced…
Q: The following table provides information on planned and actual inputs and outputs of an automotive…
A: This question is related to the Production Management/Production or process activities control Topic…
Q: Company X manufactures four different types of toys for kids including cars, bikes, plane and ship.…
A: Given, Production capacity = 4500 hours In minutes = 4500×60 = 270,000 min per…
Q: The GEM maker of jewelry makes two bracelet designs, heart design and flower design. The bracelets…
A: given, store 28 ounces of gold 20 ounces of platinum profit P2500
Q: The Beaver Creek Pottery company employs skilled artisans to produce clay bowls and mugs. The two…
A: Assuming the following format: Bowl Mug Labor 1 2 Profit 40 50…
Q: For each of the following scenarios, please identify the most appropriate Operations Research model.…
A: Operation Research model refers to the analytical method of solving problems and decision-making…
Q: The ABC company is considering constructing a plant to manufacture a proposed new product. The land…
A:
Q: A company that operates 10 hrs a day manufactures three products on three process The following…
A: The answer for A: Here the main motive is to maximize profits, so we should use linear programming…
Q: Zeta Technology Limited produces RFID inventory tracking device. Company trade less frequently in…
A: Portfolio management in the arts and science of taking investment decisions that match…
Q: Showing all the working clearly, prepare the payoff table if the states of demand are high (S1 ) ,…
A: THE ANSWER IS AS BELOW:
Q: 3. A manager wants to know how many units of each product to produce on a daily basis in order to…
A: Let, A = Number of units of product A B = Number of units of product B C = Number of units of…
Q: 3.1-9. The Primo Insurance Company is introducing two new prod- uct lines: special risk insurance…
A: Let 'x1' be the number of units of special risk. and 'x2' be the number of units of the mortgage.
Q: ABC company is deciding where to assign its summer intern. The manager estimates that the intern can…
A:
Q: 4.- A real estate agent is considering changing his cell phone plan. There are three plans to choose…
A: Given data is Fixed cost = $20 per month Morning call cost under plan A = $0.45 per min Afternoon…
Q: 3.1-9.1 The Primo Insurance Company is introducing two new prod- uct lines: special risk insurance…
A: Linear programming (LP) is a broadly utilized numerical displaying method created to help chiefs in…
Q: The first question answer the following questions: 1. What is the optimization (Optimization)? How…
A: Optimization refers to the process of making something fully potential, functional, and effective.
Q: Northwest Pipe (NP) makes water pipe. NP is planningproduction for the next seven months, March…
A: given, Th e forecast demands (in thousands of feet) are, respectively, 40,60, 70, 80, 90, 100, and…
Q: A food company produces two types of emergency food,type t and type c,the food company received a…
A: The field of engineering known as control engineering focuses on modelling a wide range of dynamic…
Q: A garden store prepares various grades of pine bark for mulch: nuggets (x1), mini-nuggets (x2),and…
A: Formula:
Q: 1. What’s the cycle time for this production line? 2. What’s the theoretical minimum number of…
A:
Q: Fitzhugh Company has the following information available for the current year: Standard: 3.5 feet…
A: (a) Material purchase price variance = (Actual unit cost - standard unit cost) x Actual quantity…
Q: Four products are processed sequentially on three machines. The following table gives the pertinent…
A: Let the number of products 1 be, aLet the number of products 2 be, bLet the number of products 3 be,…
Q: a) Use the northwest-corner method to find an initial feasible solution. What must you do before…
A: A B C Supply X 10 18 12 100 Y 17 13 9 50 Z 20 18 14 400 Demand 50 80 70
Q: 1- Formulate the above problem as (LP) and set up the standard programming model and represent the…
A: Let the company for x products be x Let the company for y products be y
Q: The company has pre-order for 6 heavy and 4 light balls that must be completed. (i) Calculate the…
A: The answer is as below:
Q: alculate the breakeven point for Chiyeyeye Enterprise ltd The number of boots to be sold to make a…
A:
Q: Based on the following sensitivity report, what would be the change in the objective function value…
A: Given sensitivity report-
Q: The Scottville "Mill" produces five different fabrics. Each fabric can be woven on one or more of…
A: Decision Variables: Major decision is to determine how much of each fabric to be produced inhouse…
Q: Louis Clark, the new administrator for the surgical clinic, was trying to figure out how to allocate…
A: The Cost ascertainment ought to take into consideration both the direct as well as the indirect cost…
Q: In İstanbul, the number of electric scooter rental companies has reached five (i.e., Martı, BinBin,…
A: It is a situation of an Imperfect oligopoly* the electric scooter rental market in Istanbul is…
Q: (a) Determine the number of books which must be sold in order to break even. (b) What is the…
A: a) Given Selling price = $ 6.25/book So cost price is $ 250000 Therefore in order to break even, he…
Q: Television commercials on Saturday morning programs for children. • Advertisements in food and…
A: Given Information;
Q: The director of a large public library must schedule employees to reshelf books and periodicals…
A:
Q: 2. The operations manager for an auto supply company is evaluating the potential purchase of a new…
A: Since you have submitted a question with multiple subparts as per guidelines, we have answered the…
A company makes 2 products A and B from 2 resources. The products have the following resource requirements and produce the accompanying profits. The available quantity of resources is also shown in the table.
Management has developed the following set of goals
Product | 1 | 2 | avail resources |
labor (hr/unit) | 3 | 2 | 150 |
material (ounce/unit) | 1 | 2 | 200 |
Profit($/unit) | 7 | 6 |
Goal 1: Produce approximately 40 units of product 1.
Goal 2: Produce approximately 70 units of product 2.
Goal 3: Achieve a profit over $400.
Goal 4: Consume less than 150 hours of labor
Goal 5: Consume less than 200 ounces of material
If the manager now wants to implement the MINIMAX objective, what would be the new objective function and the
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The eTech Company is a fairly recent entry in the electronic device area. The company competes with Apple. Samsung, and other well-known companies in the manufacturing and sales of personal handheld devices. Although eTech recognizes that it is a niche player and will likely remain so in the foreseeable future, it is trying to increase its current small market share in this huge competitive market. Jim Simons, VP of Production, and Catherine Dolans, VP of Marketing, have been discussing the possible addition of a new product to the companys current (rather limited) product line. The tentative name for this new product is ePlayerX. Jim and Catherine agree that the ePlayerX, which will feature a sleeker design and more memory, is necessary to compete successfully with the big boys, but they are also worried that the ePlayerX could cannibalize sales of their existing productsand that it could even detract from their bottom line. They must eventually decide how much to spend to develop and manufacture the ePlayerX and how aggressively to market it. Depending on these decisions, they must forecast demand for the ePlayerX, as well as sales for their existing products. They also realize that Apple. Samsung, and the other big players are not standing still. These competitors could introduce their own new products, which could have very negative effects on demand for the ePlayerX. The expected timeline for the ePlayerX is that development will take no more than a year to complete and that the product will be introduced in the market a year from now. Jim and Catherine are aware that there are lots of decisions to make and lots of uncertainties involved, but they need to start somewhere. To this end. Jim and Catherine have decided to base their decisions on a planning horizon of four years, including the development year. They realize that the personal handheld device market is very fluid, with updates to existing products occurring almost continuously. However, they believe they can include such considerations into their cost, revenue, and demand estimates, and that a four-year planning horizon makes sense. In addition, they have identified the following problem parameters. (In this first pass, all distinctions are binary: low-end or high-end, small-effect or large-effect, and so on.) In the absence of cannibalization, the sales of existing eTech products are expected to produce year I net revenues of 10 million, and the forecast of the annual increase in net revenues is 2%. The ePIayerX will be developed as either a low-end or a high-end product, with corresponding fixed development costs (1.5 million or 2.5 million), variable manufacturing costs ( 100 or 200). and selling prices (150 or 300). The fixed development cost is incurred now, at the beginning of year I, and the variable cost and selling price are assumed to remain constant throughout the planning horizon. The new product will be marketed either mildly aggressively or very aggressively, with corresponding costs. The costs of a mildly aggressive marketing campaign are 1.5 million in year 1 and 0.5 million annually in years 2 to 4. For a very aggressive campaign, these costs increase to 3.5 million and 1.5 million, respectively. (These marketing costs are not part of the variable cost mentioned in the previous bullet; they are separate.) Depending on whether the ePlayerX is a low-end or high-end produce the level of the ePlayerXs cannibalization rate of existing eTech products will be either low (10%) or high (20%). Each cannibalization rate affects only sales of existing products in years 2 to 4, not year I sales. For example, if the cannibalization rate is 10%, then sales of existing products in each of years 2 to 4 will be 10% below their projected values without cannibalization. A base case forecast of demand for the ePlayerX is that in its first year on the market, year 2, demand will be for 100,000 units, and then demand will increase by 5% annually in years 3 and 4. This base forecast is based on a low-end version of the ePlayerX and mildly aggressive marketing. It will be adjusted for a high-end will product, aggressive marketing, and competitor behavior. The adjustments with no competing product appear in Table 2.3. The adjustments with a competing product appear in Table 2.4. Each adjustment is to demand for the ePlayerX in each of years 2 to 4. For example, if the adjustment is 10%, then demand in each of years 2 to 4 will be 10% lower than it would have been in the base case. Demand and units sold are the samethat is, eTech will produce exactly what its customers demand so that no inventory or backorders will occur. Table 2.3 Demand Adjustments When No Competing Product Is Introduced Table 2.4 Demand Adjustments When a Competing Product Is Introduced Because Jim and Catherine are approaching the day when they will be sharing their plans with other company executives, they have asked you to prepare an Excel spreadsheet model that will answer the many what-if questions they expect to be asked. Specifically, they have asked you to do the following: You should enter all of the given data in an inputs section with clear labeling and appropriate number formatting. If you believe that any explanations are required, you can enter them in text boxes or cell comments. In this section and in the rest of the model, all monetary values (other than the variable cost and the selling price) should be expressed in millions of dollars, and all demands for the ePlayerX should be expressed in thousands of units. You should have a scenario section that contains a 0/1 variable for each of the binary options discussed here. For example, one of these should be 0 if the low-end product is chosen and it should be 1 if the high-end product is chosen. You should have a parameters section that contains the values of the various parameters listed in the case, depending on the values of the 0/1 variables in the previous bullet For example, the fixed development cost will be 1.5 million or 2.5 million depending on whether the 0/1 variable in the previous bullet is 0 or 1, and this can be calculated with a simple IF formula. You can decide how to implement the IF logic for the various parameters. You should have a cash flows section that calculates the annual cash flows for the four-year period. These cash flows include the net revenues from existing products, the marketing costs for ePlayerX, and the net revenues for sales of ePlayerX (To calculate these latter values, it will help to have a row for annual units sold of ePlayerX.) The cash flows should also include depreciation on the fixed development cost, calculated on a straight-line four-year basis (that is. 25% of the cost in each of the four years). Then, these annual revenues/costs should be summed for each year to get net cash flow before taxes, taxes should be calculated using a 32% tax rate, and taxes should be subtracted and depreciation should be added back in to get net cash flows after taxes. (The point is that depreciation is first subtracted, because it is not taxed, but then it is added back in after taxes have been calculated.) You should calculate the company's NPV for the four-year horizon using a discount rate of 10%. You can assume that the fixed development cost is incurred now. so that it is not discounted, and that all other costs and revenues are incurred at the ends of the respective years. You should accompany all of this with a line chart with three series: annual net revenues from existing products; annual marketing costs for ePlayerX; and annual net revenues from sales of ePlayerX. Once all of this is completed. Jim and Catherine will have a powerful tool for presentation purposes. By adjusting the 0/1 scenario variables, their audience will be able to see immediately, both numerically and graphically, the financial consequences of various scenarios.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%.The Pigskin Company produces footballs. Pigskin must decide how many footballs to produce each month. The company has decided to use a six-month planning horizon. The forecasted monthly demands for the next six months are 10,000, 15,000, 30,000, 35,000, 25,000, and 10,000. Pigskin wants to meet these demands on time, knowing that it currently has 5000 footballs in inventory and that it can use a given months production to help meet the demand for that month. (For simplicity, we assume that production occurs during the month, and demand occurs at the end of the month.) During each month there is enough production capacity to produce up to 30,000 footballs, and there is enough storage capacity to store up to 10,000 footballs at the end of the month, after demand has occurred. The forecasted production costs per football for the next six months are 12.50, 12.55, 12.70, 12.80, 12.85, and 12.95, respectively. The holding cost incurred per football held in inventory at the end of any month is 5% of the production cost for that month. (This cost includes the cost of storage and also the cost of money tied up in inventory.) The selling price for footballs is not considered relevant to the production decision because Pigskin will satisfy all customer demand exactly when it occursat whatever the selling price is. Therefore. Pigskin wants to determine the production schedule that minimizes the total production and holding costs. Can you guess the results of a sensitivity analysis on the initial inventory in the Pigskin model? See if your guess is correct by using SolverTable and allowing the initial inventory to vary from 0 to 10,000 in increments of 1000. Keep track of the values in the decision variable cells and the objective cell.
- The Pigskin Company produces footballs. Pigskin must decide how many footballs to produce each month. The company has decided to use a six-month planning horizon. The forecasted monthly demands for the next six months are 10,000, 15,000, 30,000, 35,000, 25,000, and 10,000. Pigskin wants to meet these demands on time, knowing that it currently has 5000 footballs in inventory and that it can use a given months production to help meet the demand for that month. (For simplicity, we assume that production occurs during the month, and demand occurs at the end of the month.) During each month there is enough production capacity to produce up to 30,000 footballs, and there is enough storage capacity to store up to 10,000 footballs at the end of the month, after demand has occurred. The forecasted production costs per football for the next six months are 12.50, 12.55, 12.70, 12.80, 12.85, and 12.95, respectively. The holding cost incurred per football held in inventory at the end of any month is 5% of the production cost for that month. (This cost includes the cost of storage and also the cost of money tied up in inventory.) The selling price for footballs is not considered relevant to the production decision because Pigskin will satisfy all customer demand exactly when it occursat whatever the selling price is. Therefore. Pigskin wants to determine the production schedule that minimizes the total production and holding costs. As indicated by the algebraic formulation of the Pigskin model, there is no real need to calculate inventory on hand after production and constrain it to be greater than or equal to demand. An alternative is to calculate ending inventory directly and constrain it to be nonnegative. Modify the current spreadsheet model to do this. (Delete rows 16 and 17, and calculate ending inventory appropriately. Then add an explicit non-negativity constraint on ending inventory.)The Pigskin Company produces footballs. Pigskin must decide how many footballs to produce each month. The company has decided to use a six-month planning horizon. The forecasted monthly demands for the next six months are 10,000, 15,000, 30,000, 35,000, 25,000, and 10,000. Pigskin wants to meet these demands on time, knowing that it currently has 5000 footballs in inventory and that it can use a given months production to help meet the demand for that month. (For simplicity, we assume that production occurs during the month, and demand occurs at the end of the month.) During each month there is enough production capacity to produce up to 30,000 footballs, and there is enough storage capacity to store up to 10,000 footballs at the end of the month, after demand has occurred. The forecasted production costs per football for the next six months are 12.50, 12.55, 12.70, 12.80, 12.85, and 12.95, respectively. The holding cost incurred per football held in inventory at the end of any month is 5% of the production cost for that month. (This cost includes the cost of storage and also the cost of money tied up in inventory.) The selling price for footballs is not considered relevant to the production decision because Pigskin will satisfy all customer demand exactly when it occursat whatever the selling price is. Therefore. Pigskin wants to determine the production schedule that minimizes the total production and holding costs. Modify the Pigskin model so that there are eight months in the planning horizon. You can make up reasonable values for any extra required data. Dont forget to modify range names. Then modify the model again so that there are only four months in the planning horizon. Do either of these modifications change the optima] production quantity in month 1?The Bargain Hut has 2400 cubic feet of storage space for refrigerators. Large refrigerators come in 60-cubic-foot packing crates and small refrigerators come in 40-cubic-foot crates. Large refrigeratorscan be sold for a $250 profit and the smaller ones can be sold for $150 profit. How many of each typeof refrigerator should be sold to maximize profit and what is the maximum profit if:a) If the manager wants to sell at least 50 refrigerators must be sold each month, how many large refrigerators and how many smaller refrigerators should he/she order each month to maximize profit?b) At least 40 refrigerators must be sold each month.
- A large CPA firm currently has 100 junior staffmembers and 20 partners. In the long run—say,20 years from now—the firm would like to consistof 130 junior staff members and 20 partners. During a given year, 10% of all partners and 30% ofall junior staff members leave the firm. The firmcan control the number of hires each year and thefraction of junior employees who are promoted topartner each year. Can you develop a personnelstrategy that would meet the CPA firm’s goals?A political candidate is planning his media budget for an upcoming election. He has $90,500 to spend. His political consultants have provided him with the following estimates of additional votes as a result of the advertising effort: -for every small sign placed by the roadside, he will garner 20 additional votes. -for every large sign placed by the roadside, he will garner 30 additional votes. -for every thousand bumper stickers placed on cars, he will garner 15 additional votes. -for every hundred personal mailings to voters, he will garner 40 additional votes. -for every radio ad heard, he will garner 485 additional votes. The costs for each of the advertising devices, along with the practical minimum and maximum that should be planned for each, are shown on the following table. How should the candidate plan to spend his campaign money? Advertising Medium Cost Minimum Maximum Bumper stickers (thousands) $30…KrazySockzThe KrazySockz Company is known for their colorful yetcomfortable socks. They have forecasted their demand for the nextsix months as follows: Month 1 demand is 30,000, month 2demand is 50,000, month 3 demand is 20,000, month 4 demand is10,000, month 5 demand is 15,000 and month 6 demand is 20,000.At the beginning of month 1 they have 15,000 pairs of socks onhand. KrazySockz currently has 40 production employees. Each productionemployee costs the company the company $4,000 per month ($3,200 salary and $800in other costs) per month. Production employees can work up to 160 hours permonth before they must be paid overtime. Overtime is paid at a rate of $30 per hourand production employees can not work more than 30 hours per month overtime. Ittakes 15 minutes of labor and $0.75 of raw material to produce a pair of socks.KrazySockz can hire or fire employees each month. Hiring a production employeeincurs a cost of $3,500 and firing a production employee costs $4,500. At the end…
- Varma Investment Services must develop an investment portfolio for a new client. As an initial investment strategy, the new client would like to restrict the portfolio to a mix of two stocks: Stock Price/Share Estimated Annual Return (%) AGA Products $ 50 6 Key Energy 100 10 The client wants to invest $50,000 and established the following two investment goals. LO 1, 2The original z-score formula intended for public manufacturing companies is shown below: Altman Z-Score = (1.2 × X1) + (1.4 × X2) + (3.3 × X3) + (0.6 × X4) + (0.99 × X5) The inputs for our z-score calculation are the following: X1 = Working Capital ÷ Total Asset X2 = Retained Earnings ÷ Total Assets X3 = EBIT ÷ Total Assets X4 = Market Capitalization ÷ Total Liabilities X5 = Sales ÷ Total Assets The following assumptions will be used for our modeling exercise. Current Assets = $60 million Current Liabilities = $40 million Fixed Assets = $100 million Net Income = $10 million Dividends = $2 million Sales = $60 million COGS and SG&A = $40 million P/E Multiple = 8.0x Total Liabilities = $120 million What is the Z-score?Varma Investment Services must develop an investment portfolio for a new client. As an initial investment strategy, the new client would like to restrict the portfolio to a mix of two stocks. Stock Price/Share($) Estimated AnnualReturn (%) AGA Products 1 50 6 Key Oil 2 100 10 The client wants to invest $38,000 and established the following two investment goals. Priority Level 1 Goal Goal 1: Obtain an annual return of at least 9%. Priority Level 2 Goal Goal 2: Limit the investment in Key Oil, the riskier investment, to no more than 60% of the total investment. (a) Formulate a goal programming model for the Varma Investment problem. (Let xi be the number of shares of stock ipurchased, dp i be the deviation variable which exceeds the value of goal i, dn i be the deviation variable which is less than the value of goal i, for i = 1, 2.) Min P1 + P2 s.t. Funds Available P1 Goal P2 Goal…