b)Stock Level200TimeDDiagram above shows the stock level of a purchase model for a particular product sold by aretail store. Given that the quantity ordered results in minimised the total relevant inventorycosts. The stock holding costs are RM18 per year of stock value and the ordering cost isRM36 on each occasion. Assume that there are 250 working days per year.(i)Determine the average stock level of the product.(ii)Compute the annual demand of the product.State two additional assumptions need for above model to determine the totalnumber of orders per year. Hence find the value of D in the diagram.(iii) A company produces two products, A and B daily. Each product A and B produced willresults RM160 and RM200 in profit, respectively. The production of product A and B isdepending on the availability of limited resources. The resource required to produce a unit ofproduct A and B, and the total resources available per day are as follows.a)Resource RequirementsProduct ATotal available perdayResourceProduct BLabour (hr)Material (kg)Storage (m²)241802404021602400180120(i)Formulate the linear programming problem.Storage is a non-binding constraint. Solve the linear programming problemsimultaneously to obtain the optimal mix and the maximum profit.(ii)Compute the shadow price of an additional increase in the total labour hoursavailable per day. The overtime payment is RM15 per hour increase in labour hours.Is it worthwhile for the company to increase the total labour hours available per day?Justify your answer.(ii)

Note: - Since the exact question that has to be answered is not specified, we will answer the first…

Answered: A company produces two products, A and…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Similar questions

Helter Industries, a company that produces a line of women’s bathing suits, hires temporaries to help produce its summer product demand. For the current four-month rolling schedule, there are three temps on staff and 12 full-time employees. The temps can be hired when needed and can be used as needed, whereas the full-time employees must be paid whether they are needed or not. Each full-time employee can produce 205 suits, while each temporary employee can produce 165 suits per month. May June July August3,200 2,800 3,100 3,000 The beginning inventory in May is 403 bathing suits. Bathing suits cost $40 to produce and carrying cost is 24 percent per year. Develop an aggregate plan that uses the 12 full-time employees each month and a minimum number of temporary employees. Assume that all employees will produce at their full potential each month.…
Collins Little Company has a staff of 4 employees, each working 8 hours per day at a rate of$20/hour. Their overhead expenses are $200/day. Collins processes and closes on 12 titleseach day. They are considering purchasing a computerized title search system that will allowthe processing of 20 titles per day. With the new system, they could cut their staff to 2employees working the same hours at the same pay, but their overhead expenses woulddouble to $400 per day.a. Compute the labor productivity with the old system (in titles / worker hour).b. Compute the labor productivity with the new system (in titles / worker hour).c. Compute the multifactor productivity with the old system (in titles / dollar).d. Compute the multifactor productivity with the new system (in titles / dollar)
You have been asked to estimate the cost of 100 prefabricated structures to be sold to a local school district. Each structure provides 1,000 square feet offloor space, with 8-feet ceilings. In 1999, you produced 70 similar structures consistingof the same materials and having the same ceiling height, but each provided only 800square feet of floor space. The material cost for each structure was $25,000 in 1999, andthe cost capacity factor is 0.65. The cost index values for 1999 and 2006 are 200 and 289,respectively. The estimated manufacturing cost for the first 1,000-square-foot structureis $12,000. Assume a learning curve of 88% and use the cost of the 50th structure asyour standard time for estimating manufacturing cost. Estimate the total material costand the total manufacturing cost for the 100 prefabricated structures.
Ramona Diaz Ltd. produces two products, P1 and P2, at its two departments: Machining and Assembly, as shown in the table below. The accountant tries to allocate overhead costs to the two products. If the accountant decides to allocate overhead based on machine hours, what is P2’s share of the total overhead costs? $180,000 $200,000 $220,000 $240,000
The Burroughs garment company manufactures men's shirts and women’s blouses for Walmark Discount stores. Walmark will accept all the production supplied by Burroughs. The production process includes cutting, sewing and packaging. Burroughs employs 25 workers in the cutting department, 35 in the sewing department and 5 in the packaging department. The factory works one 8-hour shift, 5 days a week. Determine the optimal weekly production schedule for Burroughs.
Jane Reed bakes breads and cakes in her home for parties and other affairs on acontract basis. Jane has only one oven for baking. One particular Monday morningshe finds that she has agreed to complete five jobs for that day. Her husband Johnwill make the deliveries, which require about 15 minutes each. Suppose that shebegins baking at 8:00 A.M.Job Time Required Promised Time1 1.2 hr 11:30 A.M2 40 min 10:00 A.M.3 2.2 hr 11:00 A.M.4 30 min 1:00 P.M.5 3.1 hr 12:00 NOON6 25 min 2:00 P.M.Determine the sequence in which she should perform the jobs in order tominimizea. Mean flow time.b. Number of tardy jobs.c. Maximum lateness.
Jingani Pottery Company is a small crafts operation run by a Native American tribal council. The company employs skilled artisans to produce clay bowls and mugs with authentic North American designs and colors. The two primary resources used by the company are special pottery clay and skilled labor. Given these limited resources, the company desires to know how many bowls and mugs to produce each day in order to maximize profit. The two products have the following resource requirements for production and profit per item produced.
Kofi Abebrese runs a small industrial company that specialize in the production of high standard windows for housing estates. A worker is paid GH¢0.9 per hour and can produce two window with an hour. Each window uses a frame costing GH¢1 and incur a variable overheads of GH¢0.7. Each window sells for GH¢3. Currently, due to the economic condition, work is rather slack and three employees are occupied in carrying out extensive repairs to Kofi Abebrese's own house. Kofi owns a warehouse next to the factory, which had been used as a factory store, in the past. It is now let out on a renewable annual lease of GH¢600. A new building company, Allied Consult, which specializes in the production of prefabricated houses has asked Kofi if he would be interested in accepting a contract for GH¢30,000 which will be for a year initially, to produced molded internal building sections. Kofi estimates that, the contract will take 13,200 hours of works, or the work of five men for a year, and that…
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 units
Bob Carlton’s golf camp estimates the following staff requirements for its services over the next 2 years. Each certified instructor puts in 480 hours per quarter regular time and can work an additional 120 hours overtime.Regular-time wages and benefits cost Carlton $7,200 per employee per quarter for regular time worked up to 480 hours,with an overtime cost of $20 per hour. Unused regular timefor certified instructors is paid at $15 per hour. There is nocost for unused overtime capacity. The cost of hiring, training, and certifying a new employee is $10,000. Layoff costs are$4,000 per employee. Currently, eight employees work in thiscapacity.a. Find a staffing plan using the level strategy that allows forno delay in service. It should rely only on overtime and theminimum amount of undertime necessary. What is thetotal cost of this plan?b. Use a chase strategy that varies the workforce level without using overtime or undertime. What is the total cost ofthis plan?c. Propose a better…
Medaas Electronics is a fictional producer of laserprinters. The company's production planner, ChristianMedaas, has developed the following cost data (in U.S. dollars)CostsRegular $ 80.00 Per printerOvertime $ 120.00 Per printerSubcontracting $ 140.00 Per printerInventory Carrying Cost: $ 10.00 per printer per monthProduction CapacityMonths Demand Regular Overtime Subcontracting1 3000 2500 500 6002 3200 2700 500 6003 1800 1000 300 6004 2700 2000 500 6005 3400 2600 500 6006 2200 1700 500 600Total 16300Christian Medaas has 600 Printers in Stock at the beginning of the planning period. Develop a least-cost production plan.No backorders are permitted.
Thomas Pang Furniture produced 70,000 Executive chairs per week. The effective capacity is 71,000 chairs. The production line operates 5 days per week with two 6-hour shifts per day. The line was designed to process the Executive chairs at the rate of 1,200 per hour. Determine the design capacity, utilization and efficiency for this plant when producing the Executive chair. Thomas Pang Furniture now needs to increase production of the Executive chairs. A second production line will be added. Effective capacity on this second line is the same as the first line at 71,000 Executive chairs. The first line is operating at a higher efficiency but output on the second line will be no more than 75% because the crew will be primarily new hires. Determine the expected output of this second line.

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Business in Action

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

Production and Operations Analysis, Seventh Editi…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS