A graphic design team working for JBJ Systems Incorporated designs magazine covers and also designs logos. The company makes a profit of $900 for each magazine cover and $550 for each logo. The team manager estimates that it takes her team 10 hours of brainstorming to create a magazine cover and 3 hours of brainstorming for a logo. She'd like to keep the total brainstorming time under 120 hours a week. Further, she estimates that it takes her team 2 hours to lay out and sketch a magazine cover and 3 hours to layout and sketch up a logo, and she must fit this work into 48 hours a week. Company policy requires the team to design no more than 2 logos for each magazine cover that they design. How many of each should the team design in order to maximize the company's profits? Solution: magazine covers and logos should be designed per week for a maximum profit of $

A graphic design team working for JBJ Systems Incorporated designs magazine covers and also designs logos. The company makes a profit of $900 for each magazine cover and $550 for each logo. The team manager estimates that it takes her team 10 hours of brainstorming to create a magazine cover and 3 hours of brainstorming for a logo. She'd like to keep the total brainstorming time under 120 hours a week. Further, she estimates that it takes her team 2 hours to lay out and sketch a magazine cover and 3 hours to layout and sketch up a logo, and she must fit this work into 48 hours a week. Company policy requires the team to design no more than 2 logos for each magazine cover that they design. How many of each should the team design in order to maximize the company's profits? Solution: magazine covers and logos should be designed per week for a maximum profit of $

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter11: Simulation Models

Section11.4: Marketing Models

Problem 30P: Seas Beginning sells clothing by mail order. An important question is when to strike a customer from...

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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?
Sunseel Industries produces two types of raw materials, A and B, with a production cost of $4 and $8 per unit, respectively. The combined production of A and B must be at least 700 units per month. The factory is expected to produce at least 400 units of B and not more than 1200 units of A each month. The processing times for A and B are observed to be 5 hours and 4 hours, respectively. A total of 3000 production hours are available per month. Develop a linear program that Sunseel Industries can use to determine the number of units of each raw material to produce that will meet the demand and minimize the total cost.
Tiny Toy Company makes three types of new toys: the tiny tank, the tiny truck, and the tiny turtle. Plastic used in one unit of each is 1.5, 2.0 and 1.0 pounds, respectively. Rubber for one unit of each toy is 0.5, 0.5, and 1.0 pounds, respectively. Also, each tank uses 0.3 pounds of metal, and the truck uses 0.6 pounds of metal during production. The average weekly availability for plastic is 16,000 pounds, 9,000 pounds of metal, and 5,000 pounds of rubber. It takes two hours of labor to make one tank, two hours for one truck, and one hour for a turtle. The company allows no more than 40 hours a week for production (priority #1). Finally, the cost of manufacturing one tank is $7, 1 truck is $5 and 1 turtle is $4; a target budget of $164,000 is initially used as a guideline for the company to follow. Minimize over-utilization of the weekly available supply of materials used in making the toys and place twice as much emphasis on the plastic (priority #2) I understand…
The Tiny Toy Company makes three types of new toys: the tiny tank, the tiny truck, and the tiny turtle. Plastic used in one unit of each is 1.5, 2.0 and 1.0 pounds, respectively. Rubber for one unit of each toy is 0.5, 0.5, and 1.0 pounds, respectively. Also, each tank uses 0.3 pounds of metal and the truck uses 0.6 pounds of metal during production. The average weekly availability for plastic is 16,000 pounds, 9,000 pounds of metal, and 5,000 pounds of rubber. It takes two hours of labor to make one tank, two hours for one truck, and one hour for a turtle. The company allows no more than 40 hours a week for production (priority #1). Finally, the cost of manufacturing one tank is $7, 1 truck is $5 and 1 turtle is $4; a target budget of $164,000 is initially used as a guideline for the company to follow. Minimize over-utilization of the weekly available supply of materials used in making the toys and place twice as much emphasis on the plastic (priority #2) Minimize the under and…
The Tiny Toy Company makes three types of new toys: the tiny tank, the tiny truck, and the tiny turtle. Plastic used in one unit of each is 1.5, 2.0 and 1.0 pounds, respectively. Rubber for one unit of each toy is 0.5, 0.5, and 1.0 pounds, respectively. Also, each tank uses 0.3 pounds of metal and the truck uses 0.6 pounds of metal during production. The average weekly availability for plastic is 16,000 pounds, 9,000 pounds of metal, and 5,000 pounds of rubber. It takes two hours of labor to make one tank, two hours for one truck, and one hour for a turtle. The company allows no more than 40 hours a week for production (priority #1). Finally, the cost of manufacturing one tank is $7, 1 truck is $5 and 1 turtle is $4; a target budget of $164,000 is initially used as a guideline for the company to follow. a) Minimize over-utilization of the weekly available supply of materials used in making the toys and place twice as much emphasis on the plastic (priority #2) b) Minimize the under…
The Tiny Toy Company makes three types of new toys: the tiny tank, the tiny truck, and the tiny turtle. Plastic used in one unit of each is 1.5, 2.0 and 1.0 pounds, respectively. Rubber for one unit of each toy is 0.5, 0.5, and 1.0 pounds, respectively. Also, each tank uses 0.3 pounds of metal, and the truck uses 0.6 pounds of metal during production. The average weekly availability for plastic is 16,000 pounds, 9,000 pounds of metal, and 5,000 pounds of rubber. It takes two hours of labor to make one tank, two hours for one truck, and one hour for a turtle. The company allows no more than 40 hours a week for production (priority #1). Finally, the cost of manufacturing one tank is $7, 1 truck is $5 and 1 turtle is $4; a target budget of $164,000 is initially used as a guideline for the company to follow. a) Minimize over-utilization of the weekly available supply of materials used in making the toys and place twice as much emphasis on the plastic (priority #2) b) Minimize the…
Celestial Artistry Company is developing departmental overhead rates based on direct-labor hours for its two production departments, Etching and Finishing. The Etching Department employs 20 people and the Finishing Department employs 80 people. Each person in these two departments works 2,000 hours per year. The production-related overhead costs for the Etching Department are budgeted at $200,000, and the Finishing Department costs are budgeted at $320,000. Two service departments, Maintenance and Computing directly support the two production departments. These service departments have budgeted costs of $48,000 and $250,000, respectively. The production departments’ overhead rates cannot be determined until the service departments’ costs are allocated. The following schedule reflects the use of the Maintenance Department’s and Computing Department’s output by the various departments. Using Department Service Department Maintenance Computing Etching Finishing Maintenance (maintenance…
Ana is a university student with 12 hours available daily, and she wants to distribute her time betweenstudy (x) and leisure (y) activities. She wants to maximize her total enjoyment while fulfilling heruniversity obligations. Ana considers leisure to be twice (2) as enjoyable as studying, but she alsobelieves that she should spend at least twice (2) as much time studying as she does on leisure activities.Additionally, she cannot spend more than five (5) hours a day on leisure activities to ensure that she hasenough time for her university obligations. 1. How much additional enjoyment would Ana get if she had one more hour per dayavailable, so 13 instead of 12 (dual price)?2. Would Ana experience a greater level of enjoyment if she allows herself to have amaximum of six hours per day to leisure activities instead of five, while still fulfilling her universityobligations within the 12 hours available (dual price)?3. What is the allowable increase of the coefficient accompanying leisure…
Show your step-by-step process using THE SPECIAL PURPOSE LINEAR PROGRAMMING: MODI TRANSPORTATION METHOD to solve this problem. XYZ Incorporated has received a contract to supply gravel to three new road projects located at three different locations. Project A needs 174 truckloads, Project B needs 204 truckloads, and Project C needs 143 truckloads. The company has three gravel warehouses located in three different places. Warehouse 1 has 158 truckloads available, warehouse 2 has 184, and warehouse 3 has 179. The cost of transportation from the warehouse to the projects are: from warehouse 1 to Projects A, B, C = Php 4, Php 8, Php 8 per truckload respectively. From warehouse 2 to Projects A, B, C = Php 16, Php 24, Php 16 per truckload respectively. From warehouse 3 to Projects A, B, C = Php 8, Php 16, Php 24 per truckload respectively. The objective is to design a plan of distribution that will Minimize the cost of transportation.
Washington Ski Company (WSC) is a small manufacturer of two types of popular all-terrain snow skis, the Axis and the Status models. The manufacturing process consists of two principal departments: fabricating and finishing. The fabrication department has 12 skilled workers, each of whom works 7 hours per day. The finishing department has 3 workers, who also work a 7-hour shift. Each pair of Axis skis requires 3.5 labor-hours in the fabricating department and 1 labor-hour in finishing. The Status model requires 4 labor-hours in fabrication and 1.5 labor-hours in finishing. The company operates 5 days per week. WSC makes a new profit of $50 on the Axis model and $65 on the Status model. In anticipation of the next ski-sale season, WSC must plan its production of these two models. Because of the popularity of its products and limited production capacity, its products are in high demand, and WSC can sell all it can produce each season. The company wants to determine how many of…
Zucchero Sugar, Inc. has six processing departments for refining sugar—Affination, Carbonation, Decolorization, Boiling, Recovery, and Packaging. Conversion costs are added evenly throughout each process. Data from the month of August for the Recovery Department are as follows: Metric Tons Beginning Work−in−Process Inventory 0 Transferred in 22,000 Ending Work−in−Process Inventory 6,000 Costs Beginning Work−in−Process Inventory $0 Costs added during August : Direct materials 530,000 Direct labor 250,000 Manufacturing overhead 105,000 Total costs added during August $885,000 The ending Work−in−Process Inventory is 100% and 95% complete with respect to direct materials and conversion costs, respectively. The weighted−average method is used. How many metric tons of sugar were refined and transferred to the Packaging Department in August? A. 6,000 metric tons B.…
Failsafe Electronics Corporation primarily manufactures four highly technical products, which it supplies to aerospace firms that hold NASA contracts. Each of the products must pass through the following departments before they are shipped: wiring, drilling, assembly, and inspection. The time requirements in each department (in hours) for each product and its corresponding profit value are summarized below: (see attached images for the complete details of the problem. Please answer it with solutions. Thank you so much! Godbless.) Solve this LP problem as formulated. What is the solution?