A small candy shop is preparing for the holiday season. The owner must déčide deluxe mix and how many bags of standard mix of Peanut/Raisin Delite to put up. The deluxe mix has 2/3 pound raisins and 1/3 pound peanuts, and the standard mix has pound raisins and pound peanuts per bag. The shop has 90 pounds of raisins and 60 pounds of peanuts to work with. Peanuts cost $0.60 per pound and raisins cost $1.5 per pound. The deluxe mix will sell for $2.90 per pound, and the standard mix will sell for $2.55 per pound. The owner estimates that no more than 110 bags of one type can be sold. Using Simplex method a. If the goal is to maximize profits, how many bags of each types should be prepared? b. What is the expected profit?

A small candy shop is preparing for the holiday season. The owner must déčide deluxe mix and how many bags of standard mix of Peanut/Raisin Delite to put up. The deluxe mix has 2/3 pound raisins and 1/3 pound peanuts, and the standard mix has pound raisins and pound peanuts per bag. The shop has 90 pounds of raisins and 60 pounds of peanuts to work with. Peanuts cost $0.60 per pound and raisins cost $1.5 per pound. The deluxe mix will sell for $2.90 per pound, and the standard mix will sell for $2.55 per pound. The owner estimates that no more than 110 bags of one type can be sold. Using Simplex method a. If the goal is to maximize profits, how many bags of each types should be prepared? b. What is the expected profit?

Name: A small candy shop is preparing for the holiday season. The owner mus
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Description: A small candy shop is preparing for the holiday season. The owner must decide how many bags ofdeluxe mix and how many bags of standard mix of Peanut/Raisin Delite to put up. The deluxe mix has2/3 pound raisins and 1/3 pound peanuts, and the standard

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...

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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.)
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A small candy shop is preparing for the holiday season. The owner must decide how many bags of deluxe mix and how many bags of standard mix of Peanut/Raisin Delite to put up. The deluxe mix has .70 pounds of raisins and .30 pounds of peanuts, and the standard mix has 0.45 pounds of raisins and 0.55 pounds of peanuts per bag. The shop has 90 pounds of raisins and 60 pounds of peanuts to work with. Peanuts cost $0.6 per pound and raisins cost $1.55 per pound. The deluxe mix will sell for $2.9 for a one-pound bag, and the standard mix will sell for $2.55 for a one-pound bag. The owner estimates that no more than 110 bags of one type can be sold. a. If the goal is to maximize profits, how many bags of each type should be prepared? b. What is the expected profit?
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A small candy shop is preparing for the holiday season. The owner must decide how many bags ofdeluxe mix and how many bags of standard mix of Peanut/Raisin Delite to put up. The deluxe mixhas 2⁄3 pound raisins and 1⁄3 pound peanuts, and the standard mix has 1⁄2 pound raisins and 1⁄2 poundpeanuts per bag. The shop has 90 pounds of raisins and 60 pounds of peanuts to work with.Peanuts cost $.60 per pound and raisins cost $1.50 per pound. The deluxe mix will sell for $2.90for a one-pound bag, and the standard mix will sell for $2.55 for a one-pound bag. The owner estimates that no more than 110 bags of one type can be sold.a. If the goal is to maximize profits, how many bags of each type should be prepared?b. What is the expected profit?
A small candy shop is preparing for the holiday season. The owner must decide how many bags of Deluxe Mix and how many bags of Standard Mix of Peanut/Raisin Delite to put up. The Deluxe Mix has 2/3 pound raisins and 1/3 pound peanuts, and the Standard Mix has 1/2 pound raisins and 1/2 pound peanuts per bag. The shop has 90 pounds of raisins and 60 pounds of peanuts to work with. Peanuts cost $0.60 per pound and raisins cost $1.50 per pound. The Deluxe Mix will sell for $2.90 per pound, and the Standard Mix will ell for $2.55 per pound. The owner estimates that no more than 110 bags of one type can be sold. If the goal is to maximize profits, how many bags of each type should be prepared?
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