2. Maximization Problem:A taxi company has several ride requests from across the city. The company wants todispatch the taxis in a way that makes the most money. Assign taxis to routes suchthat the profit is maximized.The table below shows the cost on the different ridesUSD.Ride 1Ride 2Ride 3Ride 4Тaxi 1Тахі 2Тaхi 3Тахi 4111881103101131211

Assignment problems assign the resources to the available jobs such that the profit is maximized and…

Answered: A taxi company has several ride…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter7: Nonlinear Optimization Models

Section: Chapter Questions

Problem 49P: If a monopolist produces q units, she can charge 400 4q dollars per unit. The variable cost is 60...

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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?
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%.
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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…
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.
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Brady Corporation produces cabinets. Each week, itrequires 90,000 cu ft of processed lumber. The companymay obtain lumber in two ways. First, it may purchaselumber from an outside supplier and then dry it in thesupplier’s kiln. Second, it may chop down logs on its ownland, cut them into lumber at its sawmill, and finally dry thelumber in its own kiln. Brady can purchase grade 1 or grade2 lumber. Grade 1 lumber costs $3 per cu ft and when driedyields 0.7 cu ft of useful lumber. Grade 2 lumber costs $7per cubic foot and when dried yields 0.9 cu ft of usefullumber. It costs the company $3 to chop down a log. Afterbeing cut and dried, a log yields 0.8 cu ft of lumber. Bradyincurs costs of $4 per cu ft of lumber dried. It costs $2.50per cu ft of logs sent through the sawmill. Each week, thesawmill can process up to 35,000 cu ft of lumber. Eachweek, up to 40,000 cu ft of grade 1 lumber and up to 60,000cu ft of grade 2 lumber can be purchased. Each week, 40hours of time are available for…
Create spreadsheets and use Solver to determine the correct volumes to be produced to minimize cost for the following problem. Your company has two trucks that it wishes to use on a specific contract. One is a new truck the company is making payments on, and one is an old truck that is fully paid for. The new truck’s costs per mile are as follows: 54₵ (fuel/additives), 24₵ (truck payments), 36₵ (driver), 12₵ (repairs), and 1₵ (misc.). The old truck’s costs are 60₵ (fuel/additives), 0₵ (truck payments), 32₵ (rookie driver), 24₵ (repairs), and 1₵ (misc.). The company knows that truck breakdowns lose customers, so it has capped estimated repair costs at $14,000. The total distance involved is 90,000 miles (to be divided between the two trucks).
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A firm operates two types of machines A and B as shown in the table. Type A Type B Maximum Space Available Floor Space Available 3 2 18 Number of Workers 5 3 30 The ratio of machines of type A to those of type B should be greater than one. Tasks Define the term linear programming Write down four inequalities to represent the information above. If the profit from using type A machine is Shs 6000 per hour and that of B is Shs 9000 per hour, write down the expression for the profit in terms of and Find the number of machines of each type that should be in operation to give the maximum profit. Hence find the maximum profit What advice do you give to this company’s manager

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