After a very tiring Exam, Marshall decided to visit his friends' refreshment kiosks. Marshall would like three pints of home brewed lemon iced tea today and an additional four pints of home brewed lemon iced tea tomorrow. Kim is willing to sell a maximum of 5 pints total at a price of $3.00 per pint today and $2.70 per pint tomorrow. Hailey is willing to sell a maximum of 4 pints total at a price of $2.90 per pint today and $2.80 per pint tomorrow. Marshall wishes to know what his purchases should be to minimize his cost while satisfying his thirst requirements. (a) Formulate this problem as a transportation problem by constructing the appropriate parameter table. (b) Obtain an optimal solution and cost

After a very tiring Exam, Marshall decided to visit his friends' refreshment kiosks. Marshall would like three pints of home brewed lemon iced tea today and an additional four pints of home brewed lemon iced tea tomorrow. Kim is willing to sell a maximum of 5 pints total at a price of $3.00 per pint today and $2.70 per pint tomorrow. Hailey is willing to sell a maximum of 4 pints total at a price of $2.90 per pint today and $2.80 per pint tomorrow. Marshall wishes to know what his purchases should be to minimize his cost while satisfying his thirst requirements. (a) Formulate this problem as a transportation problem by constructing the appropriate parameter table. (b) Obtain an optimal solution and cost

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter11: Simulation Models

Section: Chapter Questions

Problem 69P: The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon...

See similar textbooks

Similar questions

The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon spawn during a 24-hour period and must be canned immediately. Tinkan has the following agreement with the salmon industry. The company can deliver as many cans as it chooses. Then the salmon are caught. For each can by which Tinkan falls short of the salmon industrys needs, the company pays the industry a 2 penalty. Cans cost Tinkan 1 to produce and are sold by Tinkan for 2 per can. If any cans are left over, they are returned to Tinkan and the company reimburses the industry 2 for each extra can. These extra cans are put in storage for next year. Each year a can is held in storage, a carrying cost equal to 20% of the cans production cost is incurred. It is well known that the number of salmon harvested during a year is strongly related to the number of salmon harvested the previous year. In fact, using past data, Tinkan estimates that the harvest size in year t, Ht (measured in the number of cans required), is related to the harvest size in the previous year, Ht1, by the equation Ht = Ht1et where et is normally distributed with mean 1.02 and standard deviation 0.10. Tinkan plans to use the following production strategy. For some value of x, it produces enough cans at the beginning of year t to bring its inventory up to x+Ht, where Ht is the predicted harvest size in year t. Then it delivers these cans to the salmon industry. For example, if it uses x = 100,000, the predicted harvest size is 500,000 cans, and 80,000 cans are already in inventory, then Tinkan produces and delivers 520,000 cans. Given that the harvest size for the previous year was 550,000 cans, use simulation to help Tinkan develop a production strategy that maximizes its expected profit over the next 20 years. Assume that the company begins year 1 with an initial inventory of 300,000 cans.
The Star Youth Soccer Club helps to support its 20 boys' and girls' teams financially, primarily through the payment of coaches. The club puts on a tournament each fall to help pay its expenses. The cost of putting on the tournament is $8,000, mainly for development, printing, and mailing of the tournament brochures. The tournament entry fee is $400 per team. For every team that enters, it costs the club about $75 to pay referees for the three-game minimum each team is guaranteed. If the club needs to clear $60,000 from the tournament, how many teams should it invite?
I need a detailed explanation and assistance to solve this problem: Wineco produces wine cooler as a blend of wine, grape juice and apple juice ingredients, which it sells for $4 per gallon. The costs of ingredients are given in the following table: Cooler Ingredient Price per Gallon ($) wines 1.20 grape juice 1.40 Apple juice 0.60 Wineco owns a blending plant with a production capacity of 200 gallons per day. Because the plant is fully automated, all other production costs are negligible by comparison to the cost of ingredients, and can be ignored. Government regulations mandate that wine cooler products must satisfy the following guidelines: At least 10% of the blend produced must be grape juice. The ratio of apple juice to grape juice in the blend produced must be 2.5:1 The blend produced must contain between 20% and 25% wine. Wineco wishes to use LP in order to determine the quantities of ingredients to buy for a day’s production of wine cooler, so…
An airline offers coach and first-class tickets. For the airline to be profitable, it must sell a minimum of 25 first-class tickets and a minimum of 40 coach tickets. The company makes a profit of $225 for each coach ticket and $200 for each first-class ticket. At most, the plane has a capacity of 150 travellers. How many of each ticket should be sold in order to maximize profits? Are there any slack/surplus ?
The DellaVecchia Garden Center purchases and sells Christmas trees during the holiday season. It purchases the trees for $10 each and sells them for $20 each. Any trees not sold by Christmas day are sold for $2 each to a company that makes wood chips. The garden center estimates that four levels of demand are possible: 100, 200, 500, and 1,000 trees.a. Compute the payoffs for purchasing 100, 200, 500, or1,000 trees for each of the four levels of demand.b. Construct a payoff table, indicating the events and alternative courses of action.c. Construct a decision tree.d. Construct an opportunity loss table. Use the Optimistic (maximax) to choose the best choice.e.Use the Pessimistic (maximin) to choose the best choice.f.Use the Criterion of realism (Hurwicz) to choose the best choice. α = 0.6g.Use the Equally likely (Laplace) to choose the best choice. h.Use the Minimax regret to choose the best choice.i.Use the expected monetary value to make a choice. ( Probability for the four level…
The DellaVecchia Garden Center purchases and sells Christmas trees during the holiday season. It purchases the trees for $10 each and sells them for $20 each. Any trees not sold by Christmas day are sold for $2 each to a company that makes wood chips. The garden center estimates that four levels of demand are possible: 100, 200, 500, and 1,000 trees.a. Compute the payoffs for purchasing 100, 200, 500, or1,000 trees for each of the four levels of demand.b. Construct a payoff table, indicating the events and alternative courses of action.c. Construct a decision tree.d. Construct an opportunity loss table. Use the Optimistic (maximax) to choose the best choice.e.Use the Pessimistic (maximin) to choose the best choice.f.Use the Criterion of realism (Hurwicz) to choose the best choice. α = 0.6g.Use the Equally likely (Laplace) to choose the best choice.h.Use the Minimax regret to choose the best choice.i.Use the expected monetary value to make a choice. ( Probability for the four level…
Easyville University awarded scholarships of $50,000.00 each to two students for a bachelor’s degree program. The standard time for degree completion is four years or 8 semesters. Easyville University stipulates that the scholarship amount will be increased or decreased depending on how well the students meet, exceed or fail to meet the standard time (i.e. more money for exceeding standard and less for failing to meet standard). Sam Speedy completed his degree program in three and one half years; while Larry Laggard completed his degree program in five years. Using the Standard Hour Plan, how much scholarship money will be given to: a)Speedy Sam? b) Larry Laggard?
The Star Youth Soccer Club helps to support its 20 boys’ and girls’ teams financially, primarily through the payment of coaches. The club puts on a tournament each fall to help pay its expenses. The cost of putting on the tournament is $8,000, mainly for development, printing, and mailing of the tournament The tournament entry fee is $400 per team. For every team that enters, it costs the club about $75 to pay referees for the three-game minimum each team is guaranteed. If the club needs to clear $60,000 from the tournament, how many teams should it invite?
Fedori Corporation has a Parts Division that does work for other Divisions in the company as well as for outside customers. The company's Machinery Division has asked the Parts Division to provide it with 4,000 special parts each year. The special parts would require P23.00 per unit in variable production costs. The Machinery Division has a bid from an outside supplier for the special parts at P37.00 per unit. In order to have time and space to produce the special part, the Parts Division would have to cut back production of another part-the YR24 that it presently is producing. The YR24 sells for P40.00 per unit, and requires P28.00 per unit in variable production costs. Packaging and shipping costs of the YR24 are P3.00 per unit. Packaging and shipping costs for the new special part would be only P1.50 per unit. The Parts Division is now producing and selling 15,000 units of the YR24 each year. Production and sales of the YR24 would drop by 20% if the new special part is produced for…
the excel file president’s inn guest database provides a list of customers, rooms they occupied, arrival and departure dates, number of occupants, and daily rate for a small bed- and-breakfast inn during one month. room rates are the same for one or two guests; however, additional guests must pay an additional $20 per person per day for meals. guests staying for seven days or more receive a 10% discount. modify the spreadsheet to calculate the number of days that each party stayed at the inn and the total revenue for the length of stay.
Pullman Tire Company would like to plan production for the next three months.The firm can satisfy demand by using inventory, regular production (at $40 per tire), overtime (at $50 per tire), or subcontracting (at $70 per tire). Any tires held over for one month incur a $2 per tire inventory carrying cost. Pullman Tire has sufficient regular production capacity to produce up to 700 tires each month, and it can produce up to 50 more tires each month using overtime. The subcon- tracting availability from an alternative supplier is 150 in January and February and 130 in March. Customers will demand 650 tires in January, 1,000 in Febru- ary, and 890 in March (all demand must be satisfied on time; i.e., no backorders are allowed). The firm begins with 100 tires and wants to have no tires left in inventory at the end of March. Formulate a linear program for this problem, and determine the cheapest tire production plan after solving the problem in Excel. This is the answer but I am unsure how…
Western Chassis produces high-quality polished steel and aluminum sheeting and two lines ofindustrial chassis for the rack mounting of Internet routers, modems, and other telecommunicationsequipment. The contribution margin (contribution toward profit) for steel sheeting is $0.40 per poundand for aluminum sheeting is $0.60 per pound. Western earns $12 contribution on the sale of aStandard chassis rack and $15 contribution on a Deluxe chassis rack. During the next productioncycle, Western can buy and use up to 25,800 pounds of raw unfinished steel either in sheeting or inchassis. Similarly, 20,400 pounds of aluminum are available. One standard chassis rack requires 16pounds of steel and 8 pounds of aluminum. A Deluxe chassis rack requires 12 pounds of each metal.The output of metal sheeting is restricted only by the capacity of the polisher. For the next productioncycle, the polisher can handle any mix of the two metals up to 4,000 pounds of metal sheeting. Chassismanufacture can be…