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- A firm has 2 plants with different functions: - Plant 1: MC = 30 + Q - Plant 2: MC = 20 + 2Q How to allocation output between the 2 plants to minimize total cost of producing 50 units of output? What is the minimum total cost?The supervisor at the Precision Machine Shop wants to determine the staffing policy that minimizes total operating costs. The average arrival rate at the tool crib, where tools are dispensed to the workers, is eight machinists per hour. Each machinist’s pay is $25 per hour. The supervisor can staff the crib either with a junior attendant who is paid $13 per hour and can process 12 arrivals per hour or with a senior attendant who is paid $16 per hour and can process 16 arrivals per hour. Which attendant should be selected, and what would be the total estimated hourly cost?what is the minimum cost of moving all bulldozers to the sites?
- Suppose that a company needs 1,800,000 items during a year and that preparation for each production run costs $500. Suppose also that it costs $24 to produce each item and $2 per year to store an item. Use the inventory cost model to find the number of items in each production run so that the total costs of production and storage are minimized. items/runIn the Erlang loss model, system A has 5 servers and an implied utilization of 125 percent,while system B has 15 servers and an implied utilization of 125 percent. Which of thefollowing statements is true?a. System A has the higher utilization because it has fewer servers relative to the potentialdemand.b. The two systems have the same utilization because they have the same implied utilization.c. System B has a higher utilization because the fraction of lost demand is lower in that system.d. More information is needed to determine which system has the higher utilization.Assuming an M/M/1 system setup with a service rate of 25 entities per hour and an idling ratioof 4% Define the system’s birth rate. Define at least two ways of arriving at the number of entities in the system. Define the ratio of the time an entity spends waiting and the time the entity spends in thesystem?
- A municipal solid-waste site for a city must be located at Site A or Site B. After sorting, some of the solid refuse will be transported to an electric powerplant where it will be used as fuel. Data for the hauling of refuse from each site to the power plant are shown in Table P2-4. If the power plant will pay $8.00 per cubic yard of sorted solid waste delivered to the plant, where should the solid-waste site be located? Use the city’s viewpoint and assume that 200,000 cubic yards of refuse will be hauled to the plant for one year only. One site must be selected.A plant food is made from three chemicals, labeled I, II, and III. In each batch of the plant food, the amounts of chemicals II and III must be in the ratio of 5to 3. The amount of nitrogen must be at least 39 kg. The percent of nitrogen in the three chemicals is 8%,4%,and 5%,respectively. If the three chemicals cost $1.02 $0.86 and $0.66 per kilogram, respectively, how much of each should be used to minimize the cost of producing at least 600 kg of the plant food?Cecille Paper Company uses softwood and hardwood pulp as basic materials for producing converter-grade paper. Hardwood is 80% pulp fiber and 20% pulp binder, while softwood is 50% pulp fiber and 50% pulp binder. The cost per pound for hardwood and softwood is $.50 and $.40, respectively. The company s quality control expert specifies that in order for the product to meet quality standards, each batch must contain at least 12,000 pounds of pulp fiber and at least 6,000 pounds of pulp binder. Because of equipment limitations, the size of a batch cannot exceed 24,000 pounds. The Production Department recently received a new standard from the Cost Department, allowing $8,200 per batch. The production manager feels that this amount is too low, because such costs have never been less than $8,400. Required: Using the graphic method, determine the hardwood and softwood mix necessary to minimize the cost per batch.
- To minimize costs on the production line, an industrial engineer at a fiber-optic manufacturing firm is considering two robots. Robot X would have a $82,000 first cost, a $30,000 annual maintenance and operation (M&O) cost, and $50,000, $42,000, and $35,000 salvage prices after 1, 2, and 3 years, respectively. Robot Y will have a first cost of $97,000, a yearly M&O cost of $27,000, and after 1, 2, and 3 years, respectively, salvage prices of $60,000, $51,000, and $42,000. If a 2-year study period is specified at an interest rate of 15 percent per year and replacement after 1 year is not an option, what robot should be selected?The Megabuck Hospital Corp. is to build a state-subsidized nursing home catering to homeless patients as well as high-income patients. State regulations require that every subsidized nursing home must house a minimum of 750 homeless patients and no more than 900 high-income patients in order to qualify for state subsidies. The overall capacity of the hospital is to be 1,800 patients. The board of directors, under pressure from a neighborhood group, insists that the number of homeless patients should not exceed twice the number of high-income patients. Due to the state subsidy, the hospital will make an average profit of $9,500 per month for every homeless patient it houses, whereas the profit per high-income patient is estimated at $8,000 per month. How many of each type of patient should it house in order to maximize profit? HINT [See Example 3.] (If an answer does not exist, enter DNE.) high-income patients: homeless: profit:The manager of a large distribution center must determine how many part-time stockpickers to maintain on the payroll. She wants to develop a staffing plan that minimizes total costs, and wants to begin with the chase strategy and level strategy. For the level strategy, she wants to first try the workforce level that meets demand with the minimum use of undertime and not consider vacation scheduling.First, the manager divides the next year into six time periods, each one 2 months long. Each part-time employee can work a maximum of 20 hours per week on regular time, but the actual number can be less. Instead of paying undertime, each worker’s day is shortened during slack periods. Once on the payroll, each worker is used each day, but they may work only a few hours. Overtime can be used during peak periods. The distribution center’s forecasted demand is shown as the number of part-time employees required for each time period at the maximum regular time of 20 hours per week. For example,…