For the four basic configurations that follow, assume that the market is demanding product that must be processed by both Resource X and Resource Y for Cases I, II, and III. For Case IV, both resources supply separate but dependent markets; that is, the number of units of output from both X and Y must be equal. Plans are being made to produce a product that requires 40 minutes on Resource X and 30 minutes on Resource Y. Assume that there is only one of each of these resources and that market demand is 1,500 units per month.

For the four basic configurations that follow, assume that the market is demanding product that must be processed by both Resource X and Resource Y for Cases I, II, and III. For Case IV, both resources supply separate but dependent markets; that is, the number of units of output from both X and Y must be equal. Plans are being made to produce a product that requires 40 minutes on Resource X and 30 minutes on Resource Y. Assume that there is only one of each of these resources and that market demand is 1,500 units per month.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter10: Introduction To Simulation Modeling

Section10.4: Simulation With Built-in Excel Tools

Problem 13P

See similar textbooks

Similar questions

Omega DB Corp. has a policy of maintaining an inventory of finished goods equal to 40 percent of the next month’s budgeted sales. If Omega DB Corp. plans to produce 6,000 units in June, what are budgeted sales for July in units? Budgeted sales for the first six months of 2019 for Omega DB Corp. are listed below: Units:JANUARY 6,000FEBRUARY 7,000MARCH 8,000APRIL 7,000MAY 5,000JUNE 4,000
Consider a firm that knows that the price of the productit is ordering is going to increase permanently by $X. Howmuch of the product should be ordered before the priceincrease goes into effect?Here is one approach to this question: Suppose the firmorders Q units before the price increase goes into effect.a What extra holding cost is incurred by ordering Qunits now?b How much in purchasing costs is saved by orderingQ units now?c What value of Q maximizes purchasing cost savingsless extra holding costs?d Suppose that annual demand is 1,000 units, holdingcost per unit-year is $7.50, and the price of the item isgoing to increase by $10. How large an order should beplaced before the price increase goes into effect?
Your company makes hand sanitizer in two lines: Moisturizing+, and StandardSoap. On the market, Moisturizing+ retails for $175/L and StandardSoap retails for $95/L. You make the hand sanitizer by combining lotion, soap, and secret ingredient SpecialX. These ingredients are purchased from a mysterious supplier, and you can purchase at most 4000L of lotion, 5000L of soap, and 750L of SpecialX in a month. Lotion costs $25/L, soap costs $10/L, and SpecialX costs $35/L. To make 1L of Moisturizing+, you need to combine 0.5L of lotion, 0.3L of soap, and 0.2L of SpecialX. To make 1L of StandardSoap, you need to combine 0.4L of lotion, 0.55L of soap, and 0.05L of SpecialX. Your company has committed to donating 500L of StandardSoap to a local charity. Since this is a donation, you will not receive any revenue. However, the costs and purchasing limits apply to both the hand sanitizer that is sold on the market and donated to charity. You want to maximize your monthly profit. Assume that…
Use dynamic programming to solve 0-1 knapsack problem in which the knapsack can hold up to 13kg with the following items: Item Weight (kg) Value 1 3 12 2 5 25 3 7 50
Amazon sells X units (X= 2017056) of consumerelectronics from Samsung every year. Each unit costs $120 and Amazon hasa holding cost of 20 percent. The fixed clerical and transportation cost foreach order Amazon places with Samsung is $4,000. What is the optimal sizeof the order that Amazon should place with Samsung? What is the totalannual cost incurred by Amazon for optimal lot size. With the goal ofreducing inventories, Amazon would like to reduce the size of each order itplaces with Samsung to 2,000 units .How much should it reduce the fixed costper order for an order of 2,000 units to be optimal?
3-2) The optimal quantity of the three products and resulting revenue for Taco Loco is: A) 28 beef, 80 cheese, and 39.27 beans for $147.27. B) 10.22 beef, 5.33 cheese, and 28.73 beans for $147.27. C) 1.45 Z, 8.36 Y, and 0 Z for $129.09. D) 14 Z, 13 Y, and 17 X for $9.81. 3-3) Taco Loco is unsure whether the amount of beef that their computer thinks is in inventory is correct. What is the range in values for beef inventory that would not affect the optimal product mix? A) 26 to 38.22 pounds B) 27.55 to 28.45 pounds C) 17.78 to 30 pounds D) 12.22 to 28 pounds
An optometrist orders eyeglass frames at a cost of $40per frame and sells each frame for $70. Annual holding costis 20% of the optometrist’s cost of purchasing a frame. Eachtime frames are ordered, a cost of $200 is incurred. Becauseof lost goodwill, a cost of $50 is incurred each time acustomer wants a frame that is not in stock. Frames aredelivered one week after an order is placed. Annual demandfor frames is N(1,040, 15.73).a Assuming all shortages are backlogged, determinethe order quantity and reorder point. b Assuming all shortages result in lost sales, deter-mine the order quantity and reorder point. c To meet 95% of all orders from stock, what shouldbe the reorder point?d To have shortages occur during an average of twolead times per year, what should be the reorder point?
A firm knows that the price of the product it is ordering is going to increase permanently by X dollars. It wants to know how much of theproduct it should order before the price increase goes into effect. Here is one approach to this problem. Suppose the firm places one order for Q units before the price increase goes into effect.a. What extra holding cost is incurred by ordering Q units now?b. How much in purchasing costs is saved by ordering Q units now?c. What value of Q maximizes purchasing cost savings less extra holding costs?d. Suppose that the annual demand is 1000 units, the holding cost per unit per year is $7.50, and the price of the item is going to increase by $10. How large an order should the firm place before the price increase goes intoeffect?
Trinity product Limited makes and sells three types of electronic security systems for which the following information is available Standard cost and selling price per unitDay Scan Night scan Omni scan GH¢ GH¢ GH¢Material 70 110 155Manufacturing labour. 40 55 70Installation labour. 24 32 44Variable overheads. 16 20 28Selling price 250 320 460 Fixed cost for the period are GH¢450,000 and installation labour, which is highly skilled is available for 25,000 hours only in a period and is paid GH¢8 per hour. Both manufacturing and installation labour are variable cost. The maximum demand for the period is: Day scan 2,000 units; Night scan 3,000 units; Omni scan 1,800 units. RequiredA) Having carried out an investigation of the availability of installation labour, the firm thinks that by offering GHS 12 per hour, additional installation would become available and thus overcome the labour…
AutoTime, a manufacturer of electronic digital timers, has a monthly fixed cost of $50,000 and a production cost of $7 for each timer manufactured. The timers sell for $15 each. (a) What is the cost function C(x)?C(x) = (b) What is the revenue function R(x)?R(x) = (c) What is the profit function P(x)?P(x) = (d) Compute the profit (loss) corresponding to production levels of 3000, 6000, and 11,000 timers, respectively. (Input a negative value to indicate a loss.) 3000 timers $ 6000 timers $ 11,000 timers $
Cindy and Mindy were in the same student group while studying for their MBA atUTD. They graduated together but started working as inventory managers in different but competingretailers selling air conditioners in Dallas. While in school, they learned only the economic orderquantity model for finding the optimal order sizes. Now they are both purchasing air conditionersfrom Trane to sell at their stores. Cindy knows that the order setup cost with Trane is $200 and theannual inventory holding cost is $400. Cindy expects that Mindy has the same cost figures. Cindyhas accidentally learned that Mindy is ordering 10 air conditions every time she orders. Show howCindy can use this information to deduce the demand Mindy faces. Explain why would competitorsway want to know each other’s demand
Rocky Mountain Tire Centre sells 20,000 tires of a particular type per year. The ordering cost for each order is $40, and the holding cost is 20% of the purchase price of the tires per year. The purchase price is $20. per tire if fewer than 500 tires are ordered, $18. Per tire if more than 500 but fewer than 1,000 tires are ordered and $17. per tire if 1,000 or more tires are ordered. Quantity Unit Price 1-499 $20. 500-999 $18. 1000 & over $17 Based on available information, lead time demand for CD-ROM drives averages 50 units (normally distributed), with a standard deviation of 5 drives. Management wants a 97% service level. What value of Z should be applied? How many drives should be carried as safety stock?