(d) Because of increased competition, Deegan is considering reducing the price of model DRB such that the new contribution to profit is $175 per unit. How would this change in price affect the optimal solution? Explain. The objective coefficient range for model DRB shows a lower limit of $ $ . Thus, the optimal solution --Select--- change and the new value will be (e) If the available manufacturing time is increased by 500 hours, will the dual value for the manufacturing time constraint change? Explain. The allowable increase is minutes, so the dual value for this constraint ---Select--- change.
Q: The manager of a park hotel is considering how to restructure the front desk to reach an optimum…
A: Number of clerks = 5 Arrival time(lambda) per hour = 905=18 Service time(mu) per hour = 20…
Q: Q1. Aliya has recently enrolled for a computer software development course and now she will be…
A: Given data is
Q: To begin with, why is it crucial for young professionals, such as students, interns, and company…
A: Operations management can be defined as a systematic approach of addressing issues in transformation…
Q: Consider the following linear program. 1A-28 15 (a) Graph the feasible region for the problem. B 10…
A: Given LP: Max Z = A - 2BSubject to-Constraint (1):-4A + 3B≤3Constraint (2): A - B≤5Non-negativity…
Q: Discuss the concepts of internal and external supply chain integration, and explain why each of…
A: In general, supply chain integration can be stated as the information and interaction system of all…
Q: Write a detailed summary of Aristopharma Company Overview.
A: ANSWER : Aristopharma Ltd. is one of the main 10 pharmaceutical companies in Bangladesh. The…
Q: Activity A B C E F G H Preceded By ** A B,C D E BC F.G Expected Time Direct Cost Regular Crash…
A:
Q: QUESTION 4 Mega Inc. manufactures hairdryers for the commercial market. One of the crucial parts…
A: Given, Annual demand, d =60000 units Handling cost, h =RM 0.50 per unit per month = 12×0.50 =$6 per…
Q: A costs $4 and contains 20 grams of fat, 30 grams of protein, and 800 calories. Each unit of grain B…
A: Ans) Grain A = x Grain B = y Objective function: Min Z = 4x + 4.8y Constraints: 1) Fat : 20x…
Q: An analysis of a laboratory activity resulted in the first table below. After this analysis, the…
A: TMU stands for Time Measuring Unit. In time and motion study, each motion is assigned with a…
Q: What are the importance of good project planning, some common elements of a project plan document,…
A: Project planning is the initial stage of project management where the plan is made to achieve the…
Q: Measuring Performance in Operations Across 3. Measurements taking top priority 6. measurement that…
A: It is necessary for every organization to keep a check on the day-to-day operations being run by…
Q: The Westchester Chamber of Commerce periodically sponsors public service seminars and programs.…
A: Objective Functions and Constraints: Based on the given details, the objective…
Q: Consider two possible states of nature s₁ and 52 and three possible actions a 1,92 and a 3. a.…
A: Since you have submitted a question with multiple subparts, as per guidelines we have answered the…
Q: Weighted factor method Use the table to calculate the most ideal X coordinate for supermarket…
A: Given data is
Q: Please explain two characteristics of the maximum of minimum profits criterion (Maximin method)
A: Decision theory is based on the general method of decision-making when the outcomes linked with…
Q: What is the critical path for the actvities and how many days will the project take?
A: Here is Your Step Wise Solution:
Q: Create a graphical format Work Breakdown Structure (WBS) based on the project information below. The…
A: A work breakdown structure can be stated as the diagram that indicates the interlinks between the…
Q: #28 Even though independent gasoline stations have been having a difficult time, Susan Solomon has…
A: Note- Hi! Thank you for the question, As per the honour code, we are allowed to answer three…
Q: The Decision Sciences Department is tyring to determine whether to rent a slow or fast copier. The…
A: The following information is given to us for the two copiers, fast and slow. Slow Copier - Rent is…
Q: Rick Jerz is attempting to perform an inventory analysis on one of his most popular products. Annual…
A: Annual demand, d =5000 units Carrying cost, h =$50 per unit per year Ordering cost, o =$30 per order…
Q: During the Performance Testing phase of a project, what kind of mistakes could occur?
A: A combination of procedures and actions aimed at enhancing performance are called Performance…
Q: A billiard ball maker must place orders for resin, a raw material for billiard balls. It uses resin…
A: Given, Ordering cost, o =$150 Holding cost, h =$0.4 Lead time, L =4 days Number of working days, w…
Q: Frandec Company manufactures, assembles, and rebuilds material-handling equipment used in warehouses…
A: Given data is Component Manufacturing cost($) Purchase cost($) Frame 37 50 Support 10.50 14…
Q: Use the data below to solve for the following: 2. Naïve method 3. Unweighted 3 month moving average…
A: Formulae used: (i) Naive Method- Last period actual data = Current period forecast data (ii)…
Q: The company aimed to define a global digital operations' strategy that would help them to be a first…
A: Operations management is a wide field because it has a very large process chain. The process chain…
Q: Grave City is considering the relocation of several police substations to obtain better enforcement…
A: Locations Areas A 1,4,7 B 1,3,5,7 C 1,2,5 D 2,5,6 E 3,4,7 F 4,6
Q: Discuss a company that is known to be a low-cost producer in its industry and consider why it is a…
A: Low producers can be stated as the term that is used in the business sector and industries to define…
Q: Examine the significance of project work breakdown structure and product work break down structure.
A: In the context of project management, work breakdown structure often called WBS can be stated as the…
Q: ____________ as 8 hundreds is 8 thousands.
A: A mathematical function can be stated as the function or rule that provides a certain value of any…
Q: Why are convenience samples not desirable? Give ONE example of where a convenience sample may not be…
A: Convenience samples describe a non-probability-based sampling technique. It is a technique for…
Q: Discuss the use of the Program Evaluation and ReviewTechnique (PERT) to schedule the tasks of a…
A: In a project management scenario, scheduling is described as listing the milestones, deliverables,…
Q: f. Given e, what is the maximum number of orders waiting to be picked? Maximum number of orders…
A: The maximum output for any process is equal to the output at the bottlenck workstation
Q: Understanding how the data is handled by the MRP system is crucial.
A: Material requirement planning is an inventory management system which helps to control the materials…
Q: QUESTION 4 a) Assess and discuss the benefits of in-house vs. contracting out maintenance works in…
A: Note: - Since the exact to be answered is not specified, we will answer the first question(a) here.…
Q: Using the the 3 methods: Vogel's Approximation Method, Northwest Corner Method and Minimum Cost…
A: Given data is
Q: A manager checked production records and found that a worker produced 180 units while working 40…
A: Productivity = Ouptut / Input Change in productivity = (New productivity - Previous…
Q: Describe how project management software packages can help with project scheduling. Please respond…
A: Project management software is used to plan, organize, and allocate project resources. It…
Q: Requested: (a) Construct a network including the Early and Late Start and Finish times. (b) Identify…
A: Part (a) The network diagram for the above table is as below: The calculation of Early start and…
Q: summarize the purpose and benefits of customer service.
A: Customer service:- The providing of service to customers before, during, and after the purchase of…
Q: The word "full-service provider" may be associated with a few different meanings. What are the…
A: It's possible that full-service providers are the best option for expanding businesses. They provide…
Q: a) Using a 2-month moving average, the forecast for periods 11 and 12 is (round your responses to…
A: Forecast is the process of estimating the future demand using the previous year's or historical data…
Q: a single-server waiting line system has an arrival pattern characterized by a poisson distribution…
A: With the given data we can calculate two things: Probability that the system is idle Expected…
Q: W = jars of Western Foods Salsa M = jars of Mexico City Salsa leads to the formulation (units for…
A: As per Bartleby guidelines, we can only solve the first three subparts of one question at a…
Q: The MAD for Method 1 = enter your response here thousand gallons (round your response to three…
A: Forecasting is a technique used to predict future outcomes on the basis of past data. In business…
Q: The Ace Manufacturing Company has orders for three similar products. Orders (units) Product Min A…
A: Given data is
Q: **10.38 The Miami Central Hotel has 400 rooms. Every day. the housekeepers clean any room that was…
A: Given- Total available minutes in a days' shift = 6 hours…
Q: Frandec Company manufactures, assembles, and rebuilds material-handling equipment used in warehouses…
A: Given data is Component Manufacturing cost($) Purchase cost($) Frame 37 50 Support 10.50 14…
Q: Explain why businesses should internalise production within the firm and what are the transaction…
A: Business is unpredictable and dynamic in nature. All processes and systems that are happening inside…
Q: Logistics is ensuring all the material and personnel are in the right place at the right time so…
A: The term logistics can be understood as the management of the flow of goods from the point of…
Please answer D & E.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
On part D, the $600 was wrong. Is there another possible solution?
- Suppose that GLC earns a 2000 profit each time a person buys a car. We want to determine how the expected profit earned from a customer depends on the quality of GLCs cars. We assume a typical customer will purchase 10 cars during her lifetime. She will purchase a car now (year 1) and then purchase a car every five yearsduring year 6, year 11, and so on. For simplicity, we assume that Hundo is GLCs only competitor. We also assume that if the consumer is satisfied with the car she purchases, she will buy her next car from the same company, but if she is not satisfied, she will buy her next car from the other company. Hundo produces cars that satisfy 80% of its customers. Currently, GLC produces cars that also satisfy 80% of its customers. Consider a customer whose first car is a GLC car. If profits are discounted at 10% annually, use simulation to estimate the value of this customer to GLC. Also estimate the value of a customer to GLC if it can raise its customer satisfaction rating to 85%, to 90%, or to 95%. You can interpret the satisfaction value as the probability that a customer will not switch companies.The eTech Company is a fairly recent entry in the electronic device area. The company competes with Apple. Samsung, and other well-known companies in the manufacturing and sales of personal handheld devices. Although eTech recognizes that it is a niche player and will likely remain so in the foreseeable future, it is trying to increase its current small market share in this huge competitive market. Jim Simons, VP of Production, and Catherine Dolans, VP of Marketing, have been discussing the possible addition of a new product to the companys current (rather limited) product line. The tentative name for this new product is ePlayerX. Jim and Catherine agree that the ePlayerX, which will feature a sleeker design and more memory, is necessary to compete successfully with the big boys, but they are also worried that the ePlayerX could cannibalize sales of their existing productsand that it could even detract from their bottom line. They must eventually decide how much to spend to develop and manufacture the ePlayerX and how aggressively to market it. Depending on these decisions, they must forecast demand for the ePlayerX, as well as sales for their existing products. They also realize that Apple. Samsung, and the other big players are not standing still. These competitors could introduce their own new products, which could have very negative effects on demand for the ePlayerX. The expected timeline for the ePlayerX is that development will take no more than a year to complete and that the product will be introduced in the market a year from now. Jim and Catherine are aware that there are lots of decisions to make and lots of uncertainties involved, but they need to start somewhere. To this end. Jim and Catherine have decided to base their decisions on a planning horizon of four years, including the development year. They realize that the personal handheld device market is very fluid, with updates to existing products occurring almost continuously. However, they believe they can include such considerations into their cost, revenue, and demand estimates, and that a four-year planning horizon makes sense. In addition, they have identified the following problem parameters. (In this first pass, all distinctions are binary: low-end or high-end, small-effect or large-effect, and so on.) In the absence of cannibalization, the sales of existing eTech products are expected to produce year I net revenues of 10 million, and the forecast of the annual increase in net revenues is 2%. The ePIayerX will be developed as either a low-end or a high-end product, with corresponding fixed development costs (1.5 million or 2.5 million), variable manufacturing costs ( 100 or 200). and selling prices (150 or 300). The fixed development cost is incurred now, at the beginning of year I, and the variable cost and selling price are assumed to remain constant throughout the planning horizon. The new product will be marketed either mildly aggressively or very aggressively, with corresponding costs. The costs of a mildly aggressive marketing campaign are 1.5 million in year 1 and 0.5 million annually in years 2 to 4. For a very aggressive campaign, these costs increase to 3.5 million and 1.5 million, respectively. (These marketing costs are not part of the variable cost mentioned in the previous bullet; they are separate.) Depending on whether the ePlayerX is a low-end or high-end produce the level of the ePlayerXs cannibalization rate of existing eTech products will be either low (10%) or high (20%). Each cannibalization rate affects only sales of existing products in years 2 to 4, not year I sales. For example, if the cannibalization rate is 10%, then sales of existing products in each of years 2 to 4 will be 10% below their projected values without cannibalization. A base case forecast of demand for the ePlayerX is that in its first year on the market, year 2, demand will be for 100,000 units, and then demand will increase by 5% annually in years 3 and 4. This base forecast is based on a low-end version of the ePlayerX and mildly aggressive marketing. It will be adjusted for a high-end will product, aggressive marketing, and competitor behavior. The adjustments with no competing product appear in Table 2.3. The adjustments with a competing product appear in Table 2.4. Each adjustment is to demand for the ePlayerX in each of years 2 to 4. For example, if the adjustment is 10%, then demand in each of years 2 to 4 will be 10% lower than it would have been in the base case. Demand and units sold are the samethat is, eTech will produce exactly what its customers demand so that no inventory or backorders will occur. Table 2.3 Demand Adjustments When No Competing Product Is Introduced Table 2.4 Demand Adjustments When a Competing Product Is Introduced Because Jim and Catherine are approaching the day when they will be sharing their plans with other company executives, they have asked you to prepare an Excel spreadsheet model that will answer the many what-if questions they expect to be asked. Specifically, they have asked you to do the following: You should enter all of the given data in an inputs section with clear labeling and appropriate number formatting. If you believe that any explanations are required, you can enter them in text boxes or cell comments. In this section and in the rest of the model, all monetary values (other than the variable cost and the selling price) should be expressed in millions of dollars, and all demands for the ePlayerX should be expressed in thousands of units. You should have a scenario section that contains a 0/1 variable for each of the binary options discussed here. For example, one of these should be 0 if the low-end product is chosen and it should be 1 if the high-end product is chosen. You should have a parameters section that contains the values of the various parameters listed in the case, depending on the values of the 0/1 variables in the previous bullet For example, the fixed development cost will be 1.5 million or 2.5 million depending on whether the 0/1 variable in the previous bullet is 0 or 1, and this can be calculated with a simple IF formula. You can decide how to implement the IF logic for the various parameters. You should have a cash flows section that calculates the annual cash flows for the four-year period. These cash flows include the net revenues from existing products, the marketing costs for ePlayerX, and the net revenues for sales of ePlayerX (To calculate these latter values, it will help to have a row for annual units sold of ePlayerX.) The cash flows should also include depreciation on the fixed development cost, calculated on a straight-line four-year basis (that is. 25% of the cost in each of the four years). Then, these annual revenues/costs should be summed for each year to get net cash flow before taxes, taxes should be calculated using a 32% tax rate, and taxes should be subtracted and depreciation should be added back in to get net cash flows after taxes. (The point is that depreciation is first subtracted, because it is not taxed, but then it is added back in after taxes have been calculated.) You should calculate the company's NPV for the four-year horizon using a discount rate of 10%. You can assume that the fixed development cost is incurred now. so that it is not discounted, and that all other costs and revenues are incurred at the ends of the respective years. You should accompany all of this with a line chart with three series: annual net revenues from existing products; annual marketing costs for ePlayerX; and annual net revenues from sales of ePlayerX. Once all of this is completed. Jim and Catherine will have a powerful tool for presentation purposes. By adjusting the 0/1 scenario variables, their audience will be able to see immediately, both numerically and graphically, the financial consequences of various scenarios.Although the normal distribution is a reasonable input distribution in many situations, it does have two potential drawbacks: (1) it allows negative values, even though they may be extremely improbable, and (2) it is a symmetric distribution. Many situations are modelled better with a distribution that allows only positive values and is skewed to the right. Two of these that have been used in many real applications are the gamma and lognormal distributions. @RISK enables you to generate observations from each of these distributions. The @RISK function for the gamma distribution is RISKGAMMA, and it takes two arguments, as in =RISKGAMMA(3,10). The first argument, which must be positive, determines the shape. The smaller it is, the more skewed the distribution is to the right; the larger it is, the more symmetric the distribution is. The second argument determines the scale, in the sense that the product of it and the first argument equals the mean of the distribution. (The mean in this example is 30.) Also, the product of the second argument and the square root of the first argument is the standard deviation of the distribution. (In this example, it is 3(10=17.32.) The @RISK function for the lognormal distribution is RISKLOGNORM. It has two arguments, as in =RISKLOGNORM(40,10). These arguments are the mean and standard deviation of the distribution. Rework Example 10.2 for the following demand distributions. Do the simulated outputs have any different qualitative properties with these skewed distributions than with the triangular distribution used in the example? a. Gamma distribution with parameters 2 and 85 b. Gamma distribution with parameters 5 and 35 c. Lognormal distribution with mean 170 and standard deviation 60