Problem 3Your company has decided to purchase new desk chairs for its 30 employees after discoveringthey have a budget surplus. The table below gives both the unit price of a chair, as well as theminimum number of chairs that must be purchased to qualify for that price.ABсDUnit price500450300425Min. order172010a. How can the company minimize the cost of buying everyone new chairs?b. If in addition to the unit cost per chair, each supplier applies a fixed shipping charge, fs,how the model change?

Every company works hard in order to minimize its costs and increase its revenue. Cost refers to the…

Answered: Problem 3 Your company has decided to…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter5: Network Models

Section: Chapter Questions

Problem 80P

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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%.
This problem is based on Motorolas online method for choosing suppliers. Suppose Motorola solicits bids from five suppliers for eight products. The list price for each product and the quantity of each product that Motorola needs to purchase during the next year are listed in the file P06_93.xlsx. Each supplier has submitted the percentage discount it will offer on each product. These percentages are also listed in the file. For example, supplier 1 offers a 7% discount on product 1 and a 30% discount on product 2. The following considerations also apply: There is an administrative cost of 5000 associated with setting up a suppliers account. For example, if Motorola uses three suppliers, it incurs an administrative cost of 15,000. To ensure reliability, no supplier can supply more than 80% of Motorolas demand for any product. A supplier must supply an integer amount of each product it supplies. Develop a linear integer model to help Motorola minimize the sum of its purchase and administrative costs.
Another way to derive a demand function is to break the market into segments and identify a low price, a medium price, and a high price. For each of these prices and market segments, we ask company experts to estimate product demand. Then we use Excels trend curve fitting capabilities to fit a quadratic function that represents that segments demand function. Finally, we add the segment demand curves to derive an aggregate demand curve. Try this procedure for pricing a candy bar. Assume the candy bar costs 0.55 to produce. The company plans to charge between 1.10 and 1.50 for this candy bar. Its marketing department estimates the demands shown in the file P07_47.xlsx (in thousands) in the three regions of the country where the candy bar will be sold. What is the profit-maximizing price, assuming that the same price will be charged in all three regions?
Solve Problem 1 with the extra assumption that the investments can be grouped naturally as follows: 14, 58, 912, 1316, and 1720. a. Find the optimal investments when at most one investment from each group can be selected. b. Find the optimal investments when at least one investment from each group must be selected. (If the budget isnt large enough to permit this, increase the budget to a larger value.)
Using Excel Solve the following LP Maximize $4x + $5y Subject to 2x + 3y ≤ 20 (labor, in hours) 6x + 6y ≤ 36 (materials, in pounds) 4x + 4y ≤ 40 (storage, in square feet) x, y ≥ 0 a) Write the original optimal solution and objective function value. b) What is the optimal solution and objective function value if you acquire 2 additional pounds of material? c) What is the optimal solution and objective function value if you acquire 1.5 additional hours of labor?
I will need the excel "solver" solution to be able to solve. #4) Solve the following LP Maximize $5x + $6y Subject to 2x + 3y ≤ 10 (labor, in hours) 6x + 6y ≤ 36 (materials, in pounds) 7x + 5y ≤ 40 (storage, in square feet) x, y ≥ 0 a) Write the original optimal solution and objective function value. b) What is the optimal solution and objective function value if you acquire 2 additional pounds of material? c) What is the optimal solution and objective function value if you acquire 1.5 additional hours of labor? d) What is the optimal solution and objective function value if you give up 1 hour of labor and get 1.5 pounds of material? e) What is the optimal solution and objective function value if you introduce a new product that has a profit contribution of $2? Each unit of this product will use 1 hour of labor, 1 pound of material, and 2 square feet of storage space.
The board of directors of General Wheels Company is considering seven large capital investments. Each investment can be made only once. These investments differ in the estimated long-run profit (net present value) that they will generate as well as in the amount of capital required, as shown by the following table. Investment Opportunity 1 2 3 4 5 6 7 Estimated Profit ($million) 17 10 15 19 7 13 9 Capital Required for Investment Opportunity ($million) Capital Available ($million) 1 2 3 4 5 6 7 Capital 43 28 34 48 17 32 23 100 The total amount of capital available for these investments is $100 million. Investment opportunities 1 and 2 are mutually exclusive, and so are 3 and 4. Furthermore, neither 3 nor 4 can be undertaken unless one of the first two opportunities is undertaken. There are no such restrictions on investment opportunities 5, 6, and 7. The objective is to select the combination of capital investments that will maximize the total estimated long-run…
Please use excel for this problem A furniture manufacturer produces two types of tables – country and contemporary – using three types of machines. The time required to produce the tables on each machine is given in the following table: Machine Country Contemporary Total Machine Time Available Per Week Router 3.5 4.0 1,000 Sander 4.5 6.5 2,000 Polisher 3.0 2.0 1,500 Country tables sell for $395 and contemporary tables sell for $515. Management has determined that at least 25% of the tables made should be country and at least 38% should be contemporary. How many of each type of table should the company manufacture if it wants to maximize its revenue? Formulate an LP model for this problem Create the spreadsheet model and use Solver to solve the problem.
1. Maribel is selling regular and special juices. To make a bottle of regularjuice, she needs 2 pounds of mango and 3 pounds of pineapple. On theother hand, 4 pounds of mango and 2 pounds of pineapple are needed tomake a bottle of special juice. A profit of P30 is made for a bottle of regularjuice and P40 for a bottle of special juice. Maribel is currently has 800pounds of mango and 480 pounds of pineapple. She wants to make at least180 bottles of special juice. How many bottles of each type of juice mustshe make to maximize her profit? How much will be her maximum profit? 2. A calculator company produces a scientific calculator and a graphingcalculator. Long-term projections indicate an expected demand of atleast 100 scientific and 80 graphing calculators each day. Because oflimitations on production capacity, no more than 200 scientificand 170 graphing calculators can be made daily. To satisfy a shippingcontract, a total of at least 200 calculators much be shipped each day. Ifeach…
1. True/FalseA company wants to hire 4 vendors for the sale of 4 products, they could only sell one type of product. The following table (image) indicates what each seller charges for selling each of the products. The company wants to assign each seller a product, find all possible optimal assignments by pinpointing their optimal cost. answer the following:a) It is an allocation model T() F()b) It is not a transportation model T() F()c) The model is not balanced T() F()d) The problem has exactly 24 feasible points T() F()

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