Suppose that because of air pollution concerns, Jansen might have to lower the Reid vapor pressure maximum on each gas type (by the same amount). Use SolverTable to explore how such a change would affect Jansen’s optimal revenue FeedstockAlkylateCCGSRGIsopentaneGallons available (1000s)140130140110Value per gallon$4.50$2.50$2.25$2.35Reid vapor pressure58420Octane (low TEL)988783101Octane (high TEL)1079389108ble 4.7Data on GasolineGasolineABCGallons required (1000s)120130120Price per gallon$3.00$3.50$4.00Max Reid pressure777Min octane9097100TEL levelLowHighHigh Note that each feedstock can have either a low or a high level of TEL, which stands for tetraethyl lead.This is measured in units of milliliters per gallon, so that a low level might be 0.5 and a high level mightbe 4.0. (For this problem, the actual numbers do not matter.) As indicated in Table 4.6, the TEL levelaffects only the octane rating, not the Reid vapor pressure. Also, gas A is always made with a low TELlevel, whereas gas types B and C are always made with a high TEL level.As indicated in Table 4.7, each gasoline has two requirements: a maximum allowable Reid vapor pressureand a minimum required octane rating. In addition to these requirements, the company wants to ensurethat the amount of gas A produced is at least as large as the amount of gas B produced.Dave believes that Jansen can sell all of the gasoline it produces at the given prices. If any feedstocks areleft over, they can be sold for the values indicated in Table 4.6. He wants to find a blending plan that meetsall the requirements and maximizes the revenue from selling gasoline and leftover feedstocks. To helpDave with this problem, you should develop an LP optimization model and then use Solver to find theoptimal blending plan. Then, using this model as a starting point, you should answer the followingquestions:

Given information, Data on feedback Feedback Alkylate CCG SRG Isopentane Gallons…

Suppose that because of air pollution concerns, Jansen might have to lower the Reid vapor pressure maximum on each gas type (by the same amount). Use SolverTable to explore how such a change would affect Jansen’s optimal revenue

Suppose that because of air pollution concerns, Jansen might have to lower the Reid vapor pressure maximum on each gas type (by the same amount). Use SolverTable to explore how such a change would affect Jansen’s optimal revenue

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter10: Introduction To Simulation Modeling

Section: Chapter Questions

Problem 56P: When you use a RISKSIMTABLE function for a decision variable, such as the order quantity in the...

See similar textbooks

Similar questions

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%.
A company manufacturers a product in the United States and sells it in England. The unit cost of manufacturing is 50. The current exchange rate (dollars per pound) is 1.221. The demand function, which indicates how many units the company can sell in England as a function of price (in pounds) is of the power type, with constant 27556759 and exponent 2.4. a. Develop a model for the companys profit (in dollars) as a function of the price it charges (in pounds). Then use a data table to find the profit-maximizing price to the nearest pound. b. If the exchange rate varies from its current value, does the profit-maximizing price increase or decrease? Does the maximum profit increase or decrease?
Integrated Products Corporation (IPC) needs to estimate its PC sales for next year.The most recent six years of revenue data for the company’s line of XT PersonalComputers, and those of the industry, is found in the table below:Year XT PC Sales Revenue($’000,000)All Industry PC Sales Revenue($’000,000,000)1 2.4 4.62 5.9 8.63 15.5 10.74 27.8 14.85 35.9 18.56 38.1 19.4Required:A. Assuming that the sales data above are representative of sales expected nextyear, use time series regression analysis to forecast next year’s sales revenues(there is no seasonal effect).B. Perform a regression analysis between the annual sales revenues of XTPersonal Computers and all industry PC annual sales revenues. What is theforecast for next year’s sales revenue for XT Personal Computers if the estimateof next year’s industry PC sales revenues is $21.9 billion? C. Advise management at Integrated Products Corporation (IPC) which of the twosales estimates from parts A and B above they should use. Justify your…
Integrated Products Corporation (IPC) needs to estimate its PC sales for next year.The most recent six years of revenue data for the company’s line of XT PersonalComputers, and those of the industry, is found in the table below:Year XT PC Sales Revenue($’000,000)All Industry PC Sales Revenue($’000,000,000)1 2.4 4.62 5.9 8.63 15.5 10.74 27.8 14.85 35.9 18.56 38.1 19.4Required:A. Assuming that the sales data above are representative of sales expected nextyear, use time series regression analysis to forecast next year’s sales revenues(there is no seasonal effect).B. Perform a regression analysis between the annual sales revenues of XTPersonal Computers and all industry PC annual sales revenues. What is theforecast for next year’s sales revenue for XT Personal Computers if the estimateof next year’s industry PC sales revenues is $21.9 billion?
Based on Carino and Lenoir (1988). BradyCorporation produces cabinets. Each week, Bradyrequires 90,000 cubic feet of processed lumber. Thecompany can obtain lumber in two ways. First, itcan purchase lumber from an outside supplier andthen dry it at the Brady kiln. Second, Brady canchop down trees on its land, cut them into lumber atits sawmill, and then dry the lumber at its kiln. Thecompany can purchase grade 1 or grade 2 lumber.Grade 1 lumber costs $3 per cubic foot and whendried yields 0.7 cubic foot of useful lumber. Grade 2lumber costs $7 per cubic foot and when dried yields0.9 cubic foot of useful lumber. It costs the company$3 to chop down a tree. After being cut and dried,a log yields 0.8 cubic feet of lumber. Brady incurscosts of $4 per cubic foot of lumber it dries. It costs$2.50 per cubic foot of logs sent through the sawmill.Each week, the sawmill can process up to 35,000cubic feet of lumber. Each week, up to 40,000 cubicfeet of grade 1 lumber and up to 60,000 cubic feetof…
Chris LeBlanc estimates that if he does five hours of research using datathat will cost $175, there is a good chance that he can improve hisexpected return on a $10,000, one-year investment from 6% to 9%. Chrisfeels that he must earn at least $30 per hour on the time he devotes to hisresearch.a. Find the cost of Chris’s research.b. By how much (in dollars) will Chris’s return increase as a result ofthe research?c. On a strict economic basis, should Chris perform the proposed reserach?
4. Spears Rowbuck has recorded the following sales figures. Calculate the seasonal indices for Thursday and Friday. Week 1 Week 2 Week 3 Week 4 Monday 43 51 40 66.0 Tuesday 45 41 57 58.6 Wednesday 22 37 30 34.7 Thursday 25 22 33 36.7 Friday 31 25 37 25.0 a. Thursday = 29.18, Friday = 29.50 b. Thursday = 0.2074, Friday = 1.1632 c. None of the other options. d. Thursday = 0.7678, Friday = 0.7763 e. Thursday = 0.6142, Friday = 0.6211
XYZ Corporation manufactures two products, Simple and Complex. The following annual information was gathered: Simple Complex Selling price per unit P47.00 P26.00 Variable cost per unit 42.00 22.00 Total annual fixed costs are P18,000. Assume XYZ Corporation can produce and sell any mix of Simple or Complex at full capacity. It takes one hour to make one unit of Complex. However, Simple takes 50% longer to manufacture when compared to Complex. Only 120,000 hours of plant capacity are available. How many units of Simple and Complex should XYZ Corporation produce and sell in a year to maximize profits?
Struggling with answering this question A manufacturer produces three types of humidifiers. The retail price of Humidifier Regular (HR) is $60 with variable costs of $20. Humidifier Advanced (HA) sells for $200 for its advanced features. This model’s variable costs are $80. Humidifier Simple (HS) is a simplified version and only sells for $25 with variable costs of $15. The manufacturer has machines and facilities worth $320,000 annually. The sales data show that 1000 units of HR, 2000 units of HA, and 10,000 units of HS was sold last year. Calculate the break-even point of the firm. The firm has some idle capacity at these volumes and chooses to cut the selling price of HR from $60 to $45, believing that its sales volume will rise from 1000 units to 2500 units. What is the revised break-even point?
3. As an owner of a restaurant known as Ryuichi House, you have decided to break down the salesof the club into four categories, the first category is beverages. Your estimate of beverages salesis that 30,000 drinks will be served. The selling price for each unit will average 60Php; cost is30Php. The second category is meals, which you expect to be 10,000 units with an average priceof 400Php and a cost of 200Php. The third category is desserts, of which you also expect to sell10,000 units but with an average price of 100Php per unit sold and cost of 40Php per unit. Thefinal category is snacks, which you expect to total 20,000 units at an average price of 250Php witha cost of 130Php. You will also expense 72,000Php for rent, 8,000Php for utilities, and 80,000Phpfor the entertainment.a. How much is the total sales?b. What is your break-even point in pesos per month?
Clippers Inc. (CI) manufactures two types of garden clippers. A light-duty model, called the “half-inch,”is intended for clipping branches and stems up to one-half inch thick. The “one-inch” model is designedfor heavier stems and branches. To boost sales, CI decided at the beginning of the current year to reducethe price of the half-inch model to better position its price relative to some key competitors. On the otherhand, CI felt that the one-inch model was technically superior to competitors’ models and decided that asmall price increase was appropriate. The data for the current and prior year are as follows:Current Year Prior YearSales units 7,200 6,500Sales mix for each productHalf-inch model 50% 30%One-inch model 50% 70%PriceHalf-inch model $12.00 $14.00One-inch model $36.00 $32.00Variable cost per unitHalf-inch model $6.00 $6.00One-inch model $8.00 $8.00Fixed cost $35,000 $35,000Required1. Prepare a comparative contribution income statement for CI for the current year that shows…
The cost data for Evencoat Paint for the year 2019 is as follows: Month Gallons ofPaintProduced EquipmentMaintenanceExpenses January 110,000 $70,700 February 68,000 66,800 March 71,000 67,000 April 77,000 68,100 May 95,000 69,200 June 101,000 70,300 July 125,000 70,400 August 95,000 68,900 September 95,000 69,500 October 89,000 68,600 November 128,000 72,800 December 122,000 71,450 A. Using the high-low method, express the company’s maintenance costs as an equation where x represents the gallons of paint produced. Then estimate the fixed and variable costs. Fixed cost $ Variable cost $