The Aggies will host Tech in this year’s homecomingfootball game. Based on advance ticket sales, the athleticdepartment has forecast hot dog sales as shown in the fol-lowing table. The school buys premium hot dogs for $1.50and sells them during the game at $3.00 each. Hot dogs leftover after the game will be sold for $0.50 each to the Aggiestudent cafeteria, where they will be used in making hotdogcasserole.Sales Quantity Probability2,000 0.103,000 0.304,000 0.305,000 0.206,000 0.10Use a payoff matrix to determine the number of hot dogs tobuy for the game.

The Aggies will host Tech in this year’s homecomingfootball game. Based on advance ticket sales, the athleticdepartment has forecast hot dog sales as shown in the fol-lowing table. The school buys premium hot dogs for $1.50and sells them during the game at $3.00 each. Hot dogs leftover after the game will be sold for $0.50 each to the Aggiestudent cafeteria, where they will be used in making hotdogcasserole.Sales Quantity Probability2,000 0.103,000 0.304,000 0.305,000 0.206,000 0.10Use a payoff matrix to determine the number of hot dogs tobuy for the game.

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Description: The Aggies will host Tech in this year’s homecomingfootball game. Based on advance ticket sales, the athleticdepartment has forecast hot dog sales as shown in the fol-lowing table. The school buys premium hot dogs for $1.50and sells them during the g

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 46P

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Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon spawn during a 24-hour period and must be canned immediately. Tinkan has the following agreement with the salmon industry. The company can deliver as many cans as it chooses. Then the salmon are caught. For each can by which Tinkan falls short of the salmon industrys needs, the company pays the industry a 2 penalty. Cans cost Tinkan 1 to produce and are sold by Tinkan for 2 per can. If any cans are left over, they are returned to Tinkan and the company reimburses the industry 2 for each extra can. These extra cans are put in storage for next year. Each year a can is held in storage, a carrying cost equal to 20% of the cans production cost is incurred. It is well known that the number of salmon harvested during a year is strongly related to the number of salmon harvested the previous year. In fact, using past data, Tinkan estimates that the harvest size in year t, Ht (measured in the number of cans required), is related to the harvest size in the previous year, Ht1, by the equation Ht = Ht1et where et is normally distributed with mean 1.02 and standard deviation 0.10. Tinkan plans to use the following production strategy. For some value of x, it produces enough cans at the beginning of year t to bring its inventory up to x+Ht, where Ht is the predicted harvest size in year t. Then it delivers these cans to the salmon industry. For example, if it uses x = 100,000, the predicted harvest size is 500,000 cans, and 80,000 cans are already in inventory, then Tinkan produces and delivers 520,000 cans. Given that the harvest size for the previous year was 550,000 cans, use simulation to help Tinkan develop a production strategy that maximizes its expected profit over the next 20 years. Assume that the company begins year 1 with an initial inventory of 300,000 cans.
The Aggies will host Tech in this year’s homecoming football game. Based on advance ticket sales, the athletic department has forecast hot dog sales as shown in the following table. The school buys premium hot dogs for $1.50 and sells them during the game at $3.00 each. Hot dogs left over after the game will be sold for $0.50 each to the Aggie student cafeteria, where they will be used in making hotdog casserole.Sales Quantity Probability2,000 0.103,000 0.304,000 0.305,000 0.206,000 0.10Use a payoff matrix to determine the number of hot dogs to buy for the game.
Spring and Summer Fashions, a clothing producer, has generated a forecast for the next eight weeks.Demand is expected to be fairly steady, except for periods 3 and 4, which have higher demands.Period 1 2 3 4 5 6 7 8 TotalForecast 1,200 1,200 1,400 3,000 1,200 1,200 1,200 1,200 11,600The company typically hires seasonal workers to handle the extra workload in periods 3 and 4. Thecost for hiring and training a seasonal worker is $50 per worker, and the company plans to hire twoadditional workers and train them in period 3, for work in period 4, and then lay them off (no cost forlayoff). Develop an aggregate plan that uses steady output from regular workers with added outputfrom the two seasonal workers in period 4. The output rate for the seasonal workers is slightly lessthan that of regular workers, so their cost per unit is higher. The cost per unit for regular workers is$4 per unit, while cost per unit for the seasonal workers is $5 per unit. Backlog cost is $1 per unitper period.
Always Rain Irrigation, Inc., would like to determine capacity requirements for the next four years to make three types of bronze sprinklers: 90-degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. Management has forecast demand for the next 4 years as follows: Yearly Demand in 000's: Year 1, Year 2, Year 3, Year 4: Bronze 90: 7, 8, 9, 10 Bronze 190: 3, 4, 5, 6 Bronze 360: 11, 12, 15, 18 The machines needed for the bronze sprinklers require two operators, and can produce up to 12,000 sprinklers. Three bronze machines and only one injection molding machine are available. What are the capacity requirements for the next four years, assume that there is no learning? Capacity: Year 1, Year 2, Year 3, Year 4: Demand for bronze sprinklers: Percentage of capacity used: Machine requirements: Labor requirements:
Comfort Plus Inc. (CPI) manufactures a standard dining chair used in restaurants. The demand forecasts for quarter 1 (January–March) and quarter 2 (April–June) are 3700 chairs and 4200 chairs, respectively. CPI has a policy of satisfying all demand in the quarter in which it occurs. The chair contains an upholstered seat that can be produced by CPI or purchased from DAP, a subcontractor. DAP currently charges $12.50 per seat, but has announced a new price of $13.75, effective April 1. CPI can produce the seat at a cost of $10.25. CPI can produce up to 3800 seats per quarter. Seats that are produced or purchased in quarter 1 and used to satisfy demand in quarter 2 cost CPI $1.50 each to hold in inventory, but maximum inventory cannot exceed 300 seats. Define the decision variables needed to model this problem. Give the objection function. Write the constraints. What is the final answer? Explain in detail.
Cotton Island Fashions, a clothing producer, has generated a forecast for the next eightweeks. Demand is expected to be fairly steady, except for periods 3 and 4, which havehigher demands.Month 1 2 3 4 5 6 7 8 TotalForecast 1200 1200 1400 3000 1200 1200 1200 1200 11600The company typically hires seasonal workers to handle the extra workload in periods 3and 4. The cost for hiring and training a seasonal worker is $50 per worker, and thecompany plans to hire two additional workers and train them in period 3, for work in period4, and then lay them off (no cost for layoff). Develop an aggregate plan that uses steadyoutput from regular workers with added output from the two seasonal workers in period 4.The output rate for the seasonal workers is slightly less than that of regular workers, sotheir cost per unit is higher. The cost per unit for regular workers is $4 per unit, while costper unit for the seasonal workers is $5 per unit. Backlog cost is $1 per unit per period.
The Paris Paint Company is in the process of planning labor force requirements and production levels for the next four quarters. The marketing department has provided production with the following forecasts of demand for Paris Paint over the next year:(given) Assume that there are currently 280 employees with the company. Employees are hired for at least one full quarter. Hiring costs amount to $1,200 per employee and firing costs are $2,500 per employee. Inventory costs are $1 per gallon per quarter. It is estimated that one worker produces 1,000 gallons of paint each quarter.Assume that Paris currently has 80,000 gallons of paint in inventory and would like to end the year with an inventory of at least 20,000 gallons.a. Determine the minimum constant workforce plan for Paris Paint and the cost of the plan. Assume that stock-outs are not allowed.b. If Paris were able to back-order excess demand at a cost of $2 per gallon per quarter, determine a minimum constant workforce plan that…
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A manager is attempting to put together an agregate plan for the coming nine months. She has obtained a forecast of expected demand for the planning horizon. The plan must deal with highly seasonal demand; demand is relatively high in periods 3 and 4 and again in period 8, as can be seen from the following forecast. Period 1 2 3 4 5 6 7 8 9 TotalForecast 190 230 260 280 210 170 160 260 180 1,940 The department now has 20 ful-time employees, each of whom produces 10 units of output per period at cost of $6 per unit. Beging inventory for period 1 is zero. Inventory carrying cost is $5 per unit per period, and backlog cost is $10 per unit per period. a. Will the current work force be able to handle the forecast demand? b. Determine the total cost of the plan, including production, inventory, and backorder cost.