sThe company produces 30 tables in this year. The manager of the company wants to increase theproductivity by 20% in the next year. To achieve this goal, how many tables need to be producedin the next year?Accessibility: Investigate

Productivity is the relationship between the volume of the input and output that is calculated in…

Answered: The company produces 30 tables in this…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter7: Nonlinear Optimization Models

Section7.7: Portfolio Optimization Models

Problem 39P

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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.
You want to take out a 450,000 loan on a 20-year mortgage with end-of-month payments. The annual rate of interest is 3%. Twenty years from now, you will need to make a 50,000 ending balloon payment. Because you expect your income to increase, you want to structure the loan so at the beginning of each year, your monthly payments increase by 2%. a. Determine the amount of each years monthly payment. You should use a lookup table to look up each years monthly payment and to look up the year based on the month (e.g., month 13 is year 2, etc.). b. Suppose payment each month is to be the same, and there is no balloon payment. Show that the monthly payment you can calculate from your spreadsheet matches the value given by the Excel PMT function PMT(0.03/12,240, 450000,0,0).
The method for rating teams in Example 7.8 is based on actual and predicted point spreads. This method can be biased if some teams run up the score in a few games. An alternative possibility is to base the ratings only on wins and losses. For each game, you observe whether the home team wins. Then from the proposed ratings, you predict whether the home team will win. (You predict the home team will win if the home team advantage plus the home teams rating is greater than the visitor teams rating.) You want the ratings such that the number of predictions that match the actual outcomes is maximized. Try modeling this. Do you run into difficulties? (Remember that Solver doesnt like IF functions.) EXAMPLE 7.8 RATING NFL TEAMS9 We obtained the results of the 256 regular-season NFL games from the 2015 season (the 2016 season was still ongoing as we wrote this) and entered the data into a spreadsheet, shown at the bottom of Figure 7.38. See the file NFL Ratings Finished.xlsx. (Some of these results are hidden in Figure 7.38 to conserve space.) The teams are indexed 1 to 32, as shown at the top of the sheet. For example, team 1 is Arizona, team 2 is Atlanta, and so on. The first game entered (row 6) is team 19 New England versus team 25 Pittsburgh, played at New England. New England won the game by a score of 28 to 21, and the point spread (home team score minus visitor team score) is calculated in column J. A positive point spread in column J means that the home team won; a negative point spread indicates that the visiting team won. The goal is to determine a set of ratings for the 32 NFL teams that most accurately predicts the actual outcomes of the games played.
LINGO SOFTWARE Consider a production-mix problem where we are concerned with what mix of four products we should produce during the upcoming week. For each product, each unit produced requires a known amount of production time on each of the three machines. Each machine has a certain number of hours of production time available per week. Each product provides a certain profit per unit produced. Figure 3S1.2 shows three types of data: machine-related data, product-related data, and data related to combinations of a machine and product. The objective is to determine how much to produce for each product so that total profit is maximized while not exceeding the limited production capacity of each machine. Requirement: Solve this problem in LINGO software.
MacBurger has just opened a fast-food restaurant inBloomington. Currently, i0 customers frequent MacBurger(we call these loyal customers), and N i0 customers frequentother fast-food establishments (we call these nonloyalcustomers). At the beginning of each month, MacBurger mustdecide how much money to spend on advertising. At the endof a month in which MacBurger spends d dollars onadvertising, a fraction p(d) of the loyal customers becomenonloyal customers, and a fraction q(d) of the nonloyalcustomers become loyal customers. During the next 12months, MacBurger wants to spend D dollars on advertising.Develop a dynamic programming recursion that will enableMacBurger to maximize the number of loyal customers thecompany will have at the end of month 12. (Ignore thepossibility of a fractional number of loyal customers.)
A company that supplies gasoline to a city has recorded the weeklyusage (tons/week) for the past 3 years. The file BA3653GasolineRecord.xlsxcontains this record. (c) In general, the company delivers the demanded gasoline to customersthat store it in their own facilities. However, the company would like toobtain its own storage tanks to better handle variability. The companyhas identified several solutions: a 500 ton, a 1000 ton, a 2000 ton and a3000 ton system, with each tank being proportionately more expensiveas its size grows. Given your predictions and the expected variability,what size of tank would you choose?(d) Reaching the city is sometimes hazardous due to weather conditions.Even with these challenges, the company estimates that the most thatshipments to the city may be delayed is 1 week. Given this information,which tank choice (of those in part c) do you think would be appropriate? week demand (tons) 1 1174.5 2 1316.2 3 1197 4 1127.3 5 1193.1 6 1260.7 7…
A company has one machine which can be used to make product Alpha and product Beta. Each unit of product Alpha requires 45 minutes of machine time, while each unit of product Beta requires 37 minutes of machine time. The machine can be used for 8 hours per day and 5 days per week. Next week the company will produce 23 units of product Alpha. After completing the production of Alpha, the company will produce product Beta. How many units of product Beta can be produced next week? Use at least 4 decimals.You must showm your calculation steps and brief explanation on your Excel spreadsheets.
A Make-or-Buy DecisionTriple X Company manufactures and sells refrigerators. It makes some of the parts for the refrigerators and purchases others. The engineering department believes it might be possible to cut costs by manufacturing one of the parts currently being purchased for $8.25 each. The firm uses 100,000 of these parts each year. The accounting department compiles the following list of costs based on engineering estimates:Fixed costs will increase by $50,000.Labor costs will increase by $125,000.Factory overhead, currently running $500,000 per year, maybe expected to increase 12 percent.Raw materials used to make the part will cost $600,000.Given the preceding estimates, should Triple X make the part or continue to buy it?
Toby’s Trucking Company determined that the distance travelled per truck per year is normally distributed, with a mean of 50 thousand miles and a standard deviation of 12 thousand miles. What proportion of trucks can be expected to travel between 34 and 50 thousand miles in a year? What percentage of trucks can be expected to travel either less than 30 or more than 60 thousand miles in a year? How many miles will be travelled by at least eighty percent of the trucks
For a particular process, originally each 200 units of product manufactured yielded 180 conforming units, 9 units that must be scrapped, and the remaining units that must be reprocessed. Each scrapped unit results in a $30 loss and each reprocessed unit requires an extra 0.45 hours of processing time. The resource time of producing the original 200 units is 30 hours. As a result of a quality improvement program that was recently introduced, for each 200 units manufactured, the process now yields 190 conforming units, 4 unit to be scrapped, and the remaining units that must be reprocessed. Calculate the productivity (in units per hour) for the original process.
Please do not give solution in image format thanku A farmer in Wood County has 900 acres of land. She is going to plant each acre with corn, soybeans, or wheat. Each acre planted with corn yields a $2000 profit; each with soybeans yields a $2,500 profit; and each with wheat yields a $3,000 profit. She has 100 workers and 150 tons of fertilizer. The table below shows the requirement per acre of each of the crops. Assuming a linear relationship, use Excel Solver to determine the optimal planting mix of corn, soybeans, and wheat to maximize her profits. Corn Soybeans Wheat Labor(workers) 0.1 0.3 0.2 Fertilizer(tons) 0.2 0.1 0.4

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The company produces 30 tables in this year. The manager of the company wants to increase the productivity by 20% in the next year. To achieve this goal, how many tables need to be produced in the next year?