The Lake Sharkey BBQ Pit serves slow cooked beef brisket by the pound. Based on historical sales during the Labor Day weekend, management has forecasted brisket sales in pounds as shown in the following table. Lake Sharkey spends $14 to produce each pound of brisket for which it charges $23 per pound. Any unsold brisket at the end of the weekend is ground into chili which sells for $12 per pound. How many pounds of brisket should The Lake Sharkey BBQ Pit prepare for sale this Labor Day?Demand in pounds Probability500 0.101000 0.401500 0.302000 0.152500 0.05

The Lake Sharkey BBQ Pit serves slow cooked beef brisket by the pound. Based on historical sales during the Labor Day weekend, management has forecasted brisket sales in pounds as shown in the following table. Lake Sharkey spends $14 to produce each pound of brisket for which it charges $23 per pound. Any unsold brisket at the end of the weekend is ground into chili which sells for $12 per pound. How many pounds of brisket should The Lake Sharkey BBQ Pit prepare for sale this Labor Day?Demand in pounds Probability500 0.101000 0.401500 0.302000 0.152500 0.05

Name: The Lake Sharkey BBQ Pit serves slow cooked beef brisket by the pound.
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Description: The Lake Sharkey BBQ Pit serves slow cooked beef brisket by the pound. Based on historical sales during the Labor Day weekend, management has forecasted brisket sales in pounds as shown in the following table. Lake Sharkey spends $14 to produce each

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter11: Simulation Models

Section: Chapter Questions

Problem 63P: It costs a pharmaceutical company 75,000 to produce a 1000-pound batch of a drug. The average yield...

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Lemingtons is trying to determine how many Jean Hudson dresses to order for the spring season. Demand for the dresses is assumed to follow a normal distribution with mean 400 and standard deviation 100. The contract between Jean Hudson and Lemingtons works as follows. At the beginning of the season, Lemingtons reserves x units of capacity. Lemingtons must take delivery for at least 0.8x dresses and can, if desired, take delivery on up to x dresses. Each dress sells for 160 and Hudson charges 50 per dress. If Lemingtons does not take delivery on all x dresses, it owes Hudson a 5 penalty for each unit of reserved capacity that is unused. For example, if Lemingtons orders 450 dresses and demand is for 400 dresses, Lemingtons will receive 400 dresses and owe Jean 400(50) + 50(5). How many units of capacity should Lemingtons reserve to maximize its expected profit?
The Pigskin Company produces footballs. Pigskin must decide how many footballs to produce each month. The company has decided to use a six-month planning horizon. The forecasted monthly demands for the next six months are 10,000, 15,000, 30,000, 35,000, 25,000, and 10,000. Pigskin wants to meet these demands on time, knowing that it currently has 5000 footballs in inventory and that it can use a given months production to help meet the demand for that month. (For simplicity, we assume that production occurs during the month, and demand occurs at the end of the month.) During each month there is enough production capacity to produce up to 30,000 footballs, and there is enough storage capacity to store up to 10,000 footballs at the end of the month, after demand has occurred. The forecasted production costs per football for the next six months are 12.50, 12.55, 12.70, 12.80, 12.85, and 12.95, respectively. The holding cost incurred per football held in inventory at the end of any month is 5% of the production cost for that month. (This cost includes the cost of storage and also the cost of money tied up in inventory.) The selling price for footballs is not considered relevant to the production decision because Pigskin will satisfy all customer demand exactly when it occursat whatever the selling price is. Therefore. Pigskin wants to determine the production schedule that minimizes the total production and holding costs. Can you guess the results of a sensitivity analysis on the initial inventory in the Pigskin model? See if your guess is correct by using SolverTable and allowing the initial inventory to vary from 0 to 10,000 in increments of 1000. Keep track of the values in the decision variable cells and the objective cell.
The Pigskin Company produces footballs. Pigskin must decide how many footballs to produce each month. The company has decided to use a six-month planning horizon. The forecasted monthly demands for the next six months are 10,000, 15,000, 30,000, 35,000, 25,000, and 10,000. Pigskin wants to meet these demands on time, knowing that it currently has 5000 footballs in inventory and that it can use a given months production to help meet the demand for that month. (For simplicity, we assume that production occurs during the month, and demand occurs at the end of the month.) During each month there is enough production capacity to produce up to 30,000 footballs, and there is enough storage capacity to store up to 10,000 footballs at the end of the month, after demand has occurred. The forecasted production costs per football for the next six months are 12.50, 12.55, 12.70, 12.80, 12.85, and 12.95, respectively. The holding cost incurred per football held in inventory at the end of any month is 5% of the production cost for that month. (This cost includes the cost of storage and also the cost of money tied up in inventory.) The selling price for footballs is not considered relevant to the production decision because Pigskin will satisfy all customer demand exactly when it occursat whatever the selling price is. Therefore. Pigskin wants to determine the production schedule that minimizes the total production and holding costs. As indicated by the algebraic formulation of the Pigskin model, there is no real need to calculate inventory on hand after production and constrain it to be greater than or equal to demand. An alternative is to calculate ending inventory directly and constrain it to be nonnegative. Modify the current spreadsheet model to do this. (Delete rows 16 and 17, and calculate ending inventory appropriately. Then add an explicit non-negativity constraint on ending inventory.)
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It costs a pharmaceutical company 75,000 to produce a 1000-pound batch of a drug. The average yield from a batch is unknown but the best case is 90% yield (that is, 900 pounds of good drug will be produced), the most likely case is 85% yield, and the worst case is 70% yield. The annual demand for the drug is unknown, with the best case being 20,000 pounds, the most likely case 17,500 pounds, and the worst case 10,000 pounds. The drug sells for 125 per pound and leftover amounts of the drug can be sold for 30 per pound. To maximize annual expected profit, how many batches of the drug should the company produce? You can assume that it will produce the batches only once, before demand for the drug is known.
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%.
Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. The profit per night for each type of room and rental class is as follows: Rental Class Super Saver Deluxe Business Room Type I (Mountain View) $35 $40 - Type II (Street View) $15 $25 $35 Round Tree's management makes a forecast of the demand by rental class for each night in the future. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. The demand forecast for a particular night is 140 rentals in the Super Saver class, 65 in the Deluxe class, and 40 in the Business class. Since these are the forecasted demands, Round Tree will take no more than these amounts of each reservation for each rental class. Round Tree has a limited number of each type of room. There are 100 Type I rooms and 120 Type II rooms. (a) Formulate and solve a linear program to determine…
Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. The profit per night for each type of room and rental class is as follows: Rental Class Super Saver Deluxe Business Room Type I (Mountain View) $35 $40 - Type II (Street View) $15 $25 $35 Round Tree's management makes a forecast of the demand by rental class for each night in the future. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. The demand forecast for a particular night is 140 rentals in the Super Saver class, 65 in the Deluxe class, and 40 in the Business class. Since these are the forecasted demands, Round Tree will take no more than these amounts of each reservation for each rental class. Round Tree has a limited number of each type of room. There are 100 Type I rooms and 120 Type II rooms. (a) Formulate and solve a linear program to determine…
Double Tree Hilton is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. The profit per night for each type of room and rental class is as follows: Rental Class Super Saver Deluxe Business Room Type I $30 $35 $50 Type II $20 $30 $40 Double Tree's management makes a forecast of the demand by rental class for each night in the future. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class.The demand forecast for a particular night is 130 rentals in the Super Saver class, 60 in the Deluxe class, and 50 in the Business class. (These demands are the maximum numbers to accept for each rental class. The actual reservation may be less.) Double Tree has 100 Type I rooms and 130 Type II rooms. 1. Question text How many decision variables are there in your model? What is the maximum profits($)? What is the number of…
The Morton Supply Company Produces clothing, footwear, and accessories for dancing andgymnastics. They produce three models of pointe shoes used by ballerinas to balance on the tips of theirtoes. The shoes are produced from four materials: cardstock, satin, plain fabric, and leather. The numberof square inches of each type of material used in each model of shoe, the amount of material available,and the profit/model are shown below.Material(measured inSquareinches)Model1Model2Model3MaterialavailableCardstock 12 10 14 1200Satin 24 20 15 2000Plain Fabric 40 40 30 7500Leather 11 11 10 1000Profit permodel$50 $44 $40a. Identify the decision variables, objective function, and constraints in simple verbal statements.b. Mathematically formulate a linear optimization model.Implement the linear optimization model that you developed for the Morton Supply Company inProblem #1 on a spreadsheet and use Excel Solver to find an optimal solution. Interpret the Excel SolverAnswer Report and identify the…
The following table represents sales data for milk (in hundred liters) sold by a grocery. Do the computations to fill out the table and answer the following questions: Using MAD as the criterion, which of the following models would you use for the given time series data? Why? Naïve approach; 5-month SMA model; WMA model with weights 0.1, 0.3, and 0.6; or ES model with α = 0.5 and a forecast of 3,500 liters in the first month. NOTE: In answering Item 1, mention the whole description of the model; i.e., not just “SMA model”, but “SMA model with n = …”; not just “WMA model”, but “WMA model with weights …”; not just “ES model”, but “ES model with α = …”. Interpret the MAD of the most accurate among the forecasting models above. 3. Based on your decision in Item 1, what should be the forecast for Month 11?