Your Lego furniture company makes Tables and Chairs. Below, you are given the starting inventory, sellingprice, and Bill of Materials (recipe, or construction requirements). You are to determine the number ofTables and Chairs to be built to maximize revenue.Your answer will be the revenue generated by your production plan - rounded to the nearest whole dollar.(The number of tables and chairs may not be a whole number, which is acceptable in this chapter.)Use Scenario 3Large wood per TableSmall wood per TableLarge wood per ChairSmall wood per ChairRevenue per TableRevenue per ChairLarge wood inventorySmall wood inventoryScenario 13214$20$169588580Scenario 2424$22$169050Scenario 32233$19$199050Scenario 424341$18$2180130Scenario 55226$25$22200190

Let Table = T and Chair = C For scenrio 3 maximize revenue = 19 T + 19 C subject to 2T +…

Answered: Your Lego furniture company makes…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter7: Nonlinear Optimization Models

Section: Chapter Questions

Problem 49P: If a monopolist produces q units, she can charge 400 4q dollars per unit. The variable cost is 60...

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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%.
Rerun the new car simulation from Example 11.4, but now use the RISKSIMTABLE function appropriately to simulate discount rates of 5%, 7.5%, 10%, 12.5%, and 15%. Comment on how the outputs change as the discount rate decreases from the value used in the example, 10%.
In the cash balance model from Example 11.5, the timing is such that some receipts are delayed by one or two months, and the payments for materials and labor must be made a month in advance. Change the model so that all receipts are received immediately, and payments made this month for materials and labor are 80% of sales this month (not next month). The period of interest is again January through June. Rerun the simulation, and comment on any differences between your outputs and those from the example.
Your company orders packs of gums and, then, sells them to retailers. The profit you get from each pack is $5. The salvage loss is $3 for each pack, which is the amount you lose if you buy more than the demand. The following table shows the demand for the number of packs of gums over 300 days. For instance, you have 10 packs of gums demanded for 60 days (out of 300 days). Packs demanded 10 11 12 13 Number of days 60 90 120 30 Calculate your optimal order number for the packs of gums. What is the max amount to pay to know the certain demand?
Use excel for this problem A trust officer at the Blacksburg National Bank needs to determine how to invest $150,000 in the following collection of bonds to maximize the annual return. Bond Annual Return Maturity Risk Tax Free A 9.5% Long High Yes B 8.0% Short Low Yes C 9.0% Long Low No D 9.0% Long High Yes E 9.0% Short High No The officer wants to invest at least 40% of the money in short-term issues and no more than 20% in high-risk issues. At least 25% of the funds should go in tax-free investments, and at least 45% of the total annual return should be tax free. Formulate the LP model for this problem. Create the spreadsheet model and use Solver to solve the problem.
The operations manager of a mail order house purchases double (D) and twin (T) beds for resale. Each double bed costs $500 and requires 100 cubic feet of storage space. Each twin bed costs $300 and requires 90 cubic feet of storage space. The manager has $75,000 to invest in beds this week, and her warehouse has 18,000 cubic feet available for storage. Profit for each double bed is $300 and for each twin bed is $150. The manager’s goal is to maximize profits.What is the weekly profit when ordering the optimal amounts?
Tyler is hoping to get a lot of custom cake and cookie orders in his new bakery for various parties and celebrations. He considers keeping a stock of celebratory helium balloons in his bakery so that he can sell them alongside the cakes and cookies to add more value for his customers. However, he knows that the demand for custom goods as well as the balloons is like to be probabilistic in nature instead of deterministic. He is trying to create a model of how many balloons to order to keep in stock to minimize the costs of inventory in his little bakery. He identifies the following characteristics and needs your help in filling out the table given below the information. Ordering Cost is $14.00 per order Cost of balloons is $4.00 per balloon The bakery uses the 20% annual holding cost rate for all inventory The lead time for a new order of helium balloons is 14 days. Data from other bakeries indicate that the demand during the 14-day lead time follows a normal probability distribution…
Answer the following true or false.a. The lead time is always less than the cycle time.b. The optimal lot size for a Type 1 service objective of X percent is always less than the optimal lot size for a Type 2 service objective of X percent for the same item.c. The newsvendor model does not include a fixed order cost.d. ABC analysis ranks items according to the annual value of their demand.e. For a finite production rate model, the optimal lot size to produce each cycle is equal to the maximum inventory each cycle.
Finally, due to budget constraint, your inititial budget of $100,000 has been reduced to $75,000. SET YOUR CONSTRAINTS, DECIDE WHICH AREAS/TASKS BUDGET TO BE ADJUSTED AND USE EXCEL SOLVER TO CREATE YOUR FINAL BUDGET. Submit your plan and your reasoning behind the decisions and why your plan will make the event a success. Excel spreadsheet must show the distribution of your initial budget of $100,000 and your final budget of $75,000 with the constraints you set. Use the the excel spreadsheet image and show constraints.

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