Concept explainers
Case summary:
CC Company develops two kinds of kitchen and bathroom cabinets. There are two variants of cabinets:one is a variation of a standard design and is made to order, another is a low-priced line and is made to stock.
The company has been in business for many years and is doing well. The meeting was about the financial status of the company. The meeting was aimed at addressing the operational inefficiency.
To determine:If additional wood is to be purchased. If so, how much is needed.
Linear programming:
Linear programming is a mathematical modeling method where a linear function is maximized or minimized taking the various constraints present in the problem into consideration. It is useful in making quantitative decisions in business planning.
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OPERATIONS MANAGEMENT W/ CNCT+
- 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%.arrow_forwardCalvin Butterball is chief of operations for the Fly-by-Night Aircraft Corp. He is responsible for the manufacturing of the company's two models of planes: The parrot and the eagle. Each department of the company has restrictions concerning the number of planes, which can be manufactures each day. No more than 7 eagles and no more than 11 parrots can be manufactured per day. No more than 12 total planes total can be shipped per day. The number of eagles manufactures must be no more than twice the number of parrots manufactured each day. You much use more than 1000 hours of labor per day; it takes 100 man-hours to manufacture each parrot and 200 man-hours to manufacture each eagle. Fly-by-Night makes a profit of $300 per parrot and $200 per eagle. How many eagles and how many parrots should e produced per day to give the greatest feasible profit and to determine the profit?arrow_forwardThe Big Bang Novelty Company (BBNC) makes 3 types of noise?makers: Toot, Wheet, and Honk. A Toot can be made in 30 minutes and has a feather attached to it. A Wheet requires 20 minutes, has two feathers, and is sprinkled with 0.5 ounces of sequin powder. The Honk requires 30 minutes, three feathers, and 1 ounce of sequin powder. The unit profits are $0.45 per Toot, $0.55 per Wheet, and $0.70 per Honk. The following resources are available: 80 hours of labor, 360 feathers, and 90 ounces of sequin powder. BBNC would like to maximize the overall profit from the noise-makers. (a) Write the linear programming model. Express labor time in minutes in LP formulationb) Solve using Excel Solver. How much of the resources (labor, feathers, and sequin powder) will be used by the optimal solution? If the availability of labor increases by 10 hours, what is the optimal total profit? If the unit profit of Wheet is actually only $0.30 instead of $0.55, will this change the solution? How many of each…arrow_forward
- Friendly Waste Co. runs three different factories and is required by law to safely dispose of chemicals. Waste from three different factories can be processed to reduce the amount of two different types of pollutants. State law requires that the total reduction in the amount of pollutant A is at least 30 tons and pollutant B is at least 40 tons. Using the information in the following table: Factory Proc Cost Per Ton Reduction Plant A Reduction Plant B 1 15 0.1 0.45 2 10 0.2 0.25 3 20 0.4 0.3 •Algebraically formulate a linear programming model to represent this problem.arrow_forwardRMC, Inc., is a small firm that produces a variety of chemical products. In a particular production process, three raw materials are blended (mixed together) to produce two products: a fuel additive and a solvent base. Each ton of fuel additive is a mixture of 25 ton of material 1 and 35 of material 3. A ton of solvent base is a mixture of 12 ton of material 1, 15 ton of material 2, and 310 ton of material 3. After deducting relevant costs, the profit contribution is $40 for every ton of fuel additive produced and $30 for every ton of solvent base produced. RMC’s production is constrained by a limited availability of the three raw materials. For the current production period, RMC has available the following quantities of each raw material: RAW MATERIAL Amount Available for Production Material 1 20 Tons Material 2 5…arrow_forwardDon't use chatgpt, I will 5 upvotes Alan wants to bake blueberry muffins and bran muffins for the school bake sale. For a tray of blueberry muffins, Alan uses 1/3 cup of oil and 2 eggs. For a tray of bran muffins, Alan uses 1/2 cup of oil and 1 egg. Alan has 4 cups of oil and 12 eggs on hand. He sells trays of blueberry muffins for $12 each and trays of bran muffins for $9 each. Alan wants to maximize the money raised at the bake sale. Let x represent the number of blueberry muffins and y represent the number of bran muffins Alan bakes.arrow_forward
- RMC, Inc., is a small firm that produces a variety of chemical products. In a particular production process, three raw materials are blended (mixed together) to produce two products: a fuel additive and a solvent base. Each ton of fuel additive is a mixture of 2/5 ton of material 1 and 3/5 of material 3. A ton of solvent base is a mixture of 1/2 ton of material 1, 1/5 ton of material 2, and 3/10 ton of material 3. After deducting relevant costs, the profit contribution is $40 for every ton of fuel additive produced and $30 for every ton of solvent base produced.RMC’s production is constrained by a limited availability of the three raw materials. For the current production period, RMC has available the following quantities of each raw material:Raw Material Amount Available for ProductionMaterial 1 20 tonsMaterial 2 5 tonsMaterial 3 21 tonsAssuming that RMC is interested in maximizing the total profit contribution, answer the following:i. Compute the value of the objective function…arrow_forwardRMC, Inc., is a small firm that produces a variety of chemical products. In a particular production process, three raw materials are blended (mixed together) to produce two products: a fuel additive and a solvent base. Each ton of fuel additive is a mixture of 2/5 ton of material 1 and 3/5 of material 3. A ton of solvent base is a mixture of 1/2 ton of material 1, 1/5 ton of material 2, and 3/10 ton of material 3. After deducting relevant costs, the profit contribution is $40 for every ton of fuel additive produced and $30 for every ton of solvent base produced.RMC’s production is constrained by a limited availability of the three raw materials. For the current production period, RMC has available the following quantities of each raw material:Raw Material Amount Available for ProductionMaterial 1 20 tonsMaterial 2 5 tonsMaterial 3 21 tonsAssuming that RMC is interested in maximizing the total profit contribution, answer the following:a. What is the linear programming model for this…arrow_forward2. A canning company produces two sizes of cans—regular and large. The cans are produced in 10,000-can lots. The cans are processed through a stamping operation and a coating operation. The company has 30 days available for both stamping and coating. A lot of regular-size cans require 2 days to stamp and 4 days to coat, whereas a lot of large cans requires 4 days to stamp and 2 days to coat. A lot of regular-size cans earn $800 profit, and a lot of large-size cans earn $900 profit. In order to fulfill its obligations under a shipping contract, the company must produce at least nine lots. The company wants to determine the number of lots to produce of each size can (and) in order to maximize profit. 8. In Problem 2, how much flour and sugar will be left unused if the optimal numbers of cakes and Danish are baked?arrow_forward
- Although the problems say solve graphically, please solve all problems using the QM for Windows software or solve manually. B.6 The Christina Alvarez Company manufactures two lines of designer yard gates, called model A and model B. Every gate requires blending a certain amount of steel and zinc, the company has available a total of 25.000 Ib of steel and 6,000 lb of zinc. Each model A gate requires a mixture of 125 Ib of steel and 20 lb of zinc, and each yields a profit of 590. Each model B gate requires 100 1b of steel and 30 ib of zinc and can be sold for a profit of $70. Find by graphical IP the best production mix of yard gates.arrow_forwardBarlow Company manufactures three products—A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow: Product A B C Selling price $ 180 $ 270 $ 240 Variable expenses: Direct materials 24 80 32 Other variable expenses 102 90 148 Total variable expenses 126 170 180 Contribution margin $ 54 $ 100 $ 60 Contribution margin ratio 30 % 37 % 25 % The same raw material is used in all three products. Barlow Company has only 6,000 pounds of raw material on hand and will not be able to obtain any more of it for several weeks due to a strike in its supplier’s plant. Management is trying to decide which product(s) to concentrate on next week in filling its backlog of orders. The material costs $8 per pound. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2.…arrow_forwardMr Sng is a retiree in his late sixties. He has $100,000 to invest. He has no regular source of income and no other assets. He is evaluating between 3 different lump-sum financial products shown in Table 3. All products require a minimum investment sum of $100,000. Monetary returns represent the net gain after one year of investing in the product. For example, if Mr Sng chose to invest in Product B, he may lose $5,000 after one year if the GDP growth is negative. He will earn $8,000 if the GDP growth exceeds 2% at the end of the year. If you were in the shoes of Mr Sng, how would you select the appropriate investment product for a time horizon of one year? (i) Use the Optimistic, Conservative and Regrets payoff analysis approaches. State which product(s) Mr Sng should invest in and what monetary return he can expect from each approach (ii) As you have only enough funds for one product, identify the most appropriate investment product. [Hint: Be sure to consider the…arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,