Spreadsheet Modeling and Decision Analysis: A Practical Introduction to Business Analytics
7th Edition
ISBN: 9781285418681
Author: Cliff Ragsdale
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 2, Problem 13QP
a)
Summary Introduction
To formulate: An LP model for the problem.
b)
Summary Introduction
To sketch: The feasible region for the problem.
c)
Summary Introduction
To calculate: The optimal solution.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Tom is a habitual shopper at garage sales. Last Saturday he stopped at one where there were several types of used building materials for sale. At the low prices being asked, Tom knew that he could resell the items in another town for a substantial gain. Four things stood in his way: he could only make one round trip to resell the goods; his pickup truck bed would hold only 1200 pounds; the pickup truck bed could hold at most 80 cubic feet of merchandise; and he had only $190 cash with him. He wants to load his truck with the mix of materials that will yield the greatest profit when he resells them. Formulate (define objective function and constraints) and solve this problem (using excel solver) as a linear program.
Which of the following properties of vNM utilities most particularly prevent us from using them in a utilitarian Bergson-Samuelson social welfare function?
We can re-scale vNM utilities by adding or subtracting any constant.
A vNM utility of zero has no particular significance.
The distinction between "positive" and "negative" vNM utilities has no particular significance.
We can re-scale vNM utilities by multiplying by any positive constant.
A mixture of pellets is to be made containing x regular pellets, y large pellets and z extra large
pellets. Cost, weight and volume data for each type of pellet are shown in the table. Is it possible
to make mixture of 55 pellets at a cost of $0.85 if the mixture is to have 120 weight units and 130
volume units? If so, how many each type of pellet should be in the mixture?
Pellet Type
5.
Number of
Cost per Pellet in
Cents
Weight
Units per Pellet
Volume
Pellets
Units per Pellet
Regular
Large
Extra large
2
1
4
y
1
4
3
Chapter 2 Solutions
Spreadsheet Modeling and Decision Analysis: A Practical Introduction to Business Analytics
Ch. 2 - Prob. 1QPCh. 2 - Prob. 2QPCh. 2 - Prob. 3QPCh. 2 - Prob. 4QPCh. 2 - Prob. 5QPCh. 2 - Prob. 6QPCh. 2 - Prob. 7QPCh. 2 - Prob. 8QPCh. 2 - Prob. 9QPCh. 2 - Prob. 10QP
Ch. 2 - Prob. 11QPCh. 2 - Prob. 12QPCh. 2 - Prob. 13QPCh. 2 - Prob. 14QPCh. 2 - Prob. 15QPCh. 2 - Prob. 16QPCh. 2 - Prob. 17QPCh. 2 - Prob. 18QPCh. 2 - Prob. 19QPCh. 2 - Prob. 20QPCh. 2 - Prob. 21QPCh. 2 - Prob. 22QPCh. 2 - Prob. 23QPCh. 2 - Prob. 24QPCh. 2 - Prob. 25QPCh. 2 - American Auto is evaluating their marketing plan...Ch. 2 - Prob. 1.1CCh. 2 - Prob. 1.2CCh. 2 - Prob. 1.3CCh. 2 - Prob. 1.4CCh. 2 - Prob. 1.5CCh. 2 - Prob. 1.6CCh. 2 - Prob. 1.7CCh. 2 - Prob. 1.8CCh. 2 - Prob. 1.9CCh. 2 - For the Lines They Are a-Changin (with apologies...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, management and related others by exploring similar questions and additional content below.Similar questions
- Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand will grow at 5% a year. If the company builds a plant that can produce x units of Wozac per year, it will cost 16x. Each unit of Wozac is sold for 3. Each unit of Wozac produced incurs a variable production cost of 0.20. It costs 0.40 per year to operate a unit of capacity. Determine how large a Wozac plant the company should build to maximize its expected profit over the next 10 years.arrow_forwardClippers Inc. (CI) manufactures two types of garden clippers. A light-duty model, called the “half-inch,”is intended for clipping branches and stems up to one-half inch thick. The “one-inch” model is designedfor heavier stems and branches. To boost sales, CI decided at the beginning of the current year to reducethe price of the half-inch model to better position its price relative to some key competitors. On the otherhand, CI felt that the one-inch model was technically superior to competitors’ models and decided that asmall price increase was appropriate. The data for the current and prior year are as follows:Current Year Prior YearSales units 7,200 6,500Sales mix for each productHalf-inch model 50% 30%One-inch model 50% 70%PriceHalf-inch model $12.00 $14.00One-inch model $36.00 $32.00Variable cost per unitHalf-inch model $6.00 $6.00One-inch model $8.00 $8.00Fixed cost $35,000 $35,000Required1. Prepare a comparative contribution income statement for CI for the current year that shows…arrow_forward4) The making of rivet holes in structural steel members can be done by 2 methods. The first method consists of laying out the position of the holes in the members and using a drill press costing P100k. The machinist is paid P60 per hour and he can drill 80 holes per hour. The second method makes use of a multiple-punch machine costing P80k. The punch operator is paid P40 an hour and he can punch out 1 hole for 3 seconds. This method also requires an expense of P1.25 per hole to set the machine. (a) if all other costs are assumed equal, what is the total cost for each machine for 10k holes, assuming the total cost of each machine to be charged to these holes? (b) for how many holes will the costs be equal?arrow_forward
- A retail store sold in the month of April 5,000 products that produced $45,000 in sales. In the month of May the company sold 6,000 products. The store workforce consists of four full-time workers who work 40-hour week. In April the store also had seven part-time workers at 10 hours per week, and in May the store had nine part-timers at 15 hours per week (assume four weeks in each month). Using sales dollars as the measure of output (assume the price of the product was the same for both months), what is the percentage change in labor productivity from April to May? Answer: 2.arrow_forwardA company makes parts that cost $35.00 in material and labor. 92% of the parts are produced defect free and are sold for full price at $110 each. 2% of the parts made must be scrapped. Scrap parts are sold for $8.00 each. The remaining 6% of the parts made must be reworked at a cost of $12.00 each. After rework 1% still must be scrapped and the other 5% is sold at a discounted price of $90 each. a. Draw the tree diagram showing the quality cost situation. b. Determine the earnings per part. c. Determine the cost of poor quality (COPQ). d. Determine the earnings per part and COPQ if the rework operation was shut down and the parts that required reworking were just sold for scrap instead.arrow_forwardA machine part to be fabricated may be made from alloy of either of two metals. There is an order for 10,000 units. Metal A costs 3 pesos per kg, while Metal B costs 9 pesos per kg. If Metal A is used, the material per unit weighs 110 grams; for metal B, 30 grams. When metal A is used, 50 units can be produced per hour; for metal B, 80 units per hour. Metal B fabrication requires the aid of a tool costing P1,000, which will be useless after the 10,000 units are finished. The machine operator's wage is P50 per hour. If all other costs are identical, determine which material will be more economical to finish the 10,000-unit order. How much is the total cost difference between the use of metal A and metal B?arrow_forward
- Bill is trying to determine how many units of two types of telephones to produce each day. One of these is the standard, while the other is the deluxe. The profit per unit on the standard is $50, while the profit per unit on the deluxe is $60. Each model requires 30 minutes of assembly time. The standard requires 10 minutes of inspection time and the deluxe requires 15 minutes of inspection time. There are 450 minutes of assembly time and 180 minutes of inspection time available each day. How many of each product should be manufactured to maximize profits? Standard Phones Deluxe Phones Time Available (X1) (X2) Assembly 30 30 450 Inspection 10 15 180 Profit $50 $60 Which of the following graphs best describes the solution using this data?arrow_forward2.28 A foundry produces castings to order. An order for 20 special castings has been re- ceived. Since the casting process is highly variable, not all castings produced are good. The cost of producing each casting is $550; the additional cost of finishing a good casting is $125. If a casting is not good, it is recycled at a value of $75; excess good castings are not finished but are recycled at a value of $75. The customer has agreed to accept 15, 16, 17, 18, 19, or 20 castings at a price of $1250 each. If fewer than 15 good castings are produced, none will be purchased by the customer. Prob- ability distributions for the number of good castings produced in a batch of varying sizes are given below. How many castings should be scheduled in order to maximize expected profit? #Good Castings 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 79 2 PRODUCT, PROCESS, AND SCHEDULE DESIGN Number of Castings Scheduled 15 16 17 0.05 0.00 0.00 0.00 0.00 0.00 0.05 0.05 0.00…arrow_forwardThere is an upstream Picking department that feeds two downstream Packing departments: Pack Singles and Pack Multis. Those Packing departments feed to a Shipping department that loads the outgoing trucks. 40% of your Pick volume goes to Pack Singles and has a packing rate of 104 units per labor hour (uph). 60% of the Pick volume goes to Pack Multis and has a pack rate of 215 units per labor hour. Your pickers pick both Single and Multi items throughout the day at an overall average rate of 114 units per labor hour. All units that are packed in both processes go through the Ship process at a rate of 570 units per hour. You have 102 people today for all 4 departments and you absolutely must pack 47,880 units in Pack Multis Items to meet a customer promise metric. How do you allocate labor to balance the flow in your department if you work a 10 hour shift? Do not assume breaks or lunches in your answer. Redirect 1: You now need to process all of the Pack Singles Volume in the first 5…arrow_forward
- Richard has been a highly regarded employee of the Brier Corporation for almost 20 years. Her loyalty to the company is reflected in her dedication to her job as general accounting clerk from which she has not taken a vacation in almost 12 years. Because of her dedication and long tenure, she has acquired many related responsibilities, which has allowed the Brier Corp to reduce its work force through attrition, control salary expenses and become more efficient and competitive. The following describes Richard’s responsibilities. Richard receives copies of credit sales orders from the sales department. From these documents she accesses the AR subsidiary ledger from her office computer and records the AR. She then records the sale in the sales journal and posts the transactions to the general ledger accounts. Cash receipts in payment of customer AR come directly to her office. She records the cash receipts in the GL cash and AR accounts and updates the AR subsidiary ledger. She then…arrow_forwardAt a small but growing airport, the local airline company is purchasing a new tractor for a tractor-trailer train to bring luggage to and from the airplanes. A new mechanized luggage system will be installed in 3 years, so the tractor will not be needed after that. However, because it will receive heavy use, so that the running and maintenance costs will increase rapidly as the tractor ages, it may still be more economical to replace the tractor after 1 or 2 years. The following table gives the total net discounted cost associated with purchasing a tractor (purchase price minus trade-in allowance, plus running and maintenance costs) at the end of year i and trading it in at the end of year j (where year O is now). i 012 1 $13,000 j 2 $28,000 $17,000 3 $48,000 $33,000 $20,000 The problem is to determine at what times (if any) the tractor should be replaced to minimize the total cost for the tractors over 3 years. (a) Formulate this problem as a minimum cost flow problem by showing the…arrow_forwardAt a small but growing airport, the local airline company is purchasing a new tractor for a tractor-trailer train to bring luggage to and from the airplanes. A new mechanized luggage system will be installed in 3 years, so the tractor will not be needed after that. However, because it will receive heavy use, so that the running and maintenance costs will increase rapidly as the tractor ages, it may still be more economical to replace the tractor after 1 or 2 years. The following table gives the total net discounted cost associated with purchasing a tractor (purchase price minus trade-in allowance, plus running and maintenance costs) at the end of year i and trading it in at the end of year j (where year O is now). i B 012 1 $13,000 j 2 $28,000 $17,000 3 $48,000 $33,000 $20,000 The problem is to determine at what times (if any) the tractor should be replaced to minimize the total cost for the tractors over 3 years. (a) Formulate this problem as a shortest-path problem by drawing a…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,