EBK PRODUCTION AND OPERATIONS ANALYSIS
7th Edition
ISBN: 9781478628385
Author: Olsen
Publisher: WAVELAND PRESS (ECONTENT)
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 3.5, Problem 26P
A)
Summary Introduction
Interpretation: formulate linear program
Concept introduction: Linear Programming (LP) is a process to accomplish the best conclusion, such as highest profit or least cost in a Mathematical Model whose necessities are signified by linear relations.
B)
Summary Introduction
Interpretation: determine the cost of the plan and optimal solution.
Concept introduction: Linear Programming (LP) is a process to accomplish the best conclusion, such as highest profit or least cost in a Mathematical Model whose necessities are signified by linear relations.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
The distribution of daily demand for party cakes at a bakery is shown in the
following table:
Relative Frequency Demand
0.05
10
0.03
22
0.05
37
0.06
45
0.03
53
0.39
61
0.19
88
0.2
111
Determine the optimal number of cakes to make each day if labour and
material are estimated to cost $26.985 per unit. Cakes are sold for $38.55
per unit, and leftover cakes at the end of the day are sold next day at half
price.
O a. 45
O b. 88
Oc. 61
O d. 111
O e. 53
A local semiconductor firm, Superchip, is planning its workforce and production levels over the next year. The firm makes a variety of microprocessors and uses sales dollars as its aggregate production measure. Based on orders received and sales forecasts provided by the marketing department, the estimate of dollar sales for the next year by month is as follows: (given)
Inventory holding costs are based on a 25 percent annual interest charge. It is anticipated that there will be 675 workers on the payroll at the end of the current year and inventories will amount to $120,000. The firm would like to have at least $100,000 of inventory at the end of December next year. It is estimated that each worker accounts for an average of $60,000 of production per year (assume that one year consists of 250 working days). The cost of hiring a new worker is $200, and the cost of laying off a worker is $400.a. Formulate this as a linear program.b. Solve the problem. Round the variables in the…
The distribution of daily demand for party cakes at a bakery is shown in the following table:
Relative Frequency
Demand
0.08
18
0.02
21
0.02
34
0.04
43
0.07
56
0.38
67
0.12
87
0.27
114
Determine the optimal number of cakes to make each day if labour and material are estimated to cost $35.455 per unit. Cakes are sold for $50.65 per unit, and leftover cakes at the end of the day are sold next day at half price.
a. 114
b. 67
c. 87
d. 43
e. 56
Chapter 3 Solutions
EBK PRODUCTION AND OPERATIONS ANALYSIS
Ch. 3.1 - Prob. 1PCh. 3.1 - Prob. 2PCh. 3.1 - Prob. 3PCh. 3.1 - Prob. 4PCh. 3.1 - Prob. 5PCh. 3.1 - Prob. 6PCh. 3.2 - Prob. 7PCh. 3.2 - Prob. 8PCh. 3.2 - Prob. 9PCh. 3.2 - Prob. 10P
Ch. 3.2 - Prob. 11PCh. 3.2 - Prob. 12PCh. 3.3 - Prob. 13PCh. 3.3 - Prob. 14PCh. 3.3 - Prob. 15PCh. 3.3 - Prob. 16PCh. 3.4 - Prob. 17PCh. 3.4 - Prob. 18PCh. 3.4 - Prob. 19PCh. 3.4 - Prob. 20PCh. 3.4 - Prob. 21PCh. 3.4 - Prob. 22PCh. 3.4 - Prob. 23PCh. 3.5 - Prob. 26PCh. 3.5 - Prob. 27PCh. 3.6 - Prob. 29PCh. 3.6 - Prob. 30PCh. 3 - Prob. 31APCh. 3 - Prob. 32APCh. 3 - Prob. 33APCh. 3 - Prob. 34APCh. 3 - Prob. 35APCh. 3 - Prob. 36AP
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?arrow_forwardScenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?arrow_forwardComfort Plus Inc. (CPI) manufactures a standard dining chair used in restaurants. The demand forecasts for quarter 1 (January–March) and quarter 2 (April–June) are 3700 chairs and 4200 chairs, respectively. CPI has a policy of satisfying all demand in the quarter in which it occurs. The chair contains an upholstered seat that can be produced by CPI or purchased from DAP, a subcontractor. DAP currently charges $12.50 per seat, but has announced a new price of $13.75, effective April 1. CPI can produce the seat at a cost of $10.25. CPI can produce up to 3800 seats per quarter. Seats that are produced or purchased in quarter 1 and used to satisfy demand in quarter 2 cost CPI $1.50 each to hold in inventory, but maximum inventory cannot exceed 300 seats. Define the decision variables needed to model this problem. Give the objection function. Write the constraints. What is the final answer? Explain in detail.arrow_forward
- Mona PLC is a Zambian well-known company that sells goods locally within Zambia. The recently appointed Management Accountant of Mona PLC has been studying the working capital management of the company and has congregated the following information: Inventory management the current policy is to order 100,000 units when the inventory level reduces to 35,000 units. Prediction demand to meet production requirements during the next year is 625,000 units. The cost of placing and processing an order is K250, while the cost of holding a unit in stores is K0.50 per unit per year. Both costs are expected to be constant during the next year. Orders are received two weeks after being placed with the supplier. You should assume a 50- week year and that demand is constant throughout the year. Accounts receivable management Local customers are allowed 30 days’ credit, but the financial statements of Mona PLC shows that the average accounts receivables period in the last financial year was 75 days.…arrow_forwardThe ABC Company is making a production plan for the next year, given the sales forecast for the next year as: Quarter 1 2 3 4 Total Sales Forecast (units) 9,000 12,000 16,000 12,000 49,000 Currently, the firm has 12 employees, each producing up to 1,000 units per quarter and earning $2,000 per quarter. The firm estimates its inventory carrying cost to be $2 per unit of ending inventory per quarter and its hiring or layoff costs to be $1,600 per employee. The company currently has an inventory of 2,000 units and wishes to have an ending inventory of at least 1,000 units at the end of each quarter. The company does not plan to incur inventory shortages. Find the optimal production plan that minimizes the total cost by Excel solverarrow_forwardLake Grove Confectionaries (LGC) sells chocolates for the holiday season in specially designed boxes. The firm sells four designs, and currently, all packaging is done in the plant as chocolates are manufactured. All manufacturing and packaging for the holiday season are completed before the start of the season. The demand forecast for each of the four designs is normally distributed, with a mean m=10,000 and a standard deviation of s=6,000. Each box costs $15 and is sold for $30. Any unsold boxes are discounted by $9. The cost of holding a box in inventory is $1. What is the expected profit of this policy?arrow_forward
- Juicy-Juice Ltd. is planning to increase its juice supply for the fiscal year 2021 – 2022. With the expected increase in demand, it is projected that there is a need for additional space. Management must decide whether to rent a large building or construct a medium factory space. If they rent a large building and the demand is low, the net present value after deducting for building costs will be $230,000. If the demand is high, the company can continue using the old factory or rent an additional building to meet the current need. Renting an additional building would have a net present value of $301,000 and using the old factory would have a net present value of $530,000. The probability of high demand is 0.45 while the probability of low demand is 0.55. If a medium factory was constructed and the demand is high, the estimated net present value is $320, 000. If the demand is moderate, the net present value is $195, 000. If the demand turns out to be low, the net present value will be…arrow_forwardMaruti Suzuki plants at Gurgaon and Maneshar also manufacture the Nexa range of Cars. The production planning is done based on the sales estimate provided by the marketing department. The demand forecast for the next twelve months provided assumes normal distribution of Nexa Cars with mean monthly demand of 18000 and standard deviation 900. The production planning has targeted 600 Nexa cars assembly per day with standard deviation 30. One of the outsourced component used in the car is tyre, which is procured from the MRF Plant at Chennai at the rate of Rs. 3,500 per tyre. The ordering cost is Rs. 500,000 per order and it takes 5 days to receive the order. The holding cost is 10 % of the cost of item per annum. If you are the Purchase manager for the material planning of the outsourced components, determine the inventory management policy* to minimize the inventory cost in context of tyres. Assume 30 working days in a month. Suppose Bridgestone plant at Maneshar offers the next day…arrow_forwardSuzie’s Sweatshirts is a home-based company that makes upscale, hand-painted sweatshirts for children. Forecasts of sales for the next year are Autumn: 125 Winter: 350 Spring: 75 Each Shirt is sold for $15. The holding cost per shirt is 6% of the selling price per quarter. The shirts are painted by part-time workers who earn $4.50 per hour during the autumn. Because of the high demand for part-time help during the winter holiday season, labor rates are higher in the winter, and Suzie must pay the workers $6.00 per hour. In the spring, labor is more difficult to keep, and Suzie finds that she must pay $5.50 per hour to get qualified help. Each shirt takes 1.5 hours to complete. Formulate the problem to a LP model to help Suzie plan production over the three quarters to minimize the combined production and inventory holding cost. Suppose there is no inventory at the beginning of the autumn. (Note: You do not need to solve the model.)arrow_forward
- Eastman Publishing Company is considering publishing an electronic textbook on spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and Web site construction is estimated to be $160,000. Variable processing costs are estimated to be $6 per book. The publisher plans to sell access to the book for $46 each. a. Build a spreadsheet model to calculate the profit/loss for a given demand. What profit can be anticipated with a demand of 3500 copies? b. Use a data table to vary demand from 1000 to 6000 increments of 200 to assess the sensitivity of profit to demand. c. Use Goal Seek to determine the access price per copy that the publisher must charge to break even with a demand of 3500 copies.arrow_forwardA local semiconductor firm, Superchip, is planning its workforce and productionlevels over the next year. The firm makes a variety of microprocessors and usessales dollars as its aggregate production measure. Based on orders received and sales forecasts provided by the marketing department, the estimate of dollarsales for the next year by month is as follows:Production Predicted DemandMonth Days (in $10,000)January 22 340February 16 380March 21 220April 19 100May 23 490June 20 625July 24 375August 12 310September 19 175October 22 145November 20 120December 16 165Inventory holding costs are based on a 25 percent annual interest charge. It is anticipatedthat there will be 675 workers on the payroll at the end of the current year and inventorieswill amount to $120,000. The firm would like to have at least $100,000 of inventory at theend of December next year. It is estimated that each worker accounts for an average of$60,000 of production per year (assume that one year consists of 250…arrow_forwardeastman publishing company is considering publishing an electronic textbook on spreadsheet application for business. The fixed cost of manuscript preparation, textbook, design, and web site construction is estimated to be $160,000. Variable processing costs are estimated to be $6 per book. The publisher plans to sell access to the book for $46 each. a. build a spreadsheet model to calculate the profit/loss for a given demand. What profit can be anticipated with a demand of 3500 copies? b. use a one way data table to vary demand from 1000 to 6000 increments of 200 to assess the sensitivity of profit to demand. c. Use goal seek to determine the access price per copy that the publisher must charge to break even with a demand of 3500 copies d. make a recommendation that maximixesthe sales for eastman publishing companyarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY