Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 3.6, Problem 5P
Summary Introduction
To determine: Is there any input values such that the resulting model has no feasible solution.
Introduction: In linear programming, the unbounded solution would occur when the objective function is infinite. If no solution satisfied the constraints, then it is said to be an unfeasible solution.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Samson Electronics assembles and then tests two models of notebook computers, FLEX and ION. For the coming month, the company wants to decide how many of each model to assemble and then test. No computers are in inventory from the previous month, and because the models are going to be changed after this month, the company doesn’t want to hold any inventory after this month. It believes the most it can sell this month are 600 FLEXs and 1,200 IONs. Each FLEX sells for $300 and each ION sells for $450. The cost of component parts for a FLEX is $150; for an ION it is $225. Labor is required for assembly and testing. There are at most 10,000 assembly hours and 3,000 testing hours available. Each labor hour for assembling costs $11 and each labor hour for testing costs $15. Each FLEX requires five hours for assembling and one hour for testing, and each ION requires six hours for assembling and two hours for testing. Samson Electronics want to know how many of each model it should produce…
A firm knows that the price of the product it is ordering is going to increase permanently by X dollars. It wants to know how much of theproduct it should order before the price increase goes into effect. Here is one approach to this problem. Suppose the firm places one order for Q units before the price increase goes into effect.a. What extra holding cost is incurred by ordering Q units now?b. How much in purchasing costs is saved by ordering Q units now?c. What value of Q maximizes purchasing cost savings less extra holding costs?d. Suppose that the annual demand is 1000 units, the holding cost per unit per year is $7.50, and the price of the item is going to increase by $10. How large an order should the firm place before the price increase goes intoeffect?
Consider a firm that knows that the price of the productit is ordering is going to increase permanently by $X. Howmuch of the product should be ordered before the priceincrease goes into effect?Here is one approach to this question: Suppose the firmorders Q units before the price increase goes into effect.a What extra holding cost is incurred by ordering Qunits now?b How much in purchasing costs is saved by orderingQ units now?c What value of Q maximizes purchasing cost savingsless extra holding costs?d Suppose that annual demand is 1,000 units, holdingcost per unit-year is $7.50, and the price of the item isgoing to increase by $10. How large an order should beplaced before the price increase goes into effect?
Chapter 3 Solutions
Practical Management Science
Ch. 3.6 - Prob. 1PCh. 3.6 - Prob. 2PCh. 3.6 - Prob. 3PCh. 3.6 - Prob. 4PCh. 3.6 - Prob. 5PCh. 3.6 - Prob. 6PCh. 3.6 - Prob. 7PCh. 3.6 - Prob. 8PCh. 3.6 - Prob. 9PCh. 3.7 - Prob. 10P
Ch. 3.7 - Prob. 11PCh. 3.7 - Prob. 12PCh. 3.7 - Prob. 13PCh. 3.7 - Prob. 14PCh. 3.7 - Prob. 15PCh. 3.7 - Prob. 16PCh. 3.7 - Prob. 17PCh. 3.8 - The Pigskin Company produces footballs. Pigskin...Ch. 3.8 - The Pigskin Company produces footballs. Pigskin...Ch. 3.8 - The Pigskin Company produces footballs. Pigskin...Ch. 3.8 - Prob. 21PCh. 3.8 - Prob. 22PCh. 3.8 - Prob. 23PCh. 3.8 - Prob. 24PCh. 3 - Prob. 25PCh. 3 - Prob. 26PCh. 3 - Prob. 27PCh. 3 - Prob. 28PCh. 3 - Prob. 29PCh. 3 - Prob. 30PCh. 3 - Prob. 31PCh. 3 - Prob. 32PCh. 3 - Prob. 33PCh. 3 - Prob. 34PCh. 3 - Prob. 35PCh. 3 - Prob. 36PCh. 3 - Prob. 37PCh. 3 - Prob. 38PCh. 3 - Prob. 39PCh. 3 - Prob. 40PCh. 3 - Prob. 41PCh. 3 - Prob. 42PCh. 3 - Prob. 43PCh. 3 - Prob. 44PCh. 3 - Prob. 45PCh. 3 - Prob. 46PCh. 3 - Prob. 47PCh. 3 - Prob. 48PCh. 3 - Prob. 49PCh. 3 - Prob. 50PCh. 3 - Prob. 51PCh. 3 - Prob. 52PCh. 3 - Prob. 1C
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
- Cindy and Mindy were in the same student group while studying for their MBA atUTD. They graduated together but started working as inventory managers in different but competingretailers selling air conditioners in Dallas. While in school, they learned only the economic orderquantity model for finding the optimal order sizes. Now they are both purchasing air conditionersfrom Trane to sell at their stores. Cindy knows that the order setup cost with Trane is $200 and theannual inventory holding cost is $400. Cindy expects that Mindy has the same cost figures. Cindyhas accidentally learned that Mindy is ordering 10 air conditions every time she orders. Show howCindy can use this information to deduce the demand Mindy faces. Explain why would competitorsway want to know each other’s demandarrow_forwardRocky Mountain Tire Centre sells 20,000 tires of a particular type per year. The ordering cost for each order is $40, and the holding cost is 20% of the purchase price of the tires per year. The purchase price is $20. per tire if fewer than 500 tires are ordered, $18. Per tire if more than 500 but fewer than 1,000 tires are ordered and $17. per tire if 1,000 or more tires are ordered. Quantity Unit Price 1-499 $20. 500-999 $18. 1000 & over $17 Based on available information, lead time demand for CD-ROM drives averages 50 units (normally distributed), with a standard deviation of 5 drives. Management wants a 97% service level. What value of Z should be applied? How many drives should be carried as safety stock?arrow_forwardA local finance company quotes a 16 percent interest rate onone-year loans. So, if you borrow $26,000, the interest for the year will be $4,160. Because you must repay a total of $30,160 in one year, the finance company requiresyou to pay $30,160y12, or $2,513.33, per month over the next 12 months. Is this a15 percent loan? What rate would legally have to be quoted? What is the effectiveannual rate?arrow_forward
- Use dynamic programming to solve 0-1 knapsack problem in which the knapsack can hold up to 13kg with the following items: Item Weight (kg) Value 1 3 12 2 5 25 3 7 50arrow_forwardA company faces an annual demand for 80,000 silk shirts. The holding cost is $1.60 per shirt & year, & the cost of placing one order is $1,000. In which one shirt costs $20. Suppose that our supplier offers a 1% discount if we were to order at least 30,000 shirts. Assuming that the holding costs are 8% of the purchase price, should we take this offer?arrow_forwardAmazon sells X units (X= 2017056) of consumerelectronics from Samsung every year. Each unit costs $120 and Amazon hasa holding cost of 20 percent. The fixed clerical and transportation cost foreach order Amazon places with Samsung is $4,000. What is the optimal sizeof the order that Amazon should place with Samsung? What is the totalannual cost incurred by Amazon for optimal lot size. With the goal ofreducing inventories, Amazon would like to reduce the size of each order itplaces with Samsung to 2,000 units .How much should it reduce the fixed costper order for an order of 2,000 units to be optimal?arrow_forward
- Sodaco is considering producing a new product:Chocovan soda. Sodaco estimates that the annual demandfor Chocovan, D (in thousands of cases), has the followingmass function: P(D 30) .30, P(D 50) .40,P(D 80) .30. Each case of Chocovan sells for $5 andincurs a variable cost of $3. It costs $800,000 to build aplant to produce Chocovan. Assume that if $1 is receivedevery year (forever), this is equivalent to receiving $10 atthe present time. Considering the reward for each action andstate of the world to be in terms of net present value, useeach decision criterion of this section to determine whetherSodaco should build the plant.arrow_forwardIn Problem 12 of the previous section, suppose that the demand for cars is normally distributed with mean 100 and standard deviation 15. Use @RISK to determine the best order quantityin this case, the one with the largest mean profit. Using the statistics and/or graphs from @RISK, discuss whether this order quantity would be considered best by the car dealer. (The point is that a decision maker can use more than just mean profit in making a decision.)arrow_forwardA hospital orders its thermometers from a hospitalsupply firm. The cost per thermometer depends on the ordersize q, as shown in Table 6. The annual holding cost is 25%of the purchasing cost. Let EOQ80 be the EOQ if the costper thermometer is 80¢, and let EOQ79 be the EOQ if thecost per thermometer is 79¢.a Explain why EOQ79 will be larger than EOQ80. b Explain why the optimal order quantity must be ei-ther EOQ79, EOQ80, or 100. c If EOQ80 100, show that the optimal order quan-tity must be EOQ79. d If EOQ80 100 and EOQ79 100, show that theoptimal order quantity must be either EOQ80 or 100.e If EOQ80 100 and EOQ79 100, show that the optimal order quantity must be EOQ79.arrow_forward
arrow_back_ios
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,