Practical Management Science, Loose-leaf Version
5th Edition
ISBN: 9781305631540
Author: WINSTON, Wayne L.; Albright, S. Christian
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 4, Problem 131P
Summary Introduction
To explain: Whether most companies would find it easy to determine the cost of the product and the possible difficulties that might arise.
Linear programming:
It is a mathematical modeling procedure were a linear function is maximized or minimized subject to certain constraints. This method is widely useful in making a quantitative analysis which is essential for making important business decisions.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Read and analyze the following case:The sales manager complains that his sales reps are not meeting monthly sales quotas. He is convinced that the reps need more sales training to handle the situation and solve the problem. Therefore, he asks you to design a strategy to address this situation.
Iincludes the means that will be used and the resources that will be needed to carry out the program.How will the training be evaluated? How will your profitability (return on investment) be evaluated?
How does the presence of uncertainty affect the usefulness of the model?
Which of the following are important to investors evaluating direct participation programs?
I. The economic soundness of the program
II. The expertise of the general partner
III. The basic objectives of the program
IV. The start-up costs
A I, II, and IV
B I, II, and III
C I, II, III, and IV
D II, III, and IV
Chapter 4 Solutions
Practical Management Science, Loose-leaf Version
Ch. 4.2 - Prob. 1PCh. 4.2 - Prob. 2PCh. 4.2 - Prob. 3PCh. 4.2 - Prob. 4PCh. 4.2 - Prob. 5PCh. 4.2 - Prob. 6PCh. 4.3 - Prob. 7PCh. 4.3 - Prob. 8PCh. 4.3 - Prob. 9PCh. 4.3 - Prob. 10P
Ch. 4.3 - Prob. 11PCh. 4.3 - Prob. 12PCh. 4.4 - Prob. 13PCh. 4.4 - Prob. 14PCh. 4.4 - Prob. 15PCh. 4.4 - Prob. 16PCh. 4.4 - Prob. 17PCh. 4.4 - Prob. 18PCh. 4.4 - Prob. 19PCh. 4.5 - Prob. 20PCh. 4.5 - Prob. 21PCh. 4.5 - Prob. 22PCh. 4.5 - Prob. 23PCh. 4.5 - Prob. 24PCh. 4.5 - Prob. 25PCh. 4.6 - Prob. 26PCh. 4.6 - Prob. 27PCh. 4.6 - Prob. 28PCh. 4.6 - Prob. 29PCh. 4.7 - Prob. 30PCh. 4.7 - Prob. 31PCh. 4.7 - Prob. 32PCh. 4.7 - Prob. 33PCh. 4.7 - Prob. 34PCh. 4.7 - Prob. 35PCh. 4.7 - Prob. 36PCh. 4.7 - Prob. 37PCh. 4.7 - Prob. 38PCh. 4.7 - Prob. 39PCh. 4.7 - Prob. 40PCh. 4.8 - Prob. 41PCh. 4.8 - Prob. 42PCh. 4.8 - Prob. 43PCh. 4.8 - Prob. 44PCh. 4 - Prob. 45PCh. 4 - Prob. 46PCh. 4 - Prob. 47PCh. 4 - Prob. 48PCh. 4 - Prob. 49PCh. 4 - Prob. 50PCh. 4 - Prob. 51PCh. 4 - Prob. 52PCh. 4 - Prob. 53PCh. 4 - Prob. 54PCh. 4 - Prob. 55PCh. 4 - Prob. 56PCh. 4 - Prob. 57PCh. 4 - Prob. 58PCh. 4 - Prob. 59PCh. 4 - Prob. 60PCh. 4 - Prob. 61PCh. 4 - Prob. 62PCh. 4 - Prob. 63PCh. 4 - Prob. 64PCh. 4 - Prob. 65PCh. 4 - Prob. 66PCh. 4 - Prob. 67PCh. 4 - Prob. 68PCh. 4 - Prob. 69PCh. 4 - Prob. 70PCh. 4 - Prob. 71PCh. 4 - Prob. 72PCh. 4 - Prob. 73PCh. 4 - Prob. 74PCh. 4 - Prob. 75PCh. 4 - Prob. 76PCh. 4 - Prob. 77PCh. 4 - Prob. 78PCh. 4 - Prob. 79PCh. 4 - Prob. 80PCh. 4 - Prob. 81PCh. 4 - Prob. 82PCh. 4 - Prob. 83PCh. 4 - Prob. 84PCh. 4 - Prob. 85PCh. 4 - Prob. 86PCh. 4 - Prob. 87PCh. 4 - Prob. 88PCh. 4 - Prob. 89PCh. 4 - Prob. 90PCh. 4 - Prob. 91PCh. 4 - Prob. 92PCh. 4 - Prob. 93PCh. 4 - Prob. 94PCh. 4 - Prob. 95PCh. 4 - Prob. 96PCh. 4 - Prob. 97PCh. 4 - Prob. 98PCh. 4 - Prob. 99PCh. 4 - Prob. 100PCh. 4 - Prob. 101PCh. 4 - Prob. 102PCh. 4 - Prob. 103PCh. 4 - Prob. 104PCh. 4 - Prob. 105PCh. 4 - Prob. 106PCh. 4 - Prob. 107PCh. 4 - Prob. 108PCh. 4 - Prob. 109PCh. 4 - Prob. 110PCh. 4 - Prob. 111PCh. 4 - Prob. 112PCh. 4 - Prob. 113PCh. 4 - Prob. 114PCh. 4 - Prob. 115PCh. 4 - Prob. 116PCh. 4 - Prob. 117PCh. 4 - Prob. 118PCh. 4 - Prob. 119PCh. 4 - Prob. 120PCh. 4 - Prob. 121PCh. 4 - Prob. 122PCh. 4 - Prob. 123PCh. 4 - Prob. 124PCh. 4 - Prob. 125PCh. 4 - Prob. 126PCh. 4 - Prob. 127PCh. 4 - Prob. 128PCh. 4 - Prob. 129PCh. 4 - Prob. 130PCh. 4 - Prob. 131PCh. 4 - Prob. 132PCh. 4 - Prob. 133PCh. 4 - Prob. 134PCh. 4 - Prob. 135P
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
- Read the statements below and answer all the five questions that follow:Materials management includes the job of purchasing. In any industry, purchase refers to the acquisition of necessary equipment, materials, tools, and parts. The relevance of the buying function varies depending on the industry and its size. This duty is performed by the works manager in small businesses, and by a distinct department in major manufacturing companies. As soon as a purchaser places an order he/she commits a substantial portion of the finance of the corporation which affects the working capital and cash flow position. He/she is a highly responsible individual who interacts with many salespeople and can thus be deemed to have contributed to the company's public relations efforts. Source: https://businesstech.co.za/news/business/220551/these-are-the-5-biggest-retailers-in-south-africa/ You are managing the purchasing department at Walmart's Cambridge Foods in South Africa. Critically discuss the…arrow_forwardDS You are a fruit vendor in the Coronation Market in Kingston Jamaica. You are facing the decision to purchase 100, 120 or 130 bags of oranges for resale each week. However, you are not sure of the demand-per week. You also consider that you can move around the market, depending on the number of bags, selling for different prices you have and you can also sell surplus for a reduced price. The payoff table below gives the details of the possible profit for each of these combinations. What is the optimal decision, using the Maximin criterion? Payoff Table Profits($) Weekly Demand (State of Nature) Average Decision (Purchase) Below Robust Par 75000 90000 110000 50000 55000 100 Bags 120 Bags 130 Bags 65000 75000 45000 65000 Select one: O a. Purchase 100 bags (expected profit = $50,000) O b. Purchase 120 bags (expected profit = $65,000) O c. Purchase 130 bags (expected profit = $45,000) o d. Purchase 130 bags (expected profit = $65,000) 9:25 AM Ca ) ENG 12/16/2021 85°Farrow_forwardA television station may either extend a current television show for another season or develop a completely new show for that time slot. It will cost $6M to develop the new show. The new show may be very successful, moderately successful, or not successful with associated advertising revenues of $25M, $15M, or $5M, respectively. If the station chooses to extend the current show, it will cost $2M. The extended show may be very successful, moderately successful, or not successful with associated advertising revenues of $15M, $10M, or $5M, respectively. Which of the following are true? A. There are a total of six branches in the entire decision tree. B. There are eight leaves or terminal nodes in the entire decision tree. C. There is one event node in the decision tree. D. None of the abovearrow_forward
- After finishing your Bachelor of Accounting, you joined a multinational enterprise in 2007. During the last thirteen years in a multinational enterprise, you have performed various roles, including: Evaluating the systems development methodologies and the role of accountants in system development projects, and Appraising the risks inherent in the Enterprise Resource Planning and analysing the role of ethics and the various internal control processes that need to be in place. Recently, you joined a mid-size company for a senior role as a chief information officer. You are excited to perform this senior role. Mark (the head of your organisation) has decided to implement an Enterprise Resource Planning (ERP) system. Recently, Mark has met with a consulting ERP firm based on a friend's recommendation at his club. During a recent meeting, Mark introduced the chief consultant, charming, personable, and seemed very knowledgeable. The CEO's first instinct was to sign a contract with the…arrow_forwardMichael is the marketing executive of SHOPEE and he is planning to launch the 2.2.22 online SALE through price discounts, either 40% off or 20% off. He also learned that SHOPEE closest competitor LAZADA , is planning to promote also a 2.22.22 online SALE with price discounts , either 50% off or 30% off. If SHOPEE launches the 40% off, it will gain nothing. If LAZADA launches the 50% off or gain 8,000,000 if LAZADA launches the 30% off. If SHOPEE launches the 20% off, it will lose 2,000,000 if LAZADA launches the 50% off or lose 5,000,000 if LAZADA launches the 30% off. 1.Which strategy is dominated by SHOPEE depending on strategy of LAZADA? A. 50% OFF B. 40% OFF C. 20% OFF D. 30% OFF E. NONE 2.What should be the strategy of LAZADA? A. 50% OFF B. 40% OFF C. 30% OFF D. 20% OFFarrow_forwardDescribe how decision analysis is similar to and different from simulation analysis and scenario analysis (at least 75 words)arrow_forward
- I need 3 answersarrow_forwardDetermining Margin Potential Finding the maximum amount of profit you can generate from one unit of a product is called Margin Potential. This is useful for a company when making a decision about whether to go into production or not. In its simplest form, you can calculate Margin Potential as: Margin Potential = Maximum Price - Minimum Unit Costs Price Use the information table below to find the maximum price that customers deem acceptable. You can find this in the Customer Buying Criteria for each segment. Minimum Material Cost Calculate the minimum Material Cost per segment using the following equation and table below: Minimum Material Cost = [(Lowest Acceptable MTBF * 0.30) / 1000] + Trailing Edge Material Cost Minimum Labor Cost Calculate the minimum Labor Cost for each segment. Assume a base labor cost of $11.20 ($11.20 is a rough estimate of labor cost used solely to illustrate the Margin Potential Concept). Minimum Labor Cost = [$11.20 - (1.12 * Automation Ratings Below)] + 1.12…arrow_forwardImagine you have K 6.5 million at your disposal to invest in your various options of investments. However, you have no indication on how to effectively go about it and accordingly make a quality decision, but you have some indistinct ideas. One option available to you is to build a block of flats or invest this lump sum in undisclosed type of investments. You are also privy to the fact that building flats will yield the same returns if you invested in these other unrevealed investment options available over same life span [you will need to mention them in (d)]. Assuming in the economy you are domiciled in, the prevailing interest rates are pegged at 35 percent and to complete a block of flats it will take you 3 years, of which inflation is at 25 percent. Further you should note that other factors of investment are only varied in long run to increase your available lump sum of investment, which may be constrained by the rising inflation as time rolls on. 1. From your calculations and…arrow_forward
- Why is it important for a business to try to quantify the expected benefits of implementing a solution to a problem?arrow_forwardEstimating Costs in an Uncertain Environment Many companies face increasingly unpredictable costs and revenues as the recession affects demand for products and the costs of materials andlabor for these products. Revenues and costs have fluctuated significantly in recent years for suchcost elements as fuel, labor, commodities (agricultural commodities, metals, etc.), interest, and rentexpense, among others. Dealing with the increased fluctuations requires cost estimation methods thatare more sophisticated and more frequently updated. The result is that companies are including intheir cost estimation additional independent variables. Moreover, these companies are updating theirestimation models more frequently. For example, Southwest Airlines updates its revenue predictionmodel on a daily basis.Required Consider Southwest Airlines and the following six key areas of cost for the company. Which ofthese costs do you think the airline must update most frequently?1. Flight crew.2. Fuel…arrow_forwardA product manager at Clean & Brite (C&B) wants to determine whether her company should market a new brand of toothpaste. If this new product succeeds in the marketplace, C&B estimates that it could earn $1,800,000 in future profits from the sale of the new toothpaste. If this new product fails, however, the company expects that it could lose approximately $750,000. If C&B chooses not to market this new brand, the product manager believes that there would be little, if any, impact on the profits earned through sales of C&B’s other products. The manager has estimated that the new toothpaste brand will succeed with probability 0.50. Before making her decision regarding this toothpaste product, the manager can spend $75,000 on a market research study. Based on similar studies with past products, C&B believes that the study will predict a successful product, given that product would actually be a success, with probability 0.75. It also believes that the study will…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,