Concept explainers
a)
To determine: The way to maximize the profit.
Linear programming:
It is a mathematical modeling procedure where 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.
b)
To determine: The price of the raw material after which the company will stop buying raw material.
Linear programming:
It is a mathematical modeling procedure where 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.
Trending nowThis is a popular solution!
Chapter 4 Solutions
Practical Management Science, Loose-leaf Version
- 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_forwardJCL Inc. is a major chip manufacturing firm that sells its products to computer manufacturers like Dell, Gateway, and others. In simplified terms, chip making at JCL Inc. involves three basic operations: depositing, patterning, and etching. Depositing: Using chemical vapor deposition (CVD) technology, an insulating material is deposited on the wafer surface, forming a thin layer of solid material on the chip. Patterning: Photolithography projects a microscopic circuit pattern on the wafer surface, which has a light-sensitive chemical like the emulsion on photographic film. It is repeated many times as each layer of the chip is built. Etching: Etching removes selected material from the chip surface to create the device structures. The table below lists the required processing times and setup times at each of the steps. There is unlimited space for buffer inventory between these steps. Assume that the unit of production is a wafer, from which individual chips are cut at a later…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
- A manufacturing cell makes three models of a product – AKC1011, BC0001, and AC0102. The daily demand for the three products are as follows: 200 of AKC1011, 500 BC0001, and 300 of AC0102. Develop a balanced mixed-model sequence that should be repeated throughout the day in order to meet demand.arrow_forwardA manufacturing plant produces a product 'A' that requires one unit of 'B' and ½ unit of 'C'. Each unit of 'B' is comprised of one unit of 'D', two units of 'E', and one unit of 'F'. Each unit of 'C' requires ½ unit of 'G' and three units of 'H'. The manufacturing lead times for the components are as follows: 'A' - two weeks, 'B' - one week, 'C' - two weeks, 'D' - two weeks, 'E' - three weeks, 'F' - one week, 'G' - two weeks, 'H' - one week. There are 20 units in stock for each of these components. 100 units of 'A' are needed for delivery in seven weeks: a) Develop the product structure and indexed bill of materials for the product. b) Create a gross and net requirements plan for the manufacturer of the product.arrow_forwardRoedel Electronics produces tablet computer accessories, including integrated keyboard tablet stands that connect a keyboard to a tablet device and hold the device at a preferred angle for easy viewing and typing. Roedel produces two different sizes of integrated keyboard tablet stands, small and large. Each size uses the same keyboard attachment, but the stand consists of two different pieces, a top flap and a vertical stand that differ by size. Thus, a completed integrated keyboard tablet stand consists of three subassemblies that are manufactured by Roedel: a keyboard, a top flap and a vertical stand. Roedel's sales forecast indicates that 7,000 small integrated keyboard tablet stands and 5,000 large integrated keyboard tablet stands will be needed to satisfy demand during the upcoming Christmas season. Because only 500 hours of in-house manufacturing time are available, Roedel is considering purchasing some, or all, of the subassemblies from outside suppliers. If Roedel…arrow_forward
- Roedel Electronics produces tablet computer accessories, including integrated keyboard tablet stands that connect a keyboard to a tablet device and hold the device at a preferred angle for easy viewing and typing. Roedel produces two different sizes of integrated keyboard tablet stands, small and large. Each size uses the same keyboard attachment, but the stand consists of two different pieces, a top flap and a vertical stand that differ by size. Thus, a completed integrated keyboard tablet stand consists of three subassemblies that are manufactured by Roedel: a keyboard, a top flap and a vertical stand. Roedel's sales forecast indicates that 7,000 small integrated keyboard tablet stands and 5,000 large integrated keyboard tablet stands will be needed to satisfy demand during the upcoming Christmas season. Because only 500 hours of in-house manufacturing time are available, Roedel is considering purchasing some, or all, of the subassemblies from outside suppliers. If Roedel…arrow_forwardRoedel Electronics produces tablet computer accessories, including integrated keyboard tablet stands that connect a keyboard to a tablet device and hold the device at a preferred angle for easy viewing and typing. Roedel produces two different sizes of integrated keyboard tablet stands, small and large. Each size uses the same keyboard attachment, but the stand consists of two different pieces, a top flap and a vertical stand that differ by size. Thus, a completed integrated keyboard tablet stand consists of three subassemblies that are manufactured by Roedel: a keyboard, a top flap and a vertical stand. Roedel's sales forecast indicates that 7,000 small integrated keyboard tablet stands and 5,000 large integrated keyboard tablet stands will be needed to satisfy demand during the upcoming Christmas season. Because only 500 hours of in-house manufacturing time are available, Roedel is considering purchasing some, or all, of the subassemblies from outside suppliers. If Roedel…arrow_forwardMachine A costs Rs 45,000 and its operating costs are estimated to be Rs 1,000 for the first year increasing by Rs 10,000 per year in the second and subsequent years.Machine B costs Rs 50,000 and operating costs are Rs 2,000 for the first year, increasing by Rs 4,000 in the second and subsequent years.If at present we have a machine of type A, should we replace it with B? if so when?Assume that both machines have no resale value and their future costs are not discounted.arrow_forward
- An injector machine goes down roughly 20% of the time (the injector gums up and needs to be cleaned, a quick process). One operator is assigned to service three identical such machines. Each machine can produce 100 parts/h if running properly (i.e., not down). The operator is paid $10/h and each machine costs $20/h to operate. Consider 8hr/shift a) Please fill in the table below: b) How many parts can you produce per shift? c) What is the unit cost fper part for this operation? d) If you hire another operator at the same rate to assist the first operator, what is the unit cost now? e) Is it worth hiring another operator at the same rate to assist the first operator, in case more than one machine goes down at the same time?arrow_forwardDesign capacity is the ability of the company to produce the quantity of goods and services within a particular period of time when the company have best condition to produce and when the company have unlimited resources. These resource's includes- Men, Machinery, Material etc. It shows the maximum capacity of the company to produce. Effective capacity refers to the ability of the company to produce maximum quantity within a particular period of time to achieve in current production condition and current resources. It shows the real outcome capacity of the firm when the company produce within their own current condition of their production. Question Why is the capacity design important?arrow_forwardDesign capacity is the ability of the company to produce the quantity of goods and services within a particular period of time when the company have best condition to produce and when the company have unlimited resources. These resource's includes- Men, Machinery, Material etc. It shows the maximum capacity of the company to produce. Effective capacity refers to the ability of the company to produce maximum quantity within a particular period of time to achieve in current production condition and current resources. It shows the real outcome capacity of the firm when the company produce within their own current condition of their production. In design capacity it is assume that the company will produce in best and ideal condition to produce goods and services while in Effective capacity it is assume that company will produce in current operating conditions. In design capacity it is assume that the company have unlimited resource's. It means these resource's include:- Men,…arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,