MANAGERIAL/ECON+BUS/STR CONNECT ACCESS
9th Edition
ISBN: 2810022149537
Author: Baye
Publisher: MCG
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Question
Chapter 6, Problem 2CACQ
To determine
Optimal method of procuring inputs and its advantages and disadvantages with example.
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QUESTION
Canning Transport is to move goods from three factories (origins) to three distribution centers
(destinations). Information about the move is given below. Solve the problem using the
transportation simplex method and compute the optimal total shipping cost.
Origin
Supply
A
200
B
100
C
150
Destination
Demand
X
50
Y
125
Z
125
Shipping costs
Destination
Origin
X
Y
Z
A
3
2
5
B
9
10
C
5
6
4
(Source B cannot ship to destination Z)
Hint:
1: Check if dummy row/column is needed
2: Assign "M" if the shipping cannot done
3: Develop the transportation tableau
4: Phase I: Use MINIMUM COST METHOD to find the initial feasible solution
5: Check if the problem degenerate or not (if so add artificial cell, if not proceed to Phase II)
6: Perform MODI METHOD and STEPPING STONE METHOD to find the optimal solution
Consider PNW Airlines, an airline focused on transporting cargo. Their fleet is composed of four cargo airplanes. Total cargo capacity of the fleet is 100,000 cubic feet. The monthly cost of maintaining and operating the fleet is $50,000. Market research indicated that the demand curve for cargo capacity is d=300,000-25,000p where d is the demand across all segments and p is the transport price per cubic foot.
Question 1: What is the price that maximizes profit for PNW Airlines if all the demand comes from a single segment?
What is the demand if PNW sets price to be the value found in Question 1?
How much profit does PNW Airlines make?
Distinguish between technical efficiency and economic efficiency
Chapter 6 Solutions
MANAGERIAL/ECON+BUS/STR CONNECT ACCESS
Ch. 6 - Prob. 1CACQCh. 6 - Prob. 2CACQCh. 6 - Prob. 3CACQCh. 6 - Prob. 4CACQCh. 6 - Prob. 5CACQCh. 6 - Prob. 6CACQCh. 6 - Prob. 7CACQCh. 6 - Prob. 8CACQCh. 6 - Prob. 9CACQCh. 6 - Prob. 10CACQ
Ch. 6 - Prob. 11PAACh. 6 - DonutVille caters to its retirement population by...Ch. 6 - Prob. 13PAACh. 6 - Prob. 14PAACh. 6 - Prob. 15PAACh. 6 - Prob. 16PAACh. 6 - Prob. 17PAACh. 6 - Prob. 18PAACh. 6 - Prob. 19PAACh. 6 - Prob. 20PAACh. 6 - Prob. 21PAACh. 6 - Prob. 22PAACh. 6 - Prob. 23PAACh. 6 - Prob. 24PAACh. 6 - Prob. 25PAACh. 6 - Prob. 26PAACh. 6 - Prob. 27PAA
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