Concept explainers
a)
To create: A one-way SolverTable for the steel available.
Introduction: The variation between the present value of the
b)
To create: A one-way SolverTable for the labor hours available.
Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).
c)
To create: A one-way SolverTable for the unit profit contribution of large minivans.
Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).
d)
To create: A one-way SolverTable for the minimum production level of large minivans.
Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).
e)
To create: A one-way SolverTable for the minimum production level of compact cars.
Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).
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Chapter 6 Solutions
Practical Management Science
- ABC is a small manufacturer of two types of popular all-terrain snow skis, the J and the D models. The manufacturing process consists of two principal departments: fabrication and finishing. The fabrication department has 12 skilled workers, each of whom works 7 hours per day. The finishing department has 3 workers, who also work a 7-hour shift. Each pair of J skis require 3.5 labor-hours in the fabricating department and 1 labor-hour in finishing. The D model requires 4 labor-hours in fabricating and 1.5 labor-hours in finishing. The company operates 5 days a week. ABC makes a net profit of $50 on the J model and $65 on the D model. In anticipation of the next ski-sale season, ABC must plan its production of these two models. Because of the popularity of its products and limited production capacity, its products are in high demand, and ABC can sell all it can produce each season. The company anticipates selling at least twice as many D as J models. Determine how many of each model…arrow_forwardA manufacturer of microcomputers produces four models: Portable, Student, Office, and Network. The profit per unit on each of these four models is $500, $350, $700, and $1000, respectively. The models require the labor and materials per unit shown below. Portable Student Office Network Total Labor (hrs/week) 5 5 6 8 4000 Chassis (unit/week) 1 1 1 1 400 Disk Drive (unit/week) 2 1 2 1 300 Hard Disk (unit/week) 0 0 0 1 20 Memory Chip (unit/week) 16 8 32 64 22,000 Circuit Bds. (unit/week) 1 1 2 4 10,000 How many of each model should be produced to maximize profit. What is the maximum profit?arrow_forwardAn enterprise produces P1, P2 and P3 products using H1 and H2 raw materials. Production data are presented in the table below. The labor time per unit of P1 product is twice that of P2 and three times that of P3. The entire workforce of the production facility is enough to produce 1500 units of P1 product. The market requirement for products is in the order of 3: 2: 5. Establish the Linear programming (DP) model that will maximize the profits of the business and determine the best production quantities?arrow_forward
- Due to the unavailability of desired quality of raw materials, ABC Ltd. can manufacture maximum 80 units of product A & 60 units of product B. A consumes 5 units and B consumes 6 units of raw materials in the manufacture respectively and their respective profit margins one RO 50 & RO 80. Further, A requires 1 man-day of labour per unit & B requires 2 man-day of labour per unit. The constraints operating are: Supply of raw material - maximum 600 units Supply of labour - maximum 160 man-days. Formulate as a LP model & solve graphically.arrow_forwardHart Manufacturing makes three products. Each product requires manufacturing operations in three departments: A, B, and C. The labor-hour requirements, by department, are as follows:Department Product 1 Product 2 Product 3A 1.5 3 2B 2 1 2.5C 0.25 0.25 0.25During the next production period the labor-hours available are 450 in department A, 350 in department B, and 50 in department C. The profit contributions per unit are $25 for product 1, $28 for product 2, and $30 for product 3. a. Formulate a linear programming model for maximizing total profit contribution. b. Solve the linear program formulated in part (a). How much of each product should be produced, and what is the projected total profit contribution?c. After evaluating the solution obtained in part (b), one of the production supervisors noted that production setup costs had not been taken into account. She noted that setup costs are $400 for product 1, $550 for product 2, and $600 for product 3. If the solution developed in part…arrow_forwardAMCHEM Chemical Company produces three products: A, B, and C. Each product requires labor to produce it, and production of each product creates pollutants. By law the firm is not allowed to produce more than the following pollutants per day: 200 pounds of sulfur dioxide, 300 pounds of carbon monoxide, 150 pounds of hydrogen sulfide, and 50 pounds of benzene. The total number of person-hours of labor available per day is 6000. In addition, the total output per day of products A and B combined cannot be more than the output of product C. Each pound of product A generates a profit of $5, each pound of B generates $7, and each pound of C generates $4. Pollutant and labor rates per hundred pounds of product are given here. a. Formulate this problem as a linear program to maximize daily profit.b. Solve the problem using a computer.arrow_forward
- Omega Manufacturing makes three products. Each product requires manufacturing oper-ations in three departments: A, B, and C. The labor-hour requirements, by department,are as follows:TABLE 1:Department Product 1 Product 2 Product 3A 0.25 1.00 0.50B 2.50 2.00 1.00C 2.00 1.50 3.00During the next production period, the labor-hours available are 72 in department A, 370in department B, and 450 in department C.The variable cost of producing each product, sales price of each product, and the fixedsetup cost of a production run for each product is given in Table 2.TABLE 2:Product 1 Product 2 Product 3Variable Cost (per unit) $13.50 $12.30 $11.30Setup Cost $610 $420 $530Sales Price (per unit) $31 $25 $28a) Formulate an Integer Programming model to maximize the profit.b) Solve the problem by using Excel Solver. Show the optimal solution and optimal value in your printouts.arrow_forwardAlthough the problems say solve graphically, please solve all problems using the QM for Windows software or solve manually. B.6 The Christina Alvarez Company manufactures two lines of designer yard gates, called model A and model B. Every gate requires blending a certain amount of steel and zinc, the company has available a total of 25.000 Ib of steel and 6,000 lb of zinc. Each model A gate requires a mixture of 125 Ib of steel and 20 lb of zinc, and each yields a profit of 590. Each model B gate requires 100 1b of steel and 30 ib of zinc and can be sold for a profit of $70. Find by graphical IP the best production mix of yard gates.arrow_forward3. ???????? ? =24? +32? Subject to the constraints 5? + 4? ≤ 200 3? + 5? ≤ 150 5? + 4? ≥ 100 8? + 4? ≥ 80 ?, ? ≥ 0 Solve the above LPP graphically. Draw the constraints and objective function in a graph sheet.arrow_forward
- Please use excel for this problem A furniture manufacturer produces two types of tables – country and contemporary – using three types of machines. The time required to produce the tables on each machine is given in the following table: Machine Country Contemporary Total Machine Time Available Per Week Router 3.5 4.0 1,000 Sander 4.5 6.5 2,000 Polisher 3.0 2.0 1,500 Country tables sell for $395 and contemporary tables sell for $515. Management has determined that at least 25% of the tables made should be country and at least 38% should be contemporary. How many of each type of table should the company manufacture if it wants to maximize its revenue? Formulate an LP model for this problem Create the spreadsheet model and use Solver to solve the problem.arrow_forward6. Product A requires 7.1 minutes of milling, 7 minutes for inspection, and 6 minutes of drilling per unit; product B requires 7.3 minutes of milling, 5 minutes for inspection, and 8 minutes of drilling per unit; product C requires 2.6 minutes of milling, 3 minutes for inspection, and 15 minutes of drilling. The department has 12 hours available during the next period for milling, 15 hours for inspection, and 24 hours for drilling. Product A contributes $2.0 per unit to profit, product B contributes $2.3 per unit, and product C contributes $4.0 per unit. How do you express the milling constraint mathematically? NOTE: Let A,B, and C denote respectively the number of A, B, and C to be produced. a. A + B + C <= 12 b. A + B + C <= 720 c. 7.1 A + 7.3 B + 2.6 C <= 12 d. 7.1 A + 7 B + 6C <= 12 e. 7.1 A + 7.3 B + 2.6 C <= 720arrow_forwardKane Manufacturing has a division that produces two models of fireplace grates, x units of model A and y units of model B. To produce each model A grate requires 3 lb of cast iron and 6 min of labor. To produce each model B grate requires 4 lb of cast iron and 3 min of labor. The profit for each model A grate is $4.00, and the profit for each model B grate is $3.50. Also, 1000 lb of cast iron and 20 labor-hours are available for the production of fireplace grates per day.Because of a backlog of orders for model A grates, Kane's manager had decided to produce at least 150 of these grates a day. Operating under this additional constraint, how many grates of each model should Kane produce to maximize profit? (x,y)= What is the optimal profit?arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,