Operations Management: Sustainability And Supply Chain Management Custom Edition For Temple University, Version 3
11th Edition
ISBN: 9781269383578
Author: HEIZER
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter A, Problem 4P
Jeffrey Helm owns a health and fitness center called Bulk-Up in Harrisburg. He is considering adding more floor space to meet increasing demand. He will either add no floor space (N), a moderate area of floor space (M), a large area of floor space (L), or an area of floor space that doubles the size of the facility (D). Demand will either stay fixed, increase slightly, or increase greatly. The following are the changes in Bulk-Up’s annual profits under each combination of expansion level and demand change level:
Jeffrey is risk averse and wishes to use the maximin criterion.
- a. What are his decision alternatives and what are the states of nature?
- b. What should he do?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A real estate agent is considering changing her land line phone plan. There are three plans to choose from, all of which involve a monthly service charge of $20. Plan A has a cost of $.43 a minute for daytime calls and $.18 a minute for evening calls. Plan B has a charge of $.53 a minute for daytime calls and $.15 a minute for evening calls. Plan C has a flat rate of $80 with 250 minutes of calls allowed per month and a charge of $.40 per minute beyond that, day or evening. a. Determine the total charge under each plan for this case: 140 minutes of day calls and 60 minutes of evening calls in a month. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
b. If the agent will only use the service for daytime calls, over what range of call minutes will each plan be optimal? (Round each answer to the nearest whole number. Include the indifference point itself in each answer.)
c. Suppose that the agent expects both daytime and evening calls. At what point…
A real estate agent is considering changing her land line phone plan. There are three plans to choose from, all of which involve a monthly service charge of $20. Plan A has a cost of $.45 a minute for daytime calls and $.20 a minute for evening calls. Plan B has a charge of $.55 a minute for daytime calls and $.15 a minute for evening calls. Plan C has a flat rate of $80 with 200 minutes of calls allowed per month and a charge of $.40 per minute beyond that, day or evening. a. Determine the total charge under each plan for this case: 120 minutes of day calls and 40 minutes of evening calls in a month.
b. If the agent will only use the service for daytime calls, over what range of call minutes will each plan be optimal? (Round your answer to the nearest whole number.)
c. Suppose that the agent expects both daytime and evening calls. At what point (i.e., percentage of total call minutes used for daytime calls) would she be indifferent between plans A and B? (Do not round intermediate…
A recruiter for a job placement agency is considering whether to pay $50,000 per year to lease a new recruiting facility in a prime location in Washington D. C. He estimates it will cost $50 per recruit to process the paperwork at this new location. He receives a $75 commission for each new recruit he processes. Part A - If the office space at this new location has design and effective capacities of 10,000 and 8,000 recruits processed annually, respectively, and 6,000 recruits will be processed per year, what will be the utilization of the office space?Part B - If his office space at this new location has design and effective capacities of 10,000 and 8,000 recruits processed annually, respectively, and he plans to be 90% efficient in his use of this space, how many recruits does he plan to process per year?
Chapter A Solutions
Operations Management: Sustainability And Supply Chain Management Custom Edition For Temple University, Version 3
Ch. A - Prob. 1DQCh. A - Prob. 2DQCh. A - Prob. 3DQCh. A - Prob. 4DQCh. A - Prob. 5DQCh. A - Question: 6. Explain how decision trees might be...Ch. A - Prob. 7DQCh. A - Prob. 8DQCh. A - Question 9. Identify the five steps in analyzing a...Ch. A - Prob. 10DQ
Ch. A - Question 11. The expected value criterion is...Ch. A - Question 12. When are decision trees most useful?Ch. A - Given the following conditional value table,...Ch. A - Prob. 2PCh. A - Prob. 3PCh. A - Jeffrey Helm owns a health and fitness center...Ch. A - Prob. 5PCh. A - Prob. 6PCh. A - Prob. 7PCh. A - Prob. 8PCh. A - Prob. 9PCh. A - Prob. 10PCh. A - The University of Miami bookstore stocks textbooks...Ch. A - Palmer Jam Company is a small manufacturer of...Ch. A - Prob. 13PCh. A - Prob. 14PCh. A - Prob. 15PCh. A - Prob. 16PCh. A - Prob. 17PCh. A - Prob. 18PCh. A - Prob. 19PCh. A - Philip Musa can build either a large video rental...Ch. A - Prob. 21PCh. A - Prob. 22PCh. A - Prob. 23PCh. A - Question A.24 On the opening page of Module A and...Ch. A - Question Warehouse Tenting at the Port of Miami...Ch. A - Question Warehouse Tenting at the Port of Miami...Ch. A - Question Warehouse Tenting at the Port of Miami...
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
- The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon spawn during a 24-hour period and must be canned immediately. Tinkan has the following agreement with the salmon industry. The company can deliver as many cans as it chooses. Then the salmon are caught. For each can by which Tinkan falls short of the salmon industrys needs, the company pays the industry a 2 penalty. Cans cost Tinkan 1 to produce and are sold by Tinkan for 2 per can. If any cans are left over, they are returned to Tinkan and the company reimburses the industry 2 for each extra can. These extra cans are put in storage for next year. Each year a can is held in storage, a carrying cost equal to 20% of the cans production cost is incurred. It is well known that the number of salmon harvested during a year is strongly related to the number of salmon harvested the previous year. In fact, using past data, Tinkan estimates that the harvest size in year t, Ht (measured in the number of cans required), is related to the harvest size in the previous year, Ht1, by the equation Ht = Ht1et where et is normally distributed with mean 1.02 and standard deviation 0.10. Tinkan plans to use the following production strategy. For some value of x, it produces enough cans at the beginning of year t to bring its inventory up to x+Ht, where Ht is the predicted harvest size in year t. Then it delivers these cans to the salmon industry. For example, if it uses x = 100,000, the predicted harvest size is 500,000 cans, and 80,000 cans are already in inventory, then Tinkan produces and delivers 520,000 cans. Given that the harvest size for the previous year was 550,000 cans, use simulation to help Tinkan develop a production strategy that maximizes its expected profit over the next 20 years. Assume that the company begins year 1 with an initial inventory of 300,000 cans.arrow_forwardA tire company has the following capacity and demand data for the year: Capacity = 3,000 tires per month Demand for the first six (6) months (January – June) = 2, 500 tires per month Demand for the next six (6) months (July – December) = 4, 000 tires per month If the company decides to produce tires at capacity (3, 000 tires per month) during the first six months, how many tires will it be able to build up in its inventory after six months? How many months will the built-up inventory computed in A last to meet the increasing demand. Assuming that the company continues to product at capacity per month. (arrow_forwardTrips Logistics, a third-party logistics firm that provides warehousing and other logistics services, is facing a decision regarding the amount of space to lease for the upcoming three-year period. The general manager has forecast that Trips Logistics will need to handle a demand of 100,000 units for each of the next three years. Historically, Trips Logistics has required 1,000 square feet of warehouse space for every 1,000 units of demand. For the purposes of this discussion, the only cost Trips Logistics faces is the cost for the warehouse. Trips Logistics receives revenue of $1.22 for each unit of demand. The general manager must decide whether to sign a three-year lease or obtain warehousing space on the spot market each year. The three-year lease will cost $1 per square foot per year, and the spot market rate is expected to be $1.20 per square foot per year for each of the three years. Trips Logistics has a discount rate of k = 0.1.arrow_forward
- Cutey Barber SalonCutey Barber Salon is a trendy barber salon that is located in a densely populated city called Maple.Demand for the services offered by the salon is fairly high. It offers services such as haircuts, hairstyling, scalp massaging and conditioning treatment, straight razor and wet shave, beard sculpting,facials and hair colouring. In addition to these services provided, the salon sells premium hair productsto customers. The salon has the ability to produce a maximum of 20,000 haircuts and hairstyling peryear. Demand for haircuts and hairstyling over the last five years can be seen in the following table:- Year Demand for haircuts and hairstyling2017 11,5002018 12,2002019 13,4002020 14,0002021 14,500 Although the business does not have a written vision and mission statement, it is clear in the minds ofmanagement what they want to achieve and what they would like to be in the future. Currently, customers can walk in at any time to…arrow_forwardCutey Barber SalonCutey Barber Salon is a trendy barber salon that is located in a densely populated city called Maple.Demand for the services offered by the salon is fairly high. It offers services such as haircuts, hairstyling, scalp massaging and conditioning treatment, straight razor and wet shave, beard sculpting,facials and hair colouring. In addition to these services provided, the salon sells premium hair productsto customers. The salon has the ability to produce a maximum of 20,000 haircuts and hairstyling peryear. Demand for haircuts and hairstyling over the last five years can be seen in the following table:-Year Demand for haircutsand hairstyling2017 11,5002018 12,2002019 13,4002020 14,0002021 14,500Although the business does not have a written vision and mission statement, it is clear in the minds ofmanagement what they want to achieve and what they would like to be in the future.Currently, customers can walk in at anytime to be served. At times, customers have to wait in…arrow_forwardCutey Barber SalonCutey Barber Salon is a trendy barber salon that is located in a densely populated city called Maple.Demand for the services offered by the salon is fairly high. It offers services such as haircuts, hairstyling, scalp massaging and conditioning treatment, straight razor and wet shave, beard sculpting,facials and hair colouring. In addition to these services provided, the salon sells premium hair productsto customers. The salon has the ability to produce a maximum of 20,000 haircuts and hairstyling peryear. Demand for haircuts and hairstyling over the last five years can be seen in the following table:- Year Demand for haircuts and hairstyling2017 11,5002018 12,2002019 13,4002020 14,0002021 14,500Although the business does not have a written vision and mission statement, it is clear in the minds ofmanagement what they want to achieve and what they would like to be in the future.Currently, customers can walk in at any time to be served. At times, customers have…arrow_forward
- Cutey Barber SalonCutey Barber Salon is a trendy barber salon that is located in a densely populated city called Maple.Demand for the services offered by the salon is fairly high. It offers services such as haircuts, hairstyling, scalp massaging and conditioning treatment, straight razor and wet shave, beard sculpting,facials and hair colouring. In addition to these services provided, the salon sells premium hair productsto customers. The salon has the ability to produce a maximum of 20,000 haircuts and hairstyling peryear. Demand for haircuts and hairstyling over the last five years can be seen in the following table:- Year Demand for haircuts and hairstyling2017 11,5002018 12,2002019 13,4002020 14,0002021 14,500 Although the business does not have a written vision and mission statement, it is clear in the minds ofmanagement what they want to achieve and what they would like to be in the future. Currently, customers can walk in at any time to…arrow_forwardthe excel file president’s inn guest database provides a list of customers, rooms they occupied, arrival and departure dates, number of occupants, and daily rate for a small bed- and-breakfast inn during one month. room rates are the same for one or two guests; however, additional guests must pay an additional $20 per person per day for meals. guests staying for seven days or more receive a 10% discount. modify the spreadsheet to calculate the number of days that each party stayed at the inn and the total revenue for the length of stay.arrow_forwardBob Carlton’s golf camp estimates the following staff requirements for its services over the next 2 years.Quarter 1 2 3 4Demand (hours) 4,200 6,400 3,000 4,800Quarter 5 6 7 8Demand (hours) 4,400 6,240 3,600 4,800Each certified instructor puts in 480 hours per quarter regular time and can work an additional 120 hours overtime. Regular-time wages and benefits cost Carlton $7,200 per employee per quarter for regular time worked up to 480 hours, with an overtime cost of $20 per hour. Unused regular time for certified instructors is paid at $15 per hour. There is nocost for unused overtime capacity. The cost of hiring, training, and certifying a new employee is $10,000. Layoff costs are $4,000 per employee. Currently, eight employees work in this capacity.a. Find a staffing plan using the level…arrow_forward
- Cutey Barber Salon Cutey Barber Salon is a trendy barber salon that is located in a densely populated city called Maple.Demand for the services offered by the salon is fairly high. It offers services such as haircuts, hairstyling, scalp massaging and conditioning treatment, straight razor and wet shave, beard sculpting,facials and hair colouring. In addition to these services provided, the salon sells premium hair productsto customers. The salon has the ability to produce a maximum of 20,000 haircuts and hairstyling peryear. Demand for haircuts and hairstyling over the last five years can be seen in the following table:- Year Demand for haircuts and hairstyling2017 11,5002018 12,2002019 13,4002020 14,0002021 14,500 Although the business does not have a written vision and mission statement, it is clear in the minds ofmanagement what they want to achieve and what they would like to be in the future. Currently, customers can walk in at any time…arrow_forwardTech, with a student population of 30,000, is located in a small college town in Virginia. DirectCast Cable TV has a small service staff that is sufficient to handle installations and TV hookups for almost the entire year. However, for the month-long period right before and during the beginning of fall semester in August, when all the students return, the cable TV service is overwhelmed and must bring in an additional 14 technicians from other company offices. The DirectCast offices in the following seven cities have available service technicians to loan, as shown: City Available Technicians Distance (mi.) Cost ($) Richmond 4 211 3,400 Charlotte 3 173 3,920 Atlanta 5 410 4,760 Greensboro 2 152 3,560 DC 6 263 4,980 Nashville 3 414 4,050 Norfolk 2 302 3,240 This table also shows the distances (in miles) from the cities to the town where Tech is located, and the cost for relocating a technician for 1…arrow_forwardFormulate but do not solve the problem.The management of Hartman Rent-A-Car has allocated $2.25 million to buy a fleet of new automobiles consisting of compact, intermediate-size, and full-size cars. Compacts cost $18,000 each, intermediate-size cars cost $27,000 each, and full-size cars cost $36,000 each. If Hartman purchases twice as many compacts as intermediate-size cars and the total number of cars to be purchased is 100, determine how many cars of each type will be purchased. (Assume that the entire budget will be used. Let x, y, and z denote the number of compact, intermediate-sized, and full-size cars purchased, respectively.) = 2,250,000 = x = 100arrow_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,
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY