Operations Management: Sustainability and Supply Chain Management (12th Edition)
12th Edition
ISBN: 9780134130422
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Chapter B, Problem 11DQ
Summary Introduction
To compare: The corner point method and the iso-profit line method of solving graphical problems.
Introduction:
Linear programming:
It is a linear optimization technique followed to develop the best outcome for the problem in hand. The outcome might be of maximum profit or less cost which is represented by a linear relationship. The outcome will take into consideration the constraints present in achieving the solution.
Iso-profit line:
The iso-cost line will maximize the objective function inside the feasible region.
Corner point:
A corner point is a vertex in the feasible region. The corner points will only occur in the corners of a feasible region. The corner points are defined after making the graphical view of the feasible region.
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Compare how the corner-point and iso-profit line methods work for solving graphical problems.
Cox Electric makes electronic components and has estimated the following for a new design of one of its products:
Fixed Cost = $7,000
Material cost per unit = $0.15
Labor cost per unit = $0.10
Revenue per unit = $0.65
Production Volume = 12,000
Per-unit material and labor cost together make up the variable cost per unit. Assuming that Cox Electric sells all it produces, build a spreadsheet model that calculates the profit by subtracting the fixed cost and total variable cost from total revenue, and answer the following questions.
(a)
Construct a one-way data table with production volume as the column input and profit as the output. Breakeven occurs when profit goes from a negative to a positive value; that is, breakeven is when total revenue = total cost, yielding a profit of zero. Vary production volume from 5,000 to 50,000 in increments of 5,000. In which interval of production volume does breakeven occur?
to units
(b)
Use Goal Seek to find the exact breakeven point.…
Compare the corner point method and the iso- profit line method of solving graphical problems in linear programming ?
Chapter B Solutions
Operations Management: Sustainability and Supply Chain Management (12th Edition)
Ch. B - Prob. 1DQCh. B - Prob. 2DQCh. B - Prob. 3DQCh. B - Prob. 4DQCh. B - Prob. 5DQCh. B - Prob. 6DQCh. B - Prob. 7DQCh. B - Prob. 8DQCh. B - Prob. 9DQCh. B - Prob. 10DQ
Ch. B - Prob. 11DQCh. B - Where a constraint crosses the vertical or...Ch. B - Prob. 13DQCh. B - The LP relationships that follow were formulated...Ch. B - Prob. 2PCh. B - Prob. 3PCh. B - B.4. Consider the following linear programming...Ch. B - Prob. 5PCh. B - Prob. 6PCh. B - Green Vehicle Inc. manufactures electric cars and...Ch. B - Prob. 8PCh. B - Prob. 9PCh. B - Prob. 10PCh. B - Prob. 11PCh. B - Prob. 12PCh. B - Prob. 13PCh. B - Prob. 14PCh. B - Prob. 22PCh. B - A fertilizer manufacturer has to fulfill supply...Ch. B - Prob. 25PCh. B - Prob. 26PCh. B - Prob. 27PCh. B - Prob. 28PCh. B - Prob. 29PCh. B - Prob. 30PCh. B - How many corner points are there in the feasible...Ch. B - Prob. 34PCh. B - Prob. 35PCh. B - Prob. 36PCh. B - Prob. 37PCh. B - Prob. 38PCh. B - Bowman Builders manufactures steel storage sheds...Ch. B - Prob. 40PCh. B - Prob. 41PCh. B - Quain Lawn and Garden, Inc Bill and Jeanne Quain...Ch. B - Quain Lawn and Garden, Inc Bill and Jeanne Quain...Ch. B - Prob. 1.1VCCh. B - Prob. 1.2VCCh. B - Prob. 1.3VCCh. B - Prob. 1.4VC
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