Operations Management
13th Edition
ISBN: 9780135173626
Author: HEIZER, Jay, RENDER, Barry, Munson, Chuck
Publisher: Pearson,
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter B, Problem 3DQ
Summary Introduction
To define: Thefeasible region of a graphical linear programming problem and the feasible solution.
Introduction:
Linear programming:
It is a linear optimization technique followed to develop a best outcome for the problem in hand. The outcome might be of maximum profit or less cost which are represented by a linear relationship. The outcome will take into consideration the constraints present in achieving the solution.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Develop a decision analysis formulation of this problem by identifying the decision alternatives, state of nature, and the payoff table.
Formulate decision variable, objective function, and constraints only.
Eastborne Realty has $2 million available for the purchase of new rental property. After an initial screening, Eastborne reduced the investment alternatives to townhouses and apartment buildings. Each townhouse can be purchased for $282,000, and five are available. Each apartment building can be purchased for $400,000, and the developer will construct as many buildings as Eastborne wants to purchase.
Eastborne’s property manager can devote up to 140 hours per month to these new properties; each townhouse is expected to require 4 hours per month, and each apartment building is expected to require 40 hours per month. The annual cash flow, after deducting mortgage payments and operating expenses, is estimated to be $10,000 per townhouse and $15,000 per apartment building. Eastborne’s owner would like to determine the number of townhouses and the number of apartment buildings to purchase to maximize annual cash flow.
A local real estate investor in Kingston is considering three alternative investments: a motel, a restaurant, or a theater. Profits from the motel or restaurant will be affected by the availability of gasoline and the number of tourists; profits from the theater will be relatively stable under any conditions. The following payoff table shows the profit or loss that could result from each investment:
Real Estate Investor Payoff Table
Payoffs are Profits
States of Nature (Gasoline Availability)
Decision Alternatives
Shortage
Stable Supply
Surplus
Motel
$–8,000
$15,000
$22,000
Restaurant
$2,000
$8,000
$6,000
Theater
$6,000
$6,000
$5,000
Which option should the real estate investor choose if he uses the LaPlace criterion?
Using…
Chapter B Solutions
Operations Management
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 - Prob. 2PCh. B - Prob. 3PCh. B - Prob. 25PCh. B - B.4. Consider the following linear programming...Ch. B - Prob. 26PCh. B - Prob. 27PCh. B - Prob. 5PCh. B - Prob. 6PCh. B - Green Vehicle Inc. manufactures electric cars and...Ch. B - Prob. 8PCh. B - Prob. 28PCh. B - Prob. 29PCh. B - The LP relationships that follow were formulated...Ch. B - Prob. 22PCh. B - Prob. 9PCh. B - Prob. 34PCh. B - Prob. 35PCh. B - Prob. 36PCh. B - Prob. 10PCh. B - Prob. 11PCh. B - Prob. 12PCh. B - Prob. 30PCh. B - Prob. 37PCh. B - How many corner points are there in the feasible...Ch. B - Prob. 13PCh. B - Prob. 38PCh. B - Prob. 40PCh. B - Prob. 15PCh. B - Prob. 16PCh. B - Prob. 17PCh. B - Prob. 18PCh. B - Prob. 19PCh. B - Prob. 20PCh. B - Prob. 33PCh. B - Quain Lawn and Garden, Inc Bill and Jeanne Quain...Ch. B - Quain Lawn and Garden, Inc Bill and Jeanne Quain...
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
- How does an optimal frontier graph draw a risk-free line?arrow_forwardn September 2012, a 260,000 square foot Costco anchored shopping center was acquired in San Mateo, California for $36 million with a $26 million fully amortizing first mortgage loan from Union Bank. By 2018, the property had substantially appreciated in value and was worth $72 million and the owner wanted to access part or all of the increased equity value while paying little or no current taxes. The owner might: Refinance the property with a larger loan All these answers are correct Sell the property under an installment sale contract Trade the property for a property whose sale price is more than $54 million under Section 1031 of the Internal Revenue Codearrow_forwardFormulate an LP for this minimization problemarrow_forward
- 3) A brokerage firm has been tasked with investing $500,000 for a new client. The client has asked that the broker select promising stocks and bonds for investment, subject to the following guidelines: at least 20% in municipal bonds, at least 10% each in real estate and pharmaceutical stock, and at least 40% in a combination of energy and domestic automobile stocks with each accounting for at least 15%. The returns are as follows: Municipal = 5.3%, Domestic Automobile = 8.8%, Energy = 4.9%, Pharmaceuticals = 8.4% and Real Estate = 10.4%. a) Write a linear program complete with objective function and all constraints to Maximize the return. (5 points) b) What is the optimal solution? Give values for all variables rounded to the nearest cent.(2 points) c) How much annual income does the optimal solution generate? (2 points) d) Submit your excel workbook. (2 points)arrow_forwardHow to solve descision tree using Analytical Solver for the assignment below Chelsea Bush is an emerging candidate for her party’s nomination for president of the United States. She now is considering whether torun in the high-stakes Super Tuesday primaries. If she enters the Super Tuesday (ST) primaries, she and her advisers believe that she will either do well (finishfirst or second) or do poorly (finish third or worse) with probabilities 0.4 and 0.6, respectively. Doing well on Super Tuesday will net the candidate’s campaignapproximately $16 million in new contributions, whereas a poor showing will mean a loss of $10 million after numerous TV ads are paid for. Alternatively, shemay choose not to run at all on Super Tuesday and incur no costs.Chelsea’s advisors realize that her chances of success on Super Tuesday may be affected by the outcome of the smaller New Hampshire (NH) primary occurringthree weeks before Super Tuesday. Political analysts feel that the results of New…arrow_forwardPLEASE SOLVE USİNG DECİSİON ANALYSISarrow_forward
- Meega airlines decided to offer direct service from Akron, Ohio to Clearwater Beach, Florida. Management must decide between full-price service using the company's new fleet of jet aircraft and a discount-service using smaller capacity commuter planes. Management developed estimates of the contribution to profit for each type of service based upon three possible levels of demand for service: high, moderate, and low. The following table shows the estimated quarterly profits (in thousands of dollars). Service Full price Discount Select one: O a. D2 O b. D3 c. D1 d. D4 Demand for service High Medium Low 760 -430 900 710 650 350 The probabilities for the demand levels are P(High) = 0.3, P(Medium) = 0.5, and P(Low) = 0.2, respectively. In the payoff table from the previous question, what is the optimal decision under the maximin criterion?arrow_forwardPlease solvearrow_forwardHow do non-linear system models differ from linear models, and what are the challenges associated with analyzing and controlling them?arrow_forward
- How do you know when an optimal solution has been reached?arrow_forwardFormulate a BIP model for this problem. The Research and Development Division of the Progres- sive Company has been developing four possible new product lines. Management must now make a decision as to which of these four products actually will be produced and at what levels. Therefore, an operations research study has been requested to find the most profitable product mix. A substantial cost is associated with beginning the production of any product, as given in the first row of the following table. Management's objective is to find the product mix that maximizes the total profit (total net revenue minus start-up costs). Product 1 2 3 4 $50,000 $ $40,000 $70,000 $ $60,000 Start-up cost Marginal revenue 70 60 90 $ 80arrow_forwardSequencial Decision Treesarrow_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,