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Revisit Problem 22 on the Bull Grin Company. Some cost and demand parameters have changed. Producing 1,000 pounds of supplement now costs $830 on regular time and $910 on overtime. No additional cost is incurred for unused regular-time, overtime, or subcontractor capacity. Overtime is limited to production of a total of 20,000 pounds per quarter. In addition, subcontractors can be hired at $1,000 per 1,000 pounds, but only 30,000 pounds per quarter can be produced this way.
The current level of inventory is 40,000 pounds, amid management wants to end the year at that level. Holding 1,000 pounds of feed supplement in inventory per quarter costs $100. The latest annual
Use the transportation method of production planning in POM for Windows to find the optimal production plan and calculate its cost, or use the spreadsheet approach to find a good production plan amid calculate its cost.
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Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
- Note :write the equations seperately A firm is making two products A & B. Each unit of A incurs a cost of production to the tune of $150 and that of B incurs a cost of $200. Product A carns a profit of $15/unit and B gets $20/unit. The estimated monthly demand of both A & B is at maximum 500 units. Monthly production budget is set at $50.000.How many units of A & B should the firm make in order to maximize profit. Conduct sensitivity analysis and answer the following questions: 1. State the optimal solution. 2. What is the objective function value? 3. Find out the range of profit for A in the objective function for which the above solution remains optimal.arrow_forwardA pet daycare facility offers pet sitting services where owners can drop off their pets for training and socializing with other pets. To feed the pets, the daycare makes two types of pet food. A bag of freeze-dried nuggets costs $7.99 and contains 21 units of proteins, 4 units of fiber, and 15 units of fat. A bag of dehydrated nuggets costs $11.26 and contains 28 units of proteins, 7 units of fiber, and 20 units of fat. The minimum daily requirements are usually 200 units of protein, 75 units of fiber, and 220 units of fat. Formulate the information as an LP problem and answer the following questions. How many bags of freeze-dried nuggets and dehydrated food should the facility make each day to minimize the total cost? What is the lowest cost? Identify the binding and non-binding constraints and report the surplus values.arrow_forwardSolve the linear program formulated in part (a). How much of each product should be produced, and what is the projected total profit contribution (in dollars)? (P1, P2, P3) = with profit $arrow_forward
- The Pampered Pet Kennels Company provides room and board for dogs and cats. The manager must mix up pet food everyday for the animals; the food must meet the following standards: Protein At least 6% Fat At most 10% Upon checking the supplies, one day, the manager found that he has the following quantities on hand: Protein Fat Cost/ kilogram Beef stock 10% 20% P 6.00 Flour 5% 5% P 2.00 Formulate the linear programming model to determine how much of each ingredient the manager should mix up to feed the guests today.arrow_forwardHawkins Manufacturing Company produces connecting rods for 4- and 6-cylinder automobile engines using the same production line. The cost required to set up the production line to produce the 4-cylinder connecting rod is $2,000, and the cost required to set up the production for the 6-cylinder connecting rod is $3,500. Manufacturing costs are $15 for each 4-cylinder connecting rod and $18 for each 6-cylinder connecting rod. Hawkins makes a decision at the end of each week as to which product will be manufactured the following week. If a production changeover is necessary from one week to the next, the weekend is used to reconfigure the production line.Once the line has been set up, the weekly production capacities are 6,000 6-cylinder connecting rods and 8,000 4-cylinder connecting rods. Letx4 = the number of 4-cylinder connecting rods produced next week,x6 = the number of 6-cylinder connecting rods produced next week,s4 = 1 if the production line is set up to produce the 4-cylinder…arrow_forwardThe Star Youth Soccer Club helps to support its 20 boys' and girls' teams financially, primarily through the payment of coaches. The club puts on a tournament each fall to help pay its expenses. The cost of putting on the tournament is $8,000, mainly for development, printing, and mailing of the tournament brochures. The tournament entry fee is $400 per team. For every team that enters, it costs the club about $75 to pay referees for the three-game minimum each team is guaranteed. If the club needs to clear $60,000 from the tournament, how many teams should it invite?arrow_forward
- For a table manufacturing company, selling price for a table is $183.00 per Unit, Variable cost is $25.00 per Unit, rent is $3,380.00 per month and insurance is $296.00 per month. Company wants to expand its business and improve the table quality, it wants to increase the selling price for a table to $254.00 per Unit, Variable cost to $43.00 per Unit, bigger area will have rent $5,235.00 per month and insurance is $362.00 per month At what point will the company be indifferent between the current mode of operation and the new option?arrow_forwardPullman Tire Company would like to plan production for the next three months.The firm can satisfy demand by using inventory, regular production (at $40 per tire), overtime (at $50 per tire), or subcontracting (at $70 per tire). Any tires held over for one month incur a $2 per tire inventory carrying cost. Pullman Tire has sufficient regular production capacity to produce up to 700 tires each month, and it can produce up to 50 more tires each month using overtime. The subcon- tracting availability from an alternative supplier is 150 in January and February and 130 in March. Customers will demand 650 tires in January, 1,000 in Febru- ary, and 890 in March (all demand must be satisfied on time; i.e., no backorders are allowed). The firm begins with 100 tires and wants to have no tires left in inventory at the end of March. Formulate a linear program for this problem, and determine the cheapest tire production plan after solving the problem in Excel. This is the answer but I am unsure how…arrow_forwardI need a detailed assistance to solve this problem: The Mantell Company makes softballs and baseballs. Softballs sell for $17 each, and baseball sell for $15 each. Making a ball of any kind requires leather, nylon, wood chips, labor and machine time. The requirements for each ball type and the resources available are show in the following table: Item Softball Requirement Baseball Requirement Available Resource Leather 6 ounces 4 ounces 6000 ounces Nylon 8 yards 3 yards 5000 yards Wood Chips 10 ounces 2 ounces 5000 ounces Labor 3 minutes 2 minutes 3600 minutes Machine 1 minute 1 minute 2000 minutes The company wishes to use LP to determine the optimal number of each type of ball to produce in order to maximize revenue. a) Write down the decision variables. b) Write down the optimization statement for the objective function. c) Write down the constraints.arrow_forward
- Please answer the following in an organized way and showing steps. Maxwell Manufacturing makes two models of felt tip marking pens. Requirements and available resources for each lot of pens are given in the following table: Fliptop Model Tiptop Model Available Plastic 3 4 36 Ink Assembly 5 4 40 Molding Time 5 2 30 The profit for either model is $1,000 per lot. a. What is the linear programming model for this problem? b. Using Microsoft Excel's Solver, find the optimal solution. How many Fliptop models and how many Tiptop models should be produced? What is the maximum profit? c. Will there be excess capacity in any resource? Use Excel's Solver and run a sensitivity report to answer the following questions: d. Over which range can the objective function coefficient for Fliptop Models change without affecting the original optimal solution? What is this range called? e. What is the shadow price (dual price) for the plastic constraint and how…arrow_forwardThe ATV Corporation makes three models of all-terrain vehicles: Model A, Model B, and Model C. Model A uses a 0.4-liter engine, Model B uses a 0.5-liter engine, and Model C uses a 0.6-liter engine. The aggregate production plan is the twelve-month plan that combines all three models together in total monthly production. The planning horizon is twelve months. The APP determines the size of the workforce, which is the constrained resource. Assume that the beginning inventory for January is 120 units (30 units each of Model A and Model B, and 60 units of Model C). The firm desires to have an ending inventory of 160 units at the end of the year. On average, one unit of ATV requires eight labor hours to produce, and a worker contributes 160 hours (8 hours × 5 days × 4 weeks) per month. The data has been collected in the Microsoft Excel Online file attached. Answer the question below: 1. What are the totals of the forecast demand (including inventory adjustment for December), production,…arrow_forwardA manufacturing firm has four plants and wants to find the most efficient means of meeting the requirements of its four customers. The relevant information for the plants and customers, along with shipping costs in dollars per unit, are shown in the table below: Customer (requirement) Factory (capacity) Customer 1 (125) Customer 2 (150) Customer 3 (175) Customer 4 (75) A (100) $ 15 $ 10 $ 20 $ 17 B (75) $ 20 $ 12 $ 19 $ 20 C (100) $ 22 $ 20 $ 25 $ 14 D (250) $ 21 $ 15 $ 28 $ 12 How many supply nodes are present in this problem? Multiple Choice: 4 3 1 8 16arrow_forward
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