Company XYZ manufactures two coffee blends namely Blend A and Blend B. The following LP model is used by the company to determine the respective production schedule for the coffee blend: Max Z 50X 60.X2 + Subject to (Total units of coffee blends required) X+X 120 (Total units of workers required) 8X10 800 (Total units of raw materials available) 4X 5X2 500 XiX 20 The optimal solution obtained from the LP model is X 100, X 0 How many workers are blend? no. of units of the coffee required to produce the optimal a) 300 b) 200 c) 500 d) None of the above

Company XYZ manufactures two coffee blends namely Blend A and Blend B. The following LP model is used by the company to determine the respective production schedule for the coffee blend: Max Z 50X 60.X2 + Subject to (Total units of coffee blends required) X+X 120 (Total units of workers required) 8X10 800 (Total units of raw materials available) 4X 5X2 500 XiX 20 The optimal solution obtained from the LP model is X 100, X 0 How many workers are blend? no. of units of the coffee required to produce the optimal a) 300 b) 200 c) 500 d) None of the above

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter11: Simulation Models

Section: Chapter Questions

Problem 63P: It costs a pharmaceutical company 75,000 to produce a 1000-pound batch of a drug. The average yield...

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Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand will grow at 5% a year. If the company builds a plant that can produce x units of Wozac per year, it will cost 16x. Each unit of Wozac is sold for 3. Each unit of Wozac produced incurs a variable production cost of 0.20. It costs 0.40 per year to operate a unit of capacity. Determine how large a Wozac plant the company should build to maximize its expected profit over the next 10 years.
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.
Lemingtons is trying to determine how many Jean Hudson dresses to order for the spring season. Demand for the dresses is assumed to follow a normal distribution with mean 400 and standard deviation 100. The contract between Jean Hudson and Lemingtons works as follows. At the beginning of the season, Lemingtons reserves x units of capacity. Lemingtons must take delivery for at least 0.8x dresses and can, if desired, take delivery on up to x dresses. Each dress sells for 160 and Hudson charges 50 per dress. If Lemingtons does not take delivery on all x dresses, it owes Hudson a 5 penalty for each unit of reserved capacity that is unused. For example, if Lemingtons orders 450 dresses and demand is for 400 dresses, Lemingtons will receive 400 dresses and owe Jean 400(50) + 50(5). How many units of capacity should Lemingtons reserve to maximize its expected profit?
It costs a pharmaceutical company 75,000 to produce a 1000-pound batch of a drug. The average yield from a batch is unknown but the best case is 90% yield (that is, 900 pounds of good drug will be produced), the most likely case is 85% yield, and the worst case is 70% yield. The annual demand for the drug is unknown, with the best case being 20,000 pounds, the most likely case 17,500 pounds, and the worst case 10,000 pounds. The drug sells for 125 per pound and leftover amounts of the drug can be sold for 30 per pound. To maximize annual expected profit, how many batches of the drug should the company produce? You can assume that it will produce the batches only once, before demand for the drug is known.
A manager uses this equation to predict demand for landscaping services: Ft= 10 + 5t Over the past eight periods, demand has been as follows: Period, t: 1 Demand: 15 2 21 Period, t Tracking signal 1 2 3 4 5 6 7 8 3 23 30 5 32 6 38 42 Click here for the Excel Data File Compute the tracking signals for Periods 1-8. (Negative values should be indicated by a minus sign. Round your intermediate calculations and final answers to 3 decimal places.) 8 47
In the past, Peter Kelle's tire dealership in Baton Rouge sold an average of 1,000 radials each year. In the past 2 years, 240 and 240, respectively were sold in fall, 350 and 320 in winter,150 and165 in spring, and 340 and 195 in summer. With a major expansion planned, Kelle projects sales next year to increase to 1,200 radials. Based on next year's projected sales, the demand for each season is going to be (enter your responses as whole numbers): Fall: Winter: Spring: Summer:
City Sod is a small business that sells and lays sod (rolled strips of grass). The owner has devised a forecasting procedure based on demand history from previous years plus projection of demand in recent weeks. The forecast for the next six weeks, in labor hours of sod laying, is 850 870 950 910 970 870 CmTently, City Sod has a staff of sod layers consisting of five crew chiefs and 15 laborers. A crew chief lays sod along with the laborers, but also directs the crew. The owner has decided on the following staffing policies: A two-week backlog will be accmnulated before adding staff. Plans are based on a 40 hour work week; overtime is used only to absorb weather or other delays and employee absence or resignations. The ideal crew size is one crew chief and four laborers. Devise a hiring plan for the first three weeks. In your answer, assmne a current backlog of 1,480 labor hours of sod-laying orders. Does City Sod follow a chase-demand or level-capacity strategy of…
In the past, Peter Kelle's tire dealership in Baton Rouge sold an average of 1,000 radials each year. In the past 2 years, 220 and 250, respectively were sold in fall, 360 and 320 in winter, 145 and 175 in spring, and 300 and 230 in summer. With a major expansion planned, Kelle projects sales next year to increase to 1,200 radials. Based on next year's projected sales, the demand for each season is going to be (enter your responses as whole numbers): Season Demand Fall nothing
As a demand planner at Grootegeluk Mine, you want to determine the monthly sales forecast of coal (in tonnes). Table 1, below, depicts the volume of coal sold by the mine for each of the 12 months of 2022.Table 1: Volume of coal sold monthly during 2022 Year Monthly volume (tonne s) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2022 21 23 34 37 40 51 54 50 48 36 39 42 1. Using the three-month weighted moving average method, calculate the monthly forecasts for April 2022 to January 2023 by assigning weights of 0.1, 0.3, and 0.6 (the oldest data to the most recent data, respectively) (Round off forecast values to one decimal place). 2. Calculate the mean absolute deviation (MAD) of the forecasts for April 2022 to December 2022 (Round off the answer to two decimal place). 3.
North Dakota Electric Company estimates its demand trend line (in millions of kilowatt hours) to be: D = 80.0 + 0.43Q, where Q refers to the sequential quarter number and Q = 1 for winter of Year 1. In addition, the multiplicative seasonal factors are as follows: Quarter Factor (Index) Winter 0.80 Spring 1.25 Summer 1.45 Fall 0.50 In year 26 (quarters 101-104), the energy use for each of the quarters beginning with winter is (round your response to one decimal place): Quarter Energy Use Winter 98.798.7 Spring nothing
A manager uses this equation to predict demand for landscaping services: Ft = 14 + 4t. Over the past eight periods, demand has been as follows: Period, t: 1 2 3 4 5 6 7 8 Demand: 20 25 25 35 35 40 45 50 Compute the tracking signals for Periods 1-8. (Negative values should be indicated by a minus sign. Round your intermediate calculations and final answers to 3 decimal places.) Period t Tracking Signal 1 2 3 4 5 6 7 8
North Dakota Electric Company estimates its demand trend line (in millions of kilowatt hours) to be: D = 80.0 + 0.50Q, where Q refers to the sequential quarter number and Q = 1 for winter of Year 1. In addition, the multiplicative seasonal factors are as follows: Quarter Factor (Index) Winter 0.80 Spring 1.25 Summer 1.50 Fall 0.45 In year 26 (quarters 101-104), the energy use for each of the quarters beginning with winter is (round your response to one decimal place): Quarter Energy Use Winter Spring Summer Fall