In a typical product mix model, a company must decide how much of each product to produce to maximise profit, while fulfilling a set of customer constraints. Assuming your company produces two types of vaccines, one requires ultra-cold chain storage facility while another is not, please elaborate how you would apply lower-bound constraints and upper-bound constraints in this context.

A purchasing agent for a particular type of silicon wafer used in the production ofsemiconductors must decide among three sources. Source A will sell the siliconwafers for $2.50 per wafer, independently of the number of wafers ordered. Source Bwill sell the wafers for $2.40 each but will not consider an order for fewer than3,000 wafers, and Source C will sell the wafers for $2.30 each but will not acceptan order for fewer than 4,000 wafers. Assume an order setup cost of $100 and anannual requirement of 20,000 wafers. Assume a 20 percent annual interest rate forholding cost calculations.b. What is the optimal value of the holding and setup costs for wafers when theoptimal source is used?

Consider the simple von-Thunen model of agricultural land use developed in class. This question asks you to analyze the land use of carrot farmers who use a fixed proportion production technology. Assume the following: -- carrot yield (E) is 20 tons per acre -- carrots sell at $15 per ton (P) at the market -- non-land input costs (I) are $60 per acre -- transport cost (t) is $4 per ton per mile -- farmers pay the transport cost of moving carrots d miles to the market a. Derive the bid-rent curve per acre of land for carrot farmers by imposing the appropriate long-run equilibrium condition. Explain the condition. Show all steps. b. Plot the bid-rent curve for carrot farmers. Then calculate the land area where carrots are grown. c. How much will the landlord charge to rent 1 acre at the city? at d=1 mile? at d = 5 miles? Show computations. d. Where does Farmer Jones prefer to locate? Why

A manufacturer has a production facility that requires 15,604 units of component JY21 per year. Following a long-term contract, the manufacturer purchases component JY21 from a supplier with a lead time of 7 days. The unit purchase cost is $25.6 per unit. The cost to place and process an order from the supplier is $121 per order. The unit inventory carrying cost per year is 10.5 percent of the unit purchase cost. The manufacturer operates 250 days a year. Assume EOQ model is appropriate. If the manufacturer uses a constant order quantity of 2,640 units per order, what is the annual holding cost? Use at least 4 decimal places.

Hayworth Corporation has Just segmented last year's income statement into its ten product lines. The chief executive officer (CEO) is curlous as to what effect dropping one of the product lines at the beginning of last year would have had on overall company profit. What is the best number for the CEO to look at to determine the effect of this elimination on the net operating income of the company as a whole? Multiple Choice the product line's sales dollars the product line's contribution margin the product line's segment margin the product line's segment mergin minus an allocated portion of common fixed expenses

Deborah Kellogg buys Breathalyzer test sets for the Winter Park Police Department. The quality of the test sets from her two suppliers is indicated in the following table: For example, the probability of getting a batch of tests that are 1% defective from Winter Park Technology is .70. Because Kellogg orders 10,000 tests per order, this would mean that there is a .70 probability of getting 100 defective tests out of the 10,000 tests if Winter Park Technology is used to fill the order. A defective Breathalyzer test set can be repaired for $0.50. Although the quality of the test sets of the second supplier, Dayton Enterprises, is lower, it will sell an order of 10,000 test sets for $37 less than Winter Park. a) Develop a decision tree. b) Which supplier should Kellogg use?

Deborah Kellogg buys Breathalyzer test sets for the  Winter Park Police Department. The quality of the test sets from  her two suppliers is indicated in the following table:  For example, the probability of getting a batch of tests that  are 1% defective from Winter Park Technology is .70. Because  Kellogg orders 10,000 tests per order, this would mean that there  is a .70 probability of getting 100 defective tests out of the 10,000  tests if Winter Park Technology is used to fill the order. A defective Breathalyzer test set can be repaired for $0.50. Although the  quality of the test sets of the second supplier, Dayton Enterprises,  is lower, it will sell an order of 10,000 test sets for $37 less than Winter Park.  a) Develop a Decision Treeb) Which supplier should Kellog use?  Percent Defective Probability for Winter Park Technology Probability for Dayton Enterprises 1 0.70 0.30 3 0.20 0.30 5 0.10 0.40

Wingman Distributing Company is expanding its supply chain facility. The particular model of truck Wingman is considering can be used 4,000 miles a month and will cost $800 a month in capital costs. In addition, each mile a truck is used costs $0.90 for maintenance. A local truck rental firm will rent trucks at a cost of $1.70 per mile, which includes the maintenance costs for those miles. Given the distribution of likely requirements for trucks, management has come up with three alternatives to consider as shown in the table. include a new distribution hub in South Bend. A key decision involves the number of trucks for the Monthly requirements (miles) 20,000 60,000 80,000 Probability Fleet size (trucks) 0.20 0.50 0.30 15 20 Which fleet size will yield the lowest expected monthly costs for Wingman? A fleet size of trucks is the lowest cost alternative, with expected monthly costs to Wingman of S (Enter your responses as integers.)

Suppose that it costs $15 to produce a low-quality wallet and $16 to produce a high-quality wallet, consumers cannot distinguish between the products before purchase, there are no repeat purchases, and consumers value the wallets at their cost of production. The twenty firms in the market produce 500 wallets each. Each firm produces only high-quality or low-quality wallets. Consumers pay the expected value of a wallet. Do any of the firms produce high-quality wallets? A firm will not have an incentive to produce high-quality wallets: If one firm makes a high-quality wallet, then each firm that produces low-quality wallets will earn a profit of $ and the firm that makes the high-quality wallets will earn S. (Enter numeric responses using real numbers rounded to two decimal places.)

A home improvement store sells hydrangea plants during the spring planting season. The hydrangeas cost the store $15 per unit, and sell to customers for $45, but any leftovers at the end of the season are salvaged to a local landscaper for $7/unit. A competitor has advertised that it guarantees 99% of customers find the product they’re looking for in stock. The competitor’s posted price for hydrangeas is $50, and they salvage to the same local landscaper for $7/ hydrangea plant. If the competitor’s advertised service level is correct for hydrangeas and they follow an optimal stocking policy, what does it imply their cost per hydrangea is?