Concept explainers
a)
To determine: The way to maximize revenue from candy sales.
Linear programming:
It is a mathematical modeling procedure where a linear function is maximized or minimized subject to certain constraints. This method is widely useful in making a quantitative analysis which is essential for making important business decisions.
b)
To use: A solver table to identify how the changes in the price of Easy out candy changes the optimal solution.
Linear programming:
It is a mathematical modeling procedure where a linear function is maximized or minimized subject to certain constraints. This method is widely useful in making a quantitative analysis which is essential for making important business decisions.
c)
To use: A solver table to identify how the changes in the amount of available sugar change the optimal solution.
Linear programming:
It is a mathematical modeling procedure where a linear function is maximized or minimized subject to certain constraints. This method is widely useful in making a quantitative analysis which is essential for making important business decisions.
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Chapter 4 Solutions
Practical Management Science
- You now have 10,000, all of which is invested in a sports team. Each year there is a 60% chance that the value of the team will increase by 60% and a 40% chance that the value of the team will decrease by 60%. Estimate the mean and median value of your investment after 50 years. Explain the large difference between the estimated mean and median.arrow_forwardBarbara Flynn sells papers at a newspaper stand for $0.40. The papers cost her $0.30, giving her a $0.10 profit on each one she sells. From past experience Barbara knows that: a) 20% of the time she sells 150 papers. b) 20% of the time she sells 200 papers. c) 30% of the time she sells 250 papers. d) 30% of the time she sells 300 papers. Assuming that Barbara believes the cost of a lost sale to be $0.05 and any unsold papers cost her $0.30 and she orders 250 papers. Use the following random numbers: 14, 4, 13, 9, and 25 for simulating Barbara's profit. (Note: Assume the random number interval begins at 01 and ends at 00.) Based on the given probability distribution and the order size, for the given random number Barbara's sales and profit are (enter your responses for sales as integers and round all profit responses to two decimal places): Random Number Sales Profit 14 4 13 9 25arrow_forwardRajan wanted a radio from Jacky's. It appears that Rajan is particularly interested in purchasing a Radio from the inexpensive retailer's sales manager for consumer electronics. He tells Jacky, the salesperson at the inexpensive store where he thinks he'll get the best deal, that his old radio died and he wants to listen to his favourite tunes. He wants a replacement radio as quickly as possible. In three and a half weeks, Rajan's favourite model will be 10% off.He suspects Rajan won't wait and will find another job. Jacky will earn less on the lowered price. He thinks that telling Rajan of the sale makes little sense.When Jacky tells Rajan that the radio set he wants is no longer available and won't be for another week, Rajan is enraged. Fearing losing the business, Jacky begs his sales manager, Michelle, to speed up delivery. Michelle says it's impossible and suggests Jacky tell Rajan the store can get the set in 24 hours and sell him the demo model. Michelle says the sample is new…arrow_forward
- A software firewall development company is selling a solution against distributed denial of service attacks (DDoS). the software solution looks at the IP address of all incoming packets and if it finds any address that accounts for more than 2% of the network traffic over the last hour, it installs an entry in the firewall (rule table) that blocks all packets from that IP address for 24 hours. the company is very happy and believes that this solution prevents DDOS attacks. a. is this a good solution for preventing DDOS (Yes or No)? b. give two reasons why it is a good solution or why it is not c. can this solution also be used to prevent LAND attacks? explain the answerarrow_forwardA company makes parts that cost $35.00 in material and labor. 92% of the parts are produced defect free and are sold for full price at $110 each. 2% of the parts made must be scrapped. Scrap parts are sold for $8.00 each. The remaining 6% of the parts made must be reworked at a cost of $12.00 each. After rework 1% still must be scrapped and the other 5% is sold at a discounted price of $90 each. a. Draw the tree diagram showing the quality cost situation. b. Determine the earnings per part. c. Determine the cost of poor quality (COPQ). d. Determine the earnings per part and COPQ if the rework operation was shut down and the parts that required reworking were just sold for scrap instead.arrow_forwardWilliams Auto has a machine that installs tires. The machine is now in need of repair. The machineoriginally cost $10,000 and the repair will cost $1,000, but the machine will then last two years.The labor cost of operating the machine is $0.50 per tire. Instead of repairing the old machine,Williams could buy a new machine at a cost of $5,000 that would also last two years; the labor costwould then be reduced to $0.25 per tire. Should Williams repair or replace the machine if it expectsto install 10,000 tires in the next two years?arrow_forward
- You are attempting to establish the utility that your boss assigns to a payoff of $1,000. You have established that the utility for a payoff of $0 is zero and the utility for a payoff of $10,000 is one. Your boss has just told you that they would be indifferent between a payoff of $1,000 and a lottery which has a payoff of $10,000 where the probability of losing is 0.7. What is your boss' utility for $1,000? (Round your answer to 1 decimal place.) Utility of $1,000arrow_forwardJerry takes out a mortgage at 5.2%. After a few years, his payment increases and he sees that the interest rate of his mortgage is now 6.1%. Which of these mortgage types does Jerry most likely have? ARM loan home equity loan fixed-rate loan package mortgagearrow_forwardNorth Platt Machinery Company manufactures a shaft that must fit inside a sleeve. The firm has just received an order of 53,000 units from Southernstar Exploration Company for $48 per unit. North Platt can manufacture the shaft at $18 per unit. Southernstar desires the diameter of the shaft to be 1.278 cm. The diameter of the shaft must not be less than 1.253 cm in order to fit properly inside the sleeve. To be able to insert the shaft into a sleeve without the use of force, the diameter cannot be larger than 1.303 cm. A defective shaft is discarded and a replacement has to be shipped via express freight to locations around the world. North Platt estimates that the average cost of handling and shipping a replacement shaft will be approximately $38. Shown below are the diameters from a sample of 100 shafts manufactured during a trial run: Diameter 1.235 1.243 1.253 1.261 1.265 1.273 1.275 Number of Units 2 3 4 3 3 4 7 Diameter 1.276 1.277 1.278 1.279 1.280 1.283 1.291 Number of Units 7…arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,