For a "Dual minimization problem" with optimal point equal to (x1 = 5, x2 = 1)and best Z = 56, its respective "Primal maximization problem " would havePlease choose the option that would best fit the empty space above.O Its respective best Z also equal to 56.Shadow prices equal to 1 (x1) and 5 (x2), respectively.Shadow prices exactly the same as the shadow prices obtained in the Primal problem.Exactly the same optimal point.O None of the above

Since the ideal solution for the dual and primal issues is always the same, they are always…

Answered: For a "Dual minimization problem" with…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter11: Simulation Models

Section: Chapter Questions

Problem 45P: You now have 10,000, all of which is invested in a sports team. Each year there is a 60% chance that...

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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.
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.
A common decision is whether a company should buy equipment and produce a product in house or outsource production to another company. If sales volume is high enough, then by producing in house, the savings on unit costs will cover the fixed cost of the equipment. Suppose a company must make such a decision for a four-year time horizon, given the following data. Use simulation to estimate the probability that producing in house is better than outsourcing. If the company outsources production, it will have to purchase the product from the manufacturer for 25 per unit. This unit cost will remain constant for the next four years. The company will sell the product for 42 per unit. This price will remain constant for the next four years. If the company produces the product in house, it must buy a 500,000 machine that is depreciated on a straight-line basis over four years, and its cost of production will be 9 per unit. This unit cost will remain constant for the next four years. The demand in year 1 has a worst case of 10,000 units, a most likely case of 14,000 units, and a best case of 16,000 units. The average annual growth in demand for years 2-4 has a worst case of 7%, a most likely case of 15%, and a best case of 20%. Whatever this annual growth is, it will be the same in each of the years. The tax rate is 35%. Cash flows are discounted at 8% per year.
W. L. Brown, a direct marketer of womens clothing, must determine how many telephone operators to schedule during each part of the day. W. L. Brown estimates that the number of phone calls received each hour of a typical eight-hour shift can be described by the probability distribution in the file P10_33.xlsx. Each operator can handle 15 calls per hour and costs the company 20 per hour. Each phone call that is not handled is assumed to cost the company 6 in lost profit. Considering the options of employing 6, 8, 10, 12, 14, or 16 operators, use simulation to determine the number of operators that minimizes the expected hourly cost (labor costs plus lost profits).
Problem A large company in the communication and publishing industry has quantified the relationship between the price of one of its products and the demand for this product as: Price = 150 − 0.01 × Demand for an annual printing of this particular product. The company is planning its productions for the year 2021. The company is considering the production of a certain number of 2,000 pages units. In 2019 the company had produced 4 similar units but with fewer pages count per unit (1,200; 1,400; 1800; and 1,900), and the material costs associated with those 4 units are (14.15 JD, 15.65 JD, 18.25 JD, and 18.90 JD respectively). The material cost index values were 185 for 2018, 193 for 2019, 200 for 2020, and 206 for 2021). The fixed costs per year (i.e., per printing) = 50,000 JD, and the variable cost will consist of the material cost and the labor cost. The company started to produce 2000 pages unit in 2021, and the project management team observed that 8.23 labor…
Problem A large company in the communication and publishing industry has quantified the relationship between the price of one of its products and the demand for this product as: Price = 150 − 0.01 × Demand for an annual printing of this particular product. The company is planning its productions for the year 2021. The company is considering the production of a certain number of 2,000 pages units. In 2019 the company had produced 4 similar units but with fewer pages count per unit (1,200; 1,400; 1800; and 1,900), and the material costs associated with those 4 units are (14.15 JD, 15.65 JD, 18.25 JD, and 18.90 JD respectively). The material cost index values were 185 for 2018, 193 for 2019, 200 for 2020, and 206 for 2021). The fixed costs per year (i.e., per printing) = 50,000 JD, and the variable cost will consist of the material cost and the labor cost. The company started to produce 2000 pages unit in 2021, and the project management team observed that 8.23 labor…
A local real estate investor in Orlando 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. Based on the Maximax criteria, the investor should choose Investment Motel Restaurant Theater Motel Restaurant O Theater O Any of the three Shortage $-8,000 2,000 6,000 Gasoline Availability Stable Supply $15,000 8,000 6,000 Surplus $20,000 6,000 5,000
Assume that the payoff table provides cost rather than profit payoffs. What isthe recommended decision using:i. the optimistic approachii. the conservative approachiii. the minimax regret approachiv. the Laplace method
A firm that plans to expand its product line must decide whether to build a small or a large facilityto produce the new products. If it builds a small facility and demand is low, the net present valueafter deducting for building costs will be $400,000. If demand is high, the firm can either maintainthe small facility or expand it. Expansion would have a net present value of $450,000, and maintaining the small facility would have a net present value of $50,000.If a large facility is built and demand is high, the estimated net present value is $800,000. If demandturns out to be low, the net present value will be – $10,000.The probability that demand will be high is estimated to be .60, and the probability of low demandis estimated to be .40.a. Analyze using a tree diagram.
A survey was conducted to 12 first time voters on their preferred candidate. The results are: BBM, BBM, LR, IM, PL, PL, IM, IM, BBM, BBM, LR, LR. Which statement is true? The Borda score of PL is two points. BBM wins by plurality method. The Condorcet winner is IM. The modes are LR and IM Which of the following is a property of all linear programming problems? alternate courses of action to choose from minimization of some objectives a computer program usage of graphs in the solution
A landlord can either lease for one or two years or sell offices outrightly for K100 million with payoffs as follows: Lease -100 50 150 Sell 100 100 100 The probability of rejecting is 30%, leasing for one year is 50% and for two years 20%. Required: What is the optimal decision strategy if perfect information were available? What is the expected value of perfect information? A decision maker is looking to minimising costs through three alternative decisions a1 , b2 and c3 under two states of nature/events S1 and S2 with S1 having a probability of 30% . For a1 payoffs for s1 K100 million and s2 K540 million For a2 payoff for s1 K150 million and s2 –K50 million For a3 payoff for s1 K350 million and s2 K320 million Required: Find EMV and recommend the course of action Find the…
Andrew Thomas, a sandwich vendor at hard rock café annual rockfest, created a table of conditional values for the various alternatives (stocking decision) and state of nature (size of crowd) Alternatives Large stock average stock small stock probabilities associated with states of nature are Big Big 35000 20000 10500 0.3 State of nature (demand) Average Small 15000 10000 8000 Average 0.5 determine the alternative that gives Andrew the greatest expected monetary value (EMV) compute the extpected value of perfect information (EVPI). Small -3000 5000 3000 0.2

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