Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Chapter 3.8, Problem 23P
Summary Introduction
To determine: The change in the optimal production
Introduction: In linear programming, the unbounded solution would occur when the objective function is infinite. If no solution satisfied the constraints, then it is said to be an unfeasible solution.
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1. Solve the following exercise using dynamic programming: a company distributes an article with a demand of 15,000 articles per year, it is Considering that annual retention costs are $5 per item, it is estimated that the demand is delayed and this causes a cost of $10 per year. Everytime that an order is placed this causes costs of $50. The demand during the time of delivery follows a normal distribution with means of 200 units and a variance of 5 units.
4b.
Originally, the depositor intended to make two $100 withdrawals, the first in 2022 and the second in 2026, emptying an
account that earns 5% interest, compounded annually. Now, suppose the depositor changes their mind (i.e., does not make
these two withdrawals) and instead decides to empty the account with a single withdrawal in 2025. What is the withdrawal
amount that would empty the account? (The original data must be used; that is, the answer to [4a] may only be used to verify
the answer to this question.)
Problem 4
In a known company, the demand for
a product follows a normal distribution. Based on past data,
you calculated a weekly average of 30 units with a standard
deviation of 7 units. The supplier can deliver each unit and
takes 5 weeks at a cost per unit of $25. The supplier lead
time has a standard deviation of 1 week. Every time you
place an order to the supplier will cost $45, and the inventory
holding cost is $2.00 per unit per year. No stockouts are
allowed because there is a cost of $2,000 Istockout. The
company operates 45 weeks per year.
What is the economic order quantity?
а.
b.
What is the optimal reorder point and the
safety stock at a service level of 95%?
Chapter 3 Solutions
Practical Management Science
Ch. 3.6 - Prob. 1PCh. 3.6 - Prob. 2PCh. 3.6 - Prob. 3PCh. 3.6 - Prob. 4PCh. 3.6 - Prob. 5PCh. 3.6 - Prob. 6PCh. 3.6 - Prob. 7PCh. 3.6 - Prob. 8PCh. 3.6 - Prob. 9PCh. 3.7 - Prob. 10P
Ch. 3.7 - Prob. 11PCh. 3.7 - Prob. 12PCh. 3.7 - Prob. 13PCh. 3.7 - Prob. 14PCh. 3.7 - Prob. 15PCh. 3.7 - Prob. 16PCh. 3.7 - Prob. 17PCh. 3.8 - The Pigskin Company produces footballs. Pigskin...Ch. 3.8 - The Pigskin Company produces footballs. Pigskin...Ch. 3.8 - The Pigskin Company produces footballs. Pigskin...Ch. 3.8 - Prob. 21PCh. 3.8 - Prob. 22PCh. 3.8 - Prob. 23PCh. 3.8 - Prob. 24PCh. 3 - Prob. 25PCh. 3 - Prob. 26PCh. 3 - Prob. 27PCh. 3 - Prob. 28PCh. 3 - Prob. 29PCh. 3 - Prob. 30PCh. 3 - Prob. 31PCh. 3 - Prob. 32PCh. 3 - Prob. 33PCh. 3 - Prob. 34PCh. 3 - Prob. 35PCh. 3 - Prob. 36PCh. 3 - Prob. 37PCh. 3 - Prob. 38PCh. 3 - Prob. 39PCh. 3 - Prob. 40PCh. 3 - Prob. 41PCh. 3 - Prob. 42PCh. 3 - Prob. 43PCh. 3 - Prob. 44PCh. 3 - Prob. 45PCh. 3 - Prob. 46PCh. 3 - Prob. 47PCh. 3 - Prob. 48PCh. 3 - Prob. 49PCh. 3 - Prob. 50PCh. 3 - Prob. 51PCh. 3 - Prob. 52PCh. 3 - Prob. 1C
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