44 Binary variablesLinking corstraintsMultiple ChoiceSUMPRODUCT(B5.CS.B7.C7) - SUMPRODUCTIB8:C8.B15:CIS)-SUMPRODUCT(B5.C5,87.C7)- SUMPRODUCTIBS:C8.B14:C14)SUMPRODUCT(85 C5,87:C7)- B8:C8SUMPRODUCT(B8.C8,B14:C14)- SUMPRODUCT(85 C5,87C7) A company is developing its weekly production plan. The company produces two products, A and B, which are processed in two departments. Setting up each batch of A requres S60 of labor whitesetting up a batch of B costs $80. Each unit of A generates a profit of $17 while a unit of B earns a profit of $21. The company can sell all the units it produces. The deta for the problem are summarizedbelowHours required byOperationCuttingWeldingHours36What is the appropriate formula to use in cell E8 of the following Excel implementation of the ILP model for this problem?Fined tharge problemProduct AProduct BNumber to produceTotal proftUnit profFined co60UsedAvaiatResourcesCumingWeidingFours required13Bnary variablesLinking constraints14Multiple ChoiceSUMPRODUCTIBS CS.87C7)- SUMPRODUCTIBE CB.AS C15)-SUMPRODUCTIBS.CS.7.C7)- SUMPRODUCTIBB C8.B4.CM

Given data is Fixed cost of A and B = $60 and $80 Unit profit of A and B = $17 and $21

Answered: A company is developing its weekly…

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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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.
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.
Production and Materials Purchases Budgets White Corporation’s budget calls for the following sales for next year:Quarter 1 90,000 units Quarter 3 68,000 unitsQuarter 2 76,000 units Quarter 4 96,000 unitsEach unit of the product requires 3 pounds of direct materials. The company’s policy is to begineach quarter with an inventory of product equal to 5% of that quarter’s estimated sales requirementsand an inventory of direct materials equal to 20% of that quarter’s estimated direct materials requirements for production.Required Determine the production and materials purchases budgets for the second quarter.
The production planner of a company forecasts the sales over the next five years as 220, 205, 340, 130, and 300 packages, respectively. The planner estimates that there will be 40 packages on hand at the end of this year and she wants the ending inventory to be 50 packages at the end of the next five years. Assume that each worker produces 70 packages per year. The company uses level strategy and shortages are not allowed. What is the minimum constant workforce over the next five years? O a 5 O b. 6 OC.4 O d. 8 O e. 7
You have been hired by Kia as manager for its Pakistan operations. Assume following is the short-run production function at their assembly plant outside Karachi: Q = 10L2 – 0.5 L3 where L is variable input labor, Q is output of Cars assembled a. At the end of the year it is expected that output will double with purchase ofnew equipment and machinery. The production function is estimated to be Q = 60L.30K.70 where L is labor and K is capital. Suppose initial L1 = 1 and K1 = 1. When inputs are in increased to L2 = 2 and K2 = 2, do you observe increasing, decreasing or constant returns to scale? b. Assume Kia Head Office is considering hiring more laborers either at their Gwadar plant or alternatively at the Karachi plant. What will be your advice if workers’ marginal product is 40 at wage of Rs=5/hour in Karachi and marginal product is 28 at wage of Rs=4/hour in Gawdar?
The sales forecast for a certain product being sold at P300/bundle is P25M/month. Each bundle has 100 packs with a weight of 30grams/pack. The product undergoes the following manufacturing processes: PROCESS CAPACITY/UNIT COST/UNIT EFFICIENCY Kneading 200kg/hr P800,000 85% Cutting 60kg/hr 600,000 90 Drying 500kg/hr 1,200,000 100 Seasoning 75kg/hr 100,000 100 Packaging 2,400packs/hr 250,000 95 If the company is operating at 25 days/month @ 24-hour operation, how much money is needed for the procurement of the machines? How many factory workers are needed in a 2-shift operation if kneading requires 2 operators, cutting - 2, drying - 1, seasoning - 1 and packaging - 3?
Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were: Cost PercentCompleteMaterials costs $ 10,600 65% Conversion costs $ 12,800 30% A total of 8,500 units were started and 7,400 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: CostMaterials costs $ 142,100 Conversion costs $ 359,500 The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs. The cost per equivalent unit for conversion costs for the first department for the month is closest to:$44.58$46.16$40.03$48.47
A manufacturing cell makes three models of a product – AKC1011, BC0001, and AC0102. The daily demand for the three products are as follows: 200 of AKC1011, 500 BC0001, and 300 of AC0102. Develop a balanced mixed-model sequence that should be repeated throughout the day in order to meet demand.
A company produces two products: A and B. Prod-uct A sells for $11 per unit and product B sells for $23 per unit. Producing a unit of product A requires two hours on assembly line 1 and one unit of raw ma-terial. Producing a unit of product B requires two units of raw material, one unit of A, and two hours on as-sembly line 2. On line 1, 1300 hours of time are avail-able, and 500 hours are available on line 2. A unit of raw material can be bought (for $5 a unit) or produced(at no cost) by using two hours of time on line 1.a. Determine how to maximize profit.b. The company will stop buying raw material whenthe price of raw material exceeds what value? (UseSolverTable.)
An analyst has started preparing a spreadsheet as shown below. Column A contains the headings for various parameters and Column B contains the analyst's range names to be used in Excel. A B 1 Price per Unit 2 Cost per Unit 3 Profit per Unit PricePerUnit Cost_Per_Unit Profit per Unit 4 5 Fixed Costs Fixed_Costs 6 Variable Costs Variable Costs Label each of the following range names as "Correct" if is a valid range name in Excel or "Incorrect" if the range name is not valid for use in Excel. Proposed Range Name PricePerUnit Cost Per_Unit Profit per Unit Fixed_Costs Variable Costs
5. Luther’s company has just received an order for 1,200 of its Flying Z machines. The customer wants 350 of them next year, 400 the year after, and the balance in the third year. Luther estimates that after one year of production, the average worker with this one year of experience can produce 12 machines per year. However, new workers are 25% less productive in the first year. He has 25 workers with at least one year of experience to work on the first year’s order. He will need to hire new workers for any production that exceeds what these workers can produce. To further complicate matters, he believes 10% of his current experienced workforce will turnover at the end of the first year and the number of workers from his current workforce should remain steady after that. His history also shows that only 75% of new hires stay after their first year. Given these facts, how many total people should Luther plan to hire over the duration of this order? Please solve with excel. Group of…
Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Standard Quantityor Hours Standard Priceor Rate Standard Cost Direct materials 2.30 ounces $ 26.00 per ounce $ 59.80 Direct labor 0.50 hours $ 14.00 per hour 7.00 Variable manufacturing overhead 0.50 hours $ 3.40 per hour 1.70 Total standard cost per unit $ 68.50 During November, the following activity was recorded related to the production of Fludex: Materials purchased, 12,500 ounces at a cost of $305,625. There was no beginning inventory of materials; however, at the end of the month, 2,800 ounces of material remained in ending inventory. The company employs 21 lab technicians to work on the production of Fludex. During November, they each worked an average of 150 hours at an average pay rate of $12.00 per hour.…

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