In Myanmar, six laborers, each making the equivalent of $2.50 per day, can produce 42 units per day. In China, ten laborers, each making the equivalent of $2.25 per day, canproduce 51 units. In Billings, Montana, three laborers, each making $57.00 per day, can make 102 unitsBased on labor costs only, which location would be most economical to produce the item?For each location, calculate the labor cost per unit using the following formula:Labor cost per dayProduction (units per day)($2.50)(6)42= Labor cost per unitThe labor cost per unit for Myanmar isLabor cost per dayProduction (units per day)The labor cost per unit for China = $0.44 dollars/unit (round your response to two decimal places).The labor cost per unit for Billings, Montana = $1.68 dollars/unit (round your response to two decimal places).Based on labor costs per unit only, the most economical location to produce the item is Billings, Montana= $0.36 dollars/unit (round your response to two decimal places).

Labor cost is the expense incurred on the manpower usage while producing an goods or service. It is…

Answered: In Myanmar, six laborers, each making…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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A firm installs 1500 air conditioners which need to be serviced every six months. The firm can hire a team from its logistics department at a fixed cost of $6,000. Each unit will be serviced by the team at $15.00. The firm can also outsource this at a cost of $17.00 inclusive of all charges. a. For the given number of units, compute the total cost of servicing for both options. Which is a better decision? b. Find the break-even volume and characterize the range of volumes for which it is more economical to outsource.
Use the following information for the next 2 problems: A warehouse is to be built that will support three factories. The (x,y) location of each factory, annual volume and transportation rate from each factory is given below. Use a map scaling factor of K=500 miles. Factory Xi Yi Vi: Annual Volume (cwt) Ri: Rate ($/cwt per mile) ViRi ViRiXi ViRiYi 1 1.6 6.3 4,000 0.02 2 7.2 4.0 10,000 0.04 3 2.0 3.0 3,000 0.05 Totals: 1.Using the COG method, what is the optimal (x,y) location of a single warehouse? - (5.25,4.05) - (3.25, 4.05) - (4.5, 3.65) - (4.5, 5.15) - (5.25, 5.15) - (3.25, 3.65) 2.If the warehouse is located at an (x, y) of (8, 3), what would be the total transportation cost? - $994,153 - $874,153 - $844,153 - $904,153 - $964,153 - $934,153 3.According to Weber’s classification of industries. A weight-losing production process…
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The Ace Manufacturing Company has orders for three similar products. Orders Product (units) Min A s.t. B с 1 2 Three machines are available for the manufacturing operations. All three machines can produce all the products at the same production rate. However, due to varying defect percentages of each product on each machine, the unit costs of the products vary depending on the machine used. Machine capacities for the next week and the unit costs are shown below. Machine 3 A A B B c с 1 Product 2 3 Machine 2 Capacity 2,000 Machine 1 Capacity 600 1,300 Machine 3 Capacity Product A Orders Capacity (units) Product B Orders 1,700 1,600 1,000 1 $1.00 $1.30 $1.10 Use the transportation model to develop the minimum cost production schedule for the products and machines. (a) Show the linear programming formulation. (Let XA₁ be the number of units of product A produced by machine 1, X;; be the number of units of product i produced by machine j, etc.) Machine $1.20 $1.40 $1.00 2 $0.90 $1.20 $1.20…
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Baker Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years. Year 1 2 3 4 5 Forecast Demand 119 132 133 137 136 Currently the manufacturer has ten machines that operate on a two-shift (eight hours each) basis. Twenty days per year are available for scheduled maintenance of equipment. Assume there are 250 workdays in a year. Each manufactured good takes 32 minutes to produce. What is the effective capacity of the factory? Round your answer down to the nearest whole number and use this answer in subsequent computations. units/year Given the five-year forecast, how much extra capacity is needed each year? Round your answers to the nearest whole number. Year 1 2 3 4 5 Extra capacity needed (units) Does the firm need to buy more machines? If so, how many? When? If your answer is zero, enter "0". Round your answers up to the nearest whole number. Year 1 2 3 4 5 Additional machines…
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The Ace Manufacturing Company has orders for three similar products. Product Min A s.t. B C 1 Machine 2 Three machines are available for the manufacturing operations. All three machines can produce all the products at the same production rate. However, due to varying defect percentages of each product on each machine, the unit costs of the products vary depending on the machine used. Machine capacities for the next week and the unit costs are shown below. 3 A A B Product B с 4 2 3 Machine 1 Capacity Machine 2 Capacity Machine 3 Capacity Product A Orders Product B Orders Orders (units) Product C Orders 2,100 ≥ 0 for all i, j. 700 1,200 Capacity (units) 1,400 1,400 1,400 1 Use the transportation model to develop the minimum cost production schedule for the products and machines. (a) Show the linear programming formulation. (Let XA1 be the number of units of product A produced by machine 1, X;; be the number of units of product i produced by machine j, etc.) Xij Machine 2 $1.00 $1.30…

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