Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
Bartleby Related Questions Icon

Related questions

Question

Instructions:

please put the data in excel , or at least try to do so.

---------

Company Z has the following historical sales information for one of its hydraulic pump models for the last 4 years:

(the only image attached (period, years))

---------------------------------------
On the other hand, the manufacturing process used by Company Z is sequential* and has the following characteristics:

Machines that can be used in any order**                                                M1        M2        M3          M4
Production rate per machine per hour                                                        7           4.75       4.25         6.50
Machine efficiency  %                                                                                           0.9        0.95       1          0.85
Machine reliability  %                                                                                           0.70    0.95          1         0.80

Sequential; in the sense that the output of Mi is the input of Mi + 1
**In any order; in the sense that they can be interchanged, e.g. MA -> MB or MB -> MA.

The company's operating costs are as follows:

Cost per final unit produced "free of defects":                     $100                                                                                  
Cost per final unit produced "with defects".                          $150
Cost of excess inventory ("defect free" units)                       $50
Cost per short of inventory (units "free of defects")            $200
Revenue per "defect-free" final unit produced and sold     $250

The following operating conditions apply:
- Any sequence of 3 machines can be used.
- Only one machine can be used once, within the same sequence of machines.
- You can work UP TO 720 hours per month.
- A "level production" type production strategy is followed.
 
Establish the 1st and 2nd best sequence of machines that allows company Z to obtain higher profits (profit = total revenue - total costs) for a hypothetical 5th year, knowing that:

1.- It must round the results of its predicted values, to the next integer value, if and only if, the fractional part is ≥ 0.5. 
2.- It must increase in 100 and 800 units (respectively), the predicted values of periods 1 and 3; and decrease in 500 and 250 units (respectively), the predicted values of periods 2 and 4.

In both cases PROVE that both sequences meet the requirements of being the 1st and 2nd best sequences.

period
wwwww
уear
1
2
3
4
1
1800
1950
2050
1900
2
2000
1900
2200
2150
3
2050
1950
2100
2150
4
2000
1800
2300
1900
expand button
Transcribed Image Text:period wwwww уear 1 2 3 4 1 1800 1950 2050 1900 2 2000 1900 2200 2150 3 2050 1950 2100 2150 4 2000 1800 2300 1900
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Similar questions
Recommended textbooks for you
Text book image
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Text book image
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Text book image
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Text book image
Business in Action
Operations Management
ISBN:9780135198100
Author:BOVEE
Publisher:PEARSON CO
Text book image
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Text book image
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.