Leach Distributors packages and distributes industrial supplies. A standard shipment can be packaged in a class A container, a class K container, or a class T container. A single class A container yields a profit of $10; a class K container, a profit of $8; and a class T container, a profit of $12. Each shipment prepared requires a certain amount of packing material and a certain amount of time. Formulate and solve this problem using LP software. Decision variables: X₁ = number of class A containers to be used X₂ = number of class K containers to be used X3 = number of class T containers to be used Resources Needed per Standard Shipment Objective function: Maximize Z = Subject to: Class of Container X1, X2, X3 20 A K T Total amount of resource available per week Packing Material (pounds) 2 1 3 120 pounds Hugh Leach, head of the firm, must decide the optimal number of each class of container to pack each week. He is bound by the previously mentioned resource restrictions but also decides that he must keep his 6 full-time packers employed all 210 hours (6 workers x 35 hours) each week. (packing material) (packing time) Packing Time (hours) 2 6 4 210 hours
Q: The retailer places orders according to a new vendor model. The underage cost is $0.90 and the…
A: The news vendor model can be stated as the mathematical process in operation management to evaluate…
Q: As operations manager of Holz Furniture, you must make a decision about adding a line of rustic…
A: For the solution of the given question, we are required to find the Expected monetary value (EMV)…
Q: Exercise: Come up with a Matrix and compare the Average Flowtime and Average Tardiness Using FCFS,…
A: Sequencing is an appropriate order of plan as per which the process of operations works. It defines…
Q: In time series analysis, how do the mean absolute percentage error, the mean squared error, and the…
A: Time series analysis can be defined as an analysis of a sequence of observations or data points that…
Q: De Law Construction has a gotten some construction jobs to build some starter housing units in a few…
A: Simplify the given data to determine the due dates as shown below:
Q: Jane is trying to forecast demand for her store, using Exponential Smoothing, using a = 0.75. Fill…
A: Forecast = Actual demand of previous period*alpha+(1-alpha)*forecast of previous period Error =…
Q: 01. Nestle is the leading FMCG company in the world. They follow the fixed order interval model. But…
A: Quality tools are utilized to accumulate data, interpret data, recognize root causes, & estimate…
Q: Please explain two characteristics of the maximum of minimum profits criterion (Maximin method)
A: In real business, the decision-making is not always based on intuition or past experience, but based…
Q: Using the four (4) main costs of quality, re-arrange the following costs of Allison’s Company in the…
A: 1. Prevention Costs – costs from preventive actions to minimize the defects 2. Appraisal…
Q: Terminator, Inc., manufactures a motorcycle part in lots of 300 units. The raw materials cost for…
A: Given data: Lot size(Q) = 300 units Raw material cost = $170 Value added in manufacturing per unit…
Q: Tyler bakes Cookies (C) and Breads (B) with the help of two ovens in his little bakery. The time…
A: Given- Objective: Maximize Profit = 30×70 + 25×50 + 5×(C-70-25) + 4.5×(B-50-30)…
Q: Provide the reason why these two types of security (Importance of Operations and Physical Security)…
A: Operations are the core functioning of the importance of the organization. Every task that is to be…
Q: All work packages under the scope of work are displayed: Select one: a. In the Work Breakdown…
A: Note- Hi! Thank you for the question As per the honour code, We’ll answer the first question since…
Q: Consider a firm planning to start a new venture of manufacturing area. Define the role of project…
A: Every company involves in some project at some point of time. The duration varies from company to…
Q: Use information below to compute the actual unemployment rate (U%) and the labor force participation…
A: Population(X) = 236 Not in labor force(l) = 86 People in labor force = X-I People in labor force =…
Q: Tamara is considering venturing into the public transport system although she is unsure on whether…
A: Estimated monthly collection: Costs of vehicles: Cost of minim bus = 2.5 Million Cost of Matatu = 2…
Q: Given the following LP model and answer questions below: Max. 23X1+ 9X2 + 18X3+14X4 S.T: 5X1 +8X2 +…
A: Note: - As we can answer up to three subparts we will answer the first three subparts here. If you…
Q: w the optimal shipping plan. ipping cost is $. (Enter your response as a whole number) More Info…
A: Ans) We will assign a very large cost to warehouse 3 city 4 , so it cannot transport. Sum of…
Q: A firm is considering two location alternatives. At location C, fixed costs would be $5,000,000 per…
A: Given data is Location Fixed cost Variable cost C $5,000,000 $0.25 D $4,500,000 $0.35…
Q: Question Two (2) Explain why procurement planning should always be done in a rational manner.…
A: Note: - Since it is specified to answer question 2, we will answer question 2 here. If an answer is…
Q: A company has observed the following demand during the past 10 months for one of its popular…
A: *As per guidelines for multipart questions first three parts are answerable, please repost the…
Q: How did you get 106 for 7/1/2021? For the forecast, how would you calculate an exponential…
A: Exponential smoothing is a forecasting model which considering the actual demand and forecasting…
Q: Question 10: Discuss a strategy which can be used for providing ongoing internal feedback on service…
A: Strategy: There are many strategies that are used in organizations for long-term…
Q: Myrtle Air Express decided to offer direct service from Cleveland to Myrtle Beach. Management must…
A: a. pessimistic: Decision = discount service minimax regret: decision = Discount service
Q: a-1. What is the maximum rate (gallons per hour) at which the market can be served if all valves are…
A: Production is the process in which inputs are combined to have the required output. It includes a…
Q: A Quality Analyst wants to construct a control chart for determining whether three machines, all…
A: Given data
Q: Agan Interior Design provides home and office decorating assistance to its customers. In normal…
A: Given data Average consultant time with each customer = 10 minutes with each customer Service rate…
Q: Consider a firm planning to start a new venture of manufacturing area. Discuss the points for…
A: Project management is the management knowledge, skills, and different techniques are used to get the…
Q: Assess the costs of quality that could be incurred if root problems are not addressed.
A: Cost of quality can be termed as the methodology which would measure, determine how various firms…
Q: The production order quantity for this problem is approximately 332 units. daily demand rate = 64;…
A: Average inventory on-hand is the amount of inventory that is held during the year on an average and…
Q: a. Draw a project network diagram then show the calculation for Early Start (ES), Early Finish (EF),…
A: Here, in the table data, we have a column for activity, dependency and duration, based on the table…
Q: In purchasing the Ops Mgt textbook from the publisher, the JU Bookstore was offered the following…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: what is the importance of benchmarking with other facilities/programs/plans
A: Healthcare quality must have grown more crucial in an environment where financing for medical…
Q: Determine whether project management software might help you better manage project costs.
A: Project management This can be defined as a scientific approach to managing the projects for an…
Q: Study the screenshot above. The tabs Pivotlable Analyze and Design, are not ordinarily visible. What…
A: The tabs PivotTable Analyze and Design
Q: As a food retailer who depends on Grace products to supply your customer's needs, using the case,…
A: Retails:- A retailer is a person or establishment where you buy products. Typically, retailers…
Q: Carlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA…
A: Initial cost = -$75000 MARR = 10% Investment = $18, 500 Expected life(n) = 5 year
Q: Project Scope Inclusions: Plan Design, Site Construction, Site Clearance Exclusions: Land…
A: Work breakdown structure is a popular concept of project management where a particular project…
Q: The Eisenhower Matrix helps people decide and prioritize tasks by their urgency and importance. Draw…
A: The Eisenhower Matrix can be stated as the method to arrange activities or tasks by top priority and…
Q: Construct a project network for the following project. The project is completed when activities F…
A: A project network diagram can be stated as a visual indication of the workflow of any project. A…
Q: The following Table 1 (below) contains a list of activities, with precedence requirements and crash…
A: Find the Given details below: Activity Predecessors Normal Time (NT) (Days) Normal cost (NC) ($)…
Q: Cheryl Hunter is responsible for maintaining adequate hospital supplies at fictional St. Thomas…
A: Inventory management can be stated as the systematic process of sourcing, stocking or storing, and…
Q: 2. The distribution system for the Smith Company consists of three plants (A, B, and C), two…
A: Find the Given details below: Given details: From To W X Y Z D $ 6 $…
Q: List the challenges of restaurants operation.
A: Business operations can be stated as the tasks that organizations or businesses engage on the basis…
Q: A bank operates from 10 a.m. to 8 p.m. and employs both full-time and part-time workers. Full-time…
A: 10-11 AM 11A-N N-1P 1P-2P 2P-3P 3P-4P 4P-5P 5P-6P 6P-7P 7P-8P 1 1 1 1 1 1 1 1 1 1…
Q: A liquor store sells two types of whiskey: Gold and Blue. Gold sells for $3,000/100ml. Every 100ml…
A: Objective function: Let gold type be x and blue type be y Profit for gold = $3000 Profit for blue =…
Q: QUESTION 2 a. A manufacturing company Glass Items Manufacturing Limited (GIM), operating under a…
A: Given, Average weekly demand, AVG =150 units standard deviation, STD =30 units Lead time, L= 7 weeks…
Q: Great Harvest bakery distributes an average of 1,000 breads per day to local stores and restaurants.…
A: Safety stock is a stock that company hold and store for the emergency during shortage.
Q: As operations manager of Holz Furniture, you must make a decision about adding a line of rustic…
A: In the given scenario, we can see that we are given two different cases of the small process line…
Q: Site at least 3 examples in IIoT in relation to manufacturing and explain each
A: IIoT stands for Industrial Internet of Things. It is more of an extended version of the most talked…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- 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.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.Lemingtons is trying to determine how many Jean Hudson dresses to order for the spring season. Demand for the dresses is assumed to follow a normal distribution with mean 400 and standard deviation 100. The contract between Jean Hudson and Lemingtons works as follows. At the beginning of the season, Lemingtons reserves x units of capacity. Lemingtons must take delivery for at least 0.8x dresses and can, if desired, take delivery on up to x dresses. Each dress sells for 160 and Hudson charges 50 per dress. If Lemingtons does not take delivery on all x dresses, it owes Hudson a 5 penalty for each unit of reserved capacity that is unused. For example, if Lemingtons orders 450 dresses and demand is for 400 dresses, Lemingtons will receive 400 dresses and owe Jean 400(50) + 50(5). How many units of capacity should Lemingtons reserve to maximize its expected profit?
- A manufacturer has a production facility that requires 10,237 units of component JY21 per year. Following a long-term contract, the manufacturer purchases component JY21 from a supplier with a lead time of 6 days. The unit purchase cost is $31.4 per unit. The cost to place and process an order from the supplier is $168 per order. The unit inventory carrying cost per year is 12.2 percent of the unit purchase cost. The manufacturer operates 250 days a year. Assume EOQ model is appropriate. If the manufacturer uses a constant order quantity of 1,053 units per order, what is the annual holding cost? Use at least 4 decimal places.Barbara Flynn sells papers at a newspaper stand for $0.40. The papers cost her $0.30, giving her a $0.10 profit on each one she sells. From past experience Barbara knows that: a) 20% of the time she sells 150 papers. b) 20% of the time she sells 200 papers. c) 30% of the time she sells 250 papers. d) 30% of the time she sells 300 papers. Assuming that Barbara believes the cost of a lost sale to be $0.05 and any unsold papers cost her $0.30 and she orders 250 papers. Use the following random numbers: 14, 4, 13, 9, and 25 for simulating Barbara's profit. (Note: Assume the random number interval begins at 01 and ends at 00.) Based on the given probability distribution and the order size, for the given random number Barbara's sales and profit are (enter your responses for sales as integers and round all profit responses to two decimal places): Random Number Sales Profit 14 4 13 9 25Deborah Kellogg buys Breathalyzer test sets for the Winter Park Police Department. The quality of the test sets from her two suppliers is indicated in the following table: For example, the probability of getting a batch of tests that are 1% defective from Winter Park Technology is .70. Because Kellogg orders 10,000 tests per order, this would mean that there is a .70 probability of getting 100 defective tests out of the 10,000 tests if Winter Park Technology is used to fill the order. A defective Breathalyzer test set can be repaired for $0.50. Although the quality of the test sets of the second supplier, Dayton Enterprises, is lower, it will sell an order of 10,000 test sets for $37 less than Winter Park. a) Develop a decision tree. b) Which supplier should Kellogg use?
- Deborah Kellogg buys Breathalyzer test sets for the Winter Park Police Department. The quality of the test sets from her two suppliers is indicated in the following table: For example, the probability of getting a batch of tests that are 1% defective from Winter Park Technology is .70. Because Kellogg orders 10,000 tests per order, this would mean that there is a .70 probability of getting 100 defective tests out of the 10,000 tests if Winter Park Technology is used to fill the order. A defective Breathalyzer test set can be repaired for $0.50. Although the quality of the test sets of the second supplier, Dayton Enterprises, is lower, it will sell an order of 10,000 test sets for $37 less than Winter Park. a) Develop a Decision Treeb) Which supplier should Kellog use? Percent Defective Probability for Winter Park Technology Probability for Dayton Enterprises 1 0.70 0.30 3 0.20 0.30 5 0.10 0.40A 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.FRUIT COMPUTER COMPANY Fruit Computer Company manufactures memory chips in batches of ten chips. From past experience, Fruit knows that 80% of all batches contain 10% (1 out of 10) defective chips, and 20% of all batches contain 50% (5 out of 10) defective chips. If a good (that is, 10% defective) batch of chips is sent to the next stage of production, processing costs of $4000 are incurred, and if a bad batch (50% defective) is sent on to the next stage of production, processing costs of $16000 are incurred. Fruit also has the alternative of reworking a batch at a cost of $4000. A reworked batch is sure to be a good batch. Alternatively, for a cost of $400, Fruit can test one chip from each batch in an attempt to determine whether the batch is defective. QUESTIONS 1.Determine a strategy so Fruit can minimize the expected total cost per batch. 2.Compute the EVSI and EVPI.
- Palmer Jam Company is a small manufacturer of several different jam products. One product is an organic jam that has no preservatives, sold to retail outlets. Susan Palmer must decide how many cases of jam to manufacture each month. The probability that demand will be 5 cases is 0.10, for 6 cases it is 0.30, for 7 cases it is 0.50, and for 8 cases it is 0.10. The cost of every case is $40, and the price Susan gets for each case is $85. Unfortunately, any cases not sold by the end of the month are of no value as a result of spoilage. Based on the given information, Susan's conditional profits table for jam is: Demand 5 cases 6 cases 7 cases 8 cases Produce p= 0.10 p = 0.30 p= 0.50 p = 0.10 5 cases 6 cases 7 cases 8 cases The number of cases that Susan should produce to achieve maximum expected value (EMV) is cases. The EMV of stocking this number of cases is $ (round your answer to the nearest whole number).Global Logistics needs to rent space for storing product for the next three years. The following information regarding the demand and spot price is available. Current demand for the product is 150,000. Historically, Global Logistics has required 1500 square feet to store 1500 units of the product. Demand for the product can go up by 20% with a probability of 0.7 or down by 20% with a probability of 0.3. Global Logistics can sign a three-year fixed lease to rent 150,000 square feet of space at $1.00 per square foot per year. The firm may also choose to obtain warehousing space on the spot market. The current spot market price is $1.20 per square foot per year. The spot price can go up by 10% with a probability of 0.8 and can decrease by 10% with a probability of 0.2. The firm receives a revenue of $1.22 for each unit of demand. a) Create a decision tree showing period 0, 1 and 2 for the scenario described above. b) Calculate the NPV for the option when the firm decides to sign a…An automotive warehouse stocks a variety of parts that are sold at neighborhoodstores. One particular part, a popular brand of oil filter, is purchased by thewarehouse for $1.50 each. It is estimated that the cost of order processing andreceipt is $100 per order. The company uses an inventory carrying charge based on warehouse for $1.50 each. It is estimated that the cost of order processing andreceipt is $100 per order. The company uses an inventory carrying charge based ona 28 percent annual interest rate.The monthly demand for the filter follows a normal distribution with mean280 and standard deviation 77. Order lead time is assumed to be five months.Assume that if a filter is demanded when the warehouse is out of stock, then thedemand is back-ordered, and the cost assessed for each back-ordered demand is$12.80. Determine the following quantities:a. The optimal values of the order quantity and the reorder level.b. The average annual cost of holding, setup, and stock-out associated…