Question 5The Omega Industrial Company produces two products A and B. The raw materials requirements, space needed for the storage, production rates, and selling prices for these products aregiven in the table below.Storage Space (ft²/unit)Raw Material (lb/unit)Production rate (units/hr)Selling Price (Php/unit)O 5x1 + 6x2 ≤ 1800O X1 + 2x2 ≤ 480O X1 + 2x2 ≥ 480O 5x1 + 6x2 ≥ 1600AO X1 + 2x2 < 1800566015ProductB6The total amount of raw material available per day for both products is 1600 lbs. The total storage space for all products is 1800 ft² and a maximum of 8 hours per day can be used forproduction. What is the constraint in terms of storage space?4301 pts12

The linear programming model is a mathematical technique that is used by business organizations for…

Answered: The Omega Industrial Company produces…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter7: Nonlinear Optimization Models

Section: Chapter Questions

Problem 56P

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Q.24 MZ Entertainment has been using this equation, which was developed by regressing inventories on sales over the past 5 years, to forecast inventory requirements: Inventories = P25M + 0.125(Sales). The company expects sales of P355 million during the current year, and it expects sales to grow by 20% next year. What is the inventory forecast for next year?
QUESTION 3Space and equipment are major components of cost in warehouse management. Cube utilization refers to the efficient use of space in the warehouse both on the floor and in height. You are reviewing the efficiency in relation to space utilization in the warehouse.(a) The following information is identified for some of the stock items in the warehouse. Stock keeping unit(SKU) | Number of PalletsSKU 010 2 SKU 020 5 SKU 030 13 SKU 040 7 SKU 050 4 a) The pallets are being stored 3 high. Calculate the percentage utilisation in the warehouse? (b) It is found that the low rate of space utilisation is because the warehouse is using a fixed location method of storage. Recommend two other methods of stock location the organisation can use giving reasons why?
QUESTION 20 What are purchased items or extracted materials that will be transformed into components or products called? A. finished goods inventory B. MRO inventory C. raw materials inventory D. distribution inventory E. work-in-process inventory QUESTION 21 Which inventory function exists between the manufacturing plant and the distribution plant? OA. transportation inventory OB. lot-size inventory C. anticipation inventory D. fluctuation inventory E. speculative inventory QUESTION 22 In inventory management, when discussing customer service we mean: OA. whether repair of the product is available. B. whether the product is available regardless if the customer desires it or not. OC. whether the product is available when the customer wants it. OD. whether the customer wants the available product. OE. whether the customer is available when the product is.
Additional Question. The XYZ steel company must determine a policy for ordering coal to operate 15 converters. The ordering cost is $85/order and the cost of holding coal is 15% of the purchasing cost. The XYZ has a contract to obtain the coal for $14 per ton for the coming year. Each converter requires exactly 8 tons of coal per day to operate, and the firm operates 300 days per year. a. Determine the optimal quantity of coal to receive in each order. b. Determine the total inventory-related cost associated with the optimal ordering policy c. Optimal number of orders to place per year and number of operating days between orders, based on the optimal ordering. d. The XYZ is now considering to the following discount policy provided by supplier: Order Quantity (tons) 1,000 - 1,999 Price per ton $14 $12 $10 2,000 - 2,999 3000+ Please help the XYZ to determine the amount the firm should order.
37.May I know the correct option?
QUESTION 3 (Using the same problem) A vendor for the local ballpark food stand is questioning whether to stock his concession with a large or small inventory. He believes that it will depend upon the size of the crowd. He has developed a payoff matrix for the various alternatives (stocking decision) and states of nature (size of crowd). What is the Expected Value of Perfect Information (EVPI)? PROFIT ($) Average Crowd $50,000 $70,000 .50 Alternatives Large Inventory Small Inventory Probability * A) $68,400 B) $78,400 C) $10,000 D) -$20,000 O E) $51,500 Large Crowd $220,000 $90,000 .20 Small Crowd -$2,000 -$5,000 30
3. (Q, r) model question: One part company uses has monthly demand of 150 units per month. The unit cost c of the part is 3500 TL. The firm uses a monthly interest rate of 2% (What is the holding cost h per month?) It takes 10 days to receive a production or the for the part. Cost of time and materials to complete a production order A is 350TL. The monthly cost of a backorder is 250 TL and cost for stockout is 100 TL. Demand can be approximated by Poisson distribution. Calculate the Q* and r* values using both the backorder cost and stockout cost approach.
Question 7 The information in this paragraph applies to this question and the three questions that follow (so, questions 7-10). Store manager Rosalía has noted that the daily demand for the exclusive Motomami candles produced and sold in her Fire Doll Artisan Chandlery located in downtown Champaign is 40 candles. Fire Doll Artisan Chandlery remains open 365 days a year. The lead time for producing the candles is 9 days. Rosalía uses a continuous review system to manage her inventory relying on economic order quantity (EOQ) to decide how much to make and reorder point (ROP) to decide when to make. Determine the reorder point assuming the daily demand is spread evenly (i.e., no safety stock). Question 8 Rosalía notes that daily demand has a standard deviation of 4 candles. Calculate the safety stock for a 99% service level, the z score for which, using the function =NORM.S.INV(0.99) in Microsoft Excel, is 2.33. Question 9 Rosalía makes the candles in quantities of 560 at a time. How many…
Problem 3-14 (Algo) Demand for stereo headphones and music players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for this year was as follows: MONTH DEMAND (UNITS) 4,150 4,25e 3,950 4, 350 4,95e 4,650 5,25e 4,850 5,35e 5,65e 6,25e 5,95e January February March Аpril Мay June July August September October November December a. Using linear regression analysis, what would you estimate demand to be for each month next year? Using a spreadsheet, follow the general format in Exhibit 3.8. (Do not round Intermedlate calculatlons. Round your answers to 2 decimal places.) Month Forecast January February March April May June July August September October November December b. To be reasonably confident of meeting demand, Nina decides to use 3 standard errors…
QUESTION 26 B The slope of the line labeled "A" in the diagram is: order rate. rate of inventory demand. production rate. O production rate minus rate of inventory demand. E
Q1. Discuss different type of inventory control techniques used in operations Management with example.
Question 7 FastBus Inc. FastBus Inc. offers low-cost bus transportation between Philadelphia and New York City. The company has 2 buses, each bought for $300,000. Each bus can carry 40 passengers per trip and does 7 daily round trips between Philadelphia and New York City. The price of each one-way ticket is $12. The company sells 28 seats on average per one-way trip, so the load factor is 70%. The annual fixed cost of running the company is $3,000,000. The major variable cost in their line of business is gasoline, which costs $25 per one-way trip. Fast Bus Inc. buses operate 365 days a year. Define the return on invested capital as the ratio of the profits (PER YEAR) and the invested capital. You can draw an ROIC tree in the same way that we drew a KPI tree in class. Simply have the ROIC as “the root” of the tree instead of profits. Then answer the question: What is the current number of customers that are served each year? Assume that FastBus operates 365 days per year and that…

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