Concept explainers
a
Interpretation:Number of minimum workforce to meet monthly demandis to be calculated.
Concept Introduction:
Linear program is a mathematical technique in which some variable maximized or minimized and some are kept constraint.
b
Interpretation:Total cost of constant workforce plan is to be calculated.
Concept Introduction:
Linear program is a mathematical technique in which some variable maximized or minimized and some are kept constraint.
c
Interpretation:Optimal plan is to be determined using the linear programming and the solution derived in part b is to be compared.
Concept Introduction:
Linear program is a mathematical technique in which some variable maximized or minimized and some are kept constraint.
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Production and Operations Analysis, Seventh Edition
- At the beginning of each week, a machine is in one of four conditions: 1 = excellent; 2 = good; 3 = average; 4 = bad. The weekly revenue earned by a machine in state 1, 2, 3, or 4 is 100, 90, 50, or 10, respectively. After observing the condition of the machine at the beginning of the week, the company has the option, for a cost of 200, of instantaneously replacing the machine with an excellent machine. The quality of the machine deteriorates over time, as shown in the file P10 41.xlsx. Four maintenance policies are under consideration: Policy 1: Never replace a machine. Policy 2: Immediately replace a bad machine. Policy 3: Immediately replace a bad or average machine. Policy 4: Immediately replace a bad, average, or good machine. Simulate each of these policies for 50 weeks (using at least 250 iterations each) to determine the policy that maximizes expected weekly profit. Assume that the machine at the beginning of week 1 is excellent.arrow_forwardScenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?arrow_forwardScenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?arrow_forward
- Lori Cook has developed the following forecasting model: where y demand for Kool Air conditioners and x= the outside temperature (degrees Fahrenheit) a) When the temperature outside is 70° F, demand forecast = b) When the temperature outside is 80° F, demand forecast = c) When the temperature outside is 90° F, demand forecast = 2 F2 W #3 2000 E $ 4 F4 R % 5 F5 T air conditioners (enter your response as an integer). air conditioners (enter your response as an integer). air conditioners (enter your response as an integer). MacBook Air 6 F6 Y & 7 y = 36.0 +4.30x, F7 U * 8 DII FB ( 9 DD F9 V This question ) 0 0 F10arrow_forwardAnswer the following: 1. Suppose that the demand in period 1 was 7 units and the demand in period 2 was 9 units. Assume that the forecast for period 1 was for 5 units. If the firm uses exponential smoothing with an alpha value of .20, what should be the forecast for period 3? 2. Weekly sales of copy paper at Cubicle Suppliers are provided in the table below. Compute a three-period moving average and a four-period moving average for weeks 5, 6, and 7. Compute the MAD for both forecasting methods. Which model is more accurate? Forecast week 8 with the more accurate method. Week Sales (cases) 1 17 2 21 3 26 4 18 5 29 6 17 7 21 3. The last four weekly values of sales were 80, 100, 105, and 90 units, respectively. The last four forecasts (for the…arrow_forwardUsing the exponential smoothing forecast, is it possible to forecast a demand that isbigger than any previously observed demand?a. Yesb. Noarrow_forward
- Suppose a four period weighted average is being used to forecast demand. Weights for the periods are: Wt-4 = 0.1 Wt-3 = 0.2 Wt-2 = 0.3 Wt-1 0.4 Demand observed in the previous four periods was: At-4 = 325 At-3 = 361 At-2 = 478 At-1 = 400 What will be the demand forecast for period t? (Keep one decimal place in your answer).arrow_forward12.4. The chairperson of the department of management at Tech wants to forecast the number of students who will enroll in operations management next semester in order to determine how many sections to schedule. The chair has accumulated the following enrollment data for the past eight semesters: Students Enrolled Semester in OM 1 270 2 310 250 4 290 370 6. 410 7 400 8. 450 a. Compute a three-semester moving average forecast for semesters 4 through 9. b. Compute the exponentially smoothed forecast (a = .20) for the enrollment data. c. Compare the two forecasts using MAD and indicate the most accurate. 3.arrow_forwardGiven the following data on the number of pints of ice cream sold at a local ice cream store for a 3 period time fram, please forecast the demand for period 5 using a 3-month moving average. Period 1, 2,3,4 Demand 330,300,285,280arrow_forward
- The demand data for Double T Computer Services appears below. The company wants you to forecast the demand for period 4. What is your forecast using the least squares method? Period Demand 1 37 2 40 3 40 O 44.6 O 40 O 46.0 O 43.3 O 42.0arrow_forwardGiven an actual demand this period of 143, a forecast value for this period of 119, and an alpha of .6, what is the exponential smoothing forecast for next period? 123.8 118.2 O 122.2 119.8 O 117.4arrow_forwardUsing the moving average forecast, is it possible to forecast a demand that is biggerthan any previously observed demand?a. Yesb. Noarrow_forward
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