Student Suite Cd-rom For Winston's Operations Research: Applications And Algorithms
Student Suite Cd-rom For Winston's Operations Research: Applications And Algorithms
4th Edition
ISBN: 9780534423551
Author: Wayne L. Winston
Publisher: Cengage Learning
bartleby

Concept explainers

Expert Solution & Answer
Book Icon
Chapter 5, Problem 1RP

a.

Explanation of Solution

Profit

  • Let XNP is the number of personal computers produced in New York, XLP is the number of personal computers produced in Los Angeles, XNV is the number VAXes in New York and XLV is the number of VAXes in Los Angeles and L is the labour hours.
  • The new optimum solution value or profit is calculated by the given formula:

    New value = Old value – (Key column value × Key row value) / Key value

  • The key row value can be calculated by the given formula:

   Key row value = Current key row value / Key element value

  • From the LINDO output, here the old optimum value is 1,360,000.
  • Hence the new value is:

 New value = 1,360,000 - 1000 (313.333) = 1,046,667

b.

Explanation of Solution

Increasing capacity

“Yes”, HAL should hire the contractor if the capacity is increased to 850 computers at a cost of 5000.

Reason

  • From the LINDO output, the dual price in row 2 is 133.333.
  • When the capacity is increased to 850 computers, then the profit should be increased by 850(133.333).
  • This means the profit value should be greater than 5000.
  • Hence the capacity should be increased and here the allowable increase is 100.
  • Hence HAL should hire the contractor in order to increase the capacity.

c.

Explanation of Solution

Profit

  • The new optimum solution value is calculated by the given formula:

    New value = Old value – (Key column value × Key row value) / Key value

  • The key row value can be calculated by the given formula:

   Key row value = Current key row value / Key element value

  • From the LINDO output, the reduced cost for XLV is 33.333.
  • Hence the profit of VAX can be increased by 33.333 in order to produce VAXes in Los Angeles.

d.

Explanation of Solution

Extra labour cost

  • Let L be the number of labour hours.
  • Here the labour is purchased at a cost of 20 per hour.
  • Here the Key value is 313.333.
  • Hence the extra labour cost = 313.333 + 20 = 333.33

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
The WIX Company Civil Engineers consists of two divisions. The divisions are Water and Waste Water. The company sells engineering services to various customers. The following are the bill rates for the various staff classifications: Vice President $200/hour Senior Engineer $180/hour Staff Engineer $150/hour. The two divisions expect to bill the following hours: Water- 10000 hours, vice president at 10% of the time, 30% of Senior Engineer time and remaining to Staff Engineers. Waste Water- 6000 hours, vice president at 20% of the time, 20% of Senior Engineer time and remaining to Staff Engineers. The Direct Labor costs per hours are as follows: Vice President $80/hour Senior Engineer $60/hour Staff Engineer $40/hour. The utilization for each staff members are as follows: Vice President 60% Senior Engineer 80% Staff Engineer 90%. The company has the following other costs: Admin Salaries $90,000 Rent $100,000 Utilities $6,000 Benefits $76,000 Assume 20% of time for each staff member…
Nawras Tech assembles laptop computers from generic components. It purchases its colour monitors from a manufacturer in Taiwan with a lead time of one week. Daily demand for monitors is normally distributed with a mean of 30 monitors and a standard deviation of 8 monitors. The company has determined that the ordering cost is OMR 125 per order, the annual holding cost is OMR 25 per monitor, and the stockout cost is OMR 160 per lost sale. Currently, Nawras Tech accepts a 5% risk of stockout. Assume 350 days per year and 7 days in a week. a) Calculate the current fill rate. b) What is the annual cost of lost sales?
This is the question. I am unsure how to begin on - Acme Parts runs a small factory and employs workers who are paid one of three hourly rates depending on their shift: first shift, $17 per hour; second shift, $18.50 per hour; third shift, $22 per hour. Each factory worker might work any number of hours per week; any hours greater than 40 are paid at one and one-half times the usual rate. In addition, second- and third-shift workers can elect to participate in the retirement plan for which 3% of the worker’s gross pay is deducted from the paychecks. Write a program that prompts the user for hours worked, shift, and, if the shift is 2 or 3, whether the worker elects the retirement (1 for yes, 2 for no). Display: Hours worked Shift Hourly pay rate Regular pay Overtime pay Total of regular and overtime pay Retirement deduction, if any Net pay. This is the way the code starts - import java.util.*; public class AcmePay {     public static void main(String[] args) throws Exception {…
Knowledge Booster
Background pattern image
Computer Science
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, computer-science and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Text book image
Operations Research : Applications and Algorithms
Computer Science
ISBN:9780534380588
Author:Wayne L. Winston
Publisher:Brooks Cole