Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
thumb_up100%
Chapter 5.5, Problem 16P
Summary Introduction
Interpretation:
Optimal values of (Q,R)
Concept Introduction:
Lot size-reorder point system is one of the multi periods models. This system is denoted by decision variables (Q, R). This multi period models are implemented when there is uncertain demand in inventory control.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Refer to the Factory-to-Six-Customers problem and start with the original information. Each customer increases demand by 1000 units. This increased demand has to be met. Re-calculate the optimal solution. At the new solution, which of the following statements is true?
A.
The total shipping costs are $252,900
B.
Quantity shipped from Factory 1 to Customer 1 declines by 6000 units
C.
Both A and B
D.
Neither A nor
A mail order house uses 18000 boxes a year. Carrying costs are 60 cents per box a year, and ordering costs are $96. The following price schedule applies. Determine the following: a. The optimal order quantity b. The number of orders per year. Use a spreadsheet on Microsoft Excel to solve.
The catering manager of La Vista Hotel, Lisa Ferguson, is distu rbed by the amount of silverware she is losing every week. Last Friday night, when her crew tried to set up for a banquet for 500 people, they did not have enough knives. She decides she needs to order some more silverware, but wants to take advantage of any quantity discounts her vendor willoffer.For a small order (2,000 or fewer pieces), her vendor quotes a price of$1.80 piece.I f she orders 2,001- 5,000 pieces, the price drops to $ 1.60/piece. 5,001- 10,000 pieces brings the price to $1.40/ piece, and I 0,00 I and above reduces the price to $1.25.Lisa's order costs are $200 per order, her annual holding costs are 5%, and the annual demand is 15,000 pieces. For the best option:a) What is the optimal order quantity?b) What is the annual holding cost?c) What is the annual ordering (setup) cost?d) What a re the annual costs of the silverware itself with an optimal order quantity?e) What is the total annual cost, including…
Chapter 5 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 5.2 - Prob. 1PCh. 5.2 - Prob. 2PCh. 5.2 - Prob. 4PCh. 5.3 - Prob. 7PCh. 5.3 - Prob. 9PCh. 5.3 - Prob. 12PCh. 5.5 - Prob. 16PCh. 5.5 - Prob. 18PCh. 5.6 - Prob. 21PCh. 5.7 - Prob. 24P
Ch. 5.7 - Prob. 25PCh. 5.7 - Prob. 26PCh. 5.7 - Prob. 27PCh. 5 - Prob. 28APCh. 5 - Prob. 31APCh. 5 - Prob. 32APCh. 5 - Prob. 33APCh. 5 - Prob. 37APCh. 5 - Prob. 38APCh. 5 - Prob. 40APCh. 5 - Prob. 41APCh. 5 - Prob. 43APCh. 5 - Prob. 44APCh. 5 - Prob. 45APCh. 5 - Prob. 46APCh. 5 - Prob. 47APCh. 5 - Prob. 48APCh. 5 - Prob. 49APCh. 5 - Prob. 50APCh. 5 - Prob. 51AP
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Ascent, Inc. manufactures hiking boots. Demand for boots is highly seasonal. In particular, the demand in the next year is expected to be 3,000, 4,000, 8,000, and 7,000 pairs of boots in quarters 1, 2, 3, and 4, respectively. With its current production facility, the company can produce at most 6,000 pairs of boots in any quarter. Ascent would like to meet all the expected demand, so it will need to carry inventory to meet demand in the later quarters. Each pair of boots sold generates a profit of ₱1,000 per pair. Each pair of boots in inventory at the end of a quarter incurs ₱400 in storage and capital recovery costs. Ascent has 1,000 pairs of boots in inventory at the start of quarter 1. Ascent's top management has given you the assignment of modeling and analyzing what the production schedule should be for the next four quarters. In particular, you are asked to determine how many pairs of boots to produce in each quarter so that you satisfy the demand in each quarter. While doing…arrow_forward3-2) The optimal quantity of the three products and resulting revenue for Taco Loco is: A) 28 beef, 80 cheese, and 39.27 beans for $147.27. B) 10.22 beef, 5.33 cheese, and 28.73 beans for $147.27. C) 1.45 Z, 8.36 Y, and 0 Z for $129.09. D) 14 Z, 13 Y, and 17 X for $9.81. 3-3) Taco Loco is unsure whether the amount of beef that their computer thinks is in inventory is correct. What is the range in values for beef inventory that would not affect the optimal product mix? A) 26 to 38.22 pounds B) 27.55 to 28.45 pounds C) 17.78 to 30 pounds D) 12.22 to 28 poundsarrow_forwardI need a detailed explanation and assistance to solve this problem: Wineco produces wine cooler as a blend of wine, grape juice and apple juice ingredients, which it sells for $4 per gallon. The costs of ingredients are given in the following table: Cooler Ingredient Price per Gallon ($) wines 1.20 grape juice 1.40 Apple juice 0.60 Wineco owns a blending plant with a production capacity of 200 gallons per day. Because the plant is fully automated, all other production costs are negligible by comparison to the cost of ingredients, and can be ignored. Government regulations mandate that wine cooler products must satisfy the following guidelines: At least 10% of the blend produced must be grape juice. The ratio of apple juice to grape juice in the blend produced must be 2.5:1 The blend produced must contain between 20% and 25% wine. Wineco wishes to use LP in order to determine the quantities of ingredients to buy for a day’s production of wine cooler, so…arrow_forward
- ABC enterprises supply a single product from its two warehouses to three of its customers. The supplies at the warehouses are 120 and 150 units, respectively. The customer demands are 70, 80, and 100 units respectively. The cost of shipping one unit from warehouse i to customer j is as per the following price schedule. Quantity Price Per Unit 0 -25 10$ 25-50 8$ Above 50 6$ For example: If 60 units are being shipped on a particular route, the first 25 units will be charged at the rate of 10 per unit. Similarly, the next 25 units will be charged $8 per unit and the rest at $6 per unit. Develop a linear integer programming model to determine the optimal shipment plan.arrow_forwardTarget is considering opening mini-Target stores in airports across the United States. Target knows that 25% of the items in its store account for 70% of the store's sales and expects that this Pareto relationship will hold for the mini-Target stores. The mini-Targets will each carry 50 items, but it's unknown at this point which 50 items will be stocked. The annual sales of a mini-Target is forecasted to be $500,000. Assume A items are top 20% of items sold, B items are the next 30% and C items are the bottom 50% of items sold. Turnover is expected to be for A items = 50, B items = 40 and C items = 10. 1. The top 20% of items in the min-Target store will account for what percent of sales? - 42.9% - 56.2% - 68.7% - 63.6% 2. What is the annual item sales expected to be for the 25th best selling product in the mini-Target store? - $113 - $4,510 - $437,500 - $76,350arrow_forwardTarget is considering opening mini-Target stores in airports across the United States. Target knows that 25% of the items in its store account for 70% of the store's sales and expects that this Pareto relationship will hold for the mini-Target stores. The mini-Targets will each carry 50 items, but it's unknown at this point which 50 items will be stocked. The annual sales of a mini-Target is forecasted to be $500,000. Assume A items are top 20% of items sold, B items are the next 30% and C items are the bottom 50% of items sold. Turnover is expected to be for A items = 50, B items = 40 and C items = 10 1. The top 20% of items in the min-Target store will account for what percent of sales? A. 63.6% B. 68.7% C. 56.2% D. 42.9% 2. What is the annual item sales expected to be for the worst selling product in the mini-Target store? A. $145 B. $1,453 C. $13,905 D. $32,781arrow_forward
- Your objective function is the following MAX 15 A + 10 B Find the endpoints for an iso-profit line of $600arrow_forwardThe Pizza Man is a local shop that plans to make all of its sales this Saturday from its sidewalk tables during the town’s holiday parade. On this occasion, the shop’s owners know that customers will buy by the slice and any kind of pizza offered will sell. The Pizza Man offers plain, meat, vegetable, and supreme pizzas. Each variety has its own requirement for sauce, cheese, dough, and toppings (in ounces, as shown in the table), and each has its own selling price. The Pizza Man expects to use its entire stock of ingredients and wishes to maximize revenue from its sales. What mix of pizzas should be made? Formulate and solve the problem (assume that fractions (1.2 Supreme Pizza, etc.) can be sold). Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwarda) calculate the weekly revenue level that each product generates b) calculate the average revenue level that the firm loses from each product c) suppose you replenish these products every week (52 weeks in a year). based on the table below, determkne tbe optimal instock rate the firm should have for each productarrow_forward
- PLEASE SHOW HOW TO DO THIS WITH EXCEL. Construct and solve a linear optimization model that defies the supply chain strategy that meets the demand of each retail outlet at minimum total shipping cost.arrow_forwardThe Fish House (TFH) in Norfolk, Virginia, sells fresh fish and seafood. TFH receives daily shipments of farm-raised trout from a nearby supplier. Each trout costs $2.45 and is sold for $3.95. To maintain its reputation for freshness, at the end of the day TFH sells any leftover trout to a local pet food manufacturer for $1.25 each. The owner of TFH wants to determine how many trout to order each day. Historically, the daily demand for trout is: Demand 10 11 12 13 14 15 16 17 18 19 20 Probability 0.02 0.06 0.09 0.11 0.13 0.15 0.18 0.11 0.07 0.05 0.03 a. Construct a payoff matrix for this problem. b. How much should the owner of TFH be willing to pay to obtain a demand forecast that is 100% accurate? give a clear explanation for (b)arrow_forwardThe company produces navels at three plants, which can be delivered directly to the two customersor it can first be shipped to the two warehouses and then to the customers. Shipments between plantsare allowed. This also applies to between warehouses and between customers.The cost of producing the navels is the same at each plant; as a result, the company is only concernedwith minimising the total shipping cost incurred in meeting customer demands. The productioncapacity of each plant (in tons per year) and the customer demand are summarised in the table below: Plant Capacity Plant 1 400 Plant 2 375 Plant 3 350 Customer Demand Customer 1 500 Customer 2 450 The cost (in thousands of dollars) of shipping a ton of the product between each pair of locations islisted in the table below where a blank indicates that the company cannot ship on that route:From node To node Plant 1 Plant…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Single Exponential Smoothing & Weighted Moving Average Time Series Forecasting; Author: Matt Macarty;https://www.youtube.com/watch?v=IjETktmL4Kg;License: Standard YouTube License, CC-BY
Introduction to Forecasting - with Examples; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=98K7AG32qv8;License: Standard Youtube License