You manage an electronics manufacturing company that produces three types of electronic devices: Smartphones, Tablets, and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You manage an electronics manufacturing company that produces three types of electronic devices: Smartphones, Tablets, and Laptops. . . ● Producing 1 Phone requires 4 minutes of assembly time and 2 minutes of testing time. Producing 1 Tablet requires 2 minutes of assembly time and 2 minutes of testing time. Producing 1 Laptop requires 4 minutes of assembly time and 3 minutes of testing time. The assembly department operates for 3 shifts a day, 7 days per week, while the testing department operates for 2 shifts a day, 7 days per week. Although each shift is nominally 8 hours, because of breaks, you plan on 7 working hours per shift, with each working hour comprised of 60 minutes usable for the assembly and test operations. The revenue per unit for phones, tablets, and laptops are $700, $500, and $1,000 respectively. The raw material cost per unit for phones, tablets, and laptops are $160, $100, and $300 respectively. The gross margin of each product is its revenue minus its raw material cost. For example, the gross margin of a tablet is $500-100-$400. Your objective is to maximize the total gross margin from all products sold. The weekly demand for phones, tablets, and laptops are 800, 700, and 1,200 units respectively. The cost of all raw materials purchased during a week cannot exceed the budget of half a million dollars. A. Create a spreadsheet model in standard LP form and use Solver to determine the optimal weekly production of the three electronics items to maximize the total gross margin. Although the quantities do not need to be integer, round them to integers in your spreadsheet. Label your tab as Q1A. B. Write an algebraic formulation of the model. You may imbed your algebraic formulation into your spreadsheet (using tab Q1B) or you may submit it as a separate ms-word file or PDF file. C. You are considering the implementation of a policy that limits the maximum number of laptops produced to be no more than 35% of the total products produced. In tab Q1C, implement this policy. Use Solver to determine the optimal weekly production quantities of the three electronic products with this policy. Calculate and highlight in tab Q1C the cost of this policy. The cost of this policy is the total gross margin determined in tab QIA (without the policy) minus the total gross margin determined in tab Q1C (with the policy). D. Assume for part D that you decided the cost of the 35% policy is too high. Consequently, use the model from tab QIA as a starting point for your model in tab QID. Suppose that the demand for phones will increase by 3 phones for each dollar spent advertising phones. Any money spent on advertising will consume some of the budget presently available for raw material costs. In other words, for Q1D, the half million dollar budget is available for the total of the advertising expenses and raw material costs. Money spent on advertising impacts gross margin both from the cost perspective (cost of advertising) and revenue perspective (if the advertising leads to increased sales). Use Solver to determine the optimal weekly advertising expenditures for phones along with the corresponding optimal production quantities of the three electronic products. You manage an electronics manufacturing company that produces three types of electronic devices: Smartphones, Tablets, and Laptops. . . ● Producing 1 Phone requires 4 minutes of assembly time and 2 minutes of testing time. Producing 1 Tablet requires 2 minutes of assembly time and 2 minutes of testing time. Producing 1 Laptop requires 4 minutes of assembly time and 3 minutes of testing time. The assembly department operates for 3 shifts a day, 7 days per week, while the testing department operates for 2 shifts a day, 7 days per week. Although each shift is nominally 8 hours, because of breaks, you plan on 7 working hours per shift, with each working hour comprised of 60 minutes usable for the assembly and test operations. The revenue per unit for phones, tablets, and laptops are $700, $500, and $1,000 respectively. The raw material cost per unit for phones, tablets, and laptops are $160, $100, and $300 respectively. The gross margin of each product is its revenue minus its raw material cost. For example, the gross margin of a tablet is $500-100-$400. Your objective is to maximize the total gross margin from all products sold. The weekly demand for phones, tablets, and laptops are 800, 700, and 1,200 units respectively. The cost of all raw materials purchased during a week cannot exceed the budget of half a million dollars. A. Create a spreadsheet model in standard LP form and use Solver to determine the optimal weekly production of the three electronics items to maximize the total gross margin. Although the quantities do not need to be integer, round them to integers in your spreadsheet. Label your tab as Q1A. B. Write an algebraic formulation of the model. You may imbed your algebraic formulation into your spreadsheet (using tab Q1B) or you may submit it as a separate ms-word file or PDF file. C. You are considering the implementation of a policy that limits the maximum number of laptops produced to be no more than 35% of the total products produced. In tab Q1C, implement this policy. Use Solver to determine the optimal weekly production quantities of the three electronic products with this policy. Calculate and highlight in tab Q1C the cost of this policy. The cost of this policy is the total gross margin determined in tab QIA (without the policy) minus the total gross margin determined in tab Q1C (with the policy). D. Assume for part D that you decided the cost of the 35% policy is too high. Consequently, use the model from tab QIA as a starting point for your model in tab QID. Suppose that the demand for phones will increase by 3 phones for each dollar spent advertising phones. Any money spent on advertising will consume some of the budget presently available for raw material costs. In other words, for Q1D, the half million dollar budget is available for the total of the advertising expenses and raw material costs. Money spent on advertising impacts gross margin both from the cost perspective (cost of advertising) and revenue perspective (if the advertising leads to increased sales). Use Solver to determine the optimal weekly advertising expenditures for phones along with the corresponding optimal production quantities of the three electronic products.
Expert Answer:
Related Book For
Operations Management Processes And Supply Chains
ISBN: 9781292409863
13th Global Edition
Authors: Lee Krajewski, Naresh Malhotra, Larry Ritzman
Posted Date:
Students also viewed these general management questions
-
people who experience ipv should be treated as what of their own situation ?
-
An electronics manufacturer has an option to produce six styles of cell phones. Each of these devices requires time, in minutes, on three types of electronic testing equipment, as shown in the table...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The figure shows the result of taking 25 SRSs from a Normal population and constructing a confidence interval for the population mean using each sample. Which confidence level 80%, 90%, 95%, or 99%do...
-
What might damage files?
-
Janna has a tax basis of $15,000 in her Mimikaki stock (Mimikaki has been an S corporation since inception). In 2014, Janna was allocated $20,000 of ordinary income from Mimikaki. What is the amount...
-
In a gas turbine cycle, the turbine output is \(600 \mathrm{~kJ} / \mathrm{kg}\), compressor work is \(400 \mathrm{~kJ} / \mathrm{kg}\) and heat supplied is \(1000 \mathrm{~kJ} / \mathrm{kg}\). The...
-
Earnings as defined in SFAC No. 5 are consistent with the current operating performance concept of income. Comprehensive income is consistent with the all- inclusive concept of income. Required: a....
-
How does it help companies to rely on seasonality and past performance if those items exist in their data? What unforeseen factors could impact seasonality that managers would need to consider...
-
Refer back to the beginning of this chapter to the excerpt from a Los Angeles Times article about Reed Slatkin's fraud. The article insinuates that the FBI and IRS's raiding of Slatkin's office...
-
calculate the following (you may use a financial calculator or software): a. The Net Profit after Tax for all years and the Annual Cash Flow. $ Cash Income 59,000 Cash Expenses (19,000) Depreciation...
-
Draw a plot of InK on y axis and 1/T on x axis. 1. What is the slope from the graph In(k) on vertical axis vs 1/Temperature on horizontal axis
-
The regulation of reproduction has been a a controversial topic for many years following the 1973 decision in Roe v Wade. The recent decision in Dobbs vs Jackson Women's Health Organization by the...
-
A recession has hit Canada, and the government is looking for ways to stimulate economic growth. As a member of the Bank of Canada's monetary policy committee, you are tasked with developing a plan,...
-
Susie orders 20 pairs of socks for her soccer team. She orders black socks with yellow stripes. When Susie receives the socks, she discovers that they are yellow with black stripes. She then sends...
-
Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided...
-
7. (10 points) Consider a local baseball league with four teams 70, 71, 72, 73. You are rooting for the team zo and, at some time during the season, you are wondering if ro can still win the...
-
Continuation of Exercise 4-83. (a) What is the probability that the first major crack occurs between 12 and 15 miles of the start of inspection? (b) What is the probability that there are no major...
-
Protect life. Protect truth. That's the mission of Axon, the company that produces public safety technologies such as Taser electrical smart weapons and body cameras for law enforcement around the...
-
Complete the MPS record in Figure 11.29 for a single item. Item: A Quantity on Hand: Forecast Customer orders (booked) Projected on-hand inventory MPS quantity MPS start 35 1 2 3 20 18 28 15 17 9 4...
-
Eagle Electric Repair is a repair facility for several major electric appliance manufacturers. Eagle wants to find a low-cost supplier for an electric relay switch used in many appliances. The annual...
-
Using the data in BE2.2, journalize the transactions. Identify and explain steps in recording process. BE2.2 Transactions for Thorn Consulting for the month of June are presented below. Identify the...
-
Explain how a ledger and posting help in the recording process.
-
Kochi Services was formed on May 1, 2025. The following transactions took place during the first month (amounts in thousands). Transactions on May 1: 1. Rahul Shah invested 40,000 cash in the company...
Study smarter with the SolutionInn App