New Semester
Started
Get
50% OFF
Study Help!
--h --m --s
Claim Now
Question Answers
Textbooks
Find textbooks, questions and answers
Oops, something went wrong!
Change your search query and then try again
S
Books
FREE
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Tutors
Online Tutors
Find a Tutor
Hire a Tutor
Become a Tutor
AI Tutor
AI Study Planner
NEW
Sell Books
Search
Search
Sign In
Register
study help
business
practical management science
Practical Management Science, Revised 3rd Edition Wayne L Winston, S. Christian Albright - Solutions
A graduated payment mortgage (GPM) enables the borrower to have lower payments earlier in the mortgage and increases payments later on. The assumption is the borrower’s income will increase over time so that it will be easier for the borrower to meet all payments. Suppose we borrow $60,000 on a
Assume we want to take out a $300,000 loan on a 20-year mortgage with end-of-month payments. The annual rate of interest is 6%. Twenty years from now, we need to make a $40,000 ending balloon payment.Because we expect our income to increase, we want to structure the loan so at the beginning of each
MusicTech manufactures and sells a portable music device called an mTune (similar to an iPod). At beginning of month 1, the company has $70,000 and 6 employees. Each machine the company owns has the capacity to make up to 900 mTunes per month, and each worker can make up to 600 mTunes per month.
The HiTech company produces DVD players.Estimated demand for the next 4 quarters is 5000;10,000; 8000; and 2000. At the beginning of quarter 1, HiTech has 60 workers. It costs $2000 to hire a worker and $4000 to fire a worker. Workers are paid $10,000 per quarter plus $80 for each unit they make
Oilco produces gasoline from five inputs. The cost, density, viscosity, and sulfur content, and the number of barrels available of each input are listed in the file P04_78.xlsx. Gasoline sells for $72 per barrel. Gasoline can have a density of at most 0.98 units per barrel, a viscosity of at most
Other relevant information is as follows:■ Workers are paid $5000 per month.■ It costs $500 to hold a car in inventory for a month.The holding cost is based on each month’s ending inventory.■ It costs $4000 to hire a worker.■ It costs $20,000 to fire a worker.■ Each worker can make up
Autoco produces cars. Demand during each of the next 12 months is forecasted to be 945, 791, 364, 725, 268, 132, 160, 304, 989, 293, 279, and
Based on Gatalla and Oearce (1974). Northwest Airlines has determined that it needs the number of ticket agents during each hour of the day, as listed in the file P04_75.xlsx. Workers work nine-hour shifts, one hour of which is for lunch. The lunch hour can be either the fourth or fifth hour of
Based on Thomas (1971). Toyco produces toys at two plants and sells in three regions. The current demands at these regions are given in the file P04_73.xlsx. Each plant can produce up to 2500 units. Each toy sells for $10, and the cost of producing and shipping a toy from a given plant to a region
A unit of raw material can be bought (for $5 a unit) or produced(at no cost) by using 2 hours of time on line 1.a. Determine how to maximize profit.b. The company will stop buying raw material when the price of raw material exceeds what value? (Use SolverTable.)
A company produces two products: A and B. Product A sells for $11 per unit and product B sells for$23 per unit. Producing a unit of product A requires 2 hours on assembly line 1 and 1 unit of raw material.Producing a unit of product B requires 2 units of raw material, 1 unit of A, and 2 hours on
Gas 1 is allowed to contain up to 4% impurities, and gas 2 is allowed to contain up to 3% impurities. Gas 1 sells for $72 per barrel, whereas gas 2 sells for$84 per barrel. Up to 4200 barrels of gas 1 and up to 4300 barrels of gas 2 can be sold. The cost per barrel of each crude, their
Carrington Oil produces gas 1 and gas 2 from two types of crude oil: crude 1 and crude
Feedco produces two types of cattle feed, both consisting totally of wheat and alfalfa. Feed 1 must contain at least 80% wheat, and feed 2 must contain at least 60%alfalfa. Feed 1 sells for $1.50 per pound, and feed 2 sells for $1.30 per pound. Feedco can purchase up to 1000 pounds of wheat at
Sunco Oil has refineries in Los Angeles and Chicago.The Los Angeles refinery can refine up to 2 million barrels of oil per year, and the Chicago refinery up to 3 million. After the oil is refined, it’s shipped to two distribution points, Houston and New York City.Sunco estimates that each
Candy Kane Cosmetics (CKC) produces Leslie Perfume, which requires chemicals and labor. Two production processes are available. Process 1 transforms 1 unit of labor and 2 units of chemicals into 3 ounces of perfume. Process 2 transforms 2 units of labor and 3 units of chemicals into 5 ounces of
Determine how Steelco can minimize the cost of manufacturing the desired steel.
Steelco manufactures two types of steel at three different steel mills. During a given month, each steel mill has 200 hours of blast furnace time available.Because of differences in the furnaces at each mill, the time and cost to produce a ton of steel differ for each mill, as listed in the file
All steel manufactured by Steelco must meet the following requirements: between 3.2% and 3.5% carbon;between 1.8% and 2.5% silicon; between 0.9%and 1.2% nickel; tensile strength of at least 45,000 pounds per square inch (psi). Steelco manufactures steel by combining two alloys. The cost and
Sunco processes oil into aviation fuel and heating oil.It costs $65,000 to purchase each 1000 barrels of oil, which is then distilled and yields 500 barrels of aviation fuel and 500 barrels of heating oil. Output from the distillation can be sold directly or processed in the catalytic cracker. If
You now have $10,000, and the following investment plans are available to you during the next three years:■ Investment A: Every dollar invested now yields$0.10 a year from now and $1.30 three years from now.■ Investment B: Every dollar invested now yields$0.20 a year from now and $1.10 two
Assuming it can put no more than $50,000 in any investment, develop an LP model to help Moneyco achieve its goal.
In addition to these investments, Moneyco can invest as much money each year as it wants in CDs, which pay 6% interest.The company wants to maximize its available cash in year
Moneyco has $100,000 to invest at time 1 (the beginning of year 1). The cash flows associated with the five available investments are listed in the file P04_61.xlsx. For example, every dollar invested in A in year 1 yields $1.40 in year
Abotte Products produces three products, A, B, and C.The company can sell up to 300 pounds of each product at the following prices (per pound): product A, $10; product B, $12; product C, $20. Abotte purchases raw material at $5 per pound. Each pound of raw material can be used to produce either 1
A company produces three products, A, B, and C, and can sell these products in unlimited quantities at the following unit prices: A, $10; B, $56; C, $100.Producing a unit of A requires 1 hour of labor; a unit of B, 2 hours of labor plus 2 units of A; and a unit of C, 3 hours of labor plus 1 unit of
Furnco manufactures tables and chairs. A table requires 40 board feet of wood, and a chair requires 30 board feet of wood. Wood can be purchased at a cost of $1 per board foot, and 40,000 board feet of wood are available for purchase. It takes 2 hours of skilled labor to manufacture an unfinished
Coalco produces coal at three mines and ships it to four customers. The cost per ton of producing coal, the ash and sulfur content (per ton) of the coal, and the production capacity (in tons) for each mine are given in the file P04_57.xlsx. The number of tons of coal demanded by each customer and
For example, a portfolio that invests$600,000 in bond 1 and $400,000 in bond 4 has an average duration of [600,000(3) 400,000(9)]1,000,000 5.4.■ Because of diversification requirements, at most 40% of the total amount invested can be invested in a single bond.Determine how Solodrex can
Many Wall Street firms use LP models to select a desirable bond portfolio. The following is a simplified version of such a model. Solodrex is considering investing in four bonds; $1 million is available for investment. The expected annual return, the worstcase annual return on each bond, and the
Hiland’s TV-Radio Store must determine how many TVs and radios to keep in stock. ATV requires 10 square feet of floor space, whereas a radio requires 4 square feet; 5000 square feet of floor space is available.ATV sale results in an $80 profit, and a radio earns a profit of $20. The store stocks
Up to 4000 ounces of drug 1 can be sold at $6 per ounce; up to 3000 ounces of drug 2 can be sold at $5 per ounce.Up to 4500 ounces of chemical 1 can be purchased at$6 per ounce, and up to 4000 ounces of chemical 2 can be purchased at $4 per ounce. Determine how to maximize Daisy’s profit.
Eli Daisy uses chemicals 1 and 2 to produce two drugs. Drug 1 must be at least 70% chemical 1, and drug 2 must be at least 60% chemical
Bullco blends silicon and nitrogen to produce two types of fertilizers. Fertilizer 1 must be at least 40%nitrogen and sells for $70 per pound. Fertilizer 2 must be at least 70% silicon and sells for $40 per pound.Bullco can purchase up to 8000 pounds of nitrogen at$15 per pound and up to 10,000
Each pound of oranges that is used for juice yields a revenue of $1.50 and incurs a variable cost (consisting of labor costs, variable overhead costs, inventory costs, and so on) of$1.05. Each pound of oranges sold in bags yields a revenue of $1.50 and incurs a variable cost of $0.70.a. Determine
Sunblessed Juice Company sells bags of oranges and cartons of orange juice. Sunblessed grades oranges on a scale of 1 (poor) to 10 (excellent). At present, Sunblessed has 100,000 pounds of grade 9 oranges and 120,000 pounds of grade 6 oranges on hand. The average quality of oranges sold in bags
NewAge Pharmaceuticals produces the drug NasaMist from four chemicals. Today, the company must produce 1000 pounds of the drug. The three active ingredients in NasaMist are A, B, and C. By weight, at least 8% of NasaMist must consist of A, at least 4% of B, and at least 2% of C. The cost per pound
It takes a shoemaker 15 minutes to produce a pair of shoes. Each shoemaker works 150 hours per month plus up to 40 hours per month of overtime.A shoemaker is paid a regular salary of $2000 per month plus $50 per hour for overtime. At the beginning of each month, Shoemakers can either hire or fire
Shoemakers of America forecasts the following demand for the next 6 months: 5000 pairs in month 1;6000 pairs in month 2; 5000 pairs in month 3; 9000 pairs in month 4; 6000 pairs in month 5; 5000 pairs in month
At the beginning of each year, the bus company must decide how many drivers to hire or fire.It costs $4000 to hire a driver and $2000 to fire a driver. A driver’s salary is $10,000 per year. At the beginning of year 1, the company has 50 drivers.A driver hired at the beginning of a year can be
A bus company believes that it will need the following numbers of bus drivers during each of the next 5 years: 60 drivers in year 1; 70 drivers in year 2; 50 drivers in year 3; 65 drivers in year 4; 75 drivers in year
Continuing the previous problem in a slightly different direction, continue to use the Money_allocated cell as a changing cell, and add a constraint that it must be less than or equal to any value, such as $195,000, that is less than its current optimal value. With this constraint, James will again
In the pension fund problem, if the amount of money initially is less than the amount found by Solver, then James will not be able to meet all of the pension fund payments. Use the current model to demonstrate that this is true. To do so, enter a value less than the optimal value into cell B16.
Does our model easily accommodate such investments? Try it with some cash outlay data you make up, run Solver, and interpret your results.
Suppose the investments in the Barney-Jones problem sometimes require cash outlays in more than one year. For example, a $1 investment in investment B might require $0.25 to be spent in year 1 and $0.75 to be spent in year
James decides he would like to“break these out” into several rows of calculations:Beginning cash (for 2006, this is the amount allocated;for other years, it is the unused cash, plus interest, from the previous year), Amount spent on bonds(positive in 2006 only), Amount received from
The pension fund model is streamlined, perhaps too much. It does all of the calculations concerning cash flows in row
In the pension fund problem, suppose James has been asked to see how the optimal solution will change if the required payments in years 2011 to 2020 all increase by the same percentage, where this percentage could be anywhere from 5% to 25%. Use an appropriate one-way SolverTable to help him out,
Its unit cost in 2006 is $1020, it returns coupons of $70 in years 2007 to 2010 and a payment of $1070 in 2011. Modify the model to incorporate this extra bond and reoptimize. Does the solution change—that is, should James purchase any of bond 4?
In the pension fund problem, suppose there’s a fourth bond, bond
In the Barney-Jones spreadsheet model, we ran investments across columns and years down rows. Many financial analysts seem to prefer the opposite. Modify the spreadsheet model so that years go across columns and investments go down rows. Run Solver to ensure that your modified model is correct!
We claimed that our model for Barney-Jones is generalizable.Try generalizing it to the case where there are two more potential investments, F and G. Investment F requires a cash outlay in year 2 and returns $0.50 in each of the next 4 years for every dollar invested.Investment G requires a cash
In the Barney-Jones investment problem, increase the maximum amount allowed in any investment to$150,000. Then run a one-way sensitivity analysis to the money market rate on cash. Capture one output variable: the maximum amount of cash ever put in the money market. You can choose any reasonable
Modify the Barney-Jones investment problem so that a minimum amount must be put into any investment, although this minimum can vary by investment. For example, the minimum amount for investment A might be $0, whereas the minimum amount for investment D might be $50,000. These minimum amounts should
Suppose there is a fourth drug, drug D, that Repco can produce and sell. Each unit of drug D requires 4 labor hours, 1 unit of drug A, and 1 unit of drug C to produce, and it sells for $150 per unit. Modify the current model to incorporate drug D and reoptimize.If drug D isn’t produced in the
We claimed in the Repco model that we could either constrain the units produced to be greater than or equal to the units used by production or the units sold to be nonnegative. We chose the former. Modify the model to implement the latter (deleting the former), and verify that you get the same
Run a one-way sensitivity analysis on the optimal solution to the unit selling price of drug A in the Repco problem. If this price is high enough, will Repco start selling drug A in addition to producing it? Then run a similar one-way sensitivity analysis on the optimal solution to the price of
We warned you about clearing denominators in the quality constraints. This problem indicates what happens if you don’t do so.a. Implement the quality constraints as indicated in inequality (4.3) of the text. Then run Solver with Assume Linear Model checked. What happens?What if you uncheck the
As we have formulated Chandler’s blending model, a barrel of any input results in a barrel of output. However, in a real blending problem, there can be losses.Suppose a barrel of input results in only a fraction of a barrel of output. Specifically, each barrel of either crude oil used for
How sensitive is the optimal solution (barrels of each output sold and profit) to the required quality points?Answer this by running a two-way SolverTable with these three outputs. You can choose the values of the two inputs to vary.
Does this shadow price change as Chandler keeps getting more of crude oil 1? Answer the same questions for crude oil 2.
Use SolverTable in Chandler’s blending model to find the shadow price of crude oil 1—that is, the amount Chandler would be willing to spend to acquire more crude oil
Use SolverTable in Chandler’s blending model to see whether, by increasing the selling price of gasoline, you can get an optimal solution that produces only gasoline, no heating oil. Then use SolverTable again to see whether, by increasing the selling price of heating oil, you can get an optimal
We saw that the “natural” way to model SureStep’s backlogging model, with IF functions, leads to a nonsmooth model that Solver has difficulty handling.Another version of the problem is also difficult for Solver. Suppose SureStep wants to meet all demand on time (no backlogging), but it wants
In the SureStep no-backlogging problem, change the demands so that they become 6000, 8000, 5000, 3000.Also, change the problem slightly so that newly hired workers take 6 hours to produce a pair of shoes during their first month of employment. After that, they take only 4 hours per pair of shoes.
In the current no-backlogging problem, SureStep doesn’t hire any workers and uses almost no overtime.This is evidently because of low demand. Change the demands to 6000, 8000, 5000, and 3000, and reoptimize.Is there now hiring and overtime? With this new demand pattern, explore the trade-off
Suppose SureStep could begin a machinery upgrade and training program to increase its worker productivity. This program would result in the following values of labor hours per pair of shoes over the next 4 months: 4, 3.9, 3.8, and 3.8. How much would this new program be worth to SureStep, at least
SureStep is currently getting 160 regular-time hours from each worker per month. This is actually calculated from 8 hours per day times 20 days per week. For this, they are paid $9.375 per hour(1500160). Suppose workers can change their contract so that they only have to work 7.5 hours per day
Extend SureStep’s original no-backlogging aggregate planning model from 4 to 6 months. Try several different values for demands in months 5 and 6, and run Solver for each. Is your optimal solution for the first 4 months the same as the one in the book?
Suppose the post office has 25 full-time employees and is not allowed to hire or fire any of them.Determine a schedule that maximizes the number of weekend days off received by these employees.
In the post office example, suppose that the post office can force employees to work one day of overtime each week on the day immediately following this five-day shift. For example, an employee whose regular shift is Monday to Friday can also be required to work on Saturday. Each employee is paid
In the post office example, suppose the employees want more flexibility in their schedules. They want to be allowed to work five consecutive days followed by two days off or to work three consecutive days followed by a day off, followed by two consecutive days followed by another day off. Modify
In the post office example, suppose that each full-time employee works 8 hours per day. Thus, Monday’s requirement of 17 workers can be viewed as a requirement of 8(17) 136 hours. The post office can meet its daily labor requirements by using both full-time and part-time employees. During each
Use a one-way SolverTable to investigate how the total number of employees changes.
Use a two-way SolverTable to see how the total number of employees changes.c. Suppose the Monday, Tuesday, and Wednesday requirements each increase by the same amount, where this increase can be from 1 to 8 in increments of
Use SolverTable to see how the total number of employees changes.b. Suppose the Monday and Tuesday requirements can each, independently of one another, increase from 1 to 8 in increments of
How much influence can the worker requirements for one, two, or three days have on the weekly schedule in the post office example? Explore this in the following questions:a. Let Monday’s requirements change from 17 to 25 in increments of
Modify the post office model so that employees are paid $10 per hour on weekdays and $15 per hour on weekends. Change the objective so that you now minimize the weekly payroll. (You can assume that each employee works eight hours per day.) Is the previous optimal solution still optimal?
Suppose we consider three objectives, not just two:the total advertising cost, the total number of excess exposures to men, and the total number of excess exposures to women. Continuing the approach suggested in the previous problem, how might you proceed? Take it as far as you can, including a
Suppose that General Flakes decides that it shouldn’t place any more than 10 ads on any given show.Modify the (original) advertising model appropriately to incorporate this constraint, and then reoptimize(with integer constraints on the numbers of ads).Finally, run SolverTable to see how
Suppose, as a matter of corporate policy, that General Flakes decides not to advertise on the Lifetime channel. Modify the original advertising model appropriately and find the new optimal solution. How much has it cost the company to make this policy decision?
A company manufactures two products on two machines.The number of hours of machine time and labor depends on the machine and product as shown in the file P03_42.xlsx. The cost of producing a unit of each product depends on which machine produces it.These unit costs also appear in the file
A company must meet (on time) the following demands: quarter 1, 3000 units; quarter 2, 2000 units;quarter 3, 4000 units. Each quarter, up to 2700 units can be produced with regular-time labor, at a cost of$40 per unit. During each quarter, an unlimited number of units can be produced with overtime
(Hint: You may assume that a given worker will get the same quarter off during each year.)b. Suppose Comfy Shoes can pay a flat fee for a training program that will increase the productivity of all of its workers. Use SolverTable to see how much the company would be willing to pay for a training
Each year, Comfy Shoes faces demands (which must be met on time) for pairs of shoes as shown in the file P03_39.xlsx. Employees work 3 consecutive quarters and then receive 1 quarter off. For example, a worker might work during quarters 3 and 4 of one year and quarter 1 of the next year. During a
The Deckers Clothing Company produces shirts and pants. Each shirt requires 2 square yards of cloth, and each pair of pants requires 3 square yards of cloth.During the next 2 months the following demands for shirts and pants must be met (on time): month 1, 1000 shirts and 1500 pairs of pants; month
During the next 2 months, General Cars must meet (on time) the following demands for trucks and cars: month 1, 400 trucks and 800 cars; month 2, 300 trucks and 300 cars. During each month, at most 1000 vehicles can be produced. Each truck uses 2 tons of steel, and each car uses 1 ton of steel.
Sailco Corporation must determine how many sailboats to produce during each of the next 4 quarters.The demand during each of the next four quarters is as follows: first quarter, 40 sailboats; second quarter, 60 sailboats; third quarter, 75 sailboats; fourth quarter, 25 sailboats. Sailco must meet
U.S. Labs manufactures mechanical heart valves from the heart valves of pigs. Different heart operations require valves of different sizes. U.S. Labs purchases pig valves from three different suppliers. The cost and size mix of the valves purchased from each supplier are given in the file
Each truck must go through the painting shop and the assembly shop. If the painting shop were completely devoted to painting type 1 trucks, 800 per day could be painted; whereas if the painting shop were completely devoted to painting type 2 trucks, 700 per day could be painted. If the assembly
Truckco manufactures two types of trucks, types 1 and
Each emits two types of pollutants, labeled P1 and P2, into the river. If the waste from each factory is processed, the pollution in the river can be reduced. It costs $15 to process a ton of factory 1 waste, and each ton processed reduces the amount of P1 by 0.10 ton and the amount of P2 by 0.45
There are three factories on the Momiss River: 1, 2, and
Alden Enterprises produces two products. Each product can be produced on either of two machines. The time (in hours) required to produce each product on each machine is listed in the file P03_32.xlsx. Each month, 500 hours of time are available on each machine. Each month, customers are willing to
Woodco manufactures tables and chairs. Each table and chair must be made entirely out of oak or entirely out of pine. A total of 150 board feet of oak and 210 board feet of pine are available. A table requires either 17 board feet of oak or 30 board feet of pine, and a chair requires either 5 board
For a telephone survey, a marketing research group needs to contact at least 150 wives, 120 husbands, 100 single adult males, and 110 single adult females. It costs $2 to make a daytime call and (because of higher labor costs) $5 to make an evening call. The file P03_30.xlsx lists the results that
Bloomington Brewery produces beer and ale. Beer sells for $5 per barrel, and ale sells for $2 per barrel.Producing a barrel of beer requires 5 pounds of malt and 2 pounds of hops. Producing a barrel of ale requires 2 pounds of corn and 1 pound of hops. The brewery has 60 pounds of corn and 25
Describe the behavior you observe in the table.Can you find any “reasonable” Δt’s that induce positive production levels in week 3?
A company faces the following demands during the next three weeks: week 1, 20 units; week 2, 10 units;week 3, 15 units. The unit production costs during each week are as follows: week 1, $13; week 2, $14;week 3, $15. A holding cost of $2 per unit is assessed against each week’s ending inventory.
A customer requires during the next 4 months, respectively, 50, 65, 100, and 70 units of a commodity, and no backlogging is allowed (that is, the customer’s requirements must be met on time). Production costs are $5, $8, $4, and $7 per unit during these months.The storage cost from one month to
Showing 1600 - 1700
of 2541
First
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Last
Step by Step Answers
Get 50% OFF
Claim Now
