The PC Tech Company assembles and tests two models of computers, Basic and XP. For the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The PC Tech Company assembles and tests two models of computers, Basic and XP. For the coming month, the company wants to decide how many of each model to assemble and test. No computers are in inventory from the previous month, and because these models are going to be changed after this month, the company does not want to hold any inventory after this month. It believes the most it can sell this month are 900 Basics and 1500 XPs. Each Basic sells for $600 and each XP sells for $900. The cost of components for a Basic is $300; for an XP it is $450. Labor is required for assembly and testing. There are at most 10000 assembly hours and 3200 testing hours available. Each labor hour for assembling costs $12 and each labor hour for testing costs $17. Each Basic requires four hours for assembling and one hour for testing, and each XP requires five hours for assembling and two hours for testing. PC Tech wants to maximize its net profit. 1. (8 points) Formulate a linear programming model for this problem. Assume fractional values of the decision variables are allowed. 2. (6 points) Solve this model by using the graphical approach. Indicate clearly the feasible region and the optimal solution on the graph. Report the optimal solution and the optimal objective value. Assume fractional values of the decision variables are allowed. 3. (3 points) Suppose PC Tech could acquire 100 more hours of testing or assembly but not both. Which would you recommend? What effect would this have on the optimal solution and profit? Give a qualitative answer. 4. (4 points) Suppose that PC Tech realized that it is very difficult to project the maximum number of Basics and XP it can produce, but due to some company requirements, it knows that it needs produce at least 900 Basics and 1500 XPs. What is the new optimal solution? 5. (5 points) If PC Tech could spend $20 per day on advertising that would increase the expected demand for Basic, should it be done? The PC Tech Company assembles and tests two models of computers, Basic and XP. For the coming month, the company wants to decide how many of each model to assemble and test. No computers are in inventory from the previous month, and because these models are going to be changed after this month, the company does not want to hold any inventory after this month. It believes the most it can sell this month are 900 Basics and 1500 XPs. Each Basic sells for $600 and each XP sells for $900. The cost of components for a Basic is $300; for an XP it is $450. Labor is required for assembly and testing. There are at most 10000 assembly hours and 3200 testing hours available. Each labor hour for assembling costs $12 and each labor hour for testing costs $17. Each Basic requires four hours for assembling and one hour for testing, and each XP requires five hours for assembling and two hours for testing. PC Tech wants to maximize its net profit. 1. (8 points) Formulate a linear programming model for this problem. Assume fractional values of the decision variables are allowed. 2. (6 points) Solve this model by using the graphical approach. Indicate clearly the feasible region and the optimal solution on the graph. Report the optimal solution and the optimal objective value. Assume fractional values of the decision variables are allowed. 3. (3 points) Suppose PC Tech could acquire 100 more hours of testing or assembly but not both. Which would you recommend? What effect would this have on the optimal solution and profit? Give a qualitative answer. 4. (4 points) Suppose that PC Tech realized that it is very difficult to project the maximum number of Basics and XP it can produce, but due to some company requirements, it knows that it needs produce at least 900 Basics and 1500 XPs. What is the new optimal solution? 5. (5 points) If PC Tech could spend $20 per day on advertising that would increase the expected demand for Basic, should it be done?
Expert Answer:
Answer rating: 100% (QA)
Answer Selling Price component cost Assembling time per PC Testi... View the full answer
Related Book For
Operations Management in the Supply Chain Decisions and Cases
ISBN: 978-0073525242
6th edition
Authors: Roger Schroeder, M. Johnny Rungtusanatham, Susan Goldstein
Posted Date:
Students also viewed these accounting questions
-
A sweatshirt supplier is trying to decide how many sweatshirts to print for the upcoming NCAA basketball championships. The final four teams have emerged from the quarterfinal round, and there is now...
-
The local Toyota dealer has to decide how many spare shock absorbers of a particular type to order for repairing Toyota automobiles. This shock absorber has a demand of four units per month and costs...
-
A supermarket is trying to decide how many cash registers to keep open. Suppose an average of 18 customers arrive each hour, and the average checkout time for a customer is four minutes....
-
Uniform current sheets are located in free space as follows: 8a z A/m at y = 0, 4a z A/m at y = 1, and 4a z A/m at y = 1. Find the vector force per meter length exerted on a current filament carrying...
-
Define the term "product" and name the three elements are part of a product.
-
The consolidated 2009, 2008, and 2007 income statements for Cola, Inc., and Subsidiaries appear below. Required: 1. Prepare common size income statements for horizontal analysis. 2. Indicate what...
-
For each of the following situations, calculate the \(z\)-statistic \((z)\). a. \(\mathrm{X}^{-}=14.00 ; \mu=11 ; \sigma=6 ; N=36\) b. \(\mathrm{X}^{-}=7.00 ; \mu=8 ; \sigma=3 ; N=9\) c....
-
Discuss the issue of commercialism versus professionalism in the accounting profession with respect to the changes in the rules of conduct described in the case. Do you think these changes are good...
-
please name one digital/social media invention/trend that you are grateful for and could not live without. Give 3 reasons why and support your opinion with data, statistics or a newsletter article....
-
The COVID-19 pandemic affected companies in the food industry in unique ways, particularly during 2020. Ruth's Hospitality Group (Ticker: RUTH) develops and operates fine dining restaurants under the...
-
City health inspectors generally are allowed to do surprise inspections of restaurants in their jurisdiction. Under what authority is this done? Is it legal?
-
Create a data type Location for dealing with locations on Earth using spherical coordinates (latitude/longitude). Include methods to generate a random location on the surface of the Earth, parse a...
-
Represent a point in time by using an int to store the number of seconds since January 1,1970 . When will programs that use this representation face a time bomb? How should you proceed when that...
-
The binomial coefficient C(n, k) is the number of ways of choosing a subset of k elements from a set of n elements. Pascals identity expresses the binomial coefficient C(n, k) in terms of smaller...
-
Describe the effect of the following function. public void swap(Color a, Color b) { } Color temp a = b; b = temp; R a;
-
Write a recursive method to print the items in a linked list in reverse order. Do not modify any of the links. Easy: Use quadratic time, constant extra space. Also easy: Use linear time, linear extra...
-
While driving down a country road at 20.0 m/s, you must slam on your breaks when you see a deer in the headlights, 638 m ahead. It takes you 3.0 s to react before you can hit the breaks. a. What is...
-
Solve for the equilibria of the following discrete-time dynamical systems Pr pt+1 = Pr+2.0(I-Pr)
-
An electronics retailer carries a particular cellular telephone with the following characteristics: Average monthly sales = 120 units Ordering cost = $25 per order Carrying cost = 35 percent per year...
-
For the data in problem 11: In problem 11 Average annual sales = 600 tires Ordering cost = $40 per order Carrying cost = 25 percent per year Item cost = $50 per tire Lead time = 4 days Standard...
-
What is the appropriate role of inventory turnover as a measure for evaluating the management of inventory? Under what circumstances is high turnover detrimental to a firm?
-
Consider expansion of a function in terms of a series \(F_{n}(x)\) in the following form: \[f(x)=\sum_{n} A_{n} F_{n}(x)\] If the functions \(F_{n}\) are orthogonal then this property helps to unfold...
-
A concrete wall \(20 \mathrm{~cm}\) thick is initially at a temperature of \(20^{\circ} \mathrm{C}\), and is exposed to steam at pressure \(1 \mathrm{~atm}\) on both sides. Find the time for the...
-
Analyze the transient problem with the Dirichlet condition for a long cylinder and for a sphere. Derive expressions for the eigenfunctions, eigenconditions, and eigenvalues. Find the series...
Study smarter with the SolutionInn App