Question 1 This question is about the application of linear programming (LP). Part (b) is a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 1 This question is about the application of linear programming (LP). Part (b) is a continuation of Part (a), and Part (c) is not related to Parts (a) and (b). (a) (b) (c) ErgoPillow is an online shop selling two different models of ergonomic pillow which helps to relief sore necks. It sells the delux and premium version for $50 and $80 each. The deluxe pillow is imported from a supplier in India while the premium pillow is imported from a supplier in Thailand. The finance team has informed that both pillow models give the same profit of $10 per pillow. The pillows are sent via ocean freight in containers and each container can carry up to 1,000 pillows. The sales team has forecasted that the aggregated sales is 50 containers of pillows in a year and must make advance arrangement to order from the suppliers and book the shipment due to two considerations: long shipment time and potential loss due to piracy. Order is by container units and order can be placed throughout the year. The shipment time is 16 days and 7 days from India and Thailand, respectively. ErgoPillow has requested for the average shipment time for its orders to be capped at 10 days maximum. The shipping cost per pillow from India and Thailand is 20% and 10% of the pillow selling price, respectively. Also, 8% of orders from Thailand are lost due to piracy while that from India suffers a loss of 4% of its orders annually. The management is willing to accept nothing more than 8 orders gone missing due to piracy. To ensure stable supply, at least 30% of its orders must be placed with each supplier. ErgoPillow management is very particular about shipping cost and would like you to recommend how the orders should be placed between the two suppliers. State qualitatively the objective, decision variables and constraints. Then formulate the problem as an LP model. After that, solve it using the graphical solution procedure. Please limit the answer to within two pages. (50 marks) The supplier in India would like to boost their sales with ErgoPillow and they proposed to reduce their shipment time with no additional cost. Apply the appropriate LP concept and show whether this proposal might work or not. (10 marks) Your company is a business consulting company that advises companies on optimising their operations using LP. You are being invited to your child's primary school class where parents are invited to share about what they do for living. Prepare your speech on LP to the Primary 6 students, using no more than 400 words. (40 marks) Question 1 This question is about the application of linear programming (LP). Part (b) is a continuation of Part (a), and Part (c) is not related to Parts (a) and (b). (a) (b) (c) ErgoPillow is an online shop selling two different models of ergonomic pillow which helps to relief sore necks. It sells the delux and premium version for $50 and $80 each. The deluxe pillow is imported from a supplier in India while the premium pillow is imported from a supplier in Thailand. The finance team has informed that both pillow models give the same profit of $10 per pillow. The pillows are sent via ocean freight in containers and each container can carry up to 1,000 pillows. The sales team has forecasted that the aggregated sales is 50 containers of pillows in a year and must make advance arrangement to order from the suppliers and book the shipment due to two considerations: long shipment time and potential loss due to piracy. Order is by container units and order can be placed throughout the year. The shipment time is 16 days and 7 days from India and Thailand, respectively. ErgoPillow has requested for the average shipment time for its orders to be capped at 10 days maximum. The shipping cost per pillow from India and Thailand is 20% and 10% of the pillow selling price, respectively. Also, 8% of orders from Thailand are lost due to piracy while that from India suffers a loss of 4% of its orders annually. The management is willing to accept nothing more than 8 orders gone missing due to piracy. To ensure stable supply, at least 30% of its orders must be placed with each supplier. ErgoPillow management is very particular about shipping cost and would like you to recommend how the orders should be placed between the two suppliers. State qualitatively the objective, decision variables and constraints. Then formulate the problem as an LP model. After that, solve it using the graphical solution procedure. Please limit the answer to within two pages. (50 marks) The supplier in India would like to boost their sales with ErgoPillow and they proposed to reduce their shipment time with no additional cost. Apply the appropriate LP concept and show whether this proposal might work or not. (10 marks) Your company is a business consulting company that advises companies on optimising their operations using LP. You are being invited to your child's primary school class where parents are invited to share about what they do for living. Prepare your speech on LP to the Primary 6 students, using no more than 400 words. (40 marks)
Expert Answer:
Posted Date:
Students also viewed these mathematics questions
-
A small company has $4,500,000 in (annual) revenue, spends 57% of its revenues on purchases, and has a net profit margin of 11.75%. They would like to increase their profits and they are looking at...
-
Identify and thoroughly describe the factors that led to American involvement in World War I.
-
A steel cube 100 mm on a side weighs 80 N. We want to hold the cube in equilibrium under water by attaching a light foam buoy to it. If the foam weighs 470 N/m 3 , what is the minimum required volume...
-
You are in charge of the audit of the United Widget Workers of America, a labor union that your firm has been auditing for several years. In performing the audit for the year ended June 30, 198X, you...
-
In Ramirez Company, materials are entered at the beginning of each process. Work in process inventories, with the percentage of work done on conversion costs, and production data for its Sterilizing...
-
Discuss and evaluate LAN designs principles based on business needs Analysing diverse business needs support converged network traffic Network features:bandwidth, delay, load.
-
Select a brand association you have recently observed in the marketplace. Present a brand association you have recently observed in the marketplace. Critique and discuss it: did it add value to the...
-
Because Reginald got fired from his previous job, he was able to land a new gig as a production manager at Widgets of America. He's only been on the job for 3 weeks. However, he shared with all of...
-
The entries in a purchases journal are posted to the what is journal entry
-
discuss the role of interest rate benchmarks, such as the London Interbank Offered Rate (LIBOR), the Euro Interbank Offered Rate (EURIBOR), and alternative risk-free rates (RFRs) such as the Secured...
-
explain the advantage that Sharpe Ratio have over the Coefficient Of Variation. when used to compare investment performance ? Give 3 advantage and detail explanation explanation.
-
Bernardo's Audio Incorporated is struggling in the industry because average salaries are too high in its urban location. What external force is impacting the company's ability to hire? physical...
-
1. Explain the role of PJ in the relationship between PDO and TCB? 2. Draw the conceptual framework and write the appropriate hypotheses. 3. Identify the unit of analysis in this study and state two...
-
Ball bearings are widely used in industrial applications. You work for an industrial food machinery manufacturer and your role is to design the driveshaft assembly on a new type of equipment that...
Study smarter with the SolutionInn App