2. A company has plants at locations A, B and C with the daily capacity to producechemicals to a maximum of 3000 kg, 1000 kg and 2000 kg respectively. The costof production (per kg) are P800, P900 and P750 respectively. Customer'srequirement of chemicals per day is as follows:CustomerChemical RequiredPrice offered200020021000215325002251000200Transportation cost per kg from plant locations to customer's place is given intable.Customer23A571012PlantB342с3Find the transportation schedule that minimizes the total transportation cost.

1. MInimizing transportation cost as asked in question: here supply = 6000 is less than demand…

Answered: 2. A company has plants at locations A,…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter7: Nonlinear Optimization Models

Section: Chapter Questions

Problem 56P

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Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
At the beginning of each week, a machine is in one of four conditions: 1 = excellent; 2 = good; 3 = average; 4 = bad. The weekly revenue earned by a machine in state 1, 2, 3, or 4 is 100, 90, 50, or 10, respectively. After observing the condition of the machine at the beginning of the week, the company has the option, for a cost of 200, of instantaneously replacing the machine with an excellent machine. The quality of the machine deteriorates over time, as shown in the file P10 41.xlsx. Four maintenance policies are under consideration: Policy 1: Never replace a machine. Policy 2: Immediately replace a bad machine. Policy 3: Immediately replace a bad or average machine. Policy 4: Immediately replace a bad, average, or good machine. Simulate each of these policies for 50 weeks (using at least 250 iterations each) to determine the policy that maximizes expected weekly profit. Assume that the machine at the beginning of week 1 is excellent.
10.3. The Ashton Furniture Company manufactures coffee tables and chests of drawers. Last year the company’s cost of goods sold was $3,700,000, and it carried inventory of oak, pine, stains, joiners, and brass fixtures, work-in-process of furniture frames, drawers and wood panels, and finished chests and coffee tables. Its average inventory levels for a 52-week business year were as follows: Raw Materials Average Inventory Unit Cost Oak 8000 $6.00 Pine 4500 4.00Brass fixtures 1200 8.00Stains 3000 2.00Joiners 900 1.00 Work-in-Process Frames 200 $30Drawers 400 10Panels 600 50Chests…
Harold Grey owns a small farm in the Salinas Valley that grows apricots. The apricots are dried on the premises and sold to a number of large supermarket chains.Based on past experience and committed contracts, he estimates that sales over thenext five years in thousands of packages will be as follows:Forecasted DemandYear (thousands of packages)1 3002 1203 2004 1105 135Assume that each worker stays on the job for at least one year, and that Greycurrently has three workers on the payroll. He estimates that he will have 20,000packages on hand at the end of the current year. Assume that, on the average, eachworker is paid $25,000 per year and is responsible for producing 30,000 packages. Inventory costs have been estimated to be 4 cents per package per year, andshortages are not allowed.Based on the effort of interviewing and training new workers, Farmer Greyestimates that it costs $500 for each worker hired. Severance pay amounts to$1,000 per worker.a. Assuming that shortages are not…
Tucson Machinery, Inc., manufactures numerically controlled machines, which sell for an average price of $0.5 million each. Sales for these NCMS for the past two years were as follows: Use Exhibit 18.10. LAST YEAR QUANTITY QUARTER (UNITS) THIS YEAR QUANTITY QUARTER (UNITS) 15 15 II III 21 II 27 31 29 19 III IV IV 15 a. Find the equation of a simple linear regression line using Excel. (Round your answers to 3 decimal places.)
2. Newspaper Stand • A newspaper stand operator has the following sales data for one- year sales of Fine magazine. Quantity Sold per day No. of days quantity sold 10 36 11 54 12 72 13 90 14 108 • The operator wants to know how many copies to stock per day to get the maximum profit. Issues of the magazine sell for $0.50, and costs $0.30. Unsold copies cannot be returned to the distributor.
29 00:24 1 令.l 50 B/s Question no. 02: A Leading manufacturer of Action Figures is about to introduce four new Action Figures. The accompanying table summarizes price and cost data, combined fixed costs equal $650,000. A marketing research study predicts that for each unit sold of Noyan, 2 units of Dogan, 3 units of Bamsi and 4 units of Turgut will be sold. Action Figures Turgut Bamsi Dogan Novan Selling Price (in dollars) 35 26 24 16 Variable Cost/unit (in dollars) 17 12 12 11 Table 1 a) How many product mix units must be sold to break even? b) How does it translate into sales of individual games?
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A summary of total charges from a small café’s natural gas bills is provided below: Month kJ Cost October 14 $187 November 17 187 December 30 230 January 35 264 February 33 270 March 20 200 Using regression analysis, the expected cost at 40 kJ would be Question 5Answer a. $296 b. $285 c. $102 d. $162
Tucson Machinery, Inc., manufactures numerically controlled machines, which sell for an average price of $0.5 million each. Sales for these NCMS for the past two years were as follows: Use Exhibit 18.10. LAST YEAR THIS YEAR QUANTITY (UNITS) QUANTITY QUARTER (UNITS) QUARTER I 11 I 16 II 17 II 23 III 25 III 27 IV 15 IV 18 a. Find the equation of a simple linear regression line using Excel. (Round your answers to 3 decimal places.) Y = b. Compute trend and seasonal factor from a linear regression line obtained with Excel. (Do not round intermediate calculations. Round your answers to 3 decimal places.) Period Trend Forecast Seasonal Factors Last Year II IV This Year II III IV
B& Co. is a large manufacturer if an electronic product (NM65). It is the market leader in the particular product segment. The market size is increasing due to increasing popularity of its product. B& Co. has received an offer from a manufacturer of electronic products to produce NM 65 on half of B& Co. and directly supply to the customers of the Northern region. The billing on the customer will done by B& Co. The offer is economically attractive. Required: Write a note on what qualitative factors should be considered before deciding in favour or against accepting the offer.

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