Concept explainers
A
Interpretation:The number of bottles of each type that can be produced every month should be determined.
Concept Introduction:The company is a producer of light beer and dark beer. However, the company is facing scarcity in resources and also experiencing troubled profits.
B
Interpretation:Any constraints in the produce with slack or surplus should be defined.
Concept Introduction: A business student requires completing 65 courses to attain graduation. While the business courses should be greater than or equal to 23, the non-business should be greater than or equal to 20. While an average business course needs a textbook that costs $60 and 120 hours of study; the non-business courses require a textbook that costs $24 and 200 hours of study.
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Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
- Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand will grow at 5% a year. If the company builds a plant that can produce x units of Wozac per year, it will cost 16x. Each unit of Wozac is sold for 3. Each unit of Wozac produced incurs a variable production cost of 0.20. It costs 0.40 per year to operate a unit of capacity. Determine how large a Wozac plant the company should build to maximize its expected profit over the next 10 years.arrow_forwardSeas Beginning sells clothing by mail order. An important question is when to strike a customer from the companys mailing list. At present, the company strikes a customer from its mailing list if a customer fails to order from six consecutive catalogs. The company wants to know whether striking a customer from its list after a customer fails to order from four consecutive catalogs results in a higher profit per customer. The following data are available: If a customer placed an order the last time she received a catalog, then there is a 20% chance she will order from the next catalog. If a customer last placed an order one catalog ago, there is a 16% chance she will order from the next catalog she receives. If a customer last placed an order two catalogs ago, there is a 12% chance she will order from the next catalog she receives. If a customer last placed an order three catalogs ago, there is an 8% chance she will order from the next catalog she receives. If a customer last placed an order four catalogs ago, there is a 4% chance she will order from the next catalog she receives. If a customer last placed an order five catalogs ago, there is a 2% chance she will order from the next catalog she receives. It costs 2 to send a catalog, and the average profit per order is 30. Assume a customer has just placed an order. To maximize expected profit per customer, would Seas Beginning make more money canceling such a customer after six nonorders or four nonorders?arrow_forwardA small candy shop is preparing for the holiday season. The owner must decide how many bags of deluxe mix and how many bags of standard mix of Peanut/Raisin Delite to put up. The deluxe mix has 2/3 pound raisins and 1/3 pound peanuts, and the standard mix has 1/2 pound raisins and 1/2 pound peanuts per bag. The shop has 90 pounds of raisins and 60 pounds of peanuts to work with. Peanuts cost $.60 per pound and raisins cost $1.50 per pound. The deluxe mix will sell for $4.00 for a one-pound bag, and the standard mix will sell for $3.55 for a one-pound bag. The owner estimates that no more than 210 bags of one type can be sold. a. If the goal is to maximize profits, how many bags of each type should be prepared? Deluxe _____bags Standard ______bags b. What is the expected profit? Profit ________arrow_forward
- A small candy shop is preparing for the holiday season. The owner must decide how many bags of deluxe mix and how many bags of standard mix of Peanut/Raisin Delite to put up. The deluxe mix has 2/3 pound raisins and 1/3 pound peanuts, and the standard mix has 1/2 pound raisins and 1/2 pound peanuts per bag. The shop has 90 pounds of raisins and 60 pounds of peanuts to work with. Peanuts cost $.60 per pound and raisins cost $1.50 per pound. The deluxe mix will sell for $4.90 for a one-pound bag, and the standard mix will sell for $4.40 for a one-pound bag. The owner estimates that no more than 300 bags of one type can be sold. a. If the goal is to maximize profits, how many bags of each type should be prepared? Answer is complete and correct. Deluxe Standard 90 bags 60 bags b. What is the expected profit? Answer is complete but not entirely correct. Profit 617 4arrow_forwardstandard mix of Peanut/Raisin Delite to put up. The deluxe mix has .68 pounds of raisins and .32 pounds of peanuts, and the standard mix has 0.5 pounds of raisins and 0.5 pounds of peanuts per bag. The shop has 80 pounds of raisins and 50 pounds of peanuts to work with. Peanuts cost $0.75 per pound and raisins cost $1.5 per pound. The deluxe mix will sell for $2.9 for a one-pound bag, and the standard mix will sell for $2.55 for a one-pound bag. The owner estimates that no more than 110 bags of one type can be sold. a. If the goal is to maximize profits, how many bags of each type should be prepared? (Round your answers down to a whole number.) Deluxe Standard b. What is the expected profit? (Round your answer to two decimal places.) Expected profitarrow_forwardA small candy shop is preparing for the holiday season. The owner must decide how many bags of deluxe mix and how many bags of standard mix of Peanut/Raisin Delite to put up. The deluxe mix has 2/3 pound raisins and 1/3 pound peanuts, and the standard mix has pound raisins and ½ pound peanuts per bag. The shop has 90 pounds of raisins and 60 pounds of peanuts to work with. Peanuts cost $0.60 per pound and raisins cost $1.5 per pound. The deluxe mix will sell for $2.90 per pound, and the standard mix will sell for $2.55 per pound. The owner estimates that no more than 110 bags of one type can be sold. Using Simplex method a. If the goal is to maximize profits, how many bags of each types should be prepared? b. What is the expected profit?arrow_forward
- What is the nonlinear programming model (OMEGA) used by Texaco?arrow_forwardThe Fish House (TFH) in Norfolk, Virginia, sells fresh fish and seafood. TFH receives daily shipments of farm-raised trout from a nearby supplier. Each trout costs $2.45 and is sold for $3.95. To maintain its reputation for freshness, at the end of the day TFH sells any leftover trout to a local pet food manufacturer for $1.25 each. The owner of TFH wants to determine how many trout to order each day. Historically, the daily demand for trout is: Demand 10 11 12 13 14 15 16 17 18 19 20 Probability 0.02 0.06 0.09 0.11 0.13 0.15 0.18 0.11 0.07 0.05 0.03 a. Construct a payoff matrix for this problem. b. How much should the owner of TFH be willing to pay to obtain a demand forecast that is 100% accurate? give a clear explanation for (b)arrow_forwardA linear programming computer package is needed. Hilltop Coffee manufactures a coffee product by blending three types of coffee beans. The cost per pound and the available pounds of each bean are as follows. Bean Cost per Pound Available Pounds 1 2 3 1 $0.50 $0.70 2 $0.45 3 Consumer tests with coffee products were used to provide ratings on a scale of 0-100, with higher ratings Indicating higher quality. Product quality standards for the blended coffee require a consumer rating for aroma to be at least 75 and a consumer rating for taste to be at least 80. The Individual ratings of the aroma and taste for coffee made from 100% of each bean are as follows: Bean Aroma Rating Taste Rating 75 85 60 85 450 87 550 74 350 Assume that the aroma and taste attributes of the coffee blend will be a weighted average of the attributes of the beans used in the blend. (a) What is the minimum-cost blend (In pounds) that will meet the quality standards and provide 1,000 pounds of the blended coffee…arrow_forward
- A mixture of pellets is to be made containing x regular pellets, y large pellets and z extra large pellets. Cost, weight and volume data for each type of pellet are shown in the table. Is it possible to make mixture of 55 pellets at a cost of $0.85 if the mixture is to have 120 weight units and 130 volume units? If so, how many each type of pellet should be in the mixture? Pellet Type 5. Number of Cost per Pellet in Cents Weight Units per Pellet Volume Pellets Units per Pellet Regular Large Extra large 2 1 4 y 1 4 3arrow_forwardA linear programming computer package is needed. The employee credit union at State University is planning the allocation of funds for the coming year. The credit union makes four types of loans to its members. In addition, the credit union invests in risk-free securities to stabilize income. The various revenue-producing investments together with annual rates of return are as follows. Type of Loan/Investment Automobile loans. ● Furniture loans Other secured loans Signature loans Risk-free securities Annual Rate of Return (%) 9 $ $ $ $ $ 11 What is the projected total annual return? $ 12 The credit union will have $2,400,000 available for investment during the coming year. State laws and credit union policies impose the following restrictions on the composition of the loans and investments. 13 • Risk-free securities may not exceed 30% of the total funds available for investment. Signature loans may not exceed 10% of the funds invested in all loans (automobile, furniture, other secured,…arrow_forwardCompany XYZ is a farming company. The company are famous for producing strawberries and blueberries. The variable cost of producing and selling one box of strawberries is $3, while the variable cost of producing and selling one box blueberries is $5. Each box of strawberries is selling for $10, while a box of blueberries sells for $13. The company produces and sells 5 boxes of strawberries for every 2 boxes of blueberries. Assuming a fixed cost of ?$204,000. How many boxes of blueberries need to be produced and sold to achieve breakeven 20,000 a O 8,000 b O 1,600 .c O None of the given answers d O 4,000 .e Oarrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,