Operations Management
13th Edition
ISBN: 9781259667473
Author: William J Stevenson
Publisher: McGraw-Hill Education
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Chapter 19, Problem 10P
Summary Introduction
To determine: The number of containers of each product to maximize the profit.
Introduction:
Linear programming:
Linear programming is a mathematical modeling method where a linear function is maximized or minimized taking into consideration the various constraints present in the problem. It is useful in making quantitative decisions in business planning.
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FRUIT COMPUTER COMPANY
Fruit Computer Company manufactures memory chips in batches of ten chips. From past experience, Fruit knows that 80% of all batches contain 10% (1 out of 10) defective chips, and 20% of all batches contain 50% (5 out of 10) defective chips. If a good (that is, 10% defective) batch of chips is sent to the next stage of production, processing costs of $4000 are incurred, and if a bad batch (50% defective) is sent on to the next stage of production, processing costs of $16000 are incurred. Fruit also has the alternative of reworking a batch at a cost of $4000. A reworked batch is sure to be a good batch. Alternatively, for a cost of $400, Fruit can test one chip from each batch in an attempt to determine whether the batch is defective.
QUESTIONS
1.Determine a strategy so Fruit can minimize the expected total cost per batch.
2.Compute the EVSI and EVPI.
A small firm makes three similar products, which all follow the same three-step process, consisting of milling, inspection, and drilling. Product A requires 12 minutes of milling, 5 minutes forinspection, and 10 minutes of drilling per unit; product B requires 10 minutes of milling, 4 minutesfor inspection, and 8 minutes of drilling per unit; and product C requires 8 minutes of milling, 4minutes for inspection, and 16 minutes of drilling. The department has 20 hours available duringthe next period for milling, 15 hours for inspection, and 24 hours for drilling. Product A contributes$2.40 per unit to profit, product B contributes $2.50 per unit, and product C contributes $3.00 perunit. Determine the optimal mix of products in terms of maximizing contribution to profits for theperiod. Then, find the range of optimality for the profit coefficient of each variable.
You work for a small shipping company and warehouse. The owners have decided to update the software used for tracking, shipping, receiving, and inventory. Fifteen computers need to be updated. Hours of operation are 7 a.m. to 7 p.m. Monday through Saturday. Each computer must be updated manually by one of two trained employees, both of whom must be borrowed from other managers. The update procedure consumes 4 hours of the updater's time and generates an additional 1.5 hours of computer downtime. The work must be performed at a central loading station, away from the current location of the computer.
How does the project portfolio management approach lead to enhanced strategic management for an organization and give an example how you woulduse this in a work place?
Chapter 19 Solutions
Operations Management
Ch. 19 - For which decision environment is linear...Ch. 19 - What is meant by the term feasible solution space?...Ch. 19 - Explain the term redundant constraint.Ch. 19 - Prob. 4DRQCh. 19 - Prob. 5DRQCh. 19 - Prob. 6DRQCh. 19 - Prob. 1PCh. 19 - Prob. 2PCh. 19 - Prob. 3PCh. 19 - A small candy shop is preparing for the holiday...
Ch. 19 - A retired couple supplement their income by making...Ch. 19 - Solve each of these problems by computer and...Ch. 19 - Prob. 7PCh. 19 - For Problem 6b: a. Find the range of feasibility...Ch. 19 - Prob. 9PCh. 19 - Prob. 10PCh. 19 - Prob. 11PCh. 19 - The manager of the deli section of a grocery...Ch. 19 - Prob. 13PCh. 19 - A chocolate maker has contracted to operate a...Ch. 19 - Prob. 15PCh. 19 - Prob. 16PCh. 19 - Prob. 1.1CQCh. 19 - Prob. 1.2CQCh. 19 - Prob. 1.3CQCh. 19 - Prob. 2.1CQCh. 19 - Prob. 2.2CQCh. 19 - Prob. 2.3CQCh. 19 - Prob. 2.4CQ
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