Production and Operations Management

merchandise & vitamin A Operations ManagementHome melt 1 for Section 4 Due Tuesday October 16, 2012 1. 1 Eastman publishing Company is considering publishing a paperback textbook harbor on spreadsheet applications for business. The ? xed live of manuscript preparation, textbook design, and business setup is estimated to be $80,000. Variable take and fabric damages atomic number 18 estimated to be $3 per book. Demand over the life of the book is estimated to be 4,000 copies. The publisher plans to sell the text to college and university bookstores for $20 individually. a. What is the piqueeven point? b. What pro? t or loss s conclusion word be anticipated with a demand of 4,000 copies? . With a demand of 4,000 copies, what is the stripped-down price per re outturn that the publisher mustiness charge to break even? 1. 2 Creative Sports heading (CSD) manufactures a standard-size stochasticity and an outsized disturbance. The ? rms rackets atomic number 18 extremely light referable to the use of a magnesium-graphite alloy. Each standard-size racket uses 0. 125 kilograms of the alloy and individually oversize racket uses 0. 4 kilograms over the succeeding(prenominal) devil-week production period only 80 kilograms of the alloy are accessible. Each standard-size racket uses 10 minutes of manufacturing judgment of conviction and sepa rovely oversize racket uses 12 minutes.Also, 40 hours of manufacturing condemnation are available severally(prenominal) week. The pro? t contributions are $10 for individually standard-size racket and $15 for each oversize racket. How some(prenominal) rackets of each theatrical role should CSD manufacture over the undermenti singled deuce weeks to maximize the add pro? t contribution? a. De? ne decision variables and uprise the problem. b. lick the problem using the vivid method. 1. 3 Management of High tech Services (HTS) would desire to develop a shape that will help deal their technicians time between serve calls to systematic ask nodes and tonic customers. guide also Exam Operations ManagementA supreme of 80 hours of technician time is available over the two-week planning period. To satisfy cash ? ow demandments, at least $800 in revenue enhancement (per technician) must be gene layd during the two-week period. Technician time for regular customers gene order $25 per hour. However, technician time for new customers only generates an chassis of $8 per hour. To ensure that new customer contracts are being maintained, the technician time pass on new customer contracts must be at least 60% of the time spent on regular customer contracts. Given these 1 revenue and policy requirements, HTS would like to envision how to allocate echnician time between regular customers and new customers so that the total number of customers contract during the two-week period will be maximized. Technicians require an average of 50 minutes for each regular customer contract and 1 hour for each new customer contract. a. Develop a linear broadcastming deterrent example for the problem. b. Find the optimal solving via Excel. 1. 4 Industrial Designs has been awarded a contract to design a label for a new wine produced by Lake arrest Winery. The ships company estimates that 150 hours will be requisite to complete the project. The ? ms three graphics decorators available for grant to this project are Lisa, a sr. designer and team leader David, a cured designer and Sarah, a secondary designer. Because Lisa has worked on several projects for Lake View Winery, way speci? ed that Lisa must be delegate at least 40% of the total number of hours assign to the two senior designers. To provide label-designing experience for Sarah, Sarah must be assigned at least 15% of the total project time. However, the number of hours assigned to Sarah must not exceed 25% of the total number of hours assigned to the two senior designers.Due to other(a) project commitment s, Lisa has a maximum of 50 hours available to work on this project. Hourly wage rates are $30 for Lisa, $25 for David, and $18 for Sarah. a. theorise a linear programme that can be used to determine the number of hours each graphic designer should be assigned to the project in order to minimize total speak to. b. How many hours should each graphic designer be assigned to the project? What is the total cost? c. Suppose Lisa could be assigned much than 50 hours. What e? ect would this have got on the optimal solution. Explain. d.If Sarah were not required to work a minimum number of hours on this project, would the optimal solution transfer? Explain. 1. 5 National Insurance Associated carries an enthr geniusment portfolio of shoots, bonds, and other enthronisation alternatives. Currently $200,000 of bullion are available and must be considered for new coronation opportunities. The quaternary stock options National is considering and the relevant ? nancial data are as in T able 1. 2 Table 1 puzzle 1. 5 A B C D Price per share $100 $50 $80 $40 Annual rate of return 0. 12 0. 08 0. 06 0. 10 take chances measure per dollar invested 0. 10 0. 07 0. 05 0. 8 Nationals top focal point has stipulated the following investment guidelines The annual rate of return for the portfolio must be at least 9% and no angiotensin converting enzyme stock can account for to a greater extent than the 50% of the total dollar investment. a. intake linear program to develop an investment portfolio that minimizes risk. b. If the ? rm ignores risk and uses a maximum return-on-investment schema, what is the investment portfolio? 1. 6 Greenville Cabinet received a contract to produce speaker stock lockers for a major speaker manufacturer. The contract calls for the production of 3,300 bookshelf speakers and 4,100 ? or speakers over the next two calendar months, with the delivery archive as precondition in Table 2. Table 2 difficulty 1. 6 Model month 1 Month 2 Bookshelf 2 ,100 1,200 news report 1,500 2,600 Greenville estimates that the production time for each bookshelf model is 0. 7 hour and the production time for each ? oor model is 1 hour. The stark material be are $10 for each bookshelf model and $12 for each ? oor model. Labor costs are $22 per hour. Greenville has up to 3,400 hours of production time available each month. If production for either cabinet exceeds demand in month 1, the cabinets can be stored at a cost of $5 per cabinet.Formulate the problem to determine the song of units 3 that should be manufactured each month to minimize total production and storage costs. 1. 7 EZ-Windows, Inc. manufacturers replacement windows for the inhabitation remodeling business. In January, the company produces 15,000 windows and ended the month with 9,000 windows in inventory. EZ-Windows care team would like to develop a production schedule for the next three moths. A shine production schedule is obviously wanted because it maintains the curre nt workforce and provides a akin(predicate) month-to-month operation.However, given the sales forecasts, the production capacities, and the storage capabilities as shown in Table 3, the management team does not think a smooth production schedule with the like production quantity each month possible. Table 3 Problem 1. 7 February March April Sales forecast 15,000 16,500 20,000 Production capacity 14,000 14,000 18,000 Storage capacity 6,000 6,000 6,000 The companys cost accounting discussion section estimates that increasing production by one window from one month to the next will amplification total costs by $1. 00 for each unit increase in the production level.In addition, decreasing production by one unit from one month to the next will increase total costs by $0. 65 for each unit decrease in the production level. Ignoring production and inventory carrying costs, sound out a linear programming model that will minimize the cost of changing production levels while still solid the monthly sales forecasts. 1. 8 twain television berths compete with each other for aftermath audience. Local programming options for the 5PM weekday time slot include a sitcom rerun, an early news program, and a home improvement show.Each station has the resembling programming options and must make its pre-season program selection before knowing what the other television station will do. The viewing audience gains in thousands of viewers for station A are shown Table 4. 4 Station A/Station B Sitcom beam sores schedule Home gain Table 4 Problem 1. 8 Sitcom Rerun News Program Home Improvement 10 -5 3 -8 7 6 -4 8 -7 Formulate a linear program to determine the optimal strategy for each station and then exonerate it. What is the value of the game? 1. 9 A local television station plans to frame three Friday evening programs at the end of the season.Steve Botuchis, the station manager, developed a slant of four potential replacement programs. Estimates of the advertisement revenue (in dollars) that can be expect for each of the new programs in the four vacated time slots are as in Table 5. Table 5 Problem 1. 9 56PM 67 PM Home Improvement 5000 3000 humanness News 7500 8000 Hollywood Brie? ngs 7000 8000 78 PM 6000 7000 3000 Mr. Botuchis asked you to ? nd the assignment of programs to time slots that will maximize total advertise revenue. 1. 10 Adirondack Paper Mills, Inc. operates paper workss in capital of Maine, Maine, and Tupper Lake, New York. store facilities are located in capital of New York, New York, and Portsmouth, New Hampshire. Distributors are located in capital of Massachusetts, New York, and Philadelphia. The Augusta ground has a capacity of 300 units, and the Tupper Lake plant has a capacity of 100 units. Boston has a demand of 150 units, New York has a demand of 100 units, and Philadelphia has a demand of 150 units. The unit carry-over costs (in dollars) for shipments from the two plants to the two warehouses are presented in Tabl e 6 and those from the two warehouses to the three 5 istributors are presented in Table 7. Table 6 Problem 1. 10a Plant/Warehouse Albany Portsmouth Augusta 7 5 Tupper Lake 3 4 Table 7 Problem 1. 10b Warehouse/Distributor Boston New York Philadelphia Albany 8 5 7 Portsmouth 5 6 10 a. Draw the intercommunicate representation of the Adirondack Paper Mills problem. b. Formulate the Adirondack Paper Mills problem as a linear programming problem. c. Solve the linear program to determine the minimum cost shipping schedule for the problem. 6