Production and Operations Management

Production & Operations ManagementHomework 1 for surgical incision 4 Due Tuesday October 16, 2012 1. 1 Eastman publishing Company is considering publishing a paperback textbook on spreadsheet applications for business. The ? xed constitute of manuscript preparation, textbook design, and proceeds setup is estimated to be $80,000. Variable labor and material cost argon 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 to for apiece whizz star. a. What is the breakeven point? b. What pro? t or loss jackpot be anticipated with a call for of 4,000 copies? . With a look at of 4,000 copies, what is the minimum price per copy that the publisher mustiness charge to break even? 1. 2 Creative Sports Design (CSD) manufactures a standard-size racket and an oversize racket. The ? rms rackets be extremely light ascribable to the use of a magnesium-graphite all oy. Each standard-size racket uses 0. 125 kilograms of the alloy and separately oversize racket uses 0. 4 kilograms over the next two-week payoff tip only 80 kilograms of the alloy argon available. Each standard-size racket uses 10 proceedings of manufacturing clipping and to each one oversize racket uses 12 minutes.Also, 40 hours of manufacturing cartridge holder atomic number 18 available each week. The pro? t contributions atomic number 18 $10 for each standard-size racket and $15 for each oversize racket. How legion(predicate) rackets of each type should CSD manufacture over the next two weeks to increase the quantity pro? t contribution? a. De? ne decision variables and chew over the problem. b. Solve the problem using the graphical method. 1. 3 Management of exalted Tech Services (HTS) would desire to develop a fabric that go away help allocate their technicians conviction between service calls to fifty-fifty come down customers and impudently customers.Re ad also Exam Operations ManagementA maximal of 80 hours of technician time is available over the two-week planning period. To satisfy interchange ? ow requirements, at least(prenominal) $800 in revenue (per technician) must be generated during the two-week period. Technician time for regular customers generates $25 per hour. However, technician time for new customers only generates an average of $8 per hour. To ensure that new customer selects are being maintained, the technician time dog-tired on new customer contracts must be at least 60% of the time spent on regular customer contracts. devoted these 1 revenue and policy requirements, HTS would like to check how to allocate echnician time between regular customers and new customers so that the total number of customers promise 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 programmi ng model for the problem. b. Find the optimal solution via Excel. 1. 4 Industrial Designs has been awarded a contract to design a label for a new wine produced by Lake tantrum Winery. The company estimates that 150 hours will be required to accomplished the aim. The ? ms three graphics designers available for assignment to this projelectroconvulsive therapy are Lisa, a senior designer and team leader David, a senior designer and Sarah, a junior designer. Because Lisa has worked on several projects for Lake View Winery, management speci? ed that Lisa must be delegate at least 40% of the total number of hours assigned to the two senior designers. To succeed 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 reach 25% of the total number of hours assigned to the two senior designers.Due to other project commitments, Lisa has a maximum of 50 hours available to work on this pro ject. Hourly wage rates are $30 for Lisa, $25 for David, and $18 for Sarah. a. Formulate a linear program that can be utilize to determine the number of hours each graphic designer should be assigned to the project in order to sully total cost. b. How many hours should each graphic designer be assigned to the project? What is the total cost? c. Suppose Lisa could be assigned more than 50 hours. What e? ect would this have 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 change? Explain. 1. 5 National Insurance Associated carries an investment portfolio of stocks, bonds, and other investment alternatives. Currently $200,000 of property are available and must be considered for new investment opportunities. The quad stock options National is considering and the relevant ? nancial data are as in dishearten 1. 2 confuse 1 business 1. 5 A B C D Price per share $100 $50 $80 $40 Annual rate of glide by 0. 12 0. 08 0. 06 0. 10 Risk measure per dollar sign invested 0. 10 0. 07 0. 05 0. 8 Nationals top management has stipulated the following investment guidelines The annual rate of return for the portfolio must be at least 9% and no one stock can account for more than the 50% of the total dollar investment. a. Use linear programming to develop an investment portfolio that minimises risk. b. If the ? rm ignores risk and uses a maximum return-on-investment strategy, what is the investment portfolio? 1. 6 Greenville Cabinet received a contract to produce speaker cabinets for a major speaker manufacturer. The contract calls for the performance of 3, three hundred bookshelf speakers and 4,100 ? or speakers over the next two months, with the delivery schedule as given in put back 2. Table 2 Problem 1. 6 Model Month 1 Month 2 Bookshelf 2,100 1,200 Floor 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 raw material costs 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 pauperism in month 1, the cabinets can be stored at a cost of $5 per cabinet.Formulate the problem to determine the numbers of units 3 that should be manufactured each month to minimize total production and storage costs. 1. 7 EZ-Windows, Inc. manufacturers successor windows for the home remodeling business. In January, the company produces 15,000 windows and nullifyed the month with 9,000 windows in schedule. EZ-Windows management team would like to develop a production schedule for the next three moths. A smooth production schedule is obviously desirable because it maintains the current work force and provides a similar 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 same 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 department estimates that increasing production by one window from one month to the next will increase 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, formulate a linear programming model that will minimize the cost of changing production levels while still satisfying the periodical sales forecasts. 1. 8 Two television come ins compete with each other for exhibit audience. Local programming options for the 5PM weekday time s lot allow in a sitcom rerun, an early news program, and a home emolument show.Each station has the same programming options and must make its pre-season program option 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 air unfermenteds Program Home usefulness 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 solve it. What is the value of the game? 1. 9 A local anesthetic television station plans to drop three Friday evening programs at the end of the season.Steve Botuchis, the station manager, developed a list of four potential replacement programs. Estimates of the advertising revenue (in dollars) that can be expected 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 Imp rovement 5000 3000 World 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 advertising revenue. 1. 10 Adirondack Paper mill around, Inc. operates paper plants in Augusta, Maine, and Tupper Lake, New York. storage warehouse facilities are primed(p) in capital of New York, New York, and Portsmouth, New Hampshire. Distributors are located in Boston, New York, and Philadelphia. The Augusta plant 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 transportation costs (in dollars) for shipments from the two plants to the two warehouses are presented in Table 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 La ke 3 4 Table 7 Problem 1. 10b Warehouse/Distributor Boston New York Philadelphia Albany 8 5 7 Portsmouth 5 6 10 a. blow the network 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