Production and Operations Management

Production & Operations ManagementHomework 1 for Section 4 Due Tuesday October 16, 2012 1. 1 Eastman publishing Company is considering publishing a paperback standard on spreadsheet applications for business. The ? xed monetary rate of manuscript preparation, textbook design, and mathematical professional personduct setup is estimated to be $80,000. Variable achievement and satisfying be are estimated to be $3 per book. affect everyplace the life of the book is estimated to be 4,000 copies. The publishing company plans to sell the text to college and university bookstores for $20 for severally(prenominal) one. a. What is the breakeven point? b. What pro? t or loss tail assembly be anticipated with a hire of 4,000 copies? . With a aim of 4,000 copies, what is the minimum price per copy that the publisher moldiness charge to break even? 1. 2 inventive Sports Design (CSD) manufactures a standard-size disturbance and an all oversize racket. The ? rms rackets are ext remely light due to the map of a magnesium-graphite adulte post. Each standard-size racket uses 0. 125 kilograms of the alloy and all(prenominal) oversize racket uses 0. 4 kilograms over the conterminous 2-week performance consequence only 80 kilograms of the alloy are procurable. Each standard-size racket uses 10 minutes of manufacturing age and each oversize racket uses 12 minutes.Also, 40 hours of manufacturing clip are available each week. The pro? t contributions are $10 for each standard-size racket and $15 for each oversize racket. How many rackets of each type should CSD manufacture over the close cardinal weeks to maximize the make out pro? t contribution? a. De? ne decision variables and give voice the problem. b. Solve the problem using the graphical method. 1. 3 Management of High Tech Services (HTS) would manage to develop a exercise that will attend to allocate their technicians m between assistance calls to regular resolution nodes and in the buf f customers.Read as well Exam Operations ManagementA supreme of 80 hours of technician measure is available over the two-week planning period. To satisfy gold ? ow requirements, at least(prenominal) $800 in revenue (per technician) essential be generated during the two-week period. Technician time for regular customers generates $25 per hour. However, technician time for hot customers only generates an average of $8 per hour. To get a line that new customer sires are being maintained, the technician time spent on new customer contracts essential be at least 60% of the time spent on regular customer contracts. wedded these 1 revenue and policy requirements, HTS would kindred to check into how to allocate echnician time between regular customers and new customers so that the total fall of customers contracted 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 cont ract. a. Develop a linear broadcastming poser for the problem. b. Find the optimal solution via Excel. 1. 4 industrial Designs has been awarded a contract to design a tick off for a new wine beatd by Lake find Winery. The company estimates that 150 hours will be involve to complete the construe. The ? ms trey graphics designers available for duty assignment to this project are Lisa, a major(postnominal) designer and group 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 essential be charge at least 40% of the total procedure of hours designate 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 fade 25% of the total number of hours assigned to the two senior designers.Due to other project commitments, Lisa has a max imum of 50 hours available to work on this project. hourly wage rates are $30 for Lisa, $25 for David, and $18 for Sarah. a. invent a linear chopine that can be used to determine the number of hours each graphic designer should be assigned to the project in order to minimize total cost. b. How many hours should each graphic designer be assigned to the project? What is the total cost? c. contemplate 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 enthronement portfolio of line of works, bonds, and other enthronisation alternatives. Currently $200,000 of funds are available and must be considered for new investment opport unit of measurement of measurementies. The four stock options National is considering and the relevant ? nancial data are as in send b ack 1. 2 Table 1 enigma 1. 5 A B C D Price per share $100 $50 $80 $40 Annual rate of grant 0. 12 0. 08 0. 06 0. 10 Risk measure per horse invested 0. 10 0. 07 0. 05 0. 8 Nationals exceed 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 mark investment. a. Use linear programing to develop an investment portfolio that minimizes risk. b. If the ? rm ignores risk and uses a maximum return-on-investment system, 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 fruit of 3,300 bookshelf speakers and 4,100 ? or speakers over the next two months, with the delivery archive as given in Table 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 demand in month 1, the cabinets can be stored at a cost of $5 per cabinet.Formulate the problem to determine the rime of units 3 that should be manufactured each month to minimize total production and storehouse costs. 1. 7 EZ-Windows, Inc. manufacturers replacement windows for the station remodeling business. In January, the company produces 15,000 windows and end the month with 9,000 windows in inventory. EZ-Windows management team would like to develop a production catalogue for the next three moths. A smooth production schedule is obviously desirable because it maintains the current workforce 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 cognitive content 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 maturation 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 monthly sales forecasts. 1. 8 Two telecasting place compete with each other for se e audience. local anesthetic 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 same programming options and must make its pre-season program selection before discriminating 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 Rerun parole Program Home Improvement Table 4 Problem 1. 8 Sitcom Rerun intelligence operation 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 television station plans to drop 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 publicise 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 Improvement 5000 3000 World bare-asss 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 Mills, Inc. operates paper dos in capital of Maine, Maine, and Tupper Lake, stark naked York.Warehouse facilities are located 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 presente d 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. back down 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