1) The company can run newspaper ads costing $900-1000 per set of 10 ads and television ads costing $12,000 per set of 5 ads.
2) The number of new customers reached depends on the number of ad sets for each media.
3) An LP model should be formulated to maximize new customers subject to the budget constraint.
1) The company can run newspaper ads costing $900-1000 per set of 10 ads and television ads costing $12,000 per set of 5 ads.
2) The number of new customers reached depends on the number of ad sets for each media.
3) An LP model should be formulated to maximize new customers subject to the budget constraint.
1) The company can run newspaper ads costing $900-1000 per set of 10 ads and television ads costing $12,000 per set of 5 ads.
2) The number of new customers reached depends on the number of ad sets for each media.
3) An LP model should be formulated to maximize new customers subject to the budget constraint.
1) The company can run newspaper ads costing $900-1000 per set of 10 ads and television ads costing $12,000 per set of 5 ads.
2) The number of new customers reached depends on the number of ad sets for each media.
3) An LP model should be formulated to maximize new customers subject to the budget constraint.
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Aire-Co produces home dehumidifiers at two different plants in Atlanta and Phoenix.
The per unit cost of production in At
Inventory holding costs are assessed at $30 per unit in beginning inventory each month. Aire-Co estimates the demand for this demand at minimum cost. a. Formulate an LP model for this problem. b. Implement your model in a spreadsheet and least 50 units per month? e. How does the solution change if each p
a. Optimal Solution Atlanta Phoenix Per unit cost 400 360 Max production/month 300 Holding cost 30
Beginning Inventory Atlanta Phoenix Total Units Demand
Month 1 0 0 300 300 300 Month 2 0 100 300 400 400 Month 3 0 200 300 500 500 Total units produced 300 900
COP 444000 The per unit cost of production in Atlanta and Phoenix is $400 and $360, respectively. Each plant can produce a maximum of 300 units pe . Aire-Co estimates the demand for its product to be 300, 400, and 500 units, respectively, over the next 3 months. Aire-Co wants to be ab nt your model in a spreadsheet and solve it. c. What is the optimal solution? d. How does the solution change if each plant is required to w does the solution change if each plant is required to produce at least 100 units per month? ce a maximum of 300 units per month. months. Aire-Co wants to be able to meet nge if each plant is required to produce at b. Atleast 50 units/month Atlanta Phoenix Per unit cost 400 360 Max production/month 300 Holding cost 30 Minimum requirement 50
Beginning Inventory Atlanta Phoenix Total Units Demand
Month 1 0 50 300 350 300 Month 2 50 50 300 400 400 Month 3 0 200 300 500 500 Total units produced 300 900
COP 445500 c. Atleast 100 units/month Atlanta Phoenix Per unit cost 400 360 Max production/month 300 Holding cost 30 Minimum requirement 100
Beginning Inventory Atlanta Phoenix Total Units Demand
Month 1 0 100 200 300 300 Month 2 0 100 300 400 400 Month 3 0 200 300 500 500 Total units produced 400 800
COP 448000 Valu-Com Electronics manufactures five different models of telecommunications interface cards for PCs and laptops. As sum next production period, Valu-Com has 80,000 square inches of PC board, 100,000 resistors, 30,000 memory chips, and 5,0 company produces at least 500 units of each product and at least twice as many FastLink cards as HyperLink cards while m optimal solution? d. Could Valu-Com mak
Required 60500 100000 30000 3687.5 Available 80000 100000 30000 5000
Minimum requirement 500
Total Profit 215000
ards for PCs and laptops. As summarized in the following table, each of these devices requires differing amounts of printed circuit board, r s, 30,000 memory chips, and 5,000 hours of assembly time available. The company can sell all the product it can manufacture, but the ma ards as HyperLink cards while maximizing profit. a. Formulate an LP model for this problem. b. Create a spreadsheet model for this probl olution? d. Could Valu-Com make more money if it schedules assembly workers to work overtime? unts of printed circuit board, resistors, memory chips, and assembly. In its t can manufacture, but the marketing department wants to be sure the eadsheet model for this problem and solve it using Solver. c. What is the The Molokai Nut Company (MNC) makes four different products from macadamia nuts grown in the Hawaiian Islands: cho (Crunch), and plain roasted nuts (Roasted). The company is barely able to keep up with the increasing demand for these prod ensure it is operating in the most efficient manner possible. To meet marketing demands for the coming week, MNC needs t more than 150 pounds of the Crunch product, and no more than 200 pounds of the Roasted product. Each pound of the W with the remaining weight made up of chocolate coating. The company has 1100 pounds of nuts and 800 pounds of chocola nuts, roast the nuts, coat the nuts in chocolate (if needed), and package the products. The following table summarizes the tim a. Formulate an LP model for this problem. b. Create a spreadsheet model for th
n the Hawaiian Islands: chocolate-coated whole nuts (Whole), chocolate-coated nut clusters (Cluster), chocolate-coated nut crunch bars asing demand for these products. However, increasing raw material prices and foreign competition are forcing MNC to watch its margins coming week, MNC needs to produce at least 1,000 pounds of the Whole product, between 400 and 500 pounds of the Cluster product, n oduct. Each pound of the Whole, Cluster, Crunch, and Roasted product contains, respectively, 60%, 40%, 20%, and 100% macadamia nuts and 800 pounds of chocolate available for use in the next week. The various products are made using four different machines that hull th ng table summarizes the time required by each product on each machine. Each machine has 60 hours of time available in the coming wee a spreadsheet model for this problem and solve it using Solver. c. What is the optimal solution? olate-coated nut crunch bars ing MNC to watch its margins to ounds of the Cluster product, no %, and 100% macadamia nuts different machines that hull the e available in the coming week. A company is trying to determine how to allocate its $145,000 advertising budget for a new product. The company is co advertising in these different media and the number of new customers reached by increasing amounts of advertising. For ins next 10 newspaper ads will cost $900 and is expected to reach 700 new customers. Note that the number of new custome more than 30 newspaper ads and no more than 15 television ads. a) Formulate an LP model for this problem to maximiz solution? d) Suppose the number of new customers reached by 11–20 newspaper ads is 400 and the number of new cust optimal solution? What (if an
Total no. of new
No of new customers Cost per Sets of customers Total cost reached ad each ad reached of ads Newspaper 1 - 10 900 1000 10 9000 10000 Newspaper 11 - 20 700 900 10 7000 9000 Newspaper 21 -30 400 800 0 0 0 Television 1 - 5 10000 12000 5 50000 60000 Television 6 - 10 7500 10000 5 37500 50000 Television 11 - 15 5000 8000 2 10000 16000 Total 113500 145000
Budget 145000 new product. The company is considering newspaper ads and television commercials as its primary means for advertising. The following t g amounts of advertising. For instance, each of the first 10 ads the company places in newspapers will cost $1,000 and is expected to reac hat the number of new customers reached by increasing amounts of advertising decreases as the advertising saturates the market. Assum odel for this problem to maximize the number of new customers reached by advertising. b) Implement your model in a spreadsheet and s 400 and the number of new customers reached by 21–30 newspaper ads is 700. Make these changes in your spreadsheet and reoptimize optimal solution? What (if anything) is wrong with this solution and why? or advertising. The following table summarizes the costs of $1,000 and is expected to reach 900 new customers. Each of the g saturates the market. Assume the company will purchase no r model in a spreadsheet and solve it. c) What is the optimal r spreadsheet and reoptimize the problem. What is the new Shipping costs Men's Women's Junior's Daytona Tempe Daytona Memphis Tempe Memphis Tempe Sacramento 51 10 49 33 9 31 8 Denver 28 43 27 22 42 21 40 Pittsburgh 36 56 34 13 54 12 52
Sacramento Denver Pittsburgh
Men's 700 550 900 Women's 900 1000 1200 Junior's 900 1500 1100 Minimum of Men's 630 495 810 Minimum of Women's 810 900 1080 Minimum of Junior's 810 1350 990
