CASE ONE Two advertising media are being considered for promotion of a product. Radio ads cost $400 each‚ while newspaper ads cost $600 each. The total budget is $7‚200 per week. The total number of ads should be at least 15‚ with at least 2 of each type‚ and there should be no more than 19 ads in total. The company does not want the number of newspaper ads to exceed the number of radio ads by more than 25 percent. Each newspaper ad reaches 6‚000 people‚ 50 percent of whom will respond; while each
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MERTON TRUCK COMPANY Sol 1 : Given : Selling Price od Model 101 truck : 39000 Selling Price of Model 102 truck : 38000 We know‚ Contribution C = SP – VC VC for Model 101 : Direct Material + Direct Labor + Variable Overhead : 24000 + 4000 + 8000 = $36000 VC for Model 102: Direct Material + Direct Labor + Variable Overhead : 20000+ 4500+8500 = $33000 Let no of Model 101 produced be X Let no of Model 102 produced be Y Z= (39000-36000)X + (38000=33000)Y Z=3000X + 5000Y
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Summary of the Problem: TJ’s‚ Inc.‚ makes three nut mixes for sale to grocery chains located in the Southeast. The three mixes‚ referred as the Regular Mix‚ Deluxe Mix‚ Holiday Mix. Now TJ’s is committed to using the available nuts to maximize profit of the fall seasons‚ and they must satisfy the received orders. Problem Solving Approach: This problem was solved using Excel Solver LP Programming. The decision variables are pounds of each type of Mix. The objective function was a formula of
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What is a Plant Layout? Definition of Plant Layout Plant Layout is the physical arrangement of equipment and facilities within a Plant. The Plant Layout can be indicated on a floor plan showing the distances between different features of the plant. Optimizing the Layout of a Plant can improve productivity‚ safety and quality of Products. Uneccessary efforts of materials handling can be avoided when the Plant Layout is optimized. This is valid for: - Distances Material has to move - Distances
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SENSITIVITY ANALYSIS The solution obtained by simplex or graphical method of LP is based on deterministic assumptions i.e. we assume complete certainty in the data and the relationships of a problem namely prices are fixed‚ resources known‚ time needed to produce a unit exactly etc. However in the real world‚ conditions are seldom static i.e. they are dynamic. How can such discrepancy be handled? For example if a firm realizes that profit per unit is not Rs 5 as estimated but instead closer
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1. Discuss why and how you would use a liner programming model for a project of your choice‚ either from your own work or as a hypothetical situation. Be sure that you stae your situation first‚ before you develpp the LP model Linear programming is a modeling technique that is used to help managers make logical and informed decisions. All date and input factors are known with certainty. Linear program models are developed in three different steps: Formulation Solution Interpretation
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REPORT ON RED BRAND CANNERS – CASE STUDY Introduction: Red Brand Canners is a medium sized company that cans and distributes a variety of fruit and vegetable products under private brands in the western states. The company makes three different tomato products including whole tomatoes‚ tomato juice and tomato paste. They also distribute Choice peach halves‚ peach nectarine and cooking apple products. As part of their discussion over the amount of tomato products to pack in a particular
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Inventory Management help This problem entails knowing Inventory Control Subject to known demand. Based out of the book Production and Operations Analysis-5th edition ISBN 0072865385 which is almost Identical to 4th ed. A local machine shop buys hex nuts and molly screws from the same supplier. The hex nuts cost 15 cents each and the molly screws cost 38 cents each. A setup cost of $100.00 is assumed for all orders. This includes the cost of tracking and receiving the orders. Holding costs are
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DCO21020 Operations Research Lecture 2 TAHA Example 2.1-1 (Page 47) : The Reddy Mikks Company The Reddy Mikks Company produces both interior and exterior paints from two raw materials‚ M1 and M2. Tons of raw material per ton of Maximum daily availability Exterior Paint Interior Paint (tons) Raw material M1 Raw material M2 Profit per ton ($1000s) 6 1 5 4 2 4 24 6 A market survey indicates that the daily demand for interior paint cannot exceed that for exterior paint by more than 1 ton. Also
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Assignment 1 (Individual Assignment): 20% Due date: 23 August 2012 Assignment 2 (Group Assignment minimum of THREE and Maximum of FOUR students) 20% Due date: 20 Sep 2012 Examination (three hours exam) 60% University Exam Period Note: Borderline fails in this course are determined when the final overall mark is in the range 45-49 inclusive. Please note that: • Both assignments must be accompanied by an Assignment Cover Sheet. • Both assignments must be submitted electronically through
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