Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 4, Problem 131P
Summary Introduction
To explain: Whether most companies would find it easy to determine the cost of the product and the possible difficulties that might arise.
Linear programming:
It is a mathematical modeling procedure were a linear function is maximized or minimized subject to certain constraints. This method is widely useful in making a quantitative analysis which is essential for making important business decisions.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Read and analyze the following case:The sales manager complains that his sales reps are not meeting monthly sales quotas. He is convinced that the reps need more sales training to handle the situation and solve the problem. Therefore, he asks you to design a strategy to address this situation.
Iincludes the means that will be used and the resources that will be needed to carry out the program.How will the training be evaluated? How will your profitability (return on investment) be evaluated?
Estimating Costs in an Uncertain Environment Many companies face increasingly unpredictable costs and revenues as the recession affects demand for products and the costs of materials and labor for these products. Revenues and costs have fluctuated significantly in recent years for such cost elements as fuel, labor, commodities (agricultural commodities, metals, etc.), interest, and rent expense, among others. Dealing with the increased fluctuations requires cost estimation methods that are more sophisticated and more frequently updated. The result is that companies are including in their cost estimation additional independent variables. Moreover, these companies are updating their estimation models more frequently. For example, Southwest Airlines updates its revenue prediction model on a daily basis.
Required Consider Southwest Airlines and the following six key areas of cost for the company. Which of these costs do you think the airline must update most frequently?
Flight crew.
Fuel…
How does the presence of uncertainty affect the usefulness of the model?
Chapter 4 Solutions
Practical Management Science
Ch. 4.2 - Prob. 1PCh. 4.2 - Prob. 2PCh. 4.2 - Prob. 3PCh. 4.2 - Prob. 4PCh. 4.2 - Prob. 5PCh. 4.2 - Prob. 6PCh. 4.3 - Prob. 7PCh. 4.3 - Prob. 8PCh. 4.3 - Prob. 9PCh. 4.3 - Prob. 10P
Ch. 4.3 - Prob. 11PCh. 4.3 - Prob. 12PCh. 4.4 - Prob. 13PCh. 4.4 - Prob. 14PCh. 4.4 - Prob. 15PCh. 4.4 - Prob. 16PCh. 4.4 - Prob. 17PCh. 4.4 - Prob. 18PCh. 4.4 - Prob. 19PCh. 4.5 - Prob. 20PCh. 4.5 - Prob. 21PCh. 4.5 - Prob. 22PCh. 4.5 - Prob. 23PCh. 4.5 - Prob. 24PCh. 4.5 - Prob. 25PCh. 4.6 - Prob. 26PCh. 4.6 - Prob. 27PCh. 4.6 - Prob. 28PCh. 4.6 - Prob. 29PCh. 4.7 - Prob. 30PCh. 4.7 - Prob. 31PCh. 4.7 - Prob. 32PCh. 4.7 - Prob. 33PCh. 4.7 - Prob. 34PCh. 4.7 - Prob. 35PCh. 4.7 - Prob. 36PCh. 4.7 - Prob. 37PCh. 4.7 - Prob. 38PCh. 4.7 - Prob. 39PCh. 4.7 - Prob. 40PCh. 4.8 - Prob. 41PCh. 4.8 - Prob. 42PCh. 4.8 - Prob. 43PCh. 4.8 - Prob. 44PCh. 4 - Prob. 45PCh. 4 - Prob. 46PCh. 4 - Prob. 47PCh. 4 - Prob. 48PCh. 4 - Prob. 49PCh. 4 - Prob. 50PCh. 4 - Prob. 51PCh. 4 - Prob. 52PCh. 4 - Prob. 53PCh. 4 - Prob. 54PCh. 4 - Prob. 55PCh. 4 - Prob. 56PCh. 4 - Prob. 57PCh. 4 - Prob. 58PCh. 4 - Prob. 59PCh. 4 - Prob. 60PCh. 4 - Prob. 61PCh. 4 - Prob. 62PCh. 4 - Prob. 63PCh. 4 - Prob. 64PCh. 4 - Prob. 65PCh. 4 - Prob. 66PCh. 4 - Prob. 67PCh. 4 - Prob. 68PCh. 4 - Prob. 69PCh. 4 - Prob. 70PCh. 4 - Prob. 71PCh. 4 - Prob. 72PCh. 4 - Prob. 73PCh. 4 - Prob. 74PCh. 4 - Prob. 75PCh. 4 - Prob. 76PCh. 4 - Prob. 77PCh. 4 - Prob. 78PCh. 4 - Prob. 79PCh. 4 - Prob. 80PCh. 4 - You want to take out a 450,000 loan on a 20-year...Ch. 4 - Prob. 82PCh. 4 - Prob. 83PCh. 4 - Prob. 84PCh. 4 - Prob. 85PCh. 4 - Prob. 86PCh. 4 - Prob. 87PCh. 4 - Prob. 88PCh. 4 - Prob. 89PCh. 4 - Prob. 90PCh. 4 - Prob. 91PCh. 4 - Prob. 92PCh. 4 - Prob. 93PCh. 4 - Prob. 94PCh. 4 - Prob. 95PCh. 4 - Prob. 96PCh. 4 - Prob. 97PCh. 4 - Prob. 98PCh. 4 - Prob. 99PCh. 4 - Prob. 100PCh. 4 - Prob. 101PCh. 4 - Prob. 102PCh. 4 - Prob. 103PCh. 4 - Prob. 104PCh. 4 - Prob. 105PCh. 4 - Prob. 106PCh. 4 - Prob. 107PCh. 4 - Prob. 108PCh. 4 - Prob. 109PCh. 4 - Prob. 110PCh. 4 - Prob. 111PCh. 4 - Prob. 112PCh. 4 - Prob. 113PCh. 4 - Prob. 114PCh. 4 - Prob. 115PCh. 4 - Prob. 116PCh. 4 - Prob. 117PCh. 4 - Prob. 118PCh. 4 - Prob. 119PCh. 4 - Prob. 120PCh. 4 - Prob. 121PCh. 4 - Prob. 122PCh. 4 - Prob. 123PCh. 4 - Prob. 124PCh. 4 - Prob. 125PCh. 4 - Prob. 126PCh. 4 - Prob. 127PCh. 4 - Prob. 128PCh. 4 - Prob. 129PCh. 4 - Prob. 130PCh. 4 - Prob. 131PCh. 4 - Prob. 132PCh. 4 - Prob. 133PCh. 4 - Prob. 134PCh. 4 - Prob. 135P
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- You are a marketing manager for a food products company, considering the introduction of a new brand of organic salad dressings. You need to develop a marketing plan for the salad dressings in which you must decide whether you will have a gradual introduction of the salad dressings (with only a few different salad dressings introduced to the market) or a concentrated introduction of the salad dressings (in which a full line of salad dressings will be introduced to the market). You estimate that if there is a low demand for the salad dressings, your first year’s profit will be $1 million for a gradual introduction and million (a loss of $5 million) for a concentrated introduction. If there is high demand, you estimate that your first year’s profit will be $4 million for a gradual introduction and $10 million for a concentrated introduction. The payoff table for the organic salad dressings marketing is given as follows: Low Demand High Demand Gradual 1 4…arrow_forwardYou are a marketing manager for a food products company, considering the introduction of a new brand of organic salad dressings. You need to develop a marketing plan for the salad dressings in which you must decide whether you will have a gradual introduction of the salad dressings (with only a few different salad dressings introduced to the market) or a concentrated introduction of the salad dressings (in which a full line of salad dressings will be introduced to the market). You estimate that if there is a low demand for the salad dressings, your first year’s profit will be $1 million for a gradual introduction and million (a loss of $5 million) for a concentrated introduction. If there is high demand, you estimate that your first year’s profit will be $4 million for a gradual introduction and $10 million for a concentrated introduction. The payoff table for the organic salad dressings marketing is given as follows: Low Demand High Demand Gradual 1 4…arrow_forwardWhich of the following are important to investors evaluating direct participation programs? I. The economic soundness of the program II. The expertise of the general partner III. The basic objectives of the program IV. The start-up costs A I, II, and IV B I, II, and III C I, II, III, and IV D II, III, and IVarrow_forward
- Read the statements below and answer all the five questions that follow:Materials management includes the job of purchasing. In any industry, purchase refers to the acquisition of necessary equipment, materials, tools, and parts. The relevance of the buying function varies depending on the industry and its size. This duty is performed by the works manager in small businesses, and by a distinct department in major manufacturing companies. As soon as a purchaser places an order he/she commits a substantial portion of the finance of the corporation which affects the working capital and cash flow position. He/she is a highly responsible individual who interacts with many salespeople and can thus be deemed to have contributed to the company's public relations efforts. Source: https://businesstech.co.za/news/business/220551/these-are-the-5-biggest-retailers-in-south-africa/ You are managing the purchasing department at Walmart's Cambridge Foods in South Africa. Critically discuss the…arrow_forwardHello: I am trying to fine-tune this question in quotes below to become a qualitative response variable but seems a pretty difficult one: "How do we model phenomena of sales quantity purchased from the pharmacy stores such as the pharmacy numbers that have the greatest number of basket sales in a given year, and dates (that is, days of the week) that have the greatest number of basket sales per year? Does the location such as States or Zip codes as well as weather conditions have any influence on the sales?" Please Advisearrow_forwardYou are the Economic Consultant for Zuku Farms Ghana Limited. Zuku produces cowpea in a community where producers are able to switch back and forth between cowpea and groundnut depending on market conditions. Consequently, you were tasked by the management of Zuku and you estimated the demand function for cowpea as follows: where is the quantity of cowpea demanded in bags per month, is the average price of cowpea in Ghana Cedis, is the average price of groundnut in Ghana Cedis, and Y is the income of consumers. Assuming is initially GH¢31.00 per bag, Y is GH¢1001.50 Required: Find the resulting demand function for cowpea and determine the number of bags Zuku can sell at GH¢ 45.00 per bag. Management is considering increasing price of cowpea by GH¢10.00 per bag. Advise management on this price change using the concept of price elasticity of demand. Explain why management should be worried about a reduction in the price of groundnutarrow_forward
- Assume that the Ken Cory Consulting and Construction Company is involved in four different businesses that have almost no linkages between them (such as being in financial consulting, road construction, wheat farming, and auto repair industries simultaneously). Now assume that the financial consulting company accounts for 12% of total company revenues, road construction accounts for 74% of company revenues, wheat farming accounts for 10%, and auto repair accounts for 4% of total company revenues. What is the best way to describe the level or category of diversification that the Ken Cory Company has? O Conglomerate O Single Business O Related-Linked O Dominant Businessarrow_forwardDS You are a fruit vendor in the Coronation Market in Kingston Jamaica. You are facing the decision to purchase 100, 120 or 130 bags of oranges for resale each week. However, you are not sure of the demand-per week. You also consider that you can move around the market, depending on the number of bags, selling for different prices you have and you can also sell surplus for a reduced price. The payoff table below gives the details of the possible profit for each of these combinations. What is the optimal decision, using the Maximin criterion? Payoff Table Profits($) Weekly Demand (State of Nature) Average Decision (Purchase) Below Robust Par 75000 90000 110000 50000 55000 100 Bags 120 Bags 130 Bags 65000 75000 45000 65000 Select one: O a. Purchase 100 bags (expected profit = $50,000) O b. Purchase 120 bags (expected profit = $65,000) O c. Purchase 130 bags (expected profit = $45,000) o d. Purchase 130 bags (expected profit = $65,000) 9:25 AM Ca ) ENG 12/16/2021 85°Farrow_forwardMichael is the marketing executive of SHOPEE and he is planning to launch the 2.2.22 online SALE through price discounts, either 40% off or 20% off. He also learned that SHOPEE closest competitor LAZADA , is planning to promote also a 2.22.22 online SALE with price discounts , either 50% off or 30% off. If SHOPEE launches the 40% off, it will gain nothing. If LAZADA launches the 50% off or gain 8,000,000 if LAZADA launches the 30% off. If SHOPEE launches the 20% off, it will lose 2,000,000 if LAZADA launches the 50% off or lose 5,000,000 if LAZADA launches the 30% off. What should be Michael's Strategy for SHOPEE and what should be the strategy of LAZADA? A. Michael should launch the 20% OFF for SHOPEE and LAZADA should launch the 30% OFF. B. Michael should launch the 40% OFF for SHOPEE and LAZADA should launch the 30% OFF. C. Michael should launch the 40% OFF for SHOPPE and LAZADA should launch the 50% OFF. D. Michael should launch the 20% OFF for SHOPPE and LAZADA should launch…arrow_forward
- Michael is the marketing executive of SHOPEE and he is planning to launch the 2.2.22 online SALE through price discounts, either 40% off or 20% off. He also learned that SHOPEE closest competitor LAZADA , is planning to promote also a 2.22.22 online SALE with price discounts , either 50% off or 30% off. If SHOPEE launches the 40% off, it will gain nothing. If LAZADA launches the 50% off or gain 8,000,000 if LAZADA launches the 30% off. If SHOPEE launches the 20% off, it will lose 2,000,000 if LAZADA launches the 50% off or lose 5,000,000 if LAZADA launches the 30% off. 1.Which strategy is dominated by SHOPEE depending on strategy of LAZADA? A. 50% OFF B. 40% OFF C. 20% OFF D. 30% OFF E. NONE 2.What should be the strategy of LAZADA? A. 50% OFF B. 40% OFF C. 30% OFF D. 20% OFFarrow_forwardDescribe how decision analysis is similar to and different from simulation analysis and scenario analysis (at least 75 words)arrow_forwardA television station may either extend a current television show for another season or develop a completely new show for that time slot. It will cost $6M to develop the new show. The new show may be very successful, moderately successful, or not successful with associated advertising revenues of $25M, $15M, or $5M, respectively. If the station chooses to extend the current show, it will cost $2M. The extended show may be very successful, moderately successful, or not successful with associated advertising revenues of $15M, $10M, or $5M, respectively. Which of the following are true? A. There are a total of six branches in the entire decision tree. B. There are eight leaves or terminal nodes in the entire decision tree. C. There is one event node in the decision tree. D. None of the abovearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.