The way the company can maximize the profit. Linear programming: It is a mathematical modeling procedure where 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.

Question

Barbara Flynn sells papers at a newspaper stand for $0.40. The papers cost her $0.30, giving her a $0.10 profit on each one she sells. From past experience Barbara knows that: a) 20% of the time she sells 150 papers. b) 20% of the time she sells 200 papers. c) 30% of the time she sells 250 papers. d) 30% of the time she sells 300 papers. Assuming that Barbara believes the cost of a lost sale to be $0.05 and any unsold papers cost her $0.30 and she orders 250 papers. Use the following random numbers: 14, 4, 13, 9, and 25 for simulating Barbara's profit. (Note: Assume the random number interval begins at 01 and ends at 00.) Based on the given probability distribution and the order size, for the given random number Barbara's sales and profit are (enter your responses for sales as integers and round all profit responses to two decimal places): Random Number Sales Profit 14 4 13 9 25

Answer 1

Question

Chapter 4, Problem 53P

a)

Summary Introduction

To determine: The way the company can maximize the profit.

Linear programming:

It is a mathematical modeling procedure where 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.

b)

Summary Introduction

To use: A solver table to analyze the effect on profit of changing the minimum percentage of nitrogen required in fertilizer 1.

Linear programming:

It is a mathematical modeling procedure where 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.

c)

Summary Introduction

To use: A solver table to analyze the effect of the change on the profit.

Linear programming:

It is a mathematical modeling procedure where 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.

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Barbara Flynn sells papers at a newspaper stand for $0.40. The papers cost her $0.30, giving her a $0.10 profit on each one she sells. From past experience Barbara knows that: a) 20% of the time she sells 150 papers. b) 20% of the time she sells 200 papers. c) 30% of the time she sells 250 papers. d) 30% of the time she sells 300 papers. Assuming that Barbara believes the cost of a lost sale to be $0.05 and any unsold papers cost her $0.30 and she orders 250 papers. Use the following random numbers: 14, 4, 13, 9, and 25 for simulating Barbara's profit. (Note: Assume the random number interval begins at 01 and ends at 00.) Based on the given probability distribution and the order size, for the given random number Barbara's sales and profit are (enter your responses for sales as integers and round all profit responses to two decimal places): Random Number Sales Profit 14 4 13 9 25

A purchasing agent for a particular type of silicon wafer used in the production ofsemiconductors must decide among three sources. Source A will sell the siliconwafers for $2.50 per wafer, independently of the number of wafers ordered. Source Bwill sell the wafers for $2.40 each but will not consider an order for fewer than3,000 wafers, and Source C will sell the wafers for $2.30 each but will not acceptan order for fewer than 4,000 wafers. Assume an order setup cost of $100 and anannual requirement of 20,000 wafers. Assume a 20 percent annual interest rate forholding cost calculations.c. If the replenishment lead time for wafers is three months, determine the reorderpoint based on the on-hand level of inventory of wafers

A purchasing agent for a particular type of silicon wafer used in the production ofsemiconductors must decide among three sources. Source A will sell the siliconwafers for $2.50 per wafer, independently of the number of wafers ordered. Source Bwill sell the wafers for $2.40 each but will not consider an order for fewer than3,000 wafers, and Source C will sell the wafers for $2.30 each but will not acceptan order for fewer than 4,000 wafers. Assume an order setup cost of $100 and anannual requirement of 20,000 wafers. Assume a 20 percent annual interest rate forholding cost calculations.a. Which source should be used, and what is the size of the standing order?

Answer 2

Question

Chapter 4, Problem 53P

a)

Summary Introduction

To determine: The way the company can maximize the profit.

Linear programming:

It is a mathematical modeling procedure where 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.

b)

Summary Introduction

To use: A solver table to analyze the effect on profit of changing the minimum percentage of nitrogen required in fertilizer 1.

Linear programming:

It is a mathematical modeling procedure where 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.

c)

Summary Introduction

To use: A solver table to analyze the effect of the change on the profit.

Linear programming:

It is a mathematical modeling procedure where 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.

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Answer 3

Question

Chapter 4, Problem 53P

a)

Summary Introduction

To determine: The way the company can maximize the profit.

Linear programming:

It is a mathematical modeling procedure where 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.

b)

Summary Introduction

To use: A solver table to analyze the effect on profit of changing the minimum percentage of nitrogen required in fertilizer 1.

Linear programming:

It is a mathematical modeling procedure where 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.

c)

Summary Introduction

To use: A solver table to analyze the effect of the change on the profit.

Linear programming:

It is a mathematical modeling procedure where 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.

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Answer 4

Question

Chapter 4, Problem 53P

a)

Summary Introduction

To determine: The way the company can maximize the profit.

Linear programming:

It is a mathematical modeling procedure where 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.

b)

Summary Introduction

To use: A solver table to analyze the effect on profit of changing the minimum percentage of nitrogen required in fertilizer 1.

Linear programming:

It is a mathematical modeling procedure where 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.

c)

Summary Introduction

To use: A solver table to analyze the effect of the change on the profit.

Linear programming:

It is a mathematical modeling procedure where 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.

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Answer 5

Chapter 4, Problem 53P

a)

Summary Introduction

To determine: The way the company can maximize the profit.

Linear programming:

It is a mathematical modeling procedure where 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.

b)

Summary Introduction

To use: A solver table to analyze the effect on profit of changing the minimum percentage of nitrogen required in fertilizer 1.

Linear programming:

It is a mathematical modeling procedure where 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.

c)

Summary Introduction

To use: A solver table to analyze the effect of the change on the profit.

Linear programming:

It is a mathematical modeling procedure where 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.

Answer 6

Chapter 4, Problem 53P

a)

Summary Introduction

To determine: The way the company can maximize the profit.

Linear programming:

It is a mathematical modeling procedure where 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.

Answer 7

Chapter 4, Problem 53P

a)

Summary Introduction

To determine: The way the company can maximize the profit.

Linear programming:

It is a mathematical modeling procedure where 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.

Answer 8

b)

Summary Introduction

To use: A solver table to analyze the effect on profit of changing the minimum percentage of nitrogen required in fertilizer 1.

Linear programming:

It is a mathematical modeling procedure where 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.

Answer 9

b)

Summary Introduction

To use: A solver table to analyze the effect on profit of changing the minimum percentage of nitrogen required in fertilizer 1.

Linear programming:

It is a mathematical modeling procedure where 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.

Answer 10

c)

Summary Introduction

To use: A solver table to analyze the effect of the change on the profit.

Linear programming:

It is a mathematical modeling procedure where 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.

Answer 11

c)

Summary Introduction

To use: A solver table to analyze the effect of the change on the profit.

Linear programming:

It is a mathematical modeling procedure where 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.

Answer 12

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Answer 23

Ch. 4.2 - Prob. 1P Ch. 4.2 - Prob. 2P Ch. 4.2 - Prob. 3P Ch. 4.2 - Prob. 4P Ch. 4.2 - Prob. 5P Ch. 4.2 - Prob. 6P Ch. 4.3 - Prob. 7P Ch. 4.3 - Prob. 8P Ch. 4.3 - Prob. 9P Ch. 4.3 - Prob. 10P

Solution Summary: The author explains how a linear function is maximized or minimized subject to certain constraints. The solver table analyzes the effect of the change on the profit.

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Chapter 4 Solutions