Reference no: EM131235598
Three products, Product1 and Product2 and Product3, are produced in annual amounts A1, A2 and A3 respectively. Producti (for each i = 1, 2, 3) has annual demand Ai (as above), fixed cost per order ki, unit cost per item ci, annual holding cost hi, and order quantity Qi; where we shall sometimes write the optimal order quantity Q*i simply as Qi (i = 1, 2, 3). Upon being produced and delivered, each Qi of each product Producti is made into a circle, which has radius ri = Qi /(2π). Due to a misunderstanding in business negotiations and specifications (regarding the area of land that length Qi can enclose), the profit Profiti given will equal the area of this circle, π ri2 or, equivalently, π [Qi /(2π)]2, or equivalently, Qi2/(4π). We know that ki/(2π ci hi) = (2ki/(ci hi))/(4π) takes the following values: k1/(2π c1 h1) = $35, k2/(2π c2 h2) = $30, and k3/(2π c3 h3) = $32. Due to conflicting demand for rival products, we have the following constraints on the annual demands Ai for the products Producti whose profits (as above) are Qi2/(4π). Here are the relevant constraints: 9 A1 + 5 A2 + 8 A3 <= 3132 A1 + A2 + A3 <= 400 12 A1 + 17 A2 + 13 A3 <= 5760.
a) Formulate this problem appropriately.
b) Create a spreadsheet model for this problem.
c) Are there any other constraints that should be stated? If so, give these constraints
d) Solve the problem - using Microsoft Excel Solver, generating the minimum cost to satisfy the constraints. What is the minimum cost?
e) Keeping all variables fixed except k3, Q3 and A3, by what proportion or factor would k3 have to change in order to change Q3 and A3?
|
What is the maximum possible throughput of this system
: What changes in CPU speed would you recommend to achieve a response time of 10 seconds with 25 users? Would you also need a faster disk A or disk B?
|
|
How interactive systems have changed throughout the years
: Physical, cognitive, perceptual, personality, and cultural differences introduce challenges when designing universally usable products. Choose one area from the list above and describe why it is the biggest challenge to overcome when creating univ..
|
|
Highlight the most prominent situations affecting leadership
: Highlight the most prominent situations affecting leadership from the Industrial Age to the Information Age. Consider how these situations affect an organization with which you are affiliated (or of which you have knowledge), and discuss what your le..
|
|
What is your real rate of return
: Assume the inflation rate is 100% per year and the nominal rate of interest is 700% per year. - What is your real rate of return? What is the formula?
|
|
Create a spreadsheet model for this problem
: Three products, Product1 and Product2 and Product3, are produced in annual amounts A1, A2 and A3 respectively. Producti (for each i = 1, 2, 3) has annual demand Ai (as above), fixed cost per order ki, unit cost per item ci, annual holding cost hi, an..
|
|
Concept of capital budgeting and decisions thereof
: Describe the concept of Capital Budgeting and decisions thereof. How does present value analysis impact a firm's investment program ? How is (the) risk of a project accounted for in Capital Budgeting Analysis?
|
|
What is post inflation after tax post default rate of return
: Assume there is a 10% nominal rate of return, a tax rate of 40%, and an inflation rate of 5%. -What is the real, post-inflation, after tax, post-default rate of return?
|
|
What is the maximum possible throughput of this system
: Repeat Exercise 34.2 using Schweitzer's approximation to MVA with N = 5 users. Use a starting value of 5/3 for each of the three-device queue lengths and stop after five iterations.
|
|
Substantial debts to finance mergers and acquisitions
: 1. The benefits of mergers and acquisitions, and the impact of growth through acquisition strategies. 2. Financing of mergers and acquisitions and the implications of taking substantial debts to finance Mergers and Acquisitions.
|