Define the parameters and variables

Assignment Help Financial Management

Reference no: EM13969685

Problem 1:

Define the parameters and variables and write the equation for the following scenario to optimize the profit:

A factory has forecast demand for each of their 2 products for the next 12 month which they may meet but cannot exceed. They currently have 50 employees who are on salary ($4000/month), that is they have to be paid whether they are producing product or not. There are 160 productive hours per worker in a month. Overtime is on an hourly basis and costs $40/hour. Maximum overtime per employee per month is 30 hours. Employees may be hired ($6,000 each), but not laid off during this year. The selling price of the two products is $85 and $15 respectively. The amount of time required to produce each product is 2 hours and 0.5 hours respectively. Ignore material and overhead costs. Inventory carrying costs are $2 and $0.25 per month respectively. Shortages are not allowed. Initial Inventories are zero.

Problem 2:

Define the parameters and variables and write the equation for the following scenario to optimize the profit:

A factory has forecast demand for each of their 2 products for the next 12 month which they may meet but cannot exceed. They currently have 100 employees who are on salary ($3900/month), that is they have to be paid whether they are producing product or not. There are 160 productive hours per worker in a month. Overtime is on an hourly basis and costs $38/hour. Maximum overtime per employee per month is 35 hours. Employees may be hired ($4,000 each), but not laid off during this year. The selling price of the two products is $180 and $30 respectively. The amount of time required to produce each product is 4 hours and 1.5 hours respectively. Ignore material and overhead costs. Inventory carrying costs are $4 and $0.50 per month respectively. Shortages are not allowed. Initial Inventories are zero.

Reference no: EM13969685

Questions Cloud

State and test hypotheses appropriate for deciding : Construct the ANOVA table. (Hint: The computa-tion can be expedited by subtracting 400 or any other convenient number) from each observation. This does .not affect the final results]

Counternarcotics strategy analysis : Prepare a 1-page overview that distills the themes and imperatives from your case study and the National Southwest Border Counternarcotics (NSWBCN) Strategy analysis, providing an integrated and comprehensive summary of your research.

Find the sprague-grundy function : Suppose that at each turn a player may (1) remove one chip if it is a wholepile, or (2) remove two or more chips and, if desired, split the remaining chipsinto two piles. Find the Sprague-Grundy function.

Market-clearing model : Consider the basic flexible-price, market-clearing model (which satisfies the Classical Dichotomy) in which r and Y are constant as long as there are no shocks to preferences or technology. The nominal stock of money is growing at rate μ so that:

Define the parameters and variables : Define the parameters and variables and write the equation for the following scenario to optimize the profit:

How does the agency normally get its clients : Contact any one of the top-WO market research agencies in the world either by phone or email. Find out: How does the agency normally get its clients? Does the agency do most of its data analysis in-house, or does it contract out its data analysis req..

Find own-price cross-price and income elasticities of demand : The demand function for x is given by x(px, py, I)= 5px^(-1/2)py^(1/4)i^(1/4). Find own-price, cross-price and income elasticities of demand.

Show the ols estimator of ß1 is unbiased : Show the OLS estimator of β1 is unbiased using Assumptions SLR.1-4.

How many women would be required : 12 men can complete a piece of work in 36 days, 18 women can complete the same piece of work in 60 days. 8 men and 20 women work together for 20 days.

User Account

All Pages