Reference no: EM13967254
Cost Minimization
Ray Barone is sole proprietor of Delmar Custom Homes (DCH), a family- run construction company. The company uses two types of crews on its Long Island, New York, home construction projects. Type A crews consist of master carpenters and skilled carpenters, whereas B crews include skilled carpenters and unskilled labor. Each home involves framing (F), roofing (R), and finish carpentry (FC). During recent months, A crews have demonstrated a capability of framing one home, roofing two, and doing finish carpentry for no more than four homes per month. Capabilities for B crews are framing three homes, roofing two, and complet- ing finish carpentry for one during a month. DCH has agreed to build 10 homes during the month of July but has subcontracted 10% of framing and 20% of finish carpentry requirements. Labor costs are $60,000 per month for A crews and $45,000 per month for B crews.
A. Formulate the linear programming problem that DCH would use to minimize its total labor costs per month, showing both the inequality and equality forms of the constraint conditions.
B. Solve the linear programming problem and interpret your solution values.
C. Assuming that DCH can both buy and sell subcontracting services at prevailing prices of $8,000 per unit for framing and $14,000 per unit for finish carpentry, would you recommend that the company alter its subcontracting policy? If so, how much could the company save through such a change?
D. Calculate the minimum increase in A-crew costs necessary to cause DCH to change its optimal employment combination for July.
|
Simulation process used in decision sciences models
: How is the simulation process used in Decision Sciences models? What are the advantages of using simulation? What are its limitations? How can a simulation model be verified? Give a real world example where using simulation is appropriate.
|
|
Power point slide on amazon project analysis
: Power point slide on Amazon Project Analysis - To achieve this goal, designing a website is a good way for Amazon to initiate sale.
|
|
Concept of value of perfect information in decision analysis
: Explain the concept of value of perfect information in decision analysis. Give a real world example where the value of perfect information will be useful to a decision maker.
|
|
Assessment of us export administration regulations
: What is your assessment of US export administration regulations? Does it impose burdensome requirements on US exporters? What is the transaction value of a shipment invoiced at $100,000 if the terms of sale are delivered duty paid (DDP), the ocean fr..
|
|
Estimating the cost minimization
: Ray Barone is sole proprietor of Delmar Custom Homes (DCH), a family- run construction company. The company uses two types of crews on its Long Island, New York, home construction projects. Type A crews consist of master carpenters and skilled car..
|
|
What is the relationship between business ethics and the law
: What is the relationship between business ethics and the law? What are the main determinants of business ethics? What is organizational behavior and how does it affect the way members of the workforce behave? What is the role of management in organiz..
|
|
What must nc-nse turns ratio be to accomplish connection
: An autotransformer is used to connect a 12.6-kV distribution line to a 13.8-kV distribution line. It must be capable of handling 2000 kVA. There are three phases, connected Y-Y with their neutrals solidly grounded. What must the NC / NSE turn..
|
|
Lp setup and interpretation
: The Syflansyd Nut Company has enjoyed booming sales following the success of its "Sometimes You Feel Like a Nut, Sometimes You Don't" advertising campaign. Syflansyd packages and sells four types of nuts in four different types of mixed-nut packag..
|
|
Identify two other key factors and discuss them.
: Reflect on quality health outcomes, utilization, and disparity in the Indian healthcare system. India's healthcare infrastructure has not kept pace with the economic development.
|