[SOLVED] Solve the RMC problem (Chapter 2, Problem

> For Isa Distributors in Problem 17, we were given Q* = 25, D = 200, Ch = €5 and a normal lead-time demand distribution with / a. What is Isa’s reorder point if the firm is willing to tolerate two stock-outs during the year? b. What is Is

> A retail outlet sells a seasonal product for E10 per unit. The cost of the product is E8 per unit. All units not sold during the regular season are sold for half the retail price in an end of- season clearance sale. Assume that demand for the product i

> Apply the EOQ model to the following quantity discount situation in which D = 500 units per year, Co = E40 and the annual holding cost rate is 20 per cent. What order quantity do you recommend?  

> HamiltonCounty Parks is planning to develop a new park and recreational area. Project development activities include clearing playground and picnic areas, constructing roads, constructing a shelter house, purchasing picnic equipment and so on. The foll

> The product development group at Landon Corporation has been working on a new computer software product that has the potential to capture a large market share. Through outside sources, Landon’s management learned that a competitor is working to i

> Consider the following minimum cost transportation problem. a. Use the minimum cost method to find an initial feasible solution. b. Use the transportation Simplex method to find an optimal solution. c. How would the optimal solution change i

> Consider the following minimum cost transportation problem. a. Use the minimum cost method to find an initial feasible solution. b. Use the transportation Simplex method to find an optimal solution. c. Using your solution to part (b), identi

> The Mohawk Discount Store is designing a management training programme for staff at its corporate headquarters. The company wants to design the programme so that trainees can complete it as quickly as possible. Important precedence relationships must b

> For the PDC problem in Section 13.3, the decision alternative to build the large complex was found to be optimal using the expected value approach. In Section 13.4 we conducted a sensitivity analysis for the payoffs associated with this decision alternat

> Refer again to Problem 3. a. Suppose the objective function coefficient of x1 is increased to 3 and the objective function coefficient of x2 is increased to 4. Find the new optimal solution. b. Suppose the objective function coefficient of x1 is incre

> Arnoff Enterprises manufactures the central processing unit (CPU) for a line of tablet computers. The CPUs are manufactured at three sites in China: Shanghai, Changchun and Nanchang and then shipped to warehouses in Singapore, Seattle, Lisbon, Sao Paulo

> The Transportation Ministry is undertaking construction work relating to the excavation and site preparation of a new rest area on a major highway. The Ministry estimated that it would take four months to perform the work and that ten, 12, 14 and eight

> EZ Trailers located in Southampton, England manufactures a variety of general purpose trailers, including a complete line of boat trailers. Two of their best-selling boat trailers are the EZ-190 and the EZ-250. The EZ-190 is designed for boats up to 19 f

> The Uhuru Craft Cooperative in Tanzania was established a few years ago by a number of aid agencies in an attempt to help the local economy diversify and increase income levels of the local community. The community itself is largely subsistencebased, has

> The Emergency Department at the local hospital provides emergency health care on an as-needed basis for people involved in accidents, having injuries, etc. Understandably, it is difficult to predict how busy the Department will be at any one time and, ac

> Jâs, Inc., makes three nut mixes for sale to grocery chains located in India. The three mixes, referred to as the Regular Mix, the Deluxe Mix and the Holiday Mix, are made by mixing different percentages of five types of nuts. In prepa

> Cinergy Corporation manufactures and distributes electricity for customers located in Indiana, Kentucky and Ohio. The company spends $725 to $750 million each year for the fuel needed to operate its coal fired and gas-fired power plants; 92 per cent to 9

> The Shimla Textile Mill* in India produces five different fabrics for European clothing manufacturers. Each fabric can be woven on one or more of the millâs 38 looms. The sales departmentâs forecast of demand for the n

> Glenn Foreman, president of Oceanview Development Corporation based in Portugal, is considering submitting a bid to purchase property that will be sold by sealed bid. Glennâs initial judgement is to submit a bid of E5 million. Based on

> J. D. Williams, Inc., is an investment advisory firm that manages more than E120 million in funds for its numerous clients. The company uses an asset allocation model that recommends the portion of each client’s portfolio to be invested in a growth stock

> A local healthfood cooperative runs a community cafeÂ´ and produces two vegetarian burgers. The large burger makes a profit of 85 cents per unit sold and the standard burger 55 cents. Each burger is made from three basic ingredients as shown

> Digital Imaging (DI) produces photo printers for both the professional and consumer markets. The DI consumer division recently introduced two photo printers that provide colour prints rivalling those produced by a professional processing lab. The DI-910

> Phoenix Computer manufactures and sells personal computers directly to customers. Orders are accepted by phone and through the company’s website. Phoenix will be introducing several new laptop models over the next few months and management recognizes a n

> Better Fitness, Inc. (BFI), manufactures exercise equipment at its plant in Munich, Germany. It recently designed two universal weight machines for the home exercise market. Both machines use BFI-patented technology that provides the user with an extreme

> The Cossack Grill is an upscale restaurant located in St. Petersburg. To help plan an advertising campaign for the coming season, the restaurantâs management team hired the advertising firm of Hartman & Jablinsky (HJ). The managemen

> Morgan Trucking Company operates a special speedy pickup and delivery service in a large city for ten clients who have a pickup contract with Morgan. When Morgan receives a request for service, it dispatches a truck from its HQ to the requesting service

> In the original GDA problem, we found the shortest distance from the office (node 1) to each of the other nodes or construction sites. Because some of the roads are highways and others are country tracks, the shortest-distance routes between the office a

> The High-Price Oil Company owns a pipeline network that is used to convey oil from its source to several storage locations. A portion of the network is as follows: Due to the varying pipe sizes, the flow capacities vary. By selectively opening and clos

> Use the random numbers 0.3753, 0.9218, 0.0336, 0.5145 and 0.7000 to generate five simulated values for the PortaCom direct labour cost per unit.

> The following cost information is available for the fast-food franchise in Problem 11. Customer waiting time is valued at E25 per hour to reflect the fact that waiting time is costly to the fast-food business. The cost of each employee is E6.50 per hour

> Set up the tableau form for the following linear programme (do not attempt to solve): Min 4x1 + 5x2 + 3x3 s.t. 4x1 +2x3 2 20 1x2 – 1x3 <-8 = -5 1x1 – 2x2 2x + 1x2 + 1xз < 12 X1, X2, X3 2 0

> A project involving the installation of a computer system comprises eight activities. The following table lists immediate predecessors and activity times (in weeks). a. Draw a project network. b. What are the critical activities? c. What is the expecte

> Management of High Tech Services (HTS) would like to develop a model that will help allocate their technicians’ time between service calls to regular contract customers and new customers. A maximum of 80 hours of technician time is available over the two

> The Davis family of Bristol, England is planning its annual summer holiday. Three vacation locations along with criteria weights and location ratings follow. What is the recommended holiday location? Ratings Scottish Highlands, Cardiff, Nice, France

> Dunes Golf Course is one of the top golf courses in the Scottish Highlands. The course offers some of the best views available. Dunes targets the upper end of the golf market and in the peak spring golfing season, charges green fees of Â£160

> Quality Air Conditioning manufactures three home air conditioners: an economy model, a standard model and a deluxe model. The profits per unit are E63, E95 and E135, respectively. The production requirements per unit are as follows: For the co

> The O’Neill Shoe Manufacturing Company in Ireland will produce a special-style shoe if the order size is large enough to provide a reasonable profit. For each special-style order, the company incurs a fixed cost of E1000 for the production setup. The var

> A food store in Glasgow specializes in selling organic produce to local restaurants. In the summer it buys fresh raspberries (a Scottish delicacy) from two authorized organic farms in Tayside – the McGregor Farm and the Campbell Farm. Raspberries are sup

> A firm has just completed a new plant that will produce more than 500 different products, using more than 50 different production lines and machines. The production scheduling decisions are critical in that sales will be lost if customer demands are not

> List and discuss the different stages of the management science approach.

> Naser Publishing Company is considering publishing a DVD on spreadsheet applications for business. The fixed cost of preparation, design and production setup is estimated to be E80 000. Variable production and material costs are estimated to be E3 per DV

> Consider the following linear programme: a. Solve this problem using the graphical solution procedure. b. Calculate the range of optimality for the objective function coefficient of x1. c. Calculate the range of optimality for the objective function co

> The RMC Corporation blends three raw materials to produce two products: a fuel additive and a solvent base. Each ton of fuel additive is a mixture of 0.4 ton of material 1 and 0.6 ton of material 3. A ton of solvent base is a mixture of 0.5 ton of materi

> The Ruitersâ Manufacturing Company produces two products, which have the following profit and resource requirement characteristics. Last monthâs production schedule used 350 hours of labour in department A and 1000 h

> Consider the PortaCom project discussed in Section 12.1 a. An engineer on the product development team believes that first-year sales for the new printer will be 20 000 units. Using estimates of E45 per unit for the direct labour cost and E90 per unit f

> Hilltop Coffee manufactures a coffee product by blending three types of coffee beans. The cost per kilo and the available kilos of each bean are as follows: Consumer tests with coffee products were used to provide ratings on a scale of 0â&#

> Recall the RMC problem (Chapter 2, Problem 12). Letting: F = kilos of fuel additive S = kilos of solvent base leads to the formulation: Max 40F + 30S s:t Use the graphical sensitivity analysis approach to determine the range of optimality for the o

> The Quick and Easy operates five fast-food restaurants in the UK. Input measures for the restaurants include weekly hours of operation, full-time equivalent staff and weekly supply expenses. Output measures of performance include average weekly contribut

> The Two-Rivers Oil Company near Pittsburgh transports gasoline to its distributors by truck. The company recently contracted to supply gasoline distributors in southern Ohio, and it has $600 000 available to spend on the necessary expansion of its fleet

> The Atlantic Seafood Company (ASC) is a buyer and distributor of seafood products that are sold to restaurants and speciality seafood outlets throughout the Western Europe. ASC has a frozen storage facility in Lisbon that serves as the primary distributi

> Consider the following linear programme: a. Write the problem in standard form. b. How many variables will be set equal to zero in a basic solution for this problem? Explain. c. Find the basic solution that corresponds to s1 and s2 equal to zero. d.

> In Problem 16, if P(s1) = 0.25, P(s2) = 0.50 and P(s3) = 0.25, find a recommended decision for each of the three decision makers. Note that for the same decision problem, different utilities can lead to different decisions. Data from question 16: Three

> Romeroâs Department Store faces a buying decision for a seasonal product for which demand can be high, medium or low. The purchaser for Romeroâs can order 1, 2 or 3 lots of the product before the season begins but cann

> Use the per-unit cost changes for each unoccupied cell shown in Table 7.10 to do the following: a. Consider the arc connecting Brazil and Dubai as a candidate for the incoming arc. Allocate 1 unit of flow, and make the necessary adjustments on the stepp

> Abu Dhabi Savings Bank (ADSB) has $1 million in new funds that must be allocated to home loans, personal loans and automobile loans. The annual rates of return for the three types of loans are 7 per cent for home loans, 12 per cent for personal loans and

> Anational charity organization operating throughout the UK provides support and advice to the elderly. One of their activities relates to home safety for the elderly whereby the charity will supply and install safety handles around the home. These handl

> Round Tree Manor is a hotel that has two types of rooms with three rental classes: Super Saver, Deluxe and Business. The profit per night for each type of room and rental class is as follows: Type I rooms do not have Internet access and are not availab

> Tucker Inc. produces high-quality suits and sport coats for men. Each suit requires 1.2 hours of cutting time and 0.7 hours of sewing time, uses six metres of material, and provides a profit contribution of E190. Each sport coat requires 0.8 hours of c

> The Dome queuing model in Section 11.1 studies the waiting time of customers at its restaurant. Dome’s single-channel queuing system has a mean of 0.75 arrivals per minute and a service rate of one customer per minute. a. Use a worksheet based on Figure

> Digital Controls, Inc. (DCI), manufactures two models of a radar speed device used by police to monitor the speed of automobiles. Model A has an accuracy of plus or minus one km per hour, whereas the smaller model B has an accuracy of plus or minus three

> The Daugherty Porta-Vac project discussed in Section 9.2 has an expected project completion time of 17 weeks. The probability that the project could be completed in 20 weeks or less is 0.9656. The noncritical paths in the Porta-Vac project network are:

> Naples Fishing Supply manufactures a variety of fishing equipment, which it sells throughout Europe. For the next three months, Naples estimates demand for a particular product at 150, 250 and 300 units, respectively. Naples can supply this demand by pro

> Frandec Company manufactures, assembles and rebuilds material handling equipment used in warehouses and distribution centres. One product, called a Liftmaster, is assembled from four components: a frame, a motor, two supports and a metal strap. Frandec&a

> Scot Air Express decided to offer direct service from Edinburgh to Manchester. Management must decide between a full-price service using the companyâs new fleet of jet aircraft and a discount service using smaller capacity commuter pl

> Refer to the GulfGolf problem described in Section 2.1. Suppose that management encounters each of the following situations: a. The accounting department revises its estimate of the profit contribution for the deluxe bag to $18 per bag. b. A new low-cos

> Refer to the computer solution in Figure 3.15 (see Problem 8). a. Calculate the ranges of optimality for the objective function coefficients. b. Interpret the ranges in part (a). c. Interpret the range of feasibility for the right-hand sides. d. How muc

> The city of Binghamton is served by two major hospitals: Western Medical and Binghamton General. Western Medical is located in the southwest part of the city, and Binghamton General is in the northeast. Bob Jones, the hospital administrator at Western Me

> Packer City’s balance sheet and statement of revenues, expenditures, and changes in fund balances are shown below for the governmental funds. Information on capital assets and long-term obligations are also provided from the notes to the financia

> In several instances, Neibler Corporation has been engaged in transactions that were denominated or settled in foreign currencies (FC). Given recent volatility in exchange rates between the U.S. dollar and the FC, the company is considering using FC de

> The chief financial officer (CFO) of Baxter International has employed the use of hedges in a variety of contexts over the first quarter of the current calendar year as follows: Futures Contract—The company hedged against a possible decline in t

> Belhurst purchased land costing $65,000 for park development. The amount had been encumbered at $70,000. Ten years later, because of a population shift, the park is no longer practical. The city sells the land for $105,000. Prepare journal entries to rec

> Given the facts of Exercise 8, (1) prepare the charge and discharge statement that would have resulted from the above events and (2) prepare the entries to transfer all estate principal and income amounts to a trust for the benefit of Cody Jackson.

> Record the following events of Brooks Hospital: 1. Patients were billed for the following gross charges: Room and board . . . . . . . . .. $400,000 Physicians’ care. . . . . . . . . . . . . 350,000 Laboratory and radiology . . . . . 110,000 2. A donati

> Record the following events of Mental Health Clinic, a VHWO: 1. A contribution of $20,000 was received and is to be used for the purchase of equipment, but not until an addition to the building is constructed. Construction has begun on the building. 2. E

> Logan Manufacturing has been challenged by increasing costs and pressures from competitors. Pretax income was $100,000 and $60,000 in 2015 and 2016, respectively. In 2017, the company reported first-quarter pretax income of $40,000 and forecasted pretax

> Record the following events of Chemical Dependency Clinic, a VHWO: 1. Membership dues of $9,000 were collected. 2. Cash contributions of $22,000 and pledges for $32,000 were received. 3. It is estimated that 10% of the above pledges will prove uncollecti

> Wellington Manufacturing manufactures industrial ovens used primarily in the process of coating or painting metals. The ovens are sold throughout the world, and units are manufactured to customersâ specifications. On June 15, the compan

> A partial balance sheet of Tree State University, a public university, as of the end of its fiscal year, July 31, 2018, is as follows: The following information pertains to the year ended July 31, 2019: a. Cash collected from studentsâ&#153

> From the following information, prepare a statement of activities for the city of Rose as of June 30, 2019. Expenses: General government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $1,300,000 Pu

> The pre closing trial balance of Excel Private College has the following balances: Required 1. Prepare closing entries for the three net asset classifications. 2. Prepare a statement of activities for the year ended December 31, 2018, using a column f

> The following events occurred as part of the operations of Craig State University, a public university: 1. To construct a new computer complex, the university floated at par a $22,000,000, 7% serial bond issue on October 1, paying interest on June 30 and

> You are given the following post-closing trial balance for the Special Assessment Capital Projects Fund of the city of Stone Creek as of January 1, 2018. The project was started last year and should be completed in June of 2018. The special assessments

> Super Senior Agency is a VHWO. The following events occurred during the year. The agency uses one control account for its fixed assets, with supporting subsidiary records. 1. Property was purchased for $200,000. A down payment of $40,000 was made from un

> Problem 21-5 presents the balance sheet of St. John Corporation as of the end of the prior year. Assume that the company is not able to service its debts and is unable to secure any significant restructuring arrangements from its primary lenders. As a re

> Laurel Rose has been the personal representative of her brother’s estate since his death on February 1 of the current year. The following events, all of which occurred in the current year unless otherwise stated, occurred during her administration: 1. In

> Eleanor Matsun died on June 1 of the current year, leaving a valid will with James Madison being named as her personal representative. All of the following occurred in the year of her death: a. The personal representative prepared the following inventory

> The following nominal accounts were extracted from the December 31, 2018, adjusted trial balance of Prospect Private Hospital: Required Prepare a statement of activities for the year ended December 31, 2018. Debit Credit Gross Patient Service Reven

> Tebon Manufacturing is considering seeking relief under Chapter 7 of the Bankruptcy Code. However, the company would prefer to engage in out-of-court activities that would allow for a restructuring of debts in an orderly manner. Before approaching its cr

> Calvin Hughes’s will have provided for the following distributions: a. The 40-acre parcel in Leona, Wisconsin, is to be given to The Nature Conservancy along with $50,000. b. My 1970 GTO Pontiac convertible along with my 1937 Chevrolet pickup truck are t

> Roger Kramer’s wife Sarah passed away five years ago, and she made Roger promise to continue to provide care for Sarah’s sister Margaret Smith and let her live in their residence for a period of time. Roger and Sarah had no children, and Margaret Smith w

> Determine the correct value for each of the following questions: 1. Assume that an individual gives cash to the following parties: $25,000 to a charitable organization, $15,000 to her grandson for his college tuition, $8,000 to her granddaughter to buy a

> Determine the correct value for each of the following questions: 1. Assuming that a single person has made taxable lifetime gifts of $1.2 million, what is the largest taxable estate that could exist and still not incur any estate tax? 2. Helen made separ

> A hospital has three revenue-controlling accounts: Patient Service Revenues, Other Operating Revenues, and Non operating Revenues. 1. State in general terms the type of revenues found in each controlling account. 2. Indicate into which of the three contr

> Record the following capital-related transactions for Private University plant funds: 1. Transfers of $250,000 are received from the current unrestricted fund for the purpose of funding the payment of existing debt principal ($50,000) and building an add

> Record the following annuity and life income activities of Private University: 1. On July 1, 2019, R. W. Fields, emeritus professor of accounting, moved out of the state. Fields donated to the university common stock with a cost basis of $40,000 and a fa

> Record the following endowment activity events of Private University: 1. An alumnus donates $250,000 to the endowment fund. The cash is fully invested in bonds with a face value of $242,000 that are purchased at an $8,000 premium. The income earned is to

> Record the following events that affect the loan activities of Private University: 1. An alumnus donates $420,000 to establish the student loan fund. Students are charged a 5% annual interest rate. 2. Loans of $380,000 are made to students. 3. The remain

> Record the following operating activities: 1. Student fees of $600,000 were assessed, of which $575,000 has been collected and $4,000 is estimated to be uncollectible. 2. The bookstore operates in rented space and is run on a break-even basis. Revenues t

> Record the following events that affect (1) Public University and (2) Private University: a. A private grant of $200,000 was received to be used exclusively for defraying costs of holding conferences on the topic of genes. b. By year-end, $110,000 of t

> A large corporate farming operation is holding an inventory of corn and wheat and is concerned that excess harvests this season will lower the value of the commodities. In order to hedge against adverse market changes, the corporation acquired the follow

Question: Solve the RMC problem (Chapter 2, Problem

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