Given the constraints in this problem the maximum profit is: A publishing house publishes three weekly magazines-Daily Life, Agriculture Today, andSurf's Up. Publication of one issue of each of the magazines requires the following amounts ofproduction time and paper:Daily LifeAgriculture TodaySurf's UpProduction (hr.)0.010.030.02Paper (lb.)0.20.50.3Each week the publisher has available 120 hours of production time and 3,000 pounds of paper.Total circulation for all three magazines must exceed 5,000 issues per week if the company is tokeep its advertisers. The selling price per issue is $2.25 for Daily Life, $4.00 for Agriculture To-day, and $1.50 for Surf's Up. Based on past sales, the publisher knows that the maximumweekly demand for Daily Life is 3,000 issues; for Agriculture Today, 2,000 issues; and for Surf'sUp. 6,000 issues. The production manager wants to know the number of issues of each maga-zine to produce weekly in order to maximize total sales revenue.

Given, There are three magazines. Decision variables: Let Daily life magazine be X Agriculture Today…

Answered: A publishing house publishes three…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter12: Queueing Models

Section: Chapter Questions

Problem 59P

See similar textbooks

Similar questions

XYZ Leather Company manufactures and sells two products, wallets and belts, in its two-department plant. Operating data pertaining to the two products are as follows: Wallets Belts Selling price per unit P30 P50 Cost per unit: Variable manufacturing costs P8 P15 Variable marketing costs P2 P3 Fixed manufacturing costs P5 P5 Fixed marketing costs P6 P1 Cutting Finishing…
De Mar, a plumbing, heating, and air-conditioning companylocated in Fresno, California, has a simple but powerful product strategy: Solve the customer’s problem no matter what, solvethe problem when the customer needs it solved, and make sure thecustomer feels good when you leave . De Mar offers guaranteed,same-day service for customers requiring it. The company provides 24-hour-a-day, 7-day-a-week service at no extra charge forcustomers whose air conditioning dies on a hot summer Sundayor whose toilet overflows at 2:30 A.M. As assistant service coordinator Janie Walter puts it: “We will be there to fix your A/C onthe fourth of July, and it’s not a penny extra. When our competitors won’t get out of bed, we’ll be there!”De Mar guarantees the price of a job to the penny before thework begins. Whereas most competitors guarantee their work for30 days, De Mar guarantees all parts and labor for one year. Thecompany assesses no travel charge because “it’s not fair to chargecustomers for…
A town reports that it has 20 weeks-of-supply of road salt. What is its months-ofsupply? (Assume 4.33 weeks per month.)
Bhatti Company produces plastic photo frames. Two departments, molding and finishing, are involved in the manufacturing. The molding department fills the molds with hot liquid plastic that is left to cool and then opens them. The finishing department removes the plastic frame from the mold and strips the edges of the frames of extra plastic. The following information is available for the month of January: January 1 Quantity (pounds) January 31 Quantity (pounds) Work-in-Process Inventory Cost Cost Molding department Finishing department None None 5,000 $ 15,000 2,000 The WIP Inventory in the finishing department is estimated to be 40% complete for conversion both at the beginning and end of January. Costs of production for January follow: Direct Costs of Production Materials Conversion Molding department Finishing department $ 450,000 $ 90,000 80,290 The molding department started 50,000 pounds of product in January. The firm uses the FIFO method of process costing. Required: 1. Prepare…
Kilmer Company's customer demand for its only product exceeds its manufacturing capacity. The company provided the following information for the machine whose limited capacity is prohibiting the company from producing and selling additional units: Actual run tine this week Machine time available per week Actual run rate this week Ideal run rate Defect-free output this week Total output this week (including defects) 1-a. Utilization rate 1-b. Efficiency rate. 1-c. Quality rate 1-d. Overall equipment effectiveness 2-a. Utilization loss in units 12,800 minutes 16,000 minutes. 2-b. Efficiency loss in units 2-c. Quality loss in units 6.30 units per minute. 9 units per minute. Required: 1. and 2. With respect to the company's overall equipment effectiveness, calculate the following: Note: Do not round intermediate calculations. Round final answers to 2 decimal places and "Units" answers to the nearest whole number. 72,576 units 80,640 units
Josie’s Sports Accessories has 12 operators who work 9 hours a day (no breaks), 7 days a week. They manufacture headbands with a standard minute value of 1.35 minutes. The workers produce 4,450 headband a day. How long will it take them to complete an order for 5,000 headbands?
Manufacturing Aggregate Planning Manufacturers Inc. (MI) currently has a labor force of 10, which can produce 600 units per period. The labor cost is now $5000 per period per employee. The company has a long-standing rule that does not allow it to make use of any overtime. In addition, the product cannot be subcontracted, due to the specialized nature of the machinery that MI uses to produce it. As a result, MI can only increase/decrease production by hiring or laying off employees. The cost is $10000 to hire or lay off an employee. Inventory carrying costs are $200 per unit for any unsold items at the end of the period. The inventory level at the beginning of period 1 is 400 units. The forecast demand is 700 in period 1,600 in period 2,450 in period 3, 250 in period 4,500 in period 5, and 550 in period 6. a.) Compute the costs of the Chase Demand Strategy. b.) Compute the costs of the Level Strategy c.) Compare the costs of the two strategies. Which one is superior?
CarCity is a big retailer for car parts and accessories. The store stocks different types and sizes of car tire. One of the best selling tires is the Tiger Model R125, which is currently purchased from a factory in Indonesia. An analysis of the purchasing operation shows that approximately 2 labor hours are required to process a purchase order, regardless of the quantity purchased. Salaries in the purchasing Department average OMR 15 per hour, including employee benefits. In addition, a detailed analysis of 20 previous purchase orders showed that OMR 132 was spent on telephone, paper, and other consumables directly related to the ordering process (see guidelines above to obtain value of 132). Shipping cost from Indonesia is OMR 250 for a container. A container has a capacity of 800 tires. The lead time for shipments from Indonesia is 15 days. Finally, CarCity’s financial analysts established a holding cost of 30% for this type of tire. The annual demand for the R125 tire is constant at…
Jefferson Company’s demand for its only product exceeds its manufacturing capacity. The company provided the following information for the machine whose limited capacity is prohibiting the company from producing and selling additional units. Actual run time this week 6,106 minutes Machine time available per week 8,600 minutes Actual run rate this week 4.32 units per minute Ideal run rate 6.00 units per minute Defect-free output this week 11,315 units Total output this week (including defects) 15,500 units 1. Compute the utilization rate.2. Compute the efficiency rate. 3. Compute the quality rate. 4. Compute the overall equipment effectiveness (OEE).
The Chineke Group of Company manufactures two products, namely product B and product P, and provides you with the following information: Prod. B Prod. P Selling price per unit 80.00 50.00 Less cost of sales: Direct material A @ R5.00 per kg 15.00 10.00 Direct material B @ R4.00 per kg 8.00 12.00 Direct labour @ R6.00 per hour 12.00 6.00 Variable manufacturing overhead @ R5.00 per labour hour 10.00 5.00 Fixed manufacturing overhead per unit 5.00 5.00 Gross profit 30.00 12.00 Less sales & administrative costs: Variable 6.00 4.00 Fixed 10.00 5.00 Net profit per unit 14.00 3.00 Take note of the following constraints: Material A available 360 kg Material B available 360 kg Labour hours available…
CarCity is a big retailer for car parts and accessories. The store stocks different types and sizes of car tire. One of the best selling tires is the Tiger Model R125, which is currently purchased from a factory in Indonesia. An analysis of the purchasing operation shows that approximately 2 labor hours are required to process a purchase order, regardless of the quantity purchased. Salaries in the purchasing Department average OMR 15 per hour, including employee benefits. In addition, a detailed analysis of 20 previous purchase orders showed that OMR 132 was spent on telephone, paper, and other consumables directly related to the ordering process (see guidelines above to obtain value of 132). Shipping cost from Indonesia is OMR 250 for a container. A container has a capacity of 800 tires. The lead time for shipments from Indonesia is 15 days. Finally, CarCity’s financial analysts established a holding cost of 30% for this type of tire. The annual demand for the R125 tire is constant at…
Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers. Jerry, Inc. Kate Co. Number of orders 6 30 Units per order 1,000 420 Sales returns: Number of returns 4 5 Total units returned 50 140 Number of sales calls 13 5 Colleen sells its products at $290 per unit. The firm’s gross margin ratio is 20%. Both Jerry and Kate pay their accounts promptly and no accounts receivable is over 30 days. After using business analytics software to carefully analyze the operating data for the past 30 months, the firm has determined the following activity costs: Activity Cost Driver and Rate Sales calls $ 800 per visit Order processing 180 per order Deliveries 410 per order Sales returns 270 per return and $3 per unit returned Sales salary 107,000 per month Required: 1. Using customers as the cost objects, classify the activity costs…

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

SEE MORE TEXTBOOKS