Use shadow prices from solver sensitivity report

Assignment Help Operation Management
Reference no: EM131226609

The Otto Maddick Machine Tool Company produces two products, muffler bearings and torque amplifiers. One muffler bearing requires 0.125 hr. of assembly labor, 0.25 hrs. in the stamping department and 9 square feet of sheet metal. Each torque amplifier requires 1/3 hr. in assembly and 0.25 hrs. in stamping and uses 6 square feet of sheet metal. Current capacities are 400 hours of assembly labor and 375 hours of stamping capacity. Sheet steel costs $0.15 per square foot. Muffler bearings sell for $9 and torque amplifiers sell for $11.00. Use linear optimization to find the number of each product to make to maximize profit. (Do not constrain the solution to integers.) The available amount of sheet steel may be considered unlimited. The cost of Labor is not charged to the products.

A new product called the furtengrinder uses 0.5 hours of assembly time and 10 square feet of sheet metal and sells for $32.10.

Use shadow prices from Solver’s sensitivity report to determine the maximum number of stamping hours it could use before it would become unprofitable produce furtengrinders.

Note: Teacher has advised that the shadow price from Excel's Solver Sensitivty Report is used to calculate the stamping hours requirement. All related Chegg answers address the missing Stamping hours of furtengrinders missing and cannot be solved. Teacher informed me it is solvable from the shadow price.

Reference no: EM131226609

Questions Cloud

Lower production costs and increase productivity improving : Briefly explain how a company can achieve lower production costs and increase productivity by improving the quality of its products and services?
Estimating with the pert-beta distribution : Back in 1957, the year in which the Project Evaluation and Review Technique (PERT) was developed by the US Navy, statisticians developed a simple technique to estimate the amount of time it might take to carry out a task. What is the expected time fo..
Which intelligence collection techniques do you feel : Which Intelligence Collection techniques do you feel have been used to greatest effect in accomplishing the US objectives in the past wars in Iraq and Afghanistan?
Applying for a general small-business loan : From the e-Activity, imagine you are applying for a general small-business loan from the SBA in order to open a new pub in your neighborhood, and your projected annual revenue is $350K.
Use shadow prices from solver sensitivity report : The Otto Maddick Machine Tool Company produces two products, muffler bearings and torque amplifiers. One muffler bearing requires 0.125 hr. of assembly labor, 0.25 hrs. in the stamping department and 9 square feet of sheet metal. Use shadow prices fr..
Sequential product development process : What steps in the sequential product development process are similar to the concurrent product development process? What steps are different?
Determine the wacc given the above assumptions : Mary Francis has just returned to her office after attending preliminary discussions with investment bankers. Her last meeting regarding the intended capital structure of Apix went well, and she calls you into her office to discuss the next steps.
What makes for an effective commercial in era of television : "What does this scene say about Lonesome Rhodes' knowledge of audience psychology and what makes for an effective commercial in the era of television?
How would you explain the concept to a friend unfamiliar : Research Joseph Schumpeter and the idea of "creative destruction" introduced in your text. How would you explain the concept to a friend unfamiliar with economics or business cycles?

Reviews

Write a Review

 

Operation Management Questions & Answers

  Present a rebranding strategy for the product identified

Identify one current struggling consumer product. In a paper of 750-1,000 words, present a rebranding strategy for the product identified. Your paper must include a new name, changes in packaging, the price point, product position, advertising strate..

  Identify conflict resolution techniques used when conflict

Identify techniques for reducing the probability of dysfunctional conflict. Identify conflict resolution techniques used when conflict arises.

  Preferences consistent with assumptions of consumer theory

An individual consumes only two commodities X and Y. She prefers a bundle B1 with 6 units of X and 2 units of Y to a bundle B2 with 4 units of X and 7 units of Y. Also, she prefers a bundle B3 with 2 units of X and 8 units of Y to B1. Are these prefe..

  Number of customers that will wait in line for service

If the customers arrive 5 per hour and they are served at the rate of 8 per hour, what is the approximate average number of customers that will wait in line for service?

  Find the average number of customers in the shop

Customers arrive at Rich Dunn's Salon at the rate of 3 per hour, distributed in a Poisson fashion. Rich can cut hair at s rate of 5 per hour, distributed exponentially. Find the average number of customers waiting for haircuts. Find the average numbe..

  Describe the concept of utility under the utilitarianism

1 explain the concept of utility under the utilitarianism theory. how can a business achieve a level of utility? 2 what

  Project management software report

Project Management Software Report. The company you work for has grown in size in a very short time. Due to the scale and type of projects coming in, there is a need to adopt a project management software. You are tasked with researching the diffe..

  What would his contract be worth at the time he signs

A local newspaper headline? blared, "Bo Smith Signed for? $30 Million." A reading of the article revealed that on April? 1, 2014, Bo? Smith, the former? record-breaking running back from Football? University, signed a? $30 million package with the Da..

  Develop forecasts using a five-year moving average

Develop forecasts using A five-year moving average and A weighted moving average model with weights of 0.1, 0.1, 0.2, 0.3, and 0.3 for years 1 through 5 respectively.

  Scheduling from various tools available

You need to select a tool for project planning and scheduling from various tools available in the market. What factors would you consider in selecting the most appropriate software tool for your company? Based on the stated factors, how will you c..

  Formulate and solve a linear programming model in excel

Formulate and solve a linear programming model in Excel to develop a work schedule that processes all checks by 8 P.M. and minimizes daily labor costs.

  Discuss current management practices and principles

Discuss current management practices and principles used in the current global business environment. Summarize the opportunities and risks of doing business in foreign countries.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd