What is the profit contribution for each bike

Assignment Help Basic Statistics
Reference no: EM13924597

Cycle City Inc., a large bicycle store is placing an order for bicycles with its supplier. Four models can be ordered: the adult racer, the adult Mountain bike, the girl's Sea Sprite, and the boy's Trail Blazer. It is assumed that every bike ordered will be sold, and their profits, respectively, are 32, 28, 25, and 20. The LP model should maximize profit. There are several conditions that the store needs to worry about. One of these is space to hold the inventory. An adult's bike needs two feet, but a child's bike needs only one foot. The store has 500 feet of space. There are 1200 hours of assembly time available. The child's bike need 4 hours of assembly time; the racer needs 5 hours and the mountain bike needs 6 hours. The store would like to place an order for at least 275 bikes.

1. Formulate a model for this problem. Specifically, do the following: Identify the decision variables (make sure that you specify the units for these variables). Specify the objective function and the relevant constraints.

2. The production manager uses a DSS to make decisions about what to do. The maximum attainable profit is required. Develop a simple DSS prototype to solve this problem.

a. How many of each kind of bike should be ordered?
b. What is the total profit realized?
c. What is the profit contribution for each bike?

3. Perform sensitivity analysis to determine: (Remember to change back to original value after each change below).

a. What would the profit be if the store had 100 hours of assembly time?
b. If the profit on the Mountain bike increases to $35, how many of those bikes should be ordered?
c. If we require 5 more bikes in inventory, what will happen to the value of the optimal solution?

4. Write a short memo to the management of Cycle City Inc., explaining

a. Over what range of assembly hours is the dual price applicable?
b. Which resource should the company work to increase, inventory space or assembly time? Explain.

Reference no: EM13924597

Questions Cloud

Examine dimension of culture presented in hofstede framework : Examine the four dimensions of culture presented in Hofstede's framework. What strategies would you recommend in dealing with a different culture that is opposite on each of the dimensions?
Labor of building the monuments : The heads of that state ordered the lower class to do the labor of building the monuments as they sat back and delegated the task and provided the resources to perform the labor. Since most states were stratified societies the laborers had to depe..
Targeted the low-income consumers : This switch was more than likely a collaboration between the government of Brazil and predatory merchant MNC's like McCann World Group that targeted the low-income consumers.
Assume the net working capital will be recovered : Kinky Copies may buy a high-volume copier. The machine costs $170,000 and will be depreciated straight-line over 5 years to a salvage value of $30,000. Kinky anticipates that the machine actually can be sold in 5 years for $37,000.
What is the profit contribution for each bike : The production manager uses a DSS to make decisions about what to do. The maximum attainable profit is required. Develop a simple DSS prototype to solve this problem. a. How many of each kind of bike should be ordered? b. What is the total profit r..
What is the marginal tax rate for a couple filing jointly : Using Exhibit 2.6, what is the marginal tax rate for a couple, filing jointly, if their taxable income is $20,000? $40,000? $60,000? What is their tax bill for each of these income levels?
Ethnographically and ethnologically to enlighten people : Throughout history anthropologist have done much research both ethnographically and ethnologically to enlighten people about the surrounding societies and their cultures.
Implement a security management system : Prepare a 3-slide Microsoft PowerPoint presentation with detailed speaker notes that describes the process you would use to design, develop, and implement a security management system to protect the organization's intranet and Internet access poin..
Which would reduce the amount of additional funds needed : Carter Corporation's sales are expected to increase from $5 million in 2012 to $6 million in 2013, or by 20%. Its assets totaled $2 million at the end of 2012. Carter is at full capacity, so its assets must grow in proportion to projected sales. Unde..

Reviews

Write a Review

 

Basic Statistics Questions & Answers

  Confidence intervals and probability

Suppose that 55 percent of the people in a population of 500,000 support your candidate. If you conduct a poll of 1,000 people, what is the interval that has a 95 percent chance of containing the results of your poll?

  Statistics-quartiles-distribution

Find the third quartile Q3 of the list of 24 sorted values shown below. Which is relatively better: a score of 81 on a psychology test or a score of 50 on a economics test? Scores on the psychology test have a mean of 88 and a standard deviation of..

  Description of percentile of normal distribution

A vending machine dispenses coffee into a twelve ounce cup. The amount of coffee dispensed into the cup is normally distributed with a standard deviation of 0.08 ounce.

  Computing value of correlation coefficient between variables

Determine the value of correlation coefficient between these 2 variables?

  Study to reduce the maximum error of estimate

A researcher conductued a study of the access speed of 35 hard drives and concluded that his maximum error of estimate was 35. If he were to conduct a second study to reduce the maximum error of estimate to 7, about how many hard drives should he ..

  Light bulbs of a particular type

The lifetimes of light bulbs of a particular type are normally distributed with a mean of 370 hours and a standard deviation of 5 hours. What percentage of bulbs has lifetimes that lie within 1 standard deviation of the mean on either side?

  What could be the actual number of adults who play football

a polling company reported that 27 of 2286 surveyed adults said that they play football.a. what is the exact value that

  What is the posterior probability that the selected coin is

there are 5 identical looking coins in your pocket. two of the coins are fair while the other three are biased so that

  Find average distance between the fire station and fire

Rulertown wants to minimize the average distance between the fire station and a fire. Where should the fire station be located?

  The warren area regional transit authority

WARTA, the Warren Area Regional Transit Authority

  Hypothesis testing of recent national survey

In a recent national survey, the mean weekly allowance for a nine-year-old child from his/her parents was reported to be $3.65. A random sample of 45 nine-year-olds in northwestern Ohio revealed the mean allowance to be $3.69 with a standard devia..

  Specificity and sensitivity rationale

Two pediatricians want to investigate a new laboratory test that identifies streptococcal infections. Dr. J uses the standard culture test, which has a sensitivity of 90% and a specificity of 96%. Dr. M uses the new test, which is 96% sensitive an..

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