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- The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon spawn during a 24-hour period and must be canned immediately. Tinkan has the following agreement with the salmon industry. The company can deliver as many cans as it chooses. Then the salmon are caught. For each can by which Tinkan falls short of the salmon industrys needs, the company pays the industry a 2 penalty. Cans cost Tinkan 1 to produce and are sold by Tinkan for 2 per can. If any cans are left over, they are returned to Tinkan and the company reimburses the industry 2 for each extra can. These extra cans are put in storage for next year. Each year a can is held in storage, a carrying cost equal to 20% of the cans production cost is incurred. It is well known that the number of salmon harvested during a year is strongly related to the number of salmon harvested the previous year. In fact, using past data, Tinkan estimates that the harvest size in year t, Ht (measured in the number of cans required), is related to the harvest size in the previous year, Ht1, by the equation Ht = Ht1et where et is normally distributed with mean 1.02 and standard deviation 0.10. Tinkan plans to use the following production strategy. For some value of x, it produces enough cans at the beginning of year t to bring its inventory up to x+Ht, where Ht is the predicted harvest size in year t. Then it delivers these cans to the salmon industry. For example, if it uses x = 100,000, the predicted harvest size is 500,000 cans, and 80,000 cans are already in inventory, then Tinkan produces and delivers 520,000 cans. Given that the harvest size for the previous year was 550,000 cans, use simulation to help Tinkan develop a production strategy that maximizes its expected profit over the next 20 years. Assume that the company begins year 1 with an initial inventory of 300,000 cans.Cakes baked by the Freshfood Bakery are transported from the ovens to be packaged by one of three wrappers. Each wrapper can wrap an average of 200 cakes per hour. The cakes are brought to the wrappers at the rate of 500 per hour. If a cake sits longer than 5 minutes before being wrapped, it will not be fresh enough to meet the bakery’s quality control standards. Does the bakery need to hire another wrapper?A manufacturing company is considering the acquisition of a new injection-molding machine at a cost of $110,000. Because of a rapid change in product mix, the need for this particular machine is expected to last only eight years after which time the machine is expected to have a salvage value of $10,000. The annual operating cost is estimated to be $8,000. The addition of this machine to the current production facility is expected to generate annual revenue of $60,000. The firm has only $70,000 available from its equity funds. so it must borrow the additional $40,000 required at an interest rate of 10% per year with repayment of principal and interest in eight equal annual amounts. The applicable marginal income tax rate for the firm is 40%. Assume that the asset qualifies for a seven-year MACRS property classification.(a) Determine the after-tax cash flows.(b) Determine the NPW of this project at MARR= 14%
- An industrial engineer has designed two alternative methods for accomplishing a production job. Both methods involve the acquisition of the same working place and other capital equipment to be used for this job only. Method A calls for a crew consisting of three men each costing Php30/hr. This method will result in the production of 10 units per hour of which two will be reject. Method B calls for a crew of two men each costing Php35/hr and should result in the production of eight units per hour of which one will be reject. The cost of the direct material lost in each reject is Php20. If a certain total number of units is to be produced find which method is economical?Gilman Heating and Air Conditioning Gilman Heating and Air Conditioning Inc. provides a broad range of services to commercial and residential customers, including installation and repair of several different brands of heating and air-conditioning systems, Gilman has a fleet of 28 trucks, each operated by one or more service technicians, depending on the size of a job. A recurrent problem for Gilman has been coordinating the service teams during the day to determine the status of a job and the need for parts not kept in the service vehicle, as well as to identify which team to send on emergency calls. Gilman's service area is spread over an urban/rural area of approximately 50 square miles. The company has developed cost and price sheets so that the service technicians accurately and consistently price the service work they perform.The Mountain Springs Water Company has two departments, Purifying and Bottling. The Bottling Department received 69,480 liters from the Purifying Department. During the period, the Bottling Department completed 66,940 liters, including 2,750 liters of work in process at the beginning of the period. The ending work in process was 5,290 liters. How many liters were started and completed during the period??????????????????????? liters started and completed
- Chapter 5. (M/M/s/K Model). Leia is responsible for 8 computers in the IT offices in a small business called DataWish. Each computer runs on an average for 3 weeks and requires an average of ½ or 0.5 weeks to get reset by Leia before it can start up again. If we assign the Poisson distribution to the "arrival" of each computer for service and an exponential distribution to the actual service provided, answer the following questions: a. The arrival rate would be units per week and the service rate would be units per week. b. Calculate the following operating characteristics for the M/M/s/K system: Utilization Factor (p) % Performance Measures PO (probability that sytem is empty) L (average units in units system) La (average units waiting in queue) units W (average time in the weeks system) Wq (average time in the queue) weeks c. If we assign a cost of waiting as $500 per week per computer and $800 per week of hiring Leia, what is the Total Time Cost per week cost of servicing the…Chapter 5. (M/M/s/K Model). Leia is responsible for 8 computers in the IT offices in a small business called DataWish. Each computer runs on an average for 3 weeks and requires an average of ½ or 0.5 weeks to get reset by Leia before it can start up again. If we assign the Poisson distribution to the "arrival" of each computer for service and an exponential distribution to the actual service provided, answer the following questions: a. The arrival rate would bel units per week and the service rate would be units per week. b. Calculate the following operating characteristics for the M/M/s/K system: Utilization Factor (p) Performance Measures c. If we assign a cost of waiting as $500 per week per computer and $800 per week of hiring Leia, what is the Total Time Cost per week cost of servicing the machines? PO (probability that sytem is empty) % dollars L (average units in system) units d. If DataWish decides to hire another individual to help Leia, what would the new Total Time Cost per…The College of Business and Public Administration at Benton University has a copy machine on each floor for faculty use. Heavy use of the five copy machines causes frequent failures. Maintenance records show that a machine fails every 2.5 days (or l = 0.40 failure/day). The college has a maintenance contract with the authorized dealer of the copy machines. Because the copy machines fail so frequently, the dealer has assigned one person to the college to repair them. The person can repair an average of 2.5 machines per day. Using the finite-source model, answer the followingquestions: a. What is the average utilization of the maintenance person?b. On average, how many copy machines are being repaired or waiting to be repaired?c. What is the average time spent by a copy machine in the repair system (waiting and being repaired)?
- As part of a quality improvement initiative, Consolidated Electronics employees complete a three-day training program on teaming and a two-day training program on problem-solving. The manager of quality improvement has requested that at least 8 training programs on teaming and at least 10 training programs on problem-solving be offered during the next six months. In addition, senior-level management has specified that at least 25 training programs must be offered during this period. Consolidated Electronics uses a consultant to teach the training programs. During the next quarter, the consultant has 84 days of training time available. Each training program on teaming costs $10,000 and each training program on problem-solving costs $8,000. a. Formulate a linear programming model that can be used to determine the number of training programs on teaming and the number of training programs on problem-solving that should be offered in order to minimize total cost.b. Graph the feasible…During an eight-hour shift, 750 non-defective parts are desired as a result of a manufacturing operation. The default operation time is 15 minutes. As the operators of machine are inexperienced, the actual time they take to perform the operation is 20 minutes, and, on average, a fifth of the parts that start to be manufactured are lost. Assuming that each one of the machines used in this operation will not be available for one hour in each shift, determine the number of machines needed.Chapter 5. (M/M/s/K Model). Leia is responsible for 12 computers in the IT offices in a small business called DataWish. Each computer runs on an average for 4 weeks and requires an average of ½ or 0.5 weeks to get reset by Leia before it can start up again. If we assign the Poisson distribution to the “arrival” of each computer for service and an exponential distribution to the actual service provided, answer the following questions: a. The arrival rate would be units per week and the service rate would be units per week. b. Calculate the following operating characteristics for the M/M/s/K system: Utilization Factor (ρ) % Performance Measures P0 (probability that sytem is empty) % L (average units in system) units Lq (average units waiting in queue) units W (average time in the system) weeks Wq (average time in the queue) weeks c. If we assign a cost of waiting as $750 per week per computer and $800 per week of…