Valencia Products makes automobile radar detectors and assembles two models: LaserStop and SpeedBuster. Both models use the same electronic components. After reviewing the componentsrequired and the profit for each model, the firm found the following linear optimization model for profit, where L is the number of LaserStop models produced and S is the number of SpeedBustermodels produced. Implement the linear optimization model on a spreadsheet and use Solver to find an optimal solution. Interpret the optimal solution, identify the binding constraints, and verify thevalues of the slack variables.Maximize Profit=125 L + 137 S17 L 13 Ss30006L+8 S≤2500L20 and $20.(Availability of component A)(Availability of component B)Implement the linear optimization model and find an optimal solution. Interpret the optimal solution.The optimal solution is to produce LaserStop models and SpeedBuster models. This solution gives the(Type integers or decimals rounded to two decimal places as needed.)possible profit, which is $

Max Z =125L+137SSubject to constraints:17L+13S <= 3000 ......Availability of component A6L+8S…

Answered: Valencia Products makes automobile…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter11: Simulation Models

Section11.4: Marketing Models

Problem 30P: Seas Beginning sells clothing by mail order. An important question is when to strike a customer from...

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Seas Beginning sells clothing by mail order. An important question is when to strike a customer from the companys mailing list. At present, the company strikes a customer from its mailing list if a customer fails to order from six consecutive catalogs. The company wants to know whether striking a customer from its list after a customer fails to order from four consecutive catalogs results in a higher profit per customer. The following data are available: If a customer placed an order the last time she received a catalog, then there is a 20% chance she will order from the next catalog. If a customer last placed an order one catalog ago, there is a 16% chance she will order from the next catalog she receives. If a customer last placed an order two catalogs ago, there is a 12% chance she will order from the next catalog she receives. If a customer last placed an order three catalogs ago, there is an 8% chance she will order from the next catalog she receives. If a customer last placed an order four catalogs ago, there is a 4% chance she will order from the next catalog she receives. If a customer last placed an order five catalogs ago, there is a 2% chance she will order from the next catalog she receives. It costs 2 to send a catalog, and the average profit per order is 30. Assume a customer has just placed an order. To maximize expected profit per customer, would Seas Beginning make more money canceling such a customer after six nonorders or four nonorders?
Valencia Products makes automobile radar detectors and assembles two models: LaserStop and SpeedBuster. Both models use the same electronic components. After reviewing the components required and the profit for each model, the firm found the following linear optimization model for profit, where L is the number of LaserStop models produced and S is the number of SpeedBuster models produced. Implement the linear optimization model on a spreadsheet and use Solver to find an optimal solution. Interpret the optimal solution, identify the binding constraints, and verify the values of the slack variables. Maximize Profit = 123L+139S 17 L+11 S≤5000 (Availability of component A) 5L+9S≤4500 (Availability of component B) L≥0 and S≥0 Implement the linear optimization model and find an optimal solution. Interpret the optimal solution. The optimal solution is to produce _ LaserStop models and _ SpeedBuster models. This…
Long-Life Insurance has developed a linear model that it uses to determine the amount of term life Insurance a family of four should have, based on the current age of the head of the household. The equation is: y=150 -0.10x where y= Insurance needed ($000) x = Current age of head of household b. Use the equation to determine the amount of term life Insurance to recommend for a family of four of the head of the household is 40 years old. (Round your answer to 2 decimal places.) Amount of term life insurance thousands
Valencia Products makes automobile radar detectors and assembles two models: LaserStop and SpeedBuster. Both models use the same electronic components. After reviewing the components required and the profit for each model, the firm found the following linear optimization model for profit, where L is the number of LaserStop models produced and S is the number of SpeedBuster models produced. Implement the linear optimization model on a spreadsheet and use Solver to find an optimal solution. Interpret the optimal solution, identify the binding constraints, and verify the values of the slack variables. Maximize Profit = 123 L+ 139 S 18 L 11 S≤ 3000 5 L+9 S≤2500 L≥ 0 and S≥ 0 (Availability of component A) (Availability of component B) Implement the linear optimization model and find an optimal solution. Interpret the optimal solution. The optimal solution is to produce LaserStop models and possible profit, SpeedBuster models. This solution gives the which is $ (Type integers or decimals…
The Reeves twins are in the yard maintenance business. They want to start doing snow removal during the winter season because they practically don't have any yards to maintain. The twins are trying to determine how much equipment they need to purchase. The twins plan to do most of the work themselves and then hire some part-time workers on an individual job basis to help out. The twins gathered some data on past weather. Based on the information, they predict that there will be six big snowstorms in the coming winter. Most of their clients want the snow removed no more than two days after the snow stops falling. If the twins work for 10 hours a day, they can remove the snow from the driveway of a home in about 1 hour. However, for commercial parking lots and public sidewalks, it will take 4 hours. The variable cost per job is $12 for home driveways and $47 for commercial parking lots. The twins estimated that they will have no more than 40 homeowners and 25 businesses who would like…
Elaborate/ Explain Integer Linear Optimization and put examples
What combination of x and y will yield the optimum for this problem? Maximize Z = $3x + $15y Subject to: Multiple Choice x= 0, y=4 x= 0, y=3 x= 0, y=0 x= 2y=0 O x=1,y=25 2x + 4y ≤ 12 5x + 2y ≤ 10
Ian Langella faces a decision how large his gasoline station should be. The annual returns wil l depend on both the size of his station and number of marketing factors related to the oil in dustry and demand for gasoline. Ian develop a careful analysis based on the following table: Size of first station Market condition Market conditon Market conditon Good Fair Poor Small 50,000 20,000 -10,000 Medium 80,000 30,000 -20,000 Large 100,000 30,000 -40,000 Very large 300,000 25,000 -160,000 Develop a decision table for this decision
Find the dual of the problem.
Formulate decision variable, objective function, and constraints only. Eastborne Realty has $2 million available for the purchase of new rental property. After an initial screening, Eastborne reduced the investment alternatives to townhouses and apartment buildings. Each townhouse can be purchased for $282,000, and five are available. Each apartment building can be purchased for $400,000, and the developer will construct as many buildings as Eastborne wants to purchase. Eastborne’s property manager can devote up to 140 hours per month to these new properties; each townhouse is expected to require 4 hours per month, and each apartment building is expected to require 40 hours per month. The annual cash flow, after deducting mortgage payments and operating expenses, is estimated to be $10,000 per townhouse and $15,000 per apartment building. Eastborne’s owner would like to determine the number of townhouses and the number of apartment buildings to purchase to maximize annual cash flow.
a-) find the initial solution using the Vogel's Approximation Method (VAM). and Find the optimal solution.
Combined-cycle power plants use two combustion turbines to produce electricity. Heat from the first turbine’s exhaust is captured to heat waterand produce steam sent to a second steam turbine that generates additional electricity. A 968-megawatt combined-cycle gas fired plant can be purchased for $450 million, has no salvage value, and produces a net cash flow(revenues less expenses) of $50 million per year over its expected 30-year life. Solve, a. If the hurdle rate (MARR) is 12% per year, how profitable an investment is this power plant? b. What is the simple payback period for the plant? Is this investment acceptable?

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