Valencia Products make 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 x is the number of LaserStop models produced and y is the number of SpeedBuster models produced. Graph the constraints and identify the feasible region. Then identify each of the corner points and show how increasing the objective function value identifies the optimal solution. Maximize Profit=124x+138y 19x+12y ≤ 3000 6x + 7y ≤2500 x≥0 and y≥0 OB. 800- Ay 800- Q Q 408 406 G 50 65 x 400 800 O C. 800 400 O D. Ay 800- Q 400 800 Identify the vertices of the given feasible region. (0, 0), (0, 250), (157.89, 0) (Type an ordered pair, using integers or decimals rounded to two decimal places as needed. Use a comma to separate answers as needed.) The optimal solution is to produce LaserStop models and SpeedBuster models, which gives the (Round to two decimal places as needed.) value of the objective function, 400 800 x

Valencia Products make 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 x is the number of LaserStop models produced and y is the number of SpeedBuster models produced. Graph the constraints and identify the feasible region. Then identify each of the corner points and show how increasing the objective function value identifies the optimal solution. Maximize Profit=124x+138y 19x+12y ≤ 3000 6x + 7y ≤2500 x≥0 and y≥0 OB. 800- Ay 800- Q Q 408 406 G 50 65 x 400 800 O C. 800 400 O D. Ay 800- Q 400 800 Identify the vertices of the given feasible region. (0, 0), (0, 250), (157.89, 0) (Type an ordered pair, using integers or decimals rounded to two decimal places as needed. Use a comma to separate answers as needed.) The optimal solution is to produce LaserStop models and SpeedBuster models, which gives the (Round to two decimal places as needed.) value of the objective function, 400 800 x

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter15: Decision Analysis

Section: Chapter Questions

Problem 5P: Hudson Corporation is considering three options for managing its data warehouse: continuing with its...

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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+ 137 S 18 L+11 S≤ 5000 6L+8S≤4500 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 SpeedBuster models. This solution gives the (Type integers or decimals rounded to two decimal places as…
You have been asked to decide about one of two mutually exclusive alternatives (A & B). The following table gives the initial costs, annual savings in labor costs, and the expected life of two pieces of equipment. Plot PW vs. i for each equipment on the same graph and identify the AAIRR from the graph (i for the intersection). Then, highlight the corresponding value of i in yellow in your spreadsheet. High-cost Equipment (A) Low-cost Equipment (B) Initial Cost $137,910 $100,000 Savings in Labor Costs $42,000 / year $32,000 / year Life 5 years 5 years
Burger Office Equipment produces two types of desks, standard and deluxe. Deluxe desks have oak tops and more expensive hardware and require additional time for finishing and polishing. After reviewing the hardware and labor required along with the profit for each model, Burger Office Equipment found the following linear optimization model for profit, where S is the number of standard desks produced and D is the number of deluxe desks 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=240 S+350 D 65 S+45 D≤6000 20 D≤ 800 (Availability of pine) 9 S+18 D≤500 S≥0 and D≥0 (Availability of oak) (Availability of labor) Implement the linear optimization model and find an optimal solution. Interpret the optimal solution. The optimal solution is to produce standard desks and deluxe desks. This solution gives…
Consider the two air conditioning systems detailed below. Use AW analysis to determine the sensitivity of the economic decision to MARR values of 4%,6%, and 8%. Work this problem (a) by hand and (b) by spreadsheet.
AMT, Inc., is considering the purchase of a digital camera for maintenance of design specifications by feeding digital pictures directly into an engineering workstation where computer-aided design files can be superimposed over the digital pictures. Differences between the two images can be noted, and corrections, as appropriate, can then be made by design engineers. Solve, a. You have been asked by management to determine the PW of the EVA of this equipment, assuming the following estimates: capital investment = $345,000; market value at end of year six = $120,000; annual revenues = $120,000; annual expenses = $8,000; equipment life = 6 years; effective income tax rate = 50%; and after-tax MARR = 10% per year. MACRS depreciation will be used with a five-year recovery period. b. Compute the PW of the equipment’s ATCFs. Is youranswer in Part (a) the same as your answer in Part (b)?
The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine which one has the best average rate of return. Machine A Machine B $45,730.58 $60,103.80 326,647.00 200,346.00 Ca, Machines B and C have the same preferred average rate of return b. Machine C C. Machine 11 d. Machine A Estimated average income Average investment Machine C $74,639.55 497,597.00
Hudson Corporation is considering three options for managing its data warehouse: continuing with its own staff, hiring an outside vendor to do the managing, or using a combination of its own staff and an outside vendor. The cost of the operation depends on future demand. The annual cost of each option (in thousands of dollars) depends on demand as follows: If the demand probabilities are 0.2, 0.5, and 0.3, which decision alternative will minimize the expected cost of the data warehouse? What is the expected annual cost associated with that recommendation? Construct a risk profile for the optimal decision in part (a). What is the probability of the cost exceeding $700,000?
The Miramar Company is going to introduce one of three new products: a widget, a hummer, or a nimnot. The market conditions (favorable, stable, or unfavorable) will determine the profit or loss the company realizes, as shown in the following payoff table: a. Compute the expected value for each decision and select the best one. b. Develop the opportunity loss table and compute the expected opportunity loss for each product. c. Determine how much the firm would be willing to pay to a market research firm to gain better information about future market conditions.
PQR enterprise wants to buy a machine. It receives offers for two models M and N. Data related to models are given below:
Assume that you are the team leader of strategic planning and advisory board of M/S XYZ company. The company has decided to enter the market with a new electronic product. Your team conducted a marker research and presented the following two strategies along with the necessary data. Strategy A: Build a large plant with an estimated cost of 20,00,000 Rials. This alternative can face two states of nature on market conditions: High demand with a probability of 0.70, or a low demand with a probability of 0.30. If the demand is high, the company can expect to receive an annual revenue of 5,00,000 Rials for 7 years. If the demand were low the annual revenue would be only 1,00,000 Rials.
If Promus could make order amounts after realizing demand, what would the expected value of this information be? Use the simulation results to calculate the mean profit of this case to compare with the mean profit of the non-perfect information case. You will need to enter a formula for Sales.
Below are four cases that you will have to solve using Excel spreadsheets. 3rd Case The company MEGAMAX SA is analyzing two possibilities to expand the market , one of them is to choose to expand the plant to be able to produce a greater number of products, the other option is to diversify production with different new products to take advantage of the facilities that currently owns; The information and projections you have to be able to carry out the analysis to make a decision are the following: PROJECT Initial investment INCOME EXPENSES INCOME Extension $810,000 EXPENSES Diversification $900,000 It is requested: Concept Year 1 cash flows 5. Determine the internal rate of return. 6. Determine the present value. 7. Determine the recovery period. 8. Define which is the most viable project. Year 2 cash flows $1,000,000 $400,000 The discount rate for the project will be 12%, and investors propose a MARR of 28%. $550,000 $600,000 $1,100,000 $900,000 $400,000 $500,000 Year 3 cash flows…