Technical Supplement 1 Linear Programming with Transportation in Operations Management LEARNING OBJECTIVES After studying this technical supplement, you should be able to: 1. Explain the importance of optimization to operations management 2. Demonstrate how to develop linear programming models 3. Show how linear programming models can be solved using EXCEL 4. Demonstrate 0-1, transportation, and assignment models LINEAR PROGRAMMING MODELS IN OPERATIONS MANAGEMENT Linear
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1 Comprehensive Problem: Part 2 chapters 5–10 1. a. Physical units method of allocation: Grades Board Feet Percent of Units Allocation* Firsts and seconds 1,500,000 .20 180,000. No. 1 common 3,000,000 .40 360,000 No. 2 common 1,875,000 .25 225,000 No. 3 common 1,125,000 .15 135,000 Totals 7,500,000 1.0 900,000 Unit cost: Firsts and seconds .12 (180,000/1,500,000) No. 1 common .12 (360,000/3,000,000)
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Job-order costing systems assign costs to individual jobs and is best for when jobs use different mateials, different labor and/or different amounts of overhead resources. Think making movies. Each movie uses different actors, different props and different amounts of travel and setup. So, you would assign costs to each movie, not divide the total cost evenly across all movies. For oatmeal, you would not try to assign costs to each batch of oatmeal because they are all the same. So, for this firm
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many companies because of its simplicity. With supply contracts, it guarantees reimbursement of cost and producing profit with no risk of loss. (Accountingtools.com, para. 2). 2) Potential problem with using cost plus pricing is that it ignores marginal cost and price sensitivity of customers. (Brickly, Smith, Zimmerman, p. 211). Price sensitivity is essential to pricing strategy in order to maximize profit. In addition, cost plus pricing is not responsive to market changes. (Magloff, para. 6).
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Business Proposal ECO/561 J. Carl Bowman 1/20/14 Victoria Holmes Google Chromecast is just the latest invention to enter into the competitive market of online streaming. It plans on competing with the likes of Apple TV, Hulu Plus, and Netflix. The new product features as an HDMI plug in that is used to plug into any device to access movies and TV shows. Its main competitor was the Belkin Miracast, which happens to offer the same service for a more
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Question 1. How does the theory of the firm provide an integrated framework for the analysis of managerial decision making across the functional areas of business? Discuss. Answer. Contribution of theories of the firm to the concept of the business model The advantage of the Chesbrough and Rosenbloom approach to the business model concept is that its functions or components provide a comprehensive structure by which to analyse different sources of value in firms. Compared for instance with Amit
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| 10 | 2 | 730 | 500 | 4500 | 5000 | Average total cost=Total costTotal output Marginal product of labor=ΔQuantity of breadΔWorkers Average product of labor=Quantity of breadQuantity of workers Marginal cost=ΔTCΔQ Average variable cost=Cost of workersQuantity of output Average fixed cost=Cost of ovenQuantity of output Average Total Cost | Marginal product of labor | Average product of labor | Marginal Cost | Average Variable Cost | Average Fixed Cost | --- | --- | --- | --- | --- |
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only difference is who is selling them. They differ from a small business to a larger business or corporation. When there are many companies selling the same product the market will dictate the price of the product. Marginal cost and marginal revenue In order to increase the marginal revenue it is important to understand the price equilibrium. A business needs to analyze data of the competitors to make sure that they are keeping their price lower and keeping the customers happy. Keeping the prices
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optimal level of production, that is, the level of production that will maximize profit or minimize losses? • A. Comparing total revenue to total cost or marginal revenue to marginal costs • B. Comparing average revenue to average costs or marginal revenue to marginal costs • C. Comparing average variable costs to price or marginal revenue to price • D. Comparing total revenue to average variable costs or price to average variable costs Bottom of Form Correct : A firm can look
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the monopoly businessman is to get the highest profit. 4. The farm and industry are the same for the monopoly business: Thereisonlyone farm in monopoly market. Thereby, that farm is known as the industry. 5. The average revenue curve and the marginal
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