A large corporation maintains a fleet of three 30-passenger corporate jets that provide daily scheduled service between Detroit & several cities that are home to its production facilities. The jets are used strictly for business travel. The executives bood reservations thru a centralized transportation office. Because of the limited number of seats available, the planes almost always fly full. Excess demand for seats is assigned by executive rank within the firm. The executive's budget is charged for the flight at the end of the month. The charge is based on the jet's total operating expenses during the month (to include fuel, pilot's salary & fringes, maintenance, licensing & landing fees, and 1/2 of the annual accounting depreciation) divided by the actual passenger miles logged in the month. This rate per passenger is multiplied by each passenger's mileage flown in the month. A. Describe the formula being used to calculate the cost per passenger mile flown. B. As passenger miles flown increases, what happens to the cost per passenger mile

A large corporation maintains a fleet of three 30-passenger corporate jets that provide daily scheduled service between Detroit & several cities that are home to its production facilities. The jets are used strictly for business travel. The executives bood reservations thru a centralized transportation office. Because of the limited number of seats available, the planes almost always fly full. Excess demand for seats is assigned by executive rank within the firm. The executive's budget is charged for the flight at the end of the month. The charge is based on the jet's total operating expenses during the month (to include fuel, pilot's salary & fringes, maintenance, licensing & landing fees, and 1/2 of the annual accounting depreciation) divided by the actual passenger miles logged in the month. This rate per passenger is multiplied by each passenger's mileage flown in the month. A. Describe the formula being used to calculate the cost per passenger mile flown. B. As passenger miles flown increases, what happens to the cost per passenger mile

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter11: Simulation Models

Section: Chapter Questions

Problem 47P

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Please do not give solution in image format thanku Ram Roy's firm has developed the following supply, demand, cost, and inventory data. Supply Available Period Regular Time Overtime Subcontract Demand Forecast 1 40 15 15 50 2 30 15 15 55 3 40 20 15 60 Initial inventory 30 unitsRegular-time cost per unit$100 Overtime cost per unit$160 Subcontract cost per unit$250 Carrying cost per unit per month$4 Assume that the initial inventory has no holding cost in the first period and backorders are not permitted. Part 2 Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $enter your response here (enter your response as a whole number).
Ram Roy's firm has developed the following supply, demand, cost, and inventory data. Supply Available Regular Time Demand Рeriod Overtime Subcontract Forecast 30 15 40 35 15 15 50 40 55 Initial inventory Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Carrying cost per unit per 20 units $100 $160 $250 $6 Assume that the initial inventory has no holding cost in the first period and backorders are not permitted. Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $ (enter your response as a whole number). Help me solve this Etext pages Get more help- Clear all Check answer erations Management 3F22) IS Dased on Heizer/Render MUnson, Cperations Vianagement, 13e. Copyright © 2022 Pearson Education Inc. All Rights Reserved. earch 555 23
6-23 Barbara Bright is the purchasing agent for West Valve Company. West Valve sells industrial valves and fluid control devices. One of the most popular valves is the Western, which has an annual demand of 4,000 units. The cost of each valve is $90, and the inventory carrying cost is estimated to be 10% of the cost of each valve. Barbara has made a study of the costs involved in placing an order for any of the valves that West Valve stocks, and she has concluded that the average ordering cost is $25 per order. Furthermore, it takes about two weeks for an order to arrive from the supplier, and during this time, the demand per week for West valves is approximately 80. d. What is the average inventory? What is the annual holding cost? e. How many orders per year would be placed? What is the annual ordering cost?
6-23 Barbara Bright is the purchasing agent for West Valve Company. West Valve sells industrial valves and fluid control devices. One of the most popular valves is the Western, which has an annual demand of 4,000 units. The cost of each valve is $90, and the inventory carrying cost is estimated to be 10% of the cost of each valve. Barbara has made a study of the costs involved in placing an order for any of the valves that West Valve stocks, and she has concluded that the average ordering cost is $25 per order. Furthermore, it takes about two weeks for an order to arrive from the supplier, and during this time, the demand per week for West valves is approximately 80. a. What is the EOQ? b. What is the ROP? c. Is the ROP greater than the EOQ? If so, how is this situation handled? d. What is the average inventory? What is the annual holding cost? e. How many orders per year would be placed? What is the annual ordering cost?
Services differ from goods in that I. A service is a tangible process II. A service is an intangible process III. Services can be stored IV. Services cannot be stored V. Services are perishable and time-dependent Option IV and V Option II and IV Option II, IV, and V Option I and III
The difference(s) between the basic EOQ model and theproduction order quantity model is(are) that:a) the production order quantity model does not requirethe assumption of known, constant demand.b) the EOQ model does not require the assumption ofnegligible lead time.c) the production order quantity model does not requirethe assumption of instantaneous delivery.d) all of the above.
True or False: Single-Period inventory model makes the assumption that the demand follows a standard normal distribution.
33) please please help me with this Next week, Super Discount Airlines has a flight from New York to Los Angeles that will be booked to capacity. The airline knows from history that an average of 28 customers (with a standard deviation of 14) cancel their reservation or do not show for the flight. Revenue from a ticket on the flight is $122. If the flight is overbooked, the airline has a policy of getting the customer on the next available flight and giving the person a free round-trip ticket on a future flight. The cost of this free round-trip ticket averages $228. Super Discount considers the cost of flying the plane from New York to Los Angeles a sunk cost. By how many seats should Super Discount overbook the flight? Note: Use Excel's NORM.S.INV function to find the z value. Round z value to 2 decimal places. Round your answer to the nearest whole number.
A manager receives a forecast for next year. Demand is projected to be 600 units for the first half of the year and 920 units for the second half. The monthly holding cost is $2 per unit, and it costs an estimated $55 to process an order. a.Assuming that monthly demand will be level during each of the six-month periods covered by the forecast (e.g., 100 per month for each of the first six months), determine an order size that will minimize the sum of ordering and carrying costs for each of the six-month periods. (Round your answers to the nearest whole number.) Period Order Size 1 – 6 months?_____units 7 – 12 months?_____units b.If the vendor is willing to offer a discount of $10 per order for ordering in multiples of 50 units (e.g., 50, 100, 150), would you advise the manager to take advantage of the offer in either period? If so, what order size would you recommend? (Round intermediate calculations to 2 decimal places.) Period Order Size 1 – 6 months?____ units 7 – 12 months?____…
A barge company moves CoB freight between Memphis and New Orleans. Each barge tow is limited to 15 barges. The round trip takes 6 days. Forecasts call for 37 round trip tows per month. How many towboats does the company need to satisfy this demand? (Assume a month is 30 days.)
Problem 11-40 (Static) In the past, Taylor Industries has used a fixed-time period Inventory system that Involved taking a complete Inventory count of all items each month. However, Increasing labor costs are forcing Taylor Industries to examine alternative ways to reduce the amount of labor Involved in Inventory stockrooms, yet without Increasing other costs, such as shortage costs. Here is a random sample of 20 of Taylor's Items. ITEM ANNUAL ITEM ANNUAL NUMBER USAGE NUMBER USAGE $ 1,500 $13,000 6ee 1 11 12,000 2,200 50, e0e 9,600 12 13 42,800 9,900 1,200 10, 200 4, e00 61,eee 3,5ee 4 14 15 75e 16 7 2, еее 11,e00 17 18 see 19 10 15,e00 20 2,900 a. What would you recommend Taylor do to cut back Its labor cost? (Illustrate using an ABC plan.) Item Number Class 1 2 3 4 6 7 8 9. 10 11 12 13 14 15 16 17 18 19 20 < Prev 3 of 3
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