Operations Research : Applications and Algorithms
4th Edition
ISBN: 9780534380588
Author: Wayne L. Winston
Publisher: Brooks Cole
expand_more
expand_more
format_list_bulleted
Expert Solution & Answer
Chapter 14.4, Problem 5P
Explanation of Solution
a.
Equilibrium points:
The given data indicates that the two companies working together will create a loss of $10 billion each, one company alone producing can create a profit of $100 billion. If none make semiconductors, profits remain $0.
Based on the given data, a two-sum payoff matrix can be prepared as below:
Explanation of Solution
b.
Equilibrium points:
From the above matrix, to be considered a subsidy of $15 billion to the Japanese company.
Then the matrix becomes,
| Japanese |
Explanation of Solution
c)
Viewpoint supported by the problem:
- Protectionism can have short term benefits but on the long term makes consumer devoid of options and slows down the economy as a whole.
- This is why economists mention about the theory of comparative advantage...
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
G-Motor manufactures airplane engines and has an annual capacity of ? units. For the current production facilities, the company has an annual cost of $?? million. G-motor plans to expand its current aircraft engine capacity in light of anticipated growth in aircraft engine demand in the coming years. The company intends to expand its manufacturing capacity by establishing new facilities. Production facilities can be set up in two ways (called as type A and type B). While the cost of establishing a type A manufacturing facility in any given year is $??, the production capacity of such a facility is ?? units. The cost of establishing a Type B manufacturing facility is $??, and the anticipated production capacity is ?? units. Annual expenditures for any facility of type A or B are projected to be $? million dollars. G-Motor aims to make a decision about the establishment of a new facility during the planned period t=2022, 2023,...,T. The demand for aircraft engines in the coming years is…
A company owns the same asset in a ASIAN plant and in a UK plant . It has B $2,000,000 and a salvage value of 20% of B . For tax depreciation purposes, ASIA allows a straight line write-off over 5 years, while the UK allows SL write-off over 8 years. The general managers of the two plants want to know the difference in the depreciation amount for year 5.
QUESTION 2
CU, Incorporated (CUI), produces copper contacts that it uses in switches and relays. CUI
needs to determine the order quantity, Q, to meet the annual demand at the lowest cost. The
price of copper depends on the quantity ordered. Annual demand is 25,000 kilograms per
year. Holding cost is 20 percent per unit per year of the price of copper and the Ordering cost
is $30.00. Table 2 that follows, shows the quantity discount schedule price-break:
Table 2- Quantity Discount Schedule
Quantity (kg)
5,000 and greater than 5,000
3,750 to 4,999
2,500 to 3,749
1,250 to 2,499
1 to 1,249
Price ($)
0.38
0.39
0.40
0.41
0.42
Determine the optimal order size that you would order if you were purchasing copper from
CUI.
Chapter 14 Solutions
Operations Research : Applications and Algorithms
Knowledge Booster
Similar questions
- Pacific Developers Inc., in Surrey, B.C., is considering purchasing a water park for $1,850,000. Top managers of Pacific Developers believe the new facility will generate annual net cash inflows of $385,000 for eight years. Architects and engineers estimate that the facility will remain useful for eight years and have a residual value of $600,000. The company's shareholders demand an annual return of 16% on investment of this nature. What is the NPV of this opportunity? A) $2,595 B $4,856 C) $5,286 D $7,882arrow_forwardThe 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: Market Conditions Favorable Stable Unfavorable Product 2 7 W1 Widget $120.000 $70,000 $ 30,000 Hummer $60,000 $40,000 $20,000 Nimnot $35,000 $30,000 $30,000 Using EMV and EOL approach, which product they should introduce? Also calculate Expected Value of Perfect Information (EVPI).arrow_forwardA computer manufacturing company is trying to decide whether to purchase specialized assembly equipment todayor to wait 6 years from now, when the equipment will be first needed.If you were to purchase the equipment today it would cost: $704,0006 years from now the equipment would cost: $1,000,962The bank is paying 6.00% interest per year, compounded monthly.Should you buy the equipment now or wait 6 years to buy the equipment?arrow_forward
- Damla has graduated from an MBA program recently. She has $1,200 dollar on hand, to invest for several alternatives. With the help her mathematical modelling ideas, she want to invest her money in several financial alternatives. She may invest her money on hand in bonds and loans. Each dollar invested in bonds yields $0.18 profit, and each dollar invested in a loan yields $0.13 profit. At least 32% of all money invested must be in bonds, and at least $380 must be in loans. a) Formulate an LP that can be used to maximize total profit earned from Damla’s investment. b) Solve the problem in IBM ILOG CPLEX Optimization Studio and submit your optimal solution. c) Solve the problem graphically. Verify your solution with the optimal solution that you have found in part (b)arrow_forwardAfter the San Onofre Nuclear Generating Station (SONGS) closed in 2012, the Diablo Canyon Power Plant is the last remaining nuclear power plant operating in California. Located near San Luis Obispo, the Diablo Canyon facility is operated by PG&E and is composed of two pressurized-water nuclear reactors. Each reactor can produce electricity at a rate of 1,100 MW and the plant typically operates at an average capacity factor of 0.89. Nuclear power plants such as Diablo Canyon are important sources of baseload electricity because of their high output capability and low variable operating costs. In June 2016 due to a number of factors (including proximity to earthquake fault lines), PG&E announced that it plans to close Diablo Canyon when the current operating license expires in 2025. The following chart shows California’s electricity generation mixes in 2011 (the last year the SONGS nuclear plant of southern California operated) and 2016, respectively. Fill in your answer from…arrow_forward3. A company is considering opening warehouses in four cities: New York, Los Angeles, Chicago, and Atlanta. Each warehouse can ship 100 units per week. The weekly fixed cost of keeping each warehouse open is $400 for New York, $500 for Los Angeles, $300 for Chicago, and $150 for Atlanta. Region 1 of the country requires 80 units per week, region 2 requires 70 units per week, and region 3 requires 40 units per week. The costs (including production and shipping costs) of sending one unit from a plant to a region are shown in Table 3. We want to meet weekly demands at minimum cost, subject to the preceding information and the following restrictions: 1. If the New York warehouse is opened, then the Los Angeles warehouse must be opened. 2. At most two warehouses can be opened. 3. Either the Atlanta or the Los Angeles warehouse must be opened. Formulate an IP that can be used to minimize the weekly costs of meeting demand. Table 3 To ($) From Region 1 Region 2 Region 3 New York 20 40 50 Los…arrow_forward
- Mattel is developing a new Madonna doll. Managershave made the following assumptions.It is equally likely that the doll will sell for two, four,six, eight, or ten years.At the beginning of year 1, the potential market for thedoll is 1 million. The potential market grows by an averageof 5% per year. They are 95% sure that the growth inthe potential market during any year will be between 3%and 7%.They believe their share of the potential market duringyear 1 will be at worst 20%, most likely 40%, and at best50%. All values between 20% and 50% are possible.The variable cost of producing a doll during year 1 isequally likely to be $4 or $6.The sales price of the doll during year 1 will be $10.Each year, the sales price and variable cost of producingthe doll will increase by 5%.The fixed cost of developing the doll (incurred in year0) is equally likely to be $4, $8, or $12 million.At time 0, there is one competitor in the market. Duringeach year that begins with four or fewer competitors,…arrow_forwarddemand and supply equations are given as qd=25,000,000-500p and qs=52,000,000+2,000p respectively. what is the equilibrium pricearrow_forwardThe Touche Young accounting firm must complete three jobs during the next month. Job 1 will require 500 hours of work, job 2 will require 300 hours of work, and job 3 will require 100 hours of work. Currently, the firm consists of 5 partners, 5 senior employees, and 5 junior employees, each of whom can work up to 40 hours per month. The dollar amount (per hour) that the company can bill depends on the type of accountant who is assigned to each job, as shown in the table below. (The X indicates that a junior employee does not have enough experience to work on job 1.) All jobs must be completed. Touche Young has also set the following goals, listed in order of priority: Goal 1: Monthly billings should exceed $68,000. Goal 2: At most, 1 partner should be hired. Goal 3: At most, 3 senior employees should be hired. Goal 4: At most, 5 junior employees should be hired. Formulate a preemptive goal programming model for thissituationarrow_forward
- This is the question. I am unsure how to begin on - Acme Parts runs a small factory and employs workers who are paid one of three hourly rates depending on their shift: first shift, $17 per hour; second shift, $18.50 per hour; third shift, $22 per hour. Each factory worker might work any number of hours per week; any hours greater than 40 are paid at one and one-half times the usual rate. In addition, second- and third-shift workers can elect to participate in the retirement plan for which 3% of the worker’s gross pay is deducted from the paychecks. Write a program that prompts the user for hours worked, shift, and, if the shift is 2 or 3, whether the worker elects the retirement (1 for yes, 2 for no). Display: Hours worked Shift Hourly pay rate Regular pay Overtime pay Total of regular and overtime pay Retirement deduction, if any Net pay. This is the way the code starts - import java.util.*; public class AcmePay { public static void main(String[] args) throws Exception {…arrow_forwardNawras Tech assembles laptop computers from generic components. It purchases its colour monitors from a manufacturer in Taiwan with a lead time of one week. Daily demand for monitors is normally distributed with a mean of 30 monitors and a standard deviation of 8 monitors. The company has determined that the ordering cost is OMR 125 per order, the annual holding cost is OMR 25 per monitor, and the stockout cost is OMR 160 per lost sale. Currently, Nawras Tech accepts a 5% risk of stockout. Assume 350 days per year and 7 days in a week. a) Calculate the current fill rate. b) What is the annual cost of lost sales?arrow_forwardSouth Africans and Botswanaans enjoy Chakalaka and Beer. Suppose that these are the only two products they consume and produce with Chakalaka being relatively more labour intensive and Beer being relatively more capital intensive in the production process ( αb=0.8 and αc=0.2). Suppose that, as a result of the Southern African Customs Union, all impediments or barriers to trade are lifted, such that these countries can freely trade both goods without any costs. Assuming that an Entrepreneur knows the price of both these goods and both goods are produced, using the Learner diagram describe how the entrepreneur chooses the cost-minimising combinations of inputs in the production of both goods based on the neoclassical trade theory.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Operations Research : Applications and AlgorithmsComputer ScienceISBN:9780534380588Author:Wayne L. WinstonPublisher:Brooks Cole
Operations Research : Applications and Algorithms
Computer Science
ISBN:9780534380588
Author:Wayne L. Winston
Publisher:Brooks Cole