Assistance with a quiz

I have a quiz in Micro (below) can you assist by Saturday? An insulation plant makes three types of insulation (types B, R and X). Each is produced on the same machine which can produce any mix of output so long as the daily total weight is no more than 70 tons. The insulation is shipped in trucks from the company loading dock which can process a maximum of 30 trucks per day. The trucks can carry any mix of types B, R and X insulation. A truckload of type B, R and X insulation weighs 1.4 tons, 2.8 tons and 1.9 tons respectively. The insulation carries a flame retarding spray that is currently in short supply and only 75 cans of the spray are available daily. A truckload of type B insulation requires 3 cans of the spray, type R requires 1 can per truckload and type X requires 2 cans per truckload. Demand for each type of insulation is very strong and the company anticipates no problem selling the plant’s entire output. The contribution margin for type B insulation is $1,425 per truckload, whereas for types R and X insulation, the contributions are $1,800 and $1237.50 per truckload, respectively. The company is interested in determining how much of each insulation type it should produce. A. Develop the linear programming formulation for the above problem. Make sure you define and label your variables, clearly show the objective function and the relevant constraints in their algebraic form. (30 points) B. Translate the above into a Solver formulation of the linear programming problem and solve it. Attach the spreadsheets showing the formulations, the answer report, sensitivity report and limits report. (40 points) C. Describe the optimal production policy: (40 points) 1. How much of each insulation type (B, R and X) should be produced? 2. Identify and the slack and binding constraints at the optimal production level. 3. What is the total contribution at this production level? D. Use the appropriate reports from the Solver output to answer the following questions. (60 points) 1. What would you be willing to pay for (i) an extra unit of machine time, (ii) an extra unit of loading dock capacity and (iii) an extra canister of flame retarding spray? Explain your reasoning. 2. Suppose the machine needs downtime for preventive maintenance that will reduce its daily total output by 10%. How will this affect your answers to Part C? Explain your reasoning. 3. Is a likely improvement in the availability of flame retarding spray (10 extra cans per day) affect your answer to Part C? Explain your reasoning. E. The price of type X insulation has increased by $250 per truckload due to demand stemming from a new application. How will this change your answer to Part C? Explain your answer. (30 points) Q2. (200 points) Chuck Raverty is the managing partner of a small boutique consulting firm in which he has four senior partners available to work on four current projects for during the coming month. Chuck has assessed the fit between the skill levels of his colleagues relative to each of the four projects and has rated them on a 0-100 scale. Not surprisingly, the ratings are all fairly high, but there still are significant differences in the quality of fit. The following is a table of the ratings that he has developed: Partner Project 1 2 3 4 Alan 90 80 25 50 Charlie 60 70 50 65 David 70 40 80 85 Robert 65 55 60 75 Time 140 100 170 70 The last row of the table shows Chuck’s assessment of the time that it will take to complete each of the four projects. A. Assume that each partner will be assigned only to one project. What is the assessment of partners to projects that will maximize the sum of the assigned quality scores? Develop and write down the formal mathematical statement of the problem. (40 points). B. Set up the Solver spreadsheet model for the problem above. Use Solver to solve the problem, obtain the relevant reports and interpret your answer. (40 points). C. Support that each of the four partners has only 160 hours of time available in the coming month. Assume that more than one partner can work on a project. What assignment schedule will maximize the sum of the assigned quality scores? As in Part A, develop and write down the formal mathematical statement of the problem. (50 points) D. Set up the Solver spreadsheet model for the problem in Part C. Use Solver to solve the problem in Part C, obtain the relevant reports and interpret your answer. (50 points) E. Suppose that Chuck does not want to assign multiple partners to the same project but is willing to provide an incentive for each partner to work the overtime needed. Based on the solutions obtained in Parts B and D, develop a comparison of the quality levels of the projects that are delivered. Assuming that a point of increased project quality is worth $1,000 to him, what should he be willing to pay for the quality maximizing solution? (200 points).

   Related Questions in Microeconomics

  • Q : Analytic Time-The Short Run I have a

    I have a problem in economics on Analytic Time-The Short Run. Please help me in the following question. Economists classify a time-period in which at least one resource is fixed as: (i) Short run. (ii) Long run. (iii) Production period. (iv) Profit period.

  • Q : Illustrations of Predatory Behavior

    Tactics as like [a] lowering prices, [b] expanding output beyond a short run profit maximizing level, and [c] aggressively advertising or redesigning existing products to make them incompatible along with rivals’ products are most likely to be interpreted as ill

  • Q : Long run entry of supply curve When the

    When the price for cranberries is primarily P1, in that case in the long run: (w) firms will neither enter nor exit this industry. (x) entry of firms will move curve supply curve A to the right. (y) exit of firms will move

  • Q : Quantity of good supplied-Law of supply

    The law of supply states that the amount of a good supplied is: (i) Legally governed by the production regulations. (ii) Inversely related to its absolute price. (iii) Recognized by the consumer tastes in the free market economy. (iv) Positively relat

  • Q : Economic minimized losses or maximized

    When a firm’s total revenue potentially exceeds total variable cost for at least one output level, in that case economic losses are minimized or profit is maximized through producing where: (i) average total cos

  • Q : Joint Profit Maximization Joint profit

    Joint profit maximization is least compatible along with the behavior of: (w) General Motors’ division in Chevrolet, Cadillac, Hummer, Delco Remy and Frigidaire, etc. (x) a successful cartel as like OPEC. (y) a collusive agreement leading to sha

  • Q : Problem on facing comparable risks in

    When a firm experiences an accounting profit which is less than the normal profit realized by the firms of comparable size and facing the comparable risks, the firm: (i) Has failed to compute the implicit costs. (ii) Should be facing entry barriers to the industry. (i

  • Q : Prices and outputs in short run All

    All output markets which are less than purely competitive are characterized through: (1) domination of the market by some large firms. (2) individual firms that are very small to affect their prices. (3) freedom of entry and exit in the long run. (4)

  • Q : Influence of moderate minimum wage law

    Can someone please help me in finding out the accurate answer from the following question. Even a moderate minimum wage law influences labor markets by causing the unemployment of: (1) Unskilled workers when the labor market is per

  • Q : Process of Capitalization

    Capitalization is a process: (a) that converts fixed cost into variable cost. (b) by which predictable income flows are translated into wealth. (c) of financial intermediation by bankers. (d) of exploiting unskilled workers.

    Discover Q & A

    Leading Solution Library
    Avail More Than 1428960 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads
    No hassle, Instant Access
    Start Discovering

    18,76,764

    1951307
    Asked

    3,689

    Active Tutors

    1428960

    Questions
    Answered

    Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

    Submit Assignment

    ©TutorsGlobe All rights reserved 2022-2023.