Question
In: Statistics and Probability
Gatson manufacturing company produces 2 types of tires: Economy tire; Premium tire. The manufacturing time and...
Gatson manufacturing company produces 2 types of tires: Economy tire; Premium tire. The manufacturing time and the profit contribution per tire are given in the following table.
|
Operation |
Manufacturing Time (Hours) |
Time Available |
|
|
Economy tires |
Premium tires |
Hours |
|
|
Material Preparation |
4/3 |
1/2 |
600 |
|
Tire Building |
4/5 |
1 |
650 |
|
Curing |
1/2 |
2/4 |
580 |
|
Final Inspection |
1/5 |
1/3 |
120 |
|
Profit/Tire |
$12 |
$10 |
|
Answer the following assuming that the company is interested in maximizing the total profit contribution.
Let E = number of economy tires manufactured
P = number of premium tires manufactured
1. What is the maximum allowable decrease in the profit for economy tires, before the optimal decision changes, rounded to the closest whole number?
2. What is the shadow price for final inspection, rounded to the closest whole number?
Solutions
Expert Solution
Let Z be the total profit
Objective function:
Maximize Z = 12E + 10P
Constraints:
(4/3)E + (1/2)P ≤ 600
(4/5)E + P ≤ 650
(1/2)E + (2/4)P ≤ 580
(1/5)E + (1/3)P ≤ 120
ANSWERS:
(1) $6
(2) $21
orchestra answered 1 year agoRelated Solutions
Talladega Tire and Rubber Company has capacity to produce 162,000 tires. Talladega presently produces and sells...
Talladega Tire and
Rubber Company has capacity to produce 162,000 tires. Talladega
presently produces and sells 124,000 tires for the North American
market at a price of $115 per tire. Talladega is evaluating a
special order from a European automobile company, Autobahn Motors.
Autobahn is offering to buy 19,000 tires for $97.85 per tire.
Talladega’s accounting system indicates that the total cost per
tire is as follows:
Direct materials
$44
Direct labor
16
Factory overhead (70% variable)
26
Selling and...
.Tire manufacturer is interested in testing the fuel economy for two different tread patterns. Tires of...
.Tire manufacturer is interested in testing the fuel economy for
two different tread patterns. Tires of each tread type were driven
for 1000 miles on each of 9 different cars. The mileages, in miles
per gallon, were as follows. Test whether the mean mileage is the
same for both types of tread. (ANOVA test)
Car
1
2
3
4
5
6
7
8
9
Tread A
24.7
22.5
24.0
26.9
22.5
23.5
22.7
19.7
27.5
Tread B
20.3
19.0
22.5...
A tire manufacturer is interested in testing the fuel economy for two different tread patterns. Tires...
A tire manufacturer is interested in testing the fuel economy
for two different tread patterns. Tires of each tread type were
driven for 1000 miles on each of 9
different cars. The mileages, in miles per gallon, were as
follows:
Car
Tread A
Tread B
1
24.7
20.4
2
22.6
19.0
3
23.9
22.4
4
26.8
23.0
5
22.4
20.8
6
23.4
23.5
7
22.6
21.3
8
19.7
18.1
9
27.3
25.8
(a) Construct an 80% confidence interval for the...
A tire manufacturer produces tires that have a mean life of at least 25000 miles when...
A tire manufacturer produces tires that have a mean life of at
least 25000 miles when the production process is working properly.
The operations manager stops the production process if there is
evidence that the mean tire life is below 25000 miles.
The testable hypotheses in this situation are
?0:?=25000H0:μ=25000 vs ??:?<25000HA:μ<25000.
1. Identify the consequences of making a Type I error.
A. The manager does not stop production when it is
not necessary.
B. The manager stops production when...
A tire manufacturer produces tires that have a mean life of at least 32500 miles when...
A tire manufacturer produces tires that have a mean life of at
least 32500 miles when the production process is working properly.
The operations manager stops the production process if there is
evidence that the mean tire life is below 32500 miles.
The testable hypotheses in this situation are
?0:?=32500H0:μ=32500 vs ??:?<32500HA:μ<32500.
1. Identify the consequences of making a Type I error.
A. The manager stops production when it is
necessary.
B. The manager stops production when it is not...
A tire manufacturer produces tires that have a mean life of at least 30000 miles when...
A tire manufacturer produces tires that have a mean life of at
least 30000 miles when the production process is working properly.
The operations manager stops the production process if there is
evidence that the mean tire life is below 30000 miles. The testable
hypotheses in this situation are ?0:?=30000 H 0 : μ = 30000 vs
??:?<30000 H A : μ < 30000 .
1. Identify the consequences of making a Type I error. A. The
manager does not...
The Grilton Tire Company manufactures racing tires for bicycles. Grilton sells tires for $50 each. Grilton...
The Grilton Tire Company manufactures racing tires for bicycles.
Grilton sells tires for $50 each. Grilton is planning for next year
(2020) by developing a master budget by quarters. Grilton’s balance
sheet for December 31, 2019 follows:
GRILTON TIRE COMPANY
Balance Sheet
December 31, 2019
Assets
Current Assets:
Cash $ 39,000
Accounts
Receivable 40,000
Raw Materials
Inventory 2,400
Finished Goods
Inventory 8,700
Total Current
Assets $
90,100
Property, Plant and Equipment:
Equipment 177,000
Less: Accumulated
Depreciation (42,000) 135,000
Total
Assets $225,100
Liabilities
Current Liabilities:
Accounts
Payable $ 8,000
Stockholder’s Equity
Common Stock,...
The Gessing Tire Company manufactures racing tires for bicycles. Gessing sells tires for $85 each. Gessing...
The Gessing Tire Company manufactures racing tires for bicycles.
Gessing sells tires for $85 each. Gessing is planning for the next
year by developing a master budget by quarters. Gessing’s balance
sheet for December 31, 2018, follows:
Gessing Tire Company| Balance sheet |December 31, 2018
Current Assets:
Cash
$
52,000
Accounts Receivable
35,000
Raw Materials Inventory 1,900
Finished Goods Inventory 2,400
________
Total Current Assets
$
91,300
Property, Plant, and Equipment:
Equipment
142,000
Less: Accumulated Depreciation (50,000)
92,000
_________
________...
The Gessing Tire Company manufactures racing tires for bicycles. Gessing sells tires for $85 each. Gessing...
The
Gessing Tire Company manufactures racing tires for bicycles.
Gessing sells tires for $85 each. Gessing is planning for the next
year by developing a master budget by quarters. Gessing’s balance
sheet for December 31, 2018, follows:
Gessing Tire Company
Balance sheet
December 31, 2018
Current
Assets:
Cash
$
52,000
Accounts Receivable
35,000
Raw Materials Inventory 1,900
Finished Goods Inventory 2,400
________
Total Current Assets
$
91,300
Property, Plant, and Equipment:
Equipment
142,000
Less: Accumulated Depreciation (50,000)
92,000
_________
________...
The Grilton Tire Company manufactures racing tires for bicycles. Grilton sells tires for $50 each. Grilton...
The Grilton Tire Company manufactures racing tires for bicycles.
Grilton sells tires for $50 each. Grilton is planning for next year
by developing a master budget by quarters. Grilton’s balance sheet
for December 31, 2016 follows:
GRILTON TIRE COMPANY
Balance Sheet
December 31, 2016
Assets
Current Assets:
Cash
$
39,000
Accounts
Receivable
40,000
Raw Materials
Inventory
2,400
Finished Goods
Inventory
8,700
Total Current
Assets
$
90,100
Property, Plant and Equipment:
Equipment
177,000
Less:...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Stateless packet filtering is performed on a per-packet basis. True False A typical enterprise firewall has...
- SE 20-1 Audio Visual Corporation Audio Visual Corporation (AVC) manufactures and sells visual display equipment. Headquartered...
- Question (1) Discuss the difference between Ethics and Moral. why are civil Engineers governed by the...
- Consider a project to supply Detroit with 28,000 tons of machine screws annually for automobile production....
- Elaborate on four variables which affect bond default risk according to Jane Howe.
- Use the psychrometric chart to estimate (1) the absolute humidity, wet bulb temperature, humid volume, dew...
- You are going to create a console based program to keep track of a small business...
ADVERTISEMENT