PROBLEM 5 Consider a two-period production model where 1,000 kgs of a certain product are required...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
PROBLEM 5 Consider a two-period production model where 1,000 kgs of a certain product are required in the first period (current period) and 1,000 kgs are required in the second period (future period).. In this production system, the output quantity P in kgs recovered from your production process is a fraction of the input quantity Q in kgs that you launch into your production process. Assume that a fraction of the input quantity launched into the process are lost due to factors beyond your control. Denote the output quantity by P = UQ where U is a random variable uniformly distributed between 0 and 1. Unfortunately, production cost depends on the input quantity, and is incurred at $10 per kg of input quantity. Furthermore, if you fail to deliver 1,000 kgs in each period, you incur a penalty of $20 per kg short. Determine the optimal production quantity in the first period. (20 pts) PROBLEM 5 Consider a two-period production model where 1,000 kgs of a certain product are required in the first period (current period) and 1,000 kgs are required in the second period (future period).. In this production system, the output quantity P in kgs recovered from your production process is a fraction of the input quantity Q in kgs that you launch into your production process. Assume that a fraction of the input quantity launched into the process are lost due to factors beyond your control. Denote the output quantity by P = UQ where U is a random variable uniformly distributed between 0 and 1. Unfortunately, production cost depends on the input quantity, and is incurred at $10 per kg of input quantity. Furthermore, if you fail to deliver 1,000 kgs in each period, you incur a penalty of $20 per kg short. Determine the optimal production quantity in the first period. (20 pts)
Expert Answer:
Related Book For
Management A Practical Introduction
ISBN: 978-0078112713
5th edition
Authors: Angelo Kinicki, Brian Williams
Posted Date:
Students also viewed these general management questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Read and answer the question below. EMBRACE DEMOGRAPHICS AND SOCIETAL CHANGES Using Differences to Drive Value Force 7: Demographics and Societal Changes. One of the most important forces that is...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Ritz-Carlton. The name alone evokes images of luxury and quality. As the first hotel company to win the Malcolm Baldrige National Quality Award, the Ritz treats quality as if it is the heartbeat of...
-
The composite shaft shown in the figure is manufactured by shrink-fitting a steel sleeve over a brass core so that the two parts act as a single solid bar in torsion. The outer diameters of the two...
-
Eddie Zambrano Corporation began operations on January 1, 2011. During its first 3 years of operations, Zambrano reported net income and declared dividends as follows. The following information...
-
(Balloon loan) Christine would like to take a loan. The loan carries a 1% monthly interest rate. Christine can only pay back $800 every month. a. What is the highest loan that Christine can take?...
-
Parliament Company, which expects to start operations on January 1, 2018, will sell digital cameras in shopping malls. Parliament has budgeted sales as indicated in the following table. The company...
-
6. [-/1 Points] DETAILS LARLINALG8 2.2.045. Find A A and AAT. A = [22 1] (a) ATA (b) AAT Which of the products are symmetric? (Select all that apply.) DATA O AAT Need Help? Read It Watch It
-
Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: $ 78,500 $ 2,000 $ 1,000 5 years 159,000 $ 2,000 Purchase price Delivery cost...
-
Ed's Waterbeds has made the following sales projections for the next six months. All sales are credit sales. March April May $ 39,000 June $ 43,000 45,000 July 51,000 34,000 August 53,000 Sales in...
-
How many nanoseconds are in an hour? Give your answer in scientific notation to two decimal places. Do NOT include the units with your answer, just give the numerical solution. Note: Scientific...
-
Discuss the importance of taking prompt action to rectify areas of under-performance
-
Please mention the reason and importance of displaying food safety posters?
-
What, in your opinion, is the importance of performance management system and how would the knowledge and skills you have acquired about the performance management system in this course help you in...
-
The textbook explains the importance of variable costs and fixed costs. "Variable costs vary with output, but fixed costs do not. Knowing how costs vary with output allows you to compute the costs...
-
Gator Inc. reported taxable income of $1,250,000 this year and paid federal income taxes of $262,500. Included in the company's computation of taxable income is gain from the sale of a depreciable...
-
A police officer pulls you over and asks to search your vehicle because he suspects you have illegal drugs inside your car. Since he doesn't have reasonable suspicion to search your car, legally he...
-
Knowing a company might be reluctant to hire you based on your condition, what would you do? 1. Don't immediately mention your disease during the interview. Instead, play up your abilities,...
-
How would you resolve this dilemma? I. In today's economy it is very important to contain or reduce the cost of health care. I would revise the Genetic Information Nondiscrimination Act so that...
-
As a member of the Justice Department investigating the marketing and use of non-FDA-approved devices, what would you recommend? I. Device companies should be financially punished for marketing...
-
Determine all variances (Learning Objectives 4, 5) Avanti manufactures embroidered jackets. The company prepares flexible budgets and uses a standard cost system to control manufacturing costs. The...
-
(Appendix) Journalize standard cost transactions (Learning Objective 6) Refer to the data in PI 1-44A. Journalize the usage of direct materials and the assign ment of direct labor, including the...
-
Compute variances and prepare standard cost income statement (Learning Objectives 4, 5, 6) Happ and Sons makes ground covers to prevent weed growth. During May, the company produced and sold 44,000...
Study smarter with the SolutionInn App