Question: The reorder point [see Equation (10.6)]

> Recent balance sheet information for two companies in the food industry, Mondelez International, Inc. (MDLZ), and The Hershey Company (HSY), is as follows (in thousands): a. Determine the ratio of liabilities to stockholders’ equity f

> Hasbro, Inc. (HAS), and Mattel, Inc. (MAT), are the two largest toy companies in North America. Condensed liabilities and stockholders’ equity from a recent balance sheet are shown for each company as follows (in thousands): The opera

> An analysis of the general ledger accounts indicates that delivery equipment, which cost $75,000 and on which accumulated depreciation totaled $58,000 on the date of sale, was sold for $20,200 during the year. Using this information, indicate the items t

> An analysis of the general ledger accounts indicates that office equipment, which cost $245,000 and on which accumulated depreciation totaled $112,500 on the date of sale, was sold for $105,900 during the year. Using this information, indicate the items

> The income statement disclosed the following items for the year: Depreciation expense ……………………………………………………………. $ 57,600 Gain on disposal of equipment …………………………………………………. 33,600 Net income …………………………………………………………………………… 508,000 The changes in the curren

> The net income reported on the income statement for the current year was $214,000. Depreciation recorded on equipment and a building amounted to $99,300 for the year. Balances of the current asset and current liability accounts at the beginning and end o

> The net income reported on the income statement for the current year was $93,700. Depreciation recorded on store equipment for the year amounted to $31,200. Balances of the current asset and current liability accounts at the beginning and end of the year

> List the errors you find in the following statement of cash flows. The cash balance at the beginning of the year was $240,000. All other amounts are correct, except the cash balance at the end of the year. Shasta Inc. Statement of Cash Flows For th

> On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows: ACCOUNT Land ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 925,000 Mar. 12 Purchased for cas

> In a prior year, United Continental Holdings, Inc. (UAL), the parent company of United Airlines, reported a net loss of $723 million from operations. However, on its statement of cash flows, it reported $935 million of cash flows from operating activitie

> Climate Control Systems Co. offers its services to residents in the Spokane area. Selected accounts from the ledger of Climate Control Systems for the fiscal year ended December 31, 20Y2, are as follows: Prepare a statement of stockholdersâ€

> Professional Products Inc., a wholesaler of office products, was organized on February 5 of the current year, with an authorization of 50,000 shares of preferred 2% stock, $60 par and 1,000,000 shares of $8 par common stock. The following selected transa

> On May 15, Helena Carpet Inc., a carpet wholesaler, issued for cash 750,000 shares of no-par common stock (with a stated value of $1.50) at $4, and on June 30, it issued for cash 17,500 shares of preferred stock, $50 par at $60. a. Journalize the entries

> On January 22, Jefferson County Rocks Inc., a marble contractor, issued for cash 210,000 shares of $30 par common stock at $34, and on February 27, it issued for cash 15,000 shares of preferred stock, $9 par at $12. a. Journalize the entries for January

> Sumter Pumps Corporation, a manufacturer of industrial pumps, reports the following results for the year ended December 31, 20Y3: Retained earnings, January 1, 20Y3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $59,650,000 Net income . .

> Specialty Auto Racing Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Specialty Auto Racing on July 31, the end of the current year: Common Stock, $36 par. . . . . . . . .

> SprayCo Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On March 9 of the current year, SprayCo reacquired 62,000 shares of its common stock at $51 per share. On June 9, 48,000 of the reacquired shares were sold at

> Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 60,000 shares of its common stock at $42 per share. On September 22, Mystic Lake sold 45,000 of the reacquired shares at $51 per share. The remai

> Selected transactions completed by Canyon Ferry Boating Corporation during the current fiscal year are as follows: Journalize the transactions. 8. Split the common stock 2 for 1 and reduced the par from $100 to $50 per share. After the split, there

> Healthy Life Co. is an HMO for businesses in the Fresno area. The following account balances appear on Healthy Life’s balance sheet: Common stock (3,000,000 shares authorized; 2,200,000 shares issued), $15 par, $33,000,000; Paid-in capital in excess of p

> Determine the present value of $200,000 to be received at the end of each of four years, using an interest rate of 7%, compounded annually, as follows: a. By successive computations, using the present value of $1 table in Exhibit 5. Exhibit 5: b. By u

> Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y8, were as follows: a. Issued 15,000 shares of $20 par common stock at $30, receiving cash. b. Issued 4,000 shares of $80 par preferred 5% stock at $10

> Palisade Creek Co. is a retail business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 20Y6 (unless otherwise indicated), are as follows: During May, the last month of the fiscal year, the following trans

> Photo Chemicals produces two types of photograph-developing fluids at a cost of E1.00 per litre. Let: x1 = litre of product 1 x2 = litre of product 2 Photo Chemicals management requires that at least 30 litres of product 1 and at least 20 litres

> A local health clinic is keen to raise awareness and understanding of AIDS/HIV in the local community and has managed to attract some funding for local advertising. The clinic would like to determine the best way to allocate a monthly advertising budge

> Management Decision Systems (MDS) is a consulting company that specializes in the development of decision support systems. MDS obtained a contract to develop a computer system to assist the management of a large company in formulating its capital expen

> For Problem 6: a. How much would profit increase if an additional 30 hours became available in the cutting and dyeing department (i.e., if b1 were increased from 630 to 660)? b. How much would profit decrease if 40 hours were removed from the sewin

> For Problem 6: a. Calculate the range of feasibility for b1 (cutting and dyeing capacity). b. Calculate the range of feasibility for b2 (sewing capacity). c. Calculate the range of feasibility for b3 (finishing capacity). d. Calculate the range o

> A product is produced at three plants and shipped to three warehouses (the transportation costs per unit are shown in the following table). a. Show a network representation of the problem. b. Develop a linear programming model for minimizing

> North Yorkshire University is installing a secure electronic mail system. The following network shows the possible electronic connections among the offices. Distances between offices are shown in km. Develop a design for the office communication system

> Solve the following linear programme using the graphical approach: Put the linear programme in tableau form, and solve using the Simplex method. Show the sequence of extreme points generated by the Simplex method on your graph.  

> Kunz and Sons manufactures two products used in the heavy equipment industry. Both products require manufacturing operations in two departments. The following are the production time (in hours) and profit contribution figures for the two products.

> EZ-Windows manufactures replacement windows for the home renovation business. In January, the company produced 15 000 windows and ended the month with 9000 windows in inventory. EZ-Windows management team would like to develop a production schedule for

> The Our-Bags-Don’t-Break (OBDB) plastic bag company manufactures three plastic refuse bags for home use: a 20 litre garbage bag, a 30 litre garbage bag and a 33 litre leaf-andgrass bag. Using purchased plastic material, three operations are requi

> Filtron Corporation produces filtration containers used in water treatment systems. Although business has been growing, the demand each month varies considerably. As a result, the company utilizes a mix of part-time and full-time employees to meet prod

> For the HighTech problem, we found the range of feasibility for b1, the assembly time available (see Section 6.1). a. Find the range of feasibility for b2. b. Find the range of feasibility for b3. c. How much will HighTech’s profit increase

> Liva’s Lumber manufactures three types of plywood. The following table summarizes the production hours per unit in each of three production operations and other data for the problem. How many units of each grade of plywood should be prod

> Use the pairwise comparison matrix for the price criterion shown in Table 14.8 to verify that the priorities after synthesization are 0.123, 0.320 and 0.557. Calculate the consistency ratio and comment on its acceptability. Data from table 14.8:

> A committee in charge of promoting a Ladies’ Professional Golf Association tournament is trying to determine how best to advertise the event during the two weeks prior to the tournament. The committee obtained the following information about the

> Refer to Problem 12. Suppose that the individual had stated the following judgements instead of those given in Problem 12. A is strongly more preferable than C. B is equally to moderately more preferable than A. B is strongly more preferable than

> An organization is investigating relocating its corporate headquarters to one of three possible cities. The following pairwise comparison matrix shows the president’s judgements regarding the desirability for the three cities. a. Determi

> Zondo Industries is considering purchasing an insurance policy for its new office building in Port Elizabeth. The policy has an annual cost of €10 000. If Zondo Industries does not purchase the insurance and minor fire damage occurs to the office

> Three decision makers have assessed utilities for the following decision problem (payoff in euros). The indifference probabilities are as follows. For the payoff of 20, what is the premium that the risk avoider will pay to avoid risk?

> Use the single-channel drive-up bank teller operation referred to in Problems 1 and 2 to determine the following operating characteristics for the system. a. The probability that no customers are in the system. b. The average number of customers wa

> Jobs arrive randomly at a particular assembly plant; assume that the mean arrival rate is five jobs per hour. Service times (in minutes per job) do not follow the exponential probability distribution. Two proposed designs for the plant’s assembly

> Patients arrive at a dentist’s office at a mean rate of 2.8 patients per hour. The dentist can treat patients at the mean rate of three patients per hour. A study of patient waiting times shows that, on average, a patient waits 30 minutes before

> Show a separate graph of the constraint lines and feasible solutions for each of the following constraints:  

> A fast-food franchise is considering operating a drive-up window food-service operation. Assume that customer arrivals follow a Poisson probability distribution, with a mean arrival rate of 24 cars per hour, and that service times follow an exponential

> Stad National Bank operates a drive-up teller window that allows customers to complete bank transactions without getting out of their cars. On weekday mornings, arrivals to the drive-up teller window occur at random, with a mean arrival rate of 24 cust

> For Isa Distributors in Problem 17, we were given Q* = 25, D = 200, Ch = €5 and a normal lead-time demand distribution with / a. What is Isa’s reorder point if the firm is willing to tolerate two stock-outs during the year? b. What is Is

> A retail outlet sells a seasonal product for E10 per unit. The cost of the product is E8 per unit. All units not sold during the regular season are sold for half the retail price in an end of- season clearance sale. Assume that demand for the product i

> Apply the EOQ model to the following quantity discount situation in which D = 500 units per year, Co = E40 and the annual holding cost rate is 20 per cent. What order quantity do you recommend?  

> HamiltonCounty Parks is planning to develop a new park and recreational area. Project development activities include clearing playground and picnic areas, constructing roads, constructing a shelter house, purchasing picnic equipment and so on. The foll

> The product development group at Landon Corporation has been working on a new computer software product that has the potential to capture a large market share. Through outside sources, Landon’s management learned that a competitor is working to i

> Consider the following minimum cost transportation problem. a. Use the minimum cost method to find an initial feasible solution. b. Use the transportation Simplex method to find an optimal solution. c. How would the optimal solution change i

> Consider the following minimum cost transportation problem. a. Use the minimum cost method to find an initial feasible solution. b. Use the transportation Simplex method to find an optimal solution. c. Using your solution to part (b), identi

> The Mohawk Discount Store is designing a management training programme for staff at its corporate headquarters. The company wants to design the programme so that trainees can complete it as quickly as possible. Important precedence relationships must b

> For the PDC problem in Section 13.3, the decision alternative to build the large complex was found to be optimal using the expected value approach. In Section 13.4 we conducted a sensitivity analysis for the payoffs associated with this decision alternat

> Refer again to Problem 3. a. Suppose the objective function coefficient of x1 is increased to 3 and the objective function coefficient of x2 is increased to 4. Find the new optimal solution. b. Suppose the objective function coefficient of x1 is incre

> Arnoff Enterprises manufactures the central processing unit (CPU) for a line of tablet computers. The CPUs are manufactured at three sites in China: Shanghai, Changchun and Nanchang and then shipped to warehouses in Singapore, Seattle, Lisbon, Sao Paulo

> The Transportation Ministry is undertaking construction work relating to the excavation and site preparation of a new rest area on a major highway. The Ministry estimated that it would take four months to perform the work and that ten, 12, 14 and eight

> EZ Trailers located in Southampton, England manufactures a variety of general purpose trailers, including a complete line of boat trailers. Two of their best-selling boat trailers are the EZ-190 and the EZ-250. The EZ-190 is designed for boats up to 19 f

> The Uhuru Craft Cooperative in Tanzania was established a few years ago by a number of aid agencies in an attempt to help the local economy diversify and increase income levels of the local community. The community itself is largely subsistencebased, has

> The Emergency Department at the local hospital provides emergency health care on an as-needed basis for people involved in accidents, having injuries, etc. Understandably, it is difficult to predict how busy the Department will be at any one time and, ac

> J’s, Inc., makes three nut mixes for sale to grocery chains located in India. The three mixes, referred to as the Regular Mix, the Deluxe Mix and the Holiday Mix, are made by mixing different percentages of five types of nuts. In prepa

> Cinergy Corporation manufactures and distributes electricity for customers located in Indiana, Kentucky and Ohio. The company spends $725 to $750 million each year for the fuel needed to operate its coal fired and gas-fired power plants; 92 per cent to 9

> The Shimla Textile Mill* in India produces five different fabrics for European clothing manufacturers. Each fabric can be woven on one or more of the mill’s 38 looms. The sales department’s forecast of demand for the n

> Glenn Foreman, president of Oceanview Development Corporation based in Portugal, is considering submitting a bid to purchase property that will be sold by sealed bid. Glenn’s initial judgement is to submit a bid of E5 million. Based on

> J. D. Williams, Inc., is an investment advisory firm that manages more than E120 million in funds for its numerous clients. The company uses an asset allocation model that recommends the portion of each client’s portfolio to be invested in a growth stock

> A local healthfood cooperative runs a community cafe´ and produces two vegetarian burgers. The large burger makes a profit of 85 cents per unit sold and the standard burger 55 cents. Each burger is made from three basic ingredients as shown

> Digital Imaging (DI) produces photo printers for both the professional and consumer markets. The DI consumer division recently introduced two photo printers that provide colour prints rivalling those produced by a professional processing lab. The DI-910

> Phoenix Computer manufactures and sells personal computers directly to customers. Orders are accepted by phone and through the company’s website. Phoenix will be introducing several new laptop models over the next few months and management recognizes a n

> Better Fitness, Inc. (BFI), manufactures exercise equipment at its plant in Munich, Germany. It recently designed two universal weight machines for the home exercise market. Both machines use BFI-patented technology that provides the user with an extreme

> The Cossack Grill is an upscale restaurant located in St. Petersburg. To help plan an advertising campaign for the coming season, the restaurant’s management team hired the advertising firm of Hartman & Jablinsky (HJ). The managemen

> Morgan Trucking Company operates a special speedy pickup and delivery service in a large city for ten clients who have a pickup contract with Morgan. When Morgan receives a request for service, it dispatches a truck from its HQ to the requesting service

> In the original GDA problem, we found the shortest distance from the office (node 1) to each of the other nodes or construction sites. Because some of the roads are highways and others are country tracks, the shortest-distance routes between the office a

> The High-Price Oil Company owns a pipeline network that is used to convey oil from its source to several storage locations. A portion of the network is as follows: Due to the varying pipe sizes, the flow capacities vary. By selectively opening and clos

> Use the random numbers 0.3753, 0.9218, 0.0336, 0.5145 and 0.7000 to generate five simulated values for the PortaCom direct labour cost per unit.

> The following cost information is available for the fast-food franchise in Problem 11. Customer waiting time is valued at E25 per hour to reflect the fact that waiting time is costly to the fast-food business. The cost of each employee is E6.50 per hour

> Set up the tableau form for the following linear programme (do not attempt to solve): Min 4x1 + 5x2 + 3x3 s.t. 4x1 +2x3 2 20 1x2 – 1x3 <-8 = -5 1x1 – 2x2 2x + 1x2 + 1xз < 12 X1, X2, X3 2 0

> A project involving the installation of a computer system comprises eight activities. The following table lists immediate predecessors and activity times (in weeks). a. Draw a project network. b. What are the critical activities? c. What is the expecte

> Management of High Tech Services (HTS) would like to develop a model that will help allocate their technicians’ time between service calls to regular contract customers and new customers. A maximum of 80 hours of technician time is available over the two

> The Davis family of Bristol, England is planning its annual summer holiday. Three vacation locations along with criteria weights and location ratings follow. What is the recommended holiday location? Ratings Scottish Highlands, Cardiff, Nice, France

> Dunes Golf Course is one of the top golf courses in the Scottish Highlands. The course offers some of the best views available. Dunes targets the upper end of the golf market and in the peak spring golfing season, charges green fees of &Acirc;&pound;160

> Quality Air Conditioning manufactures three home air conditioners: an economy model, a standard model and a deluxe model. The profits per unit are E63, E95 and E135, respectively. The production requirements per unit are as follows: For the co

> The O’Neill Shoe Manufacturing Company in Ireland will produce a special-style shoe if the order size is large enough to provide a reasonable profit. For each special-style order, the company incurs a fixed cost of E1000 for the production setup. The var

> A food store in Glasgow specializes in selling organic produce to local restaurants. In the summer it buys fresh raspberries (a Scottish delicacy) from two authorized organic farms in Tayside – the McGregor Farm and the Campbell Farm. Raspberries are sup

> A firm has just completed a new plant that will produce more than 500 different products, using more than 50 different production lines and machines. The production scheduling decisions are critical in that sales will be lost if customer demands are not

> List and discuss the different stages of the management science approach.

> Naser Publishing Company is considering publishing a DVD on spreadsheet applications for business. The fixed cost of preparation, design and production setup is estimated to be E80 000. Variable production and material costs are estimated to be E3 per DV

> Consider the following linear programme: a. Solve this problem using the graphical solution procedure. b. Calculate the range of optimality for the objective function coefficient of x1. c. Calculate the range of optimality for the objective function co

> The RMC Corporation blends three raw materials to produce two products: a fuel additive and a solvent base. Each ton of fuel additive is a mixture of 0.4 ton of material 1 and 0.6 ton of material 3. A ton of solvent base is a mixture of 0.5 ton of materi

> The Ruiters&acirc;&#128;&#153; Manufacturing Company produces two products, which have the following profit and resource requirement characteristics. Last month&acirc;&#128;&#153;s production schedule used 350 hours of labour in department A and 1000 h

> Consider the PortaCom project discussed in Section 12.1 a. An engineer on the product development team believes that first-year sales for the new printer will be 20 000 units. Using estimates of E45 per unit for the direct labour cost and E90 per unit f

> Hilltop Coffee manufactures a coffee product by blending three types of coffee beans. The cost per kilo and the available kilos of each bean are as follows: Consumer tests with coffee products were used to provide ratings on a scale of 0&acirc;&#128;&#

> Recall the RMC problem (Chapter 2, Problem 12). Letting: F = kilos of fuel additive S = kilos of solvent base leads to the formulation: Max 40F + 30S s:t Use the graphical sensitivity analysis approach to determine the range of optimality for the o

> The Quick and Easy operates five fast-food restaurants in the UK. Input measures for the restaurants include weekly hours of operation, full-time equivalent staff and weekly supply expenses. Output measures of performance include average weekly contribut

> The Two-Rivers Oil Company near Pittsburgh transports gasoline to its distributors by truck. The company recently contracted to supply gasoline distributors in southern Ohio, and it has $600 000 available to spend on the necessary expansion of its fleet

> Solve the RMC problem (Chapter 2, Problem 12) using the Simplex method. At each iteration, locate the basic feasible solution found by the Simplex method on the graph of the feasible region. The problem formulation is shown here: where x1 = kilos of fu

> The Atlantic Seafood Company (ASC) is a buyer and distributor of seafood products that are sold to restaurants and speciality seafood outlets throughout the Western Europe. ASC has a frozen storage facility in Lisbon that serves as the primary distributi