QDM Midterm answers - QUANTITATIVE DECISION MAKING MID-TERM...

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QUANTITATIVE DECISION MAKING NAME__________________ MID-TERM TEST Spring 2005 Points Possible = 100 points POINTS = ______________ Show all of your work. Start each problem on a separate page. Submit all computer output generated in solving the problems. 1. Given a fixed cost of $50,000 to start a production process. Once the process has begun, the variable cost per unit is $25. The revenue per unit is projected to be $45. (10 points) a. Write an expression for total cost. b. Write an expression for total revenue. c. Write an expression for total profit. d. Find the break-even point. . a. C(x) = 50000 + 25x b. R(x) = 45x c. P(x) = 45x - (50000 + 25x) d. x = 2500 2. A manufacturer makes two products, doors and windows. Each must be processed through two work areas. Work area #1 has 60 hours of available production time. Work area #2 has 48 hours of available production time. Manufacturing of a door requires 4 hours in work area #1 and 2 hours in work area #2. Manufacturing of a window requires 2 hours in work area #1 and 4 hours in work area #2. Profit is $8 per door and $6 per window. (10 points) a. Define decision variables that will tell how many units to build (doors and windows). b. Develop an objective function that will maximize profits. c. Develop production constraints for work area #1 and #2. a. Let D = the number of doors to build Let N = the number of windows to build b. Profit = 8D + 6W c. 4D + 2W 60 2D + 4W 48 3. Consider the following linear programming problem. (10 points) Max 8X + 7Y s.t. 15X + 5Y < 75 10X + 6Y < 60 X + Y < 8 X, Y 0 a. Use a graph to show each constraint and the feasible region. b.
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This note was uploaded on 04/20/2010 for the course IE ie200 taught by Professor . during the Spring '10 term at 카이스트, 한국과학기술원.

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QDM Midterm answers - QUANTITATIVE DECISION MAKING MID-TERM...

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