CH 04 Assignments

CH 04 Assignments - Revised January 2011 Chapter 04...

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Revised January 2011 Chapter 04 Assignments: Note : After formulation, solve the problems using Management Scientist software.  Problem 1 The Westchester Chamber of Commerce periodically sponsors public service seminars and programs. Currently, promotional plans are under way for this year's program. Advertising alternatives include television, radio, and newspaper. Audience estimates, costs, and maximum media usage limitations are as shown. Constraint Television Radio Newspaper Audience per advertisement 100,000 18,000 40,000 Cost per advertisement $2000 $300 $600 Maximum media usage 10 20 10 To ensure a balanced use of advertising media, radio advertisements must not exceed 50% of the total number of advertisements authorized. In addition, television should account for at least 10% of the total number of advertisements authorized. a. If the promotional budget is limited to $18,200, how many commercial messages should be run on each medium to maximize total audience contact? What is the allocation of the budget among the three media, and what is the total audience reached? b. By how much would audience contact increase if an extra $ 100 were allocated to the promotional budget?  Problem 2 The management of Hartman Company is trying to determine the amount of each of two products to produce over the coming planning period. The following information concerns labor availability, labor utilization, and product profitability. Product 1 Product 2 Available Department (hours/unit) (hours/unit) Labor-Hours A 1.00 0.35 100 B 0.30 0.20 36 C 0.20 0.50 50 ($/unit) ($/unit) Profit Contribution 30.00 15.00 a. Develop a linear programming model of the Hartman Company problem. Solve the model to determine the optimal production quantities of products 1 and 2. b. In computing the profit contribution per unit, management doesn't deduct labor costs because they are considered fixed for the upcoming planning period. However, suppose that overtime can be scheduled in some of the departments. Which departments would you recommend scheduling for overtime? How much would you be willing to pay per hour of overtime in each department?
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c. Suppose that 10, 6, and 8 hours of overtime may be scheduled in departments A, B,
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CH 04 Assignments - Revised January 2011 Chapter 04...

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