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MAT540 Strayer University Week 9 Linear Programming Questions

MAT540 Strayer University Week 9 Linear Programming Questions

MAT540 Strayer University Week 9 Linear Programming Questions

Please see the attached question and answer sheet provided;
MAT540Week 9 HomeworkChapter 16
1. The Western Jeans Company purchases denim from Cumberland Textile Mills. The WesternJeans Company uses 35,000 yards of denim per year to make jeans. The cost of ordering denimfrom the textile company is $500 per order. It costs Western $0.35 per yard annually to hold ayard of denim in inventory. Determine the optimal number of yards of denim the WesternJeans Company should order, the minimum total annual inventory cost, the optimal number oforders per year, and the optimal time between orders.
2. The Metropolitan Book Company purchases paper from the Atlantic Paper Company.Metropolitan produces magazines and paperbacks that require 1,215,000 pounds of paper peryear. The cost per order for the company is $1,200; the cost of holding 1 pound of paper ininventory is $0.08 per year.Determine the following:
a) The economic order quantity
b) The minimum total annual cost
c) The optimal number of orders per year
d) The optimal time between orders
3. The Petroco Company uses a highly toxic chemical in one of its manufacturing processes. Itmust have the product delivered by special cargo trucks designed for safe shipment ofchemicals. As such, ordering (and delivery) costs are relatively high, at $2,600 per order. Thechemical product is packaged in 1-gallon plastic containers. The cost of holding the chemical instorage is $50 per gallon per year. The annual demand for the chemical, which is constant overtime, is 2,000 gallons per year. The lead time from time of order placement until receipt is 10days. The company operates 310 working days per year. Compute the optimal order quantity,the total minimum inventory cost, and the reorder point.
4. The I-75 Carpet Discount Store has an annual demand of 10,000 yards of Super Shag carpet.The annual carrying cost for a yard of this carpet is $0.75, and the ordering cost is $150. Thecarpet manufacturer normally charges the store $8 per yard for the carpet; however, themanufacturer has offered a discount price of $6.50 per yard if the store will order 5,000 yards.How much should the store order, and what will be the total annual inventory cost for thatorder quantity?
5. The office manager for the Gotham Life Insurance Company orders letterhead stationery froman office products firm in boxes of 500 sheets. The company uses 6,500 boxes per year. Annualcarrying costs are $3 per box, and ordering costs are $28. The following discount price scheduleis provided by the office supply company:Order Quantity (in boxes) Price per Box200-999 $161000-2999 143000-5999 136000+ 12
a. Determine the optimal order quantity and the total annual inventory cost.
b. Determine the optimal order quantity and total annual inventory cost for boxes of stationeryif the carrying cost is 20% of the price of a box of stationery

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