Inventory Management

Inventory Management

Remember to keep following APA guidelines such as a properly formatted reference page and New Times Roman size 12 font. APA-style references, APA, 6th edition What are the conditions causing linear programming problems to have multiple solutions? Do you prefer the corner point method or the isoprofit, isocost method? Why? Explain the purpose and procedures of the simplex method. What is a shadow price? How does the concept relate to the dual of an LP problem? How does it relate to the primal? Electrocomp’s management realizes that it forgot to include two critical constraints (see Problem 7-14). In particular, management decides that there should be a minimum number of air conditioners produced in order to fulfill a contract. Also, due to an oversupply of fans in the preceding period, a limit should be placed on the total number of fans produced. If Electrocomp decides that at least 20 air conditioners should be produced but no more than 80 fans should be produced, what would be the optimal solution? How much slack or surplus is there for each of the four constraints? If Electrocomp decides that at least 30 air conditioners should be produced but no more than 50 fans should be produced, what would be the optimal solution? How much slack or surplus is there for each of the four constraints at the optimal solution? Management of Sundown Rent-a-Car (see Problem 8.8) has decided that perhaps the cost during the six- month period is not the appropriate cost to minimize because the agency may still be obligated to additional months on some leases after that time. For example, if Sundown had some cars delivered at the beginning of the sixth month, Sundown would still be obligated for two additional months on a three-month lease. Use LP to determine how many cars should be leased in each month on each type of lease to minimize the cost of leasing over the entire life of these leases.