A mathematical programming system named SilverScreener uses a 0-1 integer programming model to help theater managers decide which movies to show on a weekly basis in a multiple-screen theater (Interfaces, May/June 2001). Suppose that management of Valley Cinemas would like to investigate the potential of using a similar scheduli ...continues
Each square n*n region of an image yields a vector of length n^2 such that the components of the vector are the grey levels of the pixels in the square. Let u, v be the vectors obtained from two image patches, let a be the average of the entries in u, let b be the average of the entries in V and let e be the vector of length n^ ...continues
Photo-Max, a large photographic outlet, receives 5,000 collapsible tripods annually from Quality Photographic Suppliers to meet annual demand. The ordering cost is $15 per order, and the carrying cost is $0.50 per unit per year. Quality Photographic, building on its established reputation for on-time delivery, is interested in s ...continues
Georgia Pacific offers the following discount schedule for its 4X8 ft. sheets of quality plywood. (see chart in attached file) Ace Lumber and Building Supply regularly stocks this product from Georgia pacific and has an annual demand of 1000 sheets. The carrying cost at Ace Lumber is 20% of product cost, and a cost of $45 ...continues
A manager of an inventory system believes that inventory models are important decision-making aids. Even though often using an EOQ policy, the manager never considered a backorder model because of the assumption that backorders were inappropriate and should be avoided. However, with upper management's continued pressure for cost ...continues
The management of Alaska Airlines has decided to base its overbooking policy of a stochastic single period model to maximize expected profit. This policy now needs to be implemented on a new flight from Seattle to Atlanta. The aircraft has 125 seats available for a one-way fare of $250. However, since there are commonly a few no ...continues
A product sold by Home Depot, Inc., with an annual demand of 1000 units has Co = $25.50 and Ch = $8. The demand exhibits some variability such that the lead-time demand follows a normal probability distribution with µ = 25 and σ = 5. a. Determine the recommended order quantity. b. Determine the reorder point and safe ...continues
Myrtle Air Express decided to offer direct service from Cleveland to Myrtle Beach. Management must decide between a full-price service using the company's new fleet of jet aircraft and a discount service using smaller capacity commuter planes. It is clear that the best choice depends on the market reaction to the service Myrtle ...continues
Seneca Hill Winery recently purchased land for the purpose of establishing a new vineyard. Management is considering two varieties of white grapes for the new vineyard: Chardonnay and Riesling. The Chardonnay grapes would be used to produce a dry Chardonnay wine, and the Riesling grapes would be used to produce a semi-dry Riesli ...continues
Embassy Publishing company received a six-chapter manuscript for a new college textbook. The editor of the college division is familiar with the manuscript and estimated a 0.65 probability that the textbook will be successful. If successful, a profit of $750,000 will be realized. If the company decides to publish the textbook an ...continues
