In most cases, simulation models provide optimal solutions to problems just like most of the equations presented in your textbook

On June 1, 2012, Pitts Company sold some equipment to Gannon Company. The two companies entered into an installment sales contract at a rate of 8%. The contract required 8 equal annual payments with the first payment due on June 1, 2012. What type of compound interest table is appropriate for this situation?

a. Present value of an annuity due of 1 table. b. Present value of an ordinary annuity of 1 table. c. Future amount of an ordinary annuity of 1 table. d. Future amount of 1 table.

Byron's Manufacturing makes tables. Demand for the next four months and capacities of the plant are shown in the table below. Unit cost on regular time is $40. Overtime cost is 150% of regular time cost

Subcontracting is available in substantial quantity at $75 per unit. Holding costs are $5 per table per month; back orders cost the firm $10 per unit per month. Byron's management believes that the transportation algorithm can be used to optimize this scheduling problem. The firm has 50 units of beginning inventory and anticipates no ending inventory. March April May June Demand 400 600 600 700 Regular capacity 400 400 400 400 Overtime capacity 100 100 100 100 Subcontract cap. 150 50 50 50 Answer the following questions based on the data table and solution table shown below. Byron's Manufacturing March April May June SUPPLY Beginning Inventory 0 5 10 15 50 March regular time 40 45 50 55 400 March overtime 60 65 70 75 100 March subcontracting 75 80 85 90 150 April regular time 50 40 45 50 400 April overtime 70 60 65 70 100 April subcontracting 85 75 80 85 50 May regular time 60 50 40 45 400 May overtime 80 70 60 65 100 May subcontracting 95 85 75 80 50 June regular time 70 60 50 40 400 June overtime 90 80 70 60 100 June subcontracting 105 90 85 75 50 DEMAND 400 600 600 700 Byron's Manufacturing Solution Optimal Cost = $109,750 March April May June DUMMY Beginning Inventory 50. March regular time 350. 50. March overtime 100. March subcontracting 100. 50. April regular time 400. April overtime 50. 50. April subcontracting 50. May regular time 400. May overtime 50. 50. May subcontracting 50. 50. June regular time 400. June overtime 100. June subcontracting 50. 100. a. How many units will be produced on regular time in June? b. How many units will be produced by subcontracting over the four-month period? c. What will be the inventory at the end of April? d. What will be total production from all sources in April? e. What will be the total cost of the optimum solution? f. Does the firm utilize the expensive options of subcontracting and back ordering? When; why?