6-36 Ralph Janaro simply does not have time to analyze all
of the items in his company's inventory. As a young
manager, he has more important things to do. The
following is a table of six items in inventory along
with the unit cost and the demand in units.
iDENTIFlcxnoN CODE' . UNIT COST ($) DEMAND IN UNITS
XXI 5.84 1,200
B66 5.40 1,110
3CPO 1.12 896
33CP 74.54 1,104
R2D2 2.00 1,110
RMS 2.08 961
(a) Find the total amount spent on each item during
the year. What is the total investment for all of
(b) Find the percentage of the total investment in
inventory that is spent on each item.
(c) Based on the percentages in part (b), which
item(s) would be classified in categories A, B, and
C using ABC analysis?
(d) Which item(s) should Ralph most carefully control
using quantitative techniques?
7-16 A candidate for mayor in a small to 'In has allocated
" $40,000 for last-minute advertising in the days preceding
the election. Two types of ads will be used:
radio and television. Each radio ad costs $200 and
reaches an estimated 3,000 people. Each television ad
costs $500 and reaches an estimated 7,000 people. In
planning the advertising campaign, the campaign
manager would like to reach as many people as pOSSible,
but she has stipulated that at least 10 ads of each
type must be used. Also, the number of radio ads
must be at least as great as the number of television
ads. How many ads of each type showd be used? How
many people will this reach?
7-29 Graphically analyze the following problem:
maximize profit = $4X + $6Y
Subject to: X + 2Y O;8 hours
6X + 4Y O; 24 hours
(a) What is the optimal solution?
(b) If the first constraint is altered to X + 3 Y:O; 8, does
the feasible region or optimal solution change?