LO1: Develop and Solve Nonlinear Optimization Models for Different Applications\[\begin{array} { | l | l | l | l | } \hline \text { Testing } & 3.5 & 5 & 5 \\ \hline \text { Packnging } & 3 & 3 & 7 \\ \hline & & & \\ \hline \text { Maxirnum } & 4 & 5 & \\ \hline \end{array}\]

The Answer of LO1: Develop and Solve Nonlinear Optimization Models for Different Applications\[\begin{array} { | l | l | l | l | } \hline \text { Testing } & 3.5 & 5 & 5 \\ \hline \text { Packnging } & 3 & 3 & 7 \\ \hline & & & \\ \hline \text { Maxirnum } & 4 & 5 & \\ \hline \end{array}\]

LO1: Develop and Solve Nonlinear Optimization Models for Different Applications\[\begin{array} { | l | l | l | l | } \hline \text { Testing } & 3.5 & 5 & 5 \\ \hline \text { Packnging } & 3 & 3 & 7 \\ \hline & & & \\ \hline \text { Maxirnum } & 4 & 5 & \\ \hline \end{array}\]

The Answer of LO1: Develop and Solve Nonlinear Optimization Models for Different Applications\[\begin{array} { | l | l | l | l | } \hline \text { Testing } & 3.5 & 5 & 5 \\ \hline \text { Packnging } & 3 & 3 & 7 \\ \hline & & & \\ \hline \text { Maxirnum } & 4 & 5 & \\ \hline \end{array}\]

Solved

LO1: Develop and Solve Nonlinear Optimization Models for Different Applications

question 40

Multiple Choice

LO1: Develop and solve nonlinear optimization models for different applications. Use the table below to answer the following questions) .
Pickson Luthiers Corporation is studying where to locate a phone charging point on the factory floor. The locations of five production cells are expressed as X- and Y-coordinates on a rectangular grid of the factory layout. The daily demand for the charging point measured as the number of trips to the charging point) at each production cell is also known. Because of the nature of the equipment layout in the factory and for safety reasons, workers must travel along marked horizontal and vertical aisles to access the charger. Thus, the distance from a cell to the charger is measured as rectilinear distance.
The table below provides the relevant information. $\begin{array}{|l|l|l|l|}\hline\text { Pickson Luthiers } \\ \text { Corporation } & \text { Phone Recharging Points } & \\\hline & & & \\\hline \text { Data } & \\\hline\\\hline \text { Cell } & X \text {-coordinate } & Y \text {-coordinate } & \text { Demand } \\\hline \text { Measurements } & 2 & 5 & 27 \\\hline \text { Paint } & 1 & 3 & 12 \\\hline \text { Electricals } & 4 & 2 & 25 \\\hline\end{array}$ $\begin{array} { | l | l | l | l | } \hline \text { Testing } & 3.5 & 5 & 5 \\\hline \text { Packnging } & 3 & 3 & 7 \\\hline & & & \\\hline \text { Maxirnum } & 4 & 5 & \\\hline\end{array}$ The optimal location should minimize the total weighted distance between the charging point and all production cells, where the weights are the daily number of trips to the phone charging point.
Create a nonsmooth optimization model, based on the data, to answer the following questions. Hint: Choose the closest answers.)
-According to the model, which of the following is the Y-coordinate for the phone charger location?

Determine the weighted average cost of capital (WACC).

Calculate weighted average flotation cost.

Assign appropriate weights to common stock in WACC calculations.

Estimate the company's cost of equity.

Definitions:

Von Neumann-Morgenstern

A theory of expected utility that describes how rational individuals choose among uncertain prospects, emphasizing the maximization of utility for decision-making under uncertainty.

Utility Function

A mathematical representation in economics that portrays an individual's preference ranking for different bundles of goods or outcomes.

Expected Utility

A theory in economics that calculates the utility expected from different choices to assess risk and make decisions.

Income

The financial gain that an individual or business receives, usually from employment, business activities, or investments.