Answer questions 25,26,27 & 28 and show all work 24. The once-a-year order for each year's calendar
Fantastic news! We've Found the answer you've been seeking!
Question:
Answer questions 25,26,27 & 28 and show all work
Transcribed Image Text:
24. The once-a-year order for each year's calendar arrives in September. From past experience the September-to-July demand for the calendars can be approximated by a normal probability distribution with u=500 and = 120. The calendars cost $1.50 each, and J&B sells them for $3 each a. If J&B throws out all unsold calendars at the end of July (i.e.. salvage value is zero), how many calendars should be ordered? b. If J&B reduces the calendar price to $1 at the end of July and can sell all surplus calendars at this price. how many calendars should be ordered? period, probabilistic demand 25. dod y statistic pemand period ornbabiestic Jument pet c, probabuisac demand Inventory Models 485 The Gilbert Air-Conditioning Company is considering the purchase of a SELF est special shipment of portable air conditioners manufactured in Japan. Each unit will cost Gilbert $80 and it will be sold for $125, Gilbert does not want to carry surplus air conditioners over until the following year. Thus, all surplus air conditioners will be sold to a wholesaler for $50 per unit. Assume that the air conditioner demand follows a normal probability distribution with u 20 and = 8. a. What is the recommended order quantity? b. What is the probability that Gilbert will sell all units it orders? 26. A popular newsstand in a large metropolitan area is attempting to determine how many copies of the Sunday paper it should purchase each week. Demand for the newspaper on Sundays can be approximated by a normal probability distribution with u=450 and = 100. The newspaper costs the newsstand 35 a copy and sells for 50c a copy. The newsstand does not receive any value from surplus papers and thus absorbs a 100% loss on all unsold papers. How many copies of the Sunday paper should be purchased each week? What is the probability that the newsstand will have a stockout? a. b. C. The manager of the newsstand is concerned about the newsstand's image if the probability of stockout is high. The customers often purchase other items after coming to the newsstand for the Sunday paper. Frequent stockouts would cause customers to go to another news- stand. The manager agrees that a 50 goodwill cost should be assigned to any stockout. What is the new recommended order quantity and the new probability of a stockout? 27. A perishable dairy product is ordered daily at a particular supermarket. The product, which costs $1.19 per unit, sells for $1.65 per unit. If units are unsold at the end of the day, the supplier takes them back at a rebate of $1 per unit. Assume that daily demand is approximately normally distributed with u = 150 and = 30. a. What is your recommended daily order quantity for the supermarket? b. What is the probability that the supermarket will sell all the units it orders? c. In problems such as these, why would the supplier offer a rebate as high as $1? For example, why not offer a nominal rebate of, say. 25 per unit? What happens to the supermarket order quantity as the rebate is reduced? 28. A retail outlet sells a seasonal product for $10 per unit. The cost of the product is $8 per unit. All units not sold during the regular season are sold for half the retail price in an end-of-season clearance sale. Assume that demand for the product is uniformly distributed between 200 and 800. a. What is the recommended order quantity?" b. What is the probability that at least some customers will ask to purchase the product after the outlet is sold out? That is, what is the probability of a stockout using your order quantity in part (a)? c. To keep customers happy and returning to the store later, the owner feels that stockouts should be avoided if at all possible. What is your recommended order quantity if the owner is willing to tolerate a 0.15 probability of a stockout? d. Using your answer to part (c), what is the goodwill cost you are assigning to a stockout? 24. The once-a-year order for each year's calendar arrives in September. From past experience the September-to-July demand for the calendars can be approximated by a normal probability distribution with u=500 and = 120. The calendars cost $1.50 each, and J&B sells them for $3 each a. If J&B throws out all unsold calendars at the end of July (i.e.. salvage value is zero), how many calendars should be ordered? b. If J&B reduces the calendar price to $1 at the end of July and can sell all surplus calendars at this price. how many calendars should be ordered? period, probabilistic demand 25. dod y statistic pemand period ornbabiestic Jument pet c, probabuisac demand Inventory Models 485 The Gilbert Air-Conditioning Company is considering the purchase of a SELF est special shipment of portable air conditioners manufactured in Japan. Each unit will cost Gilbert $80 and it will be sold for $125, Gilbert does not want to carry surplus air conditioners over until the following year. Thus, all surplus air conditioners will be sold to a wholesaler for $50 per unit. Assume that the air conditioner demand follows a normal probability distribution with u 20 and = 8. a. What is the recommended order quantity? b. What is the probability that Gilbert will sell all units it orders? 26. A popular newsstand in a large metropolitan area is attempting to determine how many copies of the Sunday paper it should purchase each week. Demand for the newspaper on Sundays can be approximated by a normal probability distribution with u=450 and = 100. The newspaper costs the newsstand 35 a copy and sells for 50c a copy. The newsstand does not receive any value from surplus papers and thus absorbs a 100% loss on all unsold papers. How many copies of the Sunday paper should be purchased each week? What is the probability that the newsstand will have a stockout? a. b. C. The manager of the newsstand is concerned about the newsstand's image if the probability of stockout is high. The customers often purchase other items after coming to the newsstand for the Sunday paper. Frequent stockouts would cause customers to go to another news- stand. The manager agrees that a 50 goodwill cost should be assigned to any stockout. What is the new recommended order quantity and the new probability of a stockout? 27. A perishable dairy product is ordered daily at a particular supermarket. The product, which costs $1.19 per unit, sells for $1.65 per unit. If units are unsold at the end of the day, the supplier takes them back at a rebate of $1 per unit. Assume that daily demand is approximately normally distributed with u = 150 and = 30. a. What is your recommended daily order quantity for the supermarket? b. What is the probability that the supermarket will sell all the units it orders? c. In problems such as these, why would the supplier offer a rebate as high as $1? For example, why not offer a nominal rebate of, say. 25 per unit? What happens to the supermarket order quantity as the rebate is reduced? 28. A retail outlet sells a seasonal product for $10 per unit. The cost of the product is $8 per unit. All units not sold during the regular season are sold for half the retail price in an end-of-season clearance sale. Assume that demand for the product is uniformly distributed between 200 and 800. a. What is the recommended order quantity?" b. What is the probability that at least some customers will ask to purchase the product after the outlet is sold out? That is, what is the probability of a stockout using your order quantity in part (a)? c. To keep customers happy and returning to the store later, the owner feels that stockouts should be avoided if at all possible. What is your recommended order quantity if the owner is willing to tolerate a 0.15 probability of a stockout? d. Using your answer to part (c), what is the goodwill cost you are assigning to a stockout?
Expert Answer:
Answer rating: 100% (QA)
It appears the image contains text with several inventory management questions related to probabilistic demand Lets solve them one by one Question 25 ... View the full answer
Related Book For
OM6 operations supply chain management
ISBN: 978-1305664791
6th edition
Authors: David Alan Collier, James R. Evans
Posted Date:
Students also viewed these mathematics questions
-
The J&B Card Shop sells calendars depicting a different Colonial scene each month. The once-a-year order for each years calendar arrives in September. From past experience, the September-to-July...
-
The J&B Card Shop sells calendars featuring a different Colonial picture for each month. The once-a-year order for each years calendar arrives in September. From past experience the September-to-July...
-
In designing an experiment, the researcher can often choose many different levels of the various factors in order to try to find the best combination at which to operate. As an illustration, suppose...
-
Suppose that M is a nonsingular matrix. (a) Prove that the implicit iterative scheme M u(n+l) = u(n) is asymptotically stable if and only if all the eigenvalues of M are strictly greater than one in...
-
In Table 3.6, what exact score falls at the 25th percentile rank? Use the appropriate formula. Table 3.6 Cumulative Relative Frequency for Statistics Test Scores Score 98 96 94 93 92 91 90 89 88 87...
-
A contract is created to refurbish a luxury yacht: new color schemes, new furniture, new wall and floor coverings, new light fixtures, and window treatmentsthe whole works. Of course, it is not just...
-
Clearcast Communications Inc. is considering allocating a limited amount of capital investment funds among four proposals. The amount of proposed investment, estimated income from operations, and net...
-
The threshold frequency v0 describes the smallest light frequency capable of ejecting electrons from a metal. Determine the minimum energy E0 of a photon capable of ejecting electrons from a metal...
-
(4) The 200-mm-diameter rods AB and BC, having the original lengths shown, are joined at the collar Band fixed connected at their ends. If a torque is applied at collar Bas shown, determine the...
-
discuss the concept of distributed leadership and its effectiveness in empowering individuals at all levels of an organization to take ownership of their roles and contribute to strategic objectives?
-
discuss the implications of geopolitical shifts, such as the rise of multipolarity and the decline of traditional power structures, on the dynamics of global governance and diplomatic relations?
-
1. What did you most enjoy about learning INTL 3 (IMPORTING AND EXPORTING REGULATION) ? What was the least? 2. What designation would you likely decide to start off with? Which one interest you the...
-
Did you enjoy the documentary film on Dr. Barnes and his museum? What struck you the most about the film? And why? To what extent do you believe that visual arts such as paintings, sculpture, and...
-
In 2005, Martha was charged with and pleaded guilty to shoplifting. She received a conditional discharge, and according to the law in that province (Quebec), she automatically received a pardon after...
-
On November, 1 of the current year, Rob Elliot invested $30,500.00 of his cash to form a corporation, GGE Enterprises Inc, in exchange for shares of common stock. No other common stock was issued...
-
Portal Manufacturing has total fixed costs of $520,000. A unit of product sells for $15 and variable costs per unit are $11. a). Prepare a contribution margin income statement showing predicted net...
-
An analyst makes the following statement: Use of P/E and other multiples for analysis is not effective because the multiples are based on historical data and because not all companies have positive...
-
The primary difference between P/E multiples based on comparables and P/E multiples based on fundamentals is that fundamentals-based P/Es take into account: A. Future expectations. B. The law of one...
-
A price-to-earnings ratio that is derived from the Gordon growth model is inversely related to the: A. Growth rate. B. Dividend payout ratio. C. Required rate of return.
Study smarter with the SolutionInn App