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39. Burger Prince buys top-grade ground beef for $1.00 per pound. A large sign over the entrance guarantees that the meat is fresh daily. Any leftover meat is sold to the local high school cafeteria for 80 cents per pound. Four hamburgers can be prepared from each pound of meat. Burgers sell for 60 cents each. Labor, overhead, meat, buns, and condiments cost 50 cents per burger. Demand is normally distributed with a mean of 400 pounds per day and a standard deviation of 50 pounds per day. What daily order quantity is optimal? (Hint: Shortage cost must be in dollars per pound.)

39. Burger Prince buys top-grade ground beef for $1.00 per pound. A large sign over the entrance guarantees that the meat is fresh daily. Any leftover meat is sold to the local high school cafeteria for 80 cents per pound. Four hamburgers can be prepared from each pound of meat. Burgers sell for 60 cents each. Labor, overhead, meat, buns, and condiments cost 50 cents per burger. Demand is normally distributed with a mean of 400 pounds per day and a standard deviation of 50 pounds per day. What daily order quantity is optimal? (Hint: Shortage cost must be in dollars per pound.)

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Preview File Edit View Go Tools Window Help 1)) 84% a Stevenson, W. J. - Operations management. (14th ed.). McGraw-Hill-Mcgraw-Hill (2021).pdf (page 581 of 929) MBAD E Activis Opr Game Activis Q Search 8 https://www.chegg.com pare eacn cаке. Fresn сакes self for $12. Day-Old cакes sel for $9 eacn. wnat stoскing level 1S appropriate if one-half of the day-old cakes are sold and the rest thrown out? 39. Burger Prince buys top-grade ground beef for $1.00 per pound. A large sign over the entrance guarantees that the meat is fresh daily. Any leftover meat is sold to the local high school cafeteria for 80 cents per pound. Four hamburgers can be prepared from each pound of meat. Burgers sell for 60 cents each. Labor, overhead, meat, buns, and condiments cost 50 cents per burger. Demand is normally distributed with a mean of 400 pounds per day and a standard deviation of 50 pounds per day. What daily order quantity is optimal? (Hint: Shortage cost must be in dollars per pound.) Home Find books, homework solutions, or practic 40. Demand for rug-cleaning machines at Clyde's U-Rent-It is shown in the following table. Machines are rented by the day only. Profit on the rug cleaners is $10 per day. Clyde has four rug- cleaning machines. Pick back up AutoSave OFF nd Home Insert Draw Page Layout For Demand Frequency A - .30 Clipboard Font Alignment Number 1 .20 2 .20 * Office Update To keep up-to-date with security 3 .15 J42 - x V fx | 2, 4,11, 13, 16, 26, 39 4 .10 A В C .05 19 20 Item Usage Un 1.00 21 tes 4021 90 2$ a. Assuming that Clyde's stocking decision is optimal, what is the implied range of excess cost 22 9402 300 23 per machine? 24 4066 30 b. Your answer from part a has been presented to Clyde, who protests that the amount is too low. Does this suggest an increase or a decrease in the number of rug machines he stocks? Explain. 25 6500 150 26 9280 10 27 4050 80 c. Suppose now that the $10 mentioned as profit is instead the excess cost per day for each machine and that the shortage cost is unknown. Assuming that the optimal number of machines is four, what is the implied range of shortage cost per machine? 28 29 6850 2,000 30 3010 400 31 4400 5,000 32 ot 41. A manager is going to purchase new processing equipment and must decide on the number of spare parts to order with the new equipment. The spares cost $200 each, and any unused spares will have an expected salvage value of $50 each. The probability of usage can be described by this 33 c. Determine the percentage of items i M 34 egory for part b. 35 36 distribution: 37 38 39 Number 1 3 40 41 11 6 PM 2022-...0 PM/ 2022 7 PM 2022-3 PM Mode...rfare 2 42 2 2, 4,11, 13, 16, 26, 39, 40 – D lil 曲 电田
Transcribed Image Text:Preview File Edit View Go Tools Window Help 1)) 84% a Stevenson, W. J. - Operations management. (14th ed.). McGraw-Hill-Mcgraw-Hill (2021).pdf (page 581 of 929) MBAD E Activis Opr Game Activis Q Search 8 https://www.chegg.com pare eacn cаке. Fresn сакes self for $12. Day-Old cакes sel for $9 eacn. wnat stoскing level 1S appropriate if one-half of the day-old cakes are sold and the rest thrown out? 39. Burger Prince buys top-grade ground beef for $1.00 per pound. A large sign over the entrance guarantees that the meat is fresh daily. Any leftover meat is sold to the local high school cafeteria for 80 cents per pound. Four hamburgers can be prepared from each pound of meat. Burgers sell for 60 cents each. Labor, overhead, meat, buns, and condiments cost 50 cents per burger. Demand is normally distributed with a mean of 400 pounds per day and a standard deviation of 50 pounds per day. What daily order quantity is optimal? (Hint: Shortage cost must be in dollars per pound.) Home Find books, homework solutions, or practic 40. Demand for rug-cleaning machines at Clyde's U-Rent-It is shown in the following table. Machines are rented by the day only. Profit on the rug cleaners is $10 per day. Clyde has four rug- cleaning machines. Pick back up AutoSave OFF nd Home Insert Draw Page Layout For Demand Frequency A - .30 Clipboard Font Alignment Number 1 .20 2 .20 * Office Update To keep up-to-date with security 3 .15 J42 - x V fx | 2, 4,11, 13, 16, 26, 39 4 .10 A В C .05 19 20 Item Usage Un 1.00 21 tes 4021 90 2$ a. Assuming that Clyde's stocking decision is optimal, what is the implied range of excess cost 22 9402 300 23 per machine? 24 4066 30 b. Your answer from part a has been presented to Clyde, who protests that the amount is too low. Does this suggest an increase or a decrease in the number of rug machines he stocks? Explain. 25 6500 150 26 9280 10 27 4050 80 c. Suppose now that the $10 mentioned as profit is instead the excess cost per day for each machine and that the shortage cost is unknown. Assuming that the optimal number of machines is four, what is the implied range of shortage cost per machine? 28 29 6850 2,000 30 3010 400 31 4400 5,000 32 ot 41. A manager is going to purchase new processing equipment and must decide on the number of spare parts to order with the new equipment. The spares cost $200 each, and any unused spares will have an expected salvage value of $50 each. The probability of usage can be described by this 33 c. Determine the percentage of items i M 34 egory for part b. 35 36 distribution: 37 38 39 Number 1 3 40 41 11 6 PM 2022-...0 PM/ 2022 7 PM 2022-3 PM Mode...rfare 2 42 2 2, 4,11, 13, 16, 26, 39, 40 – D lil 曲 电田
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