7. SBS Juices sell orange juice. Every morning (7am) the manager has to decide on the amount (liter) ofjuice to make for customers arriving between 8am and 9am. Demand for the juice follows a normaldistribution with a mean of 20 liters per day and a standard deviation of 5 liters per day. Price per liter is$48.067, material cost per liter is $40, and salvage value per liter is $10. What is the optimal level of juiceto make each morning to maximize expected profit?

Given, Mean m = 20 liters per day Standard deviation sd = 5 liters per day Selling price sp =…

Answered: 7. SBS Juices sell orange juice. Every…

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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As manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put together thus far: Item Soft Drink Wine Coffee Candy Selling Price $1.20 $2.00 $1.25 $1.20 Variable Cost $0.60 $0.95 $0.35 $0.25 % of Revenue 26 24 30 20 Last year's manager, Scott Ellis, has advised you to be sure to add 10% of variable cost as a waste allowance for all categories. You estimate labor cost to be $300.00 (5 booths with 2 people each). Even if nothing is sold, your labor cost will be $300.00, so you decide to consider this a fixed cost. Booth rental, which is a contractual cost at $50.00 for each booth per night, is also a fixed cost. a) Based on the information available, the per night break-even point in dollars for the St. Cloud Theatre Company = $633.640 (round your response to two decimal places).
A convenience store uses the fixed-period inventory control system (FPS) to manage its inventory of distilled water bottles. This system relies on the following information. (a)Using EOQ (rounded up), what is the time interval between reviews T in operating days? Note that after having the rounded-up EOQ, you should not round up values at intermediate steps; and, you should round T up only after the last calculation. (For example: enter 10 for 10 days.) (b) What is the current inventory position (IP) in bottles? (For example: enter 70 for 70 bottles) (c)Without safety stock, what is the replenishment level without safety stock M(AD) in bottles? Note that the question does not ask for M(ST). (For example: enter 70 for 70 bottles) (d)If today is the review day and without safety stock, what is the order quantity in bottles given M(AD)? (For example: enter 70 for 70 bottles)
(Revenue Mgmt) Donut Shop Donna's Delicious Donuts (DDD) produces 380 donuts each morning. There are 3 flavors of glaze Donna coats the donuts with: Regular Glaze, Chocolate Glaze, and Blueberry Glaze. Tommy of Tommy's Terrific Tours (TTT) called Donna and said he wants to bring his tour bus by DDD at 11:00am tomorrow. Normally, DDD has sold out of donuts by 11:00am, but Donna told Tommy she would hold back at least 30% of all donuts made that morning until the tour bus arrived. In addition, she said she would give tour customers a 20% discount off of the regular price. Donna has only enough blueberry glaze on hand to make 90 blueberry glaze donuts.lq 100 The table below shows the prices and maximum demand for the different options. Develop and solve an LP model to maximize revenues for DDD on the day the tour bus arrives. (Include Ranges.) What is her maximized amount of revenues? How many total regular glaze, chocolate glaze, and blueberry glaze donuts will she make? How many regular…
We run a fresh produce stand at farmer’s market where we sell avocados and artichokes. Each morning, a supplier drops off bags of these products. We can buy up to 200 bags of avocados and up to 175 bags of artichokes each morning. We resell the bags to customers throughout the day. The contribution margin of avocados is $15/bag; the contribution margin of artichokes is $20/bag. We sell at least twice as many bags of avocados as we do artichokes. We have found that our normal daily demand is between 140 and 350 total bags what are the constaints
Consider the requirement that shopping malls need a license to remain open 24 hours, where these licenses are in fixed supply. These licenses are however freely tradable among actual and potential owners, and the industry is perfectly competitive. If the average 24-hour shopping mall’s annual revenue is $250,000, while the licenses may be leased at an annual fee of $100,000. Given this information, average variable cost for the industry would be $100,000. Is the preceding statement true or false?
In the context of data warehouses, what precisely does the term "Hybrid Approach" imply?
solve question (c) with complete explanation asap
Please answer A-D
The option attempts to absorb the demand fluctuations is : Capacity option Demand option
Josh Smith, the materials manager at a retail store, has determined that a particular product experienced 5 turns last year, with an annual sales volume of $15 million. What was the average inventory value for this product last year? $2.5 million $2.75 million $3 million $5 million
1. HP produces printers for sale in Europe in its Vancouver, Canada factory. Printers sold in different countries differ in terms of the power outlet as well as the language manuals. Currently HP assembles and packs printers for sale in individual countries. The distribution of weekly demand in different countries is normally distributed with mean an standard deviation as shown in the Table below. Assume demand in different countries to be independent. Given that the lead time from the Vancouver factory is six weeks, how much total safety inventory does HP require in Europe if it targets a cycle service level of 95 percent? Country France/Benelux UK/Ireland Germany Italy/Spain/Portugal Demand Forecast 3000 4000 4000 2500 Standard Deviation 2000 2200 1250 800 EAMO2 ad of el how A utarase sit themsi What if HP decides to build a central distribution center (DC) in Europe. It will ship base printers (without power supply) to the new DC. When an order is received, the DC will assemble…
13.2 A company manufactures component parts for machine tools in North America and ships them to Southeast Asia for assembly and sale in the local market. The components are shipped by sea, transit time averages 6 weeks, and the shipping costs $2700 per shipment. The company is considering moving the parts by air at an estimated cost of $7500; the shipment taking 2 days to get there. If inventory in transit for the shipment costs $125 per day, should they ship by air?

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