A newspaper boy is trying to perfect his business in order to maximize the money he can save for a new car. Daily paper sales are normally distributed, with a mean of 100 and standarddeviation of 10 He sells papers for $0.50 and pays $0.30 for them Unsold papers are trashed with no salvage value. How many papers should he order each day and what % of the time willhe experience a stockout? Are there any drawbacks to the order size proposed and how could the boy address such issues?BIS

Answered: Image /qna-images/answer/4d9bd275-597e-404c-b97a-159b4b13bc66.jpg

Answered: A newspaper boy is trying to perfect…

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...

See similar textbooks

Similar questions

A chemical factory orders chemical after every 20 days. Lead time for the factory is 5 days. The stock inspection done by the company revealed that eleven 25- millilitres (ml) jars are on hand. The mean of 16 ml per day and standard deviation of 2 ml per day is the daily usage of chemicals. The service level for this chemical is 95 percent. Calculate the amount of chemicals to be ordered. Answer Choices: a. 5 jars b. 4 jars c. 8 jars d. 6 jars
A fish restaurant sells fish for 50$ per kg and buys it from the suppliers for 10$ per kg. Fish that were not sold during the day go bad. A manager has estimated that daily demand for fish is normally distributed with a mean of 20kg and a standard deviation of 5 kg. The manager has to decide how much fish to order per day. Find a profit-maximizing order.
Saché, Incorporated, expects to sell 2,030 of its designer suits every week. The store is open seven days a week and expects to sell the same number of suits every day. The company has an EOQ of 1,450 suits and a safety stock of 290 suits. Once an order is placed, it takes three days for Saché to get the suits in. How many orders does the company place per year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Assume that it is Monday morning before the store opens, and a shipment of suits has just arrived. When will Saché place its next order? multiple choice Monday Tuesday Wednesday Thursday Friday Saturday Sunday
The annual demand for pollock (a type of fish) at Ant Kitchens is 1000 pounds. The per pound cost of Pollock for Ant Kitchens $4.00. Fish are delivered frozen from the supplier three weeks after the order is placed. Each time an order of Pollack is received, Ant incurs $200 in handling costs to store the Pollack for use. Ant Kitchens cost of capital is 20%. Assume 50 weeks in a year. a) If Ant currently orders pollock 4 times per year, what are the inventory ordering and holding costs associated with this policy? b) What is the optimal continuous review ordering policy for pollock at Ant? What is the cost of this policy? How does this answer compare to part a? c) If Ant Kitchens follows the inventory policies above, how long does the company hold the average pound of pollock in inventory in each case? What is the inventory turnover? Interpret these quantities in a sentence.
The following data represent the beginning inventory and, in order of occurrence, the purchases and sales of Meow, Inc. for an operating period. Units Unit Total Units Cost Cost Sold Beginning Inventory 50 $62 $3,100 Sale No. 1 40 Purchase No. 1 30 50 1,500 Sale No. 2 32 Purchase No. 2 40 44 1,760 Totals 120 $6,360 72 Assuming Meow, Inc. uses LIFO perpetual inventory procedures, the ending inventory cost is:
13 Pam’s demand for hats is normally distributed with mean 500 and standard deviation 100. She sells her hats for $50 each and buys hats for $10 each, and anything she can't sell by the end of the year, the wholesaler will buy for $5 each. How many hats should she order for next year to maximize profit?
The Big Buy Supermarket stocks Munchies Cereal. Demand for Munchies is 4,000 boxes peryear (365 days). It costs the store $60 per order of Munchies, and it costs $0.80 per box per yearto keep the cereal in stock. Once an order for Munchies is placed, it takes 4 days to receive theorder from a food distributor. Determine The optimal order size
EE Co has calculated the following in relation to its inventories.Buffer inventory level 60 unitsReorder size 250 itemsFixed order costs $40 per orderCost of holding onto one item pa $1.5 per yearAnnual demand 10,000 itemsPurchase price $2 per itemWhat is the total inventory related costs for a year (to the nearest whole $)?
A coffee shop consumes 350 lbs of coffee per week at a steady rate. The coffee shop buys coffee from a supplier at the cost of $10 per lb, and ordering cost of $5 per order. The supplier takes 8 days to deliver an order (assume that 1 week = 7 days). What should be the reorder point (in pounds) for the coffee shop (i.e., at what level of inventory it should place an order with the supplier).
Every year XYZ Corp. sells 3,300 units of its product. It is charged $56.50 every time it reorders from its supplier and its inventory holding costs are $6.20 per unit. In order to minimize overall inventory costs, what would be the firm's average number of units that it holds?
Paul’s Toy Distributor (PTD) sells 200 game consoles every week. PTD charges a $300 fixed cost for every delivery. PTD’s annual inventory holding cost is $45 per console. Assume that there are 52 weeks a year. Assume that PTD orders 1000 game consoles at a time. What is the average amount of time the consoles stay as PTD’s inventory before being sold? Find the closest answer.
Alpha Products, Inc., is having a problem trying to control inventory. There is insufficient time to devote to all its items equally. The following is a sample of some items stocked, along with the annual usage of each item expressed in dollar volume. ITEM ANNUAL DOLLAR USAGE ITEM ANNUAL DOLLAR USAGE a S 30, 100 k S 1,700 b 27,000 120,000 c 93,000 m 111,000 d 1,400 n 3,000 e 1,800 o 500 f 30,000 p 114, 000 g 1,600 q 2,600 h 2,500 г 28,000 i 3, 200 s 2, 800 j 1,500 t 3, 100 a. Suggest a system for allocating control time? multiple choice ABC analysis Cycle counting b. Specify where each item from the list would be placed.

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Business in Action

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

Production and Operations Analysis, Seventh Editi…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS