**Problem 20-10 (Algo)**You are a newsvendor selling *San Pedro Times* every morning. Before you get to work, you go to the printer and buy the day’s paper for $0.45 a copy. You sell a copy of *San Pedro Times* for $1.40. Daily demand is distributed normally with mean = 340 and standard deviation = 68. At the end of each morning, any leftover copies are worthless and they go to a recycle bin.**a. How many copies of San Pedro Times should you buy each morning?** (*Use Excel’s NORMSINV() function to find the correct critical value for the given α-level. Round your z-value to 2 decimal places and final answer to 2 decimal places.*)- [ ] Answer is complete but not entirely correct. - Optimal order quantity: 0.05**b. Based on a, what is the probability that you will run out of stock?** (*Round your answer to the nearest whole number.*)- [ ] Answer is complete but not entirely correct. - Probability: 3 %**Explanation of Components:**1. **Optimal Order Quantity:** - This is the ideal number of copies to purchase based on demand distribution and cost considerations. The value provided is a placeholder (0.05) and needs calculation.2. **Probability of Running Out of Stock:** - This represents the likelihood that demand will exceed the supply of newspapers. The stated probability is 3%, indicating potential stockouts, and the aim is to minimize this while maximizing profit.

Answered: a. How many copies of San Pedro Times…

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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Brynn is the owner of a spa store that operates 50 weeks per year. Dazzle Shampoo is a high margin stock-keeping unit (SKU), but the product goes out of stock frequently. She decides to use a fixed-quantity system (FQS) and orders boxes of Dazzle Shampoo containing 10 bottles per box from a vendor 160 miles away. She collects the following data with respect to the sales of Dazzle Shampoo. Demand 10 boxes per week Order Cost $40 per order Item Cost $80 per box per year Inventory-Holding Cost 15 percent per year Lead Time 3 weeks Standard Deviation in Weekly Demand 6 Service Level 96 percent Using the given data, it can be concluded that the economic order quantity (EOQ) of the Dazzle Shampoo boxes is a. more than 25 but less than or equal to 35 boxes. b. less than 25 boxes. c. more than 35 but less than or equal to 45 boxes. d. more than 55 boxes.
Furnitures sells office chairs ordered from its flagship store. It costs $100 to place an order, and the lead time is two weeks. Demand during lead time is N(40, 1.96). in future goodwill. It pays $60 for each chair and sells it for $100. The annual holding a chair inventory is 30% of its purchase cost. Furnitures estimates that each stockout causes a loss of $50 a) Assuming that all demand is backlogged, what are the reorder point and the safety stock level? b) To meet 99% service objective, what should be the safety stock level for Type 1 Service? For Type 2 Service?
Princetown paints ltd manufactures three basic types of paint. emulsion, gloss, and undercoat. using the same mixing machines and direct labour for each of the three products. the Management accountant of Princetown paints was faced with the task of arranging the weekly production for his company. information about the sale price and costs per 100 liters is given in the following table ( all figures in $). sales price per 100 liters ( emulsion 120), ( gloss 126), ( undercoat 110). variable cost per 100 liters ( emulsion 120), ( gloss 126), ( undercoat 110). direct material costs ( emulsion 11), ( gloss 25), ( undercoat 20). direct labour costs ( emulsion 30), ( gloss 36), ( undercoat 24). mixing costs ( emulsion 32), ( gloss 20), ( undercoat 36). other variable costs ( emulsion 12), ( gloss 15), ( undercoat 10). the cost of direct labour is $3 per hour and the variable cost of mixing is $4 per hour. in any one week, direct labour hours are restricted to 8000 hours and mixing machine…
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You sell Candy Corn each year. You have averaged 3,343 pounds of candy corn sold each year with a standard deviation of 130. You desire a 55% service level. How many pounds of candy corn do you order this year? Type your answer.....
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You are the owner of Hotspices.com, an online retailer of hip, exotic, and hard-to-findspices. Consider your inventory of saffron, a spice (generally) worth more by weightthan gold. You order saffron from an overseas supplier with a shipping lead time of fourweeks and you order weekly. Average weekly demand is normally distributed with amean of 40 ounces and a standard deviation of 30 ounces.a. Suppose it uses an order-up-to level of 301 ounces. What is its expected on-hand inventory? b. Suppose it uses an order-up-to level of 250 ounces. What is its expected on-order inventory? c. Suppose it uses an order-up-to level of 368 ounces. What is its in-stock probability? d. Suppose it wants a .96 in-stock probability. What should its order-up-to level be?
solve within 30 minutes.
3: A manufacturer maintains an inventory of needles. Inventory consumption is constant at 1200 needles per day and lead time for new needles is constant at five days. If the manufacturer wishes to maintain a safety stock of 600 needles, what should its reorder point be? OA. 5000 OB. 5400 F2 OC. 4800 OD.7200 OE. 6600 OF. 6000 #3 A Moving to another question will save this response. 80 E F3 $ 4 DOD OOD F4 R % 5 F5 T A 6 MacBook Air Y & 7 ◄◄ F7 U * 8 ► 11 F8 ( 9 F9 O ) 0 F10 >> (4) F11 + 11 F12 # 2 dele
Suppose inventory is managed using the order-up-to model. The inventory position is 20and demand in the last period was 10. What is the target in-stock probability? a. 95 percentb. 96 percentc. 97 percentd. 98 percente. 99 percentf. Could be any of the above a–eg. Cannot be any of the above a–e
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Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

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