a)Determine the service levelb) determine optimal stocking level Muffins are delivered daily to a cafeteria. Demand varies between 30 and 50muffins per day and follows Uniform distribution.The cafeteria pays 20 cents per muffin and charges 80 cents for it.unsold muffins have no salvage value and cannot be sold the next day.

Uniform distribution refers to the scenario in which the probability of all the outcomes is equally…

Answered: a)Determine the service level b)…

Business

Operations Management

a)Determine the service level b) determine optimal stocking level

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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Question

a)Determine the service level

b) determine optimal stocking level

Muffins are delivered daily to a cafeteria. Demand varies between 30 and 50
muffins per day and follows Uniform distribution.
The cafeteria pays 20 cents per muffin and charges 80 cents for it.
unsold muffins have no salvage value and cannot be sold the next day.

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2.7 Which of the following help explain how the Reorder Point (ROP) works in conjunction with the Economic Order Quantity (Q), the number of orders (N) and the time between orders (T)? a) The Economic Order Quantity (Q) and the Annual Demand (D) are used to determine the number of Order (N) b) The number of orders (N) and the number of days that a firm works (W) are used to determine the time span between orders (T) c) Orders are placed every T days unless the inventory on hand fall to or below the Reorder Point d) Only a and b e) f) Only b and c All of a, b and c 2.8 The objective of Inventory Management is to balance inventory investment (cost) and customer service. a) TRUE b) False 2.9 The Economic Order Quantity (EOQ), the number of orders, the Reorder Point (ROP), the time between orders are important analytics in Inventory Management. a) TRUE b) FALSE 2.10 The number of working days for a firm is an important input in calculating the components of the Economic Order Quantity…
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