After taking a production seminar, Al Weiss, the owner of Weiss's paint store mentioned in Problem 14, decides that his stock-out cost of $10 may not be very accurate and switches to a service level model. He decides to set his lot size by the EOQ formula and determines his reorder point so that there is no stock-out in 90 percent of the order cycles. a. Find the resulting (Q, R) values. b. Suppose that, unfortunately, he really wanted to satisfy 90 percent of his demands (that is, achieve a 90 percent fill rate). What fill rate did he actually achieve from the policy determined in part (a)?

After taking a production seminar, Al Weiss, the owner of Weiss's paint store mentioned in Problem 14, decides that his stock-out cost of $10 may not be very accurate and switches to a service level model. He decides to set his lot size by the EOQ formula and determines his reorder point so that there is no stock-out in 90 percent of the order cycles. a. Find the resulting (Q, R) values. b. Suppose that, unfortunately, he really wanted to satisfy 90 percent of his demands (that is, achieve a 90 percent fill rate). What fill rate did he actually achieve from the policy determined in part (a)?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

You are partners with Alice and Mark. You contributed 50% of the capital, Alice contributed 30%, and Mark contributed 20%. (a) How would the annual profits of $100,000 be distributed among all three of you? (b) Using these same numbers, how would an annual loss of $80,000 be distributed between the three of you?
A company manufactures two types of leaf blowers: an electric Turbo model and a gas-powered Tornado model. The company's production plan calls for the production of at least 690 blowers per month. It costs $74 to produce each Turbo model and $111 to manufacture each Tornado model, and the company has at most $63,640 per month to use for production. Find the number of units that should be produced to maximize profit for the company, and the maximum profit, if the profit on each Turbo model is $35 and the profit on each Tornado model is $40. The maximum value is $ by producing integers or decimals.) units of the Turbo model and units of the Tornado model. (Type
Please I need a solution within 40 minutes
Suppose a researcher is analyzing the economic efficiency of two different production techniques, A and B, in a manufacturing industry. Technique A has a fixed cost of $10,000 and variable costs of $5 per unit, while technique B has a fixed cost of $15,000 and variable costs of $3 per unit. The market price per unit of the product is $20. Calculate the breakeven point in terms of units for each technique, and determine which technique is more efficient in terms of lower breakeven sales.
If the FC = $200, the VC of the 9th unit is $400, and the VC of the 8th unit is $300, then ___: a) The MC curve is above the ATC curve at the 10th unit;b) The MC of the 8th unit is $80;c) The ATC of the 8th unit is $80;d) The AVC of the 8th unit is $75.
A manufacturing company plans to expand their production and logistics facility into one of the countries listed in the following table. The cost of building such facilities in each country differ based on the state of its economic and political climate. Three cost estimates were made per country in million dollars. What is the best decision alternative using MAXIMAX CRITERION and its cost? Economic/Political Climate Country Decline Same | Improve South Korea 21.7 19.1 15.2 China 19.0 18.5 17.6 Taiwan 19.2 17.1 14.9 Philippines 22.5 16.8 13.8 Мexico 25.0 21.2 12.5
a) Find the output mix that will maximise profits for a firm with a maximum joint output capacity of 46 when n = 80x – 2x? – 0.5xy – 1.5y? + 105y b) Estimate the effect on profits if the output capacity is increased by one unit. Assume that profits are in £.
What are the strengths factors of Tesla Inc. in 2018?
Calculate a Goal Value Standard using the following information: A x B x (C x D) = Item Value A= 1- food cost % B= Number Sold C= Selling Price D= 1 – (food cost % + variable cost %) Food Cost % = 35%, Selling Price= $8.00, Number Sold= 125, Variable Cost %= 25%
There is no D* for this Scenario 1 situation: p =40 − 0.2D and TC= $100 + $50D. True False