Bakery A sells bread for $2 per loaf that costs$0.50 per loaf to make. Bakery A gives an 80%discount for its bread at the end of the day.Demand for the bread is normally distributedwith a mean of 300 and a standard deviation of30. What order quantity maximizes expectedprofit for Bakery A? (use the normal distributiontable posted on Canvas and round up to thenearest integer)

Order quantity is the part of the inventory management . It is used to take efficient decisions for…

Answered: Bakery A sells bread for $2 per loaf…

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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Jantel Mitchell's bakery prepares all its cakes between 4 A.M.and 6 A.M.so they will be fresh when customers arrive. Day-old cakes are virtually always sold, but at a 50% discount off the regular $16 price. The cost of baking a cake is $10, and demand is estimated to be normally distributed, with a mean of 25 and a standard deviation of 7. What is the optimal stocking level? Refer to the standard normal table for z-values. The optimal stocking level for the bakery is cakes (round your response to the nearest whole number).
The seasonal demand for a particular product is given below: Period 123 4 5 6 Demand 300 450 100 450 450 100 The fixed parameters are: Fixed Cost $8 Unit Production Cost $1 Holding Cost $1.3 Calculate total ordering cost using following three methods: i) Lot-for-Lot ii) Wagner-Whitin algorithm iii) Fixed order quantity
1. A local producer of vegetables is deciding how much inventory to have to meet the next week's demand. Vegetable products are perishable with a shelf-life of a week. Based on the historical observations, the company expects the weekly demand to follow a normal distribution with mean 4500 pounds and standard deviation of 400 pounds. The price of the product is $14 per pound in the store, and it costs $6 to produce. If there are any leftovers, the company is required to dispose them safely to avoid any pollution. This process costs $0.5 per pound. Answer the following questions. a) What is the cost of overage per pound? b) What is the cost of underage per pound? c) What is the optimal order quantity?
Ram Roy's firm has developed the following supply, demand, cost, and inventory data. Supply Available Period 1 W N 3 Regular Time 30 35 40 Overtime 15 15 20 Initial inventory Regular-time cost per unit Overtime cost per unit Subcontract 10 10 10 Subcontract cost per unit Carrying cost per unit per month 20 units $100 $160 $250 $2 Demand Forecast 40 55 60 Assume that the initial inventory has no holding cost in the first period and backorders are not permitted. Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $ (enter your response as a whole number).
3. Skinner’s Fish Market buys fresh Boston bluefish daily for $4.20 per pound and sells it for $6 per pound. At the end of each business day, any remaining bluefish is sold to a producer of cat food for $3 per pound. Daily demand can be approximated by a normal distribution with a mean of 64 pounds and a standard deviation of 11 pounds. What is the optimal order quantity (stocking level)? Round your answer to 2 decimal places. Answer:_______
United Airlines has an agreement to buy jet fuel from Exxon. The goal is to minimize total cost (i.e., ordering cost + holding cost). The annual demand for fuel is 201,000 barrels. Exxon charges United $3740 to process each order. United incurs a holding cost of $20 per barrel. When purchasing using the EOQ (from last question), what is the order cycle time (days between orders) for United? Note: round your answer to the nearest 1 decimal place. For example, answer like 12.3 Answer: Check
Among the following multi-period inventory models, which one has the highest probability of stockout? A. Fixed Order Quantity with Safety Stock B. Fixed Time Period Model C. Fixed Order Quantity D. Both Fixed Order Quantity & Fixed Order Quantity with Safety Stock
As the Manager of Branson’s Department Store, you are responsible for ensuring that reorder quantities for the various items have been correctly established. You decide to test one item and choose product Z. A continuous review inventory policy has been used, so you examine this as well as other records and come up with the following data: Cost per unit $35 Holding cost 20 percent of unit cost Average daily demand 10 units Ordering cost $30 per order Standard deviation of daily demand 3 units Delivery lead time 4 days Because customers generally do not wait but go elsewhere, you decide on a service probability of 90 percent. Assume that Branson’s Department Store operates 320 days per year. [What is the annual demand (D)? Determine the optimal order quantity, Q*. Determine the reorder point (R) if demand is constant. Determine the reorder point (R) if demand is varies.
Peet’s Coffees in Menlo Park, California, sells Melitta Number 101 coffee filters at afairly steady rate of about 60 boxes of filters monthly. The filters are ordered from asupplier in Trenton, New Jersey. Peet’s manager is interested in applying some inventorytheory to determine the best replenishment strategy for the filters.Peet’s pays $2.80 per box of filters and estimates that fixed costs of employee timefor placing and receiving orders amount to about $20. Peet’s uses a 22 percent annualinterest rate to compute holding costs.a. How large a standing order should Peet’s have with its supplier in Trenton, and howoften should these orders be placed?
A health and nutrition store stocks a multivitamin with an annual demand of 1,000 bottles has Co = $26.50 and Ch = $7. The demand exhibits some variability such that the lead-time demand follows a normal probability distribution with ? = 25 and ? = 5. (a) What is the recommended order quantity? (Round your answer to the nearest integer.):________ (b) What are the reorder point and safety stock if the store desires at most a 6% probability of stock-out on any given order cycle? (Round your answers to the nearest integer.) reorder point:________ safety stock:________ (c) If a manager sets the reorder point at 30, what is the probability of a stock-out on any given order cycle? (Round your answer to four decimal places.):________ How many times would you expect a stock-out during the year if this reorder point were used? (Round your answer to the nearest integer.):________
Jill's Job Shop buys two parts (Tegdiws and Widgets) for use in its production system from two different suppliers. The parts are needed throughout the entire 52-week year. Tegdiws are used at a relatively constant rate and are ordered whenever the remaining quantity drops to the reorder level. Widgets are ordered from a supplier who stops by every two weeks. Data for both products are as follows: ITEM TEGDIW WIDGET Annual demand 7,000 10,000 Holding cost (% of item cost) 30 % 30 % Setup or order cost $ 190.00 $ 10.00 Lead time 7 weeks 2 week Safety stock 45 units 9 units Item cost $ 5 $ 6 a. What is the reorder quantity and reorder point for Tegdiws? (Round your answers to the nearest whole number.) b. What is the inventory control system for Widgets? (Round your answer to the nearest whole number.) Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer…
Suppose the weekly demand at each regional distribution center (RDC) is normally distributed with a mean =117 and standard deviation =23. The company is considering to replace the RDCs with one central distribution center (CDC). The CDC would continue to have a continuous review policy, and the delivery lead time from Asia will remain 8 weeks. What is the average weekly demand at CDC?

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