Columbus grocery store faces demand for freshly squeezed pomegranate juice. The daily demand for freshly squeezed juice ranges from 10 to 20 gallons. The grocery store offers the juice in a special 1 gallon bottle. Each gallon costs $8 to make and is sold for $15. Any juice that is not sold by the end of the day can all be sold to a local food processor for $5. Compute the decision rule ratio using the marginal analysis (rounding it to two decimal places). O 0.53 O0.47 O0.50 D0.30 D0.70

Columbus grocery store faces demand for freshly squeezed pomegranate juice. The daily demand for freshly squeezed juice ranges from 10 to 20 gallons. The grocery store offers the juice in a special 1 gallon bottle. Each gallon costs $8 to make and is sold for $15. Any juice that is not sold by the end of the day can all be sold to a local food processor for $5. Compute the decision rule ratio using the marginal analysis (rounding it to two decimal places). O 0.53 O0.47 O0.50 D0.30 D0.70

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

Answer properly please, and format your answer/work so it's clear to follow
6. A careful analysis of the cost of operating an automobile was conducted by accounting manager Dia Bandaly. The following model was developed: y=4,000+0.20x, where y is the annual cost and x is the miles driven. Part 2 a) If the car is driven 15,000 miles this year, the forecasted cost of operating this automobile= ___________ (enter your response as a whole number).
Horton Manufacturing Incorporated produces blinds and other window treatments for residential homes and offices. The owner is concerned about the maintenance costs for the production machinery because maintenance costs for the previous fiscal year were higher than he expected. The owner has asked you to assist in estimating future maintenance costs to better predict the firm’s profitability. Together, you have determined that the best cost driver for maintenance costs is machine hours. The data from the previous fiscal year for maintenance costs and machine hours follow: Maintenance Costs Machine Hours 1 $ 2,660 1,557 2 2,705 1,660 3 2,755 1,675 4 2,855 1,725 5 2,890 1,845 6 3,040 1,895 7 2,900 1,855 8 2,940 1,875 9 2,815 1,765 10 2,605 1,445 11 2,625 1,620 12 2,925 1,460 Maintenance cost = 1208 + (0.9667 x Machine hours) 1. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed above.
Simple exponential smoothing (with a 0.2) is beingused to forecast monthly beer sales at Gordon’s LiquorStore. After observing April’s demand, the predicted demandfor May is 4,000 cans of beer.a At the beginning of May, what is the prediction forJuly’s beer sales?b Actual demand during May and June is as follows:May, 4,500 cans of beer; June, 3,500 cans of beer. Afterobserving June’s demand, what is the forecast for July’sdemand?c The demand during May and June averages out to 4,5002 3,500 4,000 cans per month. This is the same asthe forecast for monthly sales before we observed theMay and June data. Yet after observing the May andJune demands for beer, our forecast for July demand hasdecreased from what it was at the end of April. Why?
Amalgamated Products which produces chemical materials has the following demand pattern for one of its key products. Weekly demand data is show below: Week Demand 1 1000 2 1250 3 800 4 1900 5 1640 6 2200 7 1870 8 2670 9 3210 10 2850 11 2200 12 2980 13 3790 14 4210 15 4716 Apply the Holt’s Model in forecasting the demand for period 16 What are the optimal values for alpha and beta if the decision-maker wishes to restrict both values to be between 0.25 and 0.65 What is the value of the minimized error term in this context? Show all related EXCEL plotsＢ Note: Include all EXCEL regression output and any plots
M2,
Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and web-site construction is estimated to be $150,000. Variable processing costs are estimated to be $7 per book. The publisher plans to sell single-user access to the book for $49. (a) Build a spreadsheet model in Excel to calculate the profit/loss for a given demand. What profit can be anticipated with a demand of 3,400 copies? For subtractive or negative numbers use a minus sign. $ (b) Use a data table to vary demand from 1,000 to 6,000 in increments of 200 to test the sensitivity of profit to demand. Breakeven occurs where profit goes from a negative to a positive value, that is, breakeven is where total revenue = total cost yielding a profit of zero. In which interval of demand does breakeven occur? (i) Breakeven appears in the interval of 3,000 to 3,200 copies. (ii)…
the coefficient
A dress buyer for a large department store must place orders with the dress manufacturer 9 months before the dresses are needed. One decision is the number of knee-length dresses to stock. The ultimate gain to the department store depends both on the decision and on the fashion prevailing 9 months later. The buyer's estimates of the gains (in thousands of pesos) are given below: Decision Order none Order a little Order moderately Order a lot S1 knee lengths are high fashion -50 -10 60 80 States of Nature S2 - knee lengths are acceptable 0 30 45 40 S3 - knee lengths are not acceptable 80 35 -30 -45 a) Determine the decision if the buyer uses the minimax regret criterion. b) Based on the buyer's experience, the probability that S1 occurs is 45% and S3 is 25%. Using the expected values method, what will be the buyer's decision? c) Determine the EOL. d) Determine the posterior probabilities of having a high demand for fashion. e) Determine the posterior probabilities of having a low demand…
For the Hawkins Company, the monthly percentages of all shipments received on time over the past 12 months are: Monthly Proportion of All Shipments Received On Time 80 81 85 83 84 86 85 85 82 81 85 84 Estimate the average of MSE of a three-month moving average and an exponential smoothingfor α = 0.3. Group of answer choices 1.24 2.4 3.56 4.25 4.58
Given this data, compute the standard cost for one seafood dinner. What would the suggested menu price for the seafood dinner be assuming that the target food cost percent is 40 percent? Ingredient Serving Size (OZ) Edible Yield (%) AP Price Per Pound Fish 12 75 $8.98 Rice 4 100 $0.22 Beans 4 90 $0.65 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.
The University of Miami bookstore stocks textbooks in preparation for sales each semester. It normally relies on departmental forecasts and preregistration records to determine how many copies of a text are needed. Preregistration shows 85 operations management students enrolled, but bookstore manager Vaidy Jayaraman has second thoughts, based on his intuition and some historical evidence. Vaidy believes that the distribution of sales may range from 65 to 85 units, according to the following probability model: Demand Probability 65 0.05 Stock 65 70 75 80 85 70 0.25 This textbook costs the bookstore $82 and sells for $107. Any unsold copies can be returned to the publisher, less a restocking fee and shipping, for a net refund of $30. a) Based on the given information, Vaidy's conditional profits table for the bookstore is: Demand 75 P=0.30 65 P = 0.05 0000 70 P = 0.25 75 0.30 ☐☐☐☐ 80 0.15 00000 80 85 P = 0.15 P = 0.25 30000 85 0.25 ☐☐☐☐