Demand for rug-cleaning machines at Clyde’s U-Rent-It is shown in the following table. Machinesare rented by the day only. Profit on the rug cleaners is $10 per day. Clyde has four rug-cleaningmachines.Demand Frequency0 .301 .202 .203 .154 .105 .051.00a. Assuming that Clyde’s stocking decision is optimal, what is the implied range of excess costper machine?b. Your answer from part a has been presented to Clyde, who protests that the amount is too low.Does this suggest an increase or a decrease in the number of rug machines he stocks? Explain.c. Suppose now that the $10 mentioned as profit is instead the excess cost per day for eachmachine and that the shortage cost is unknown. Assuming that the optimal number ofmachines is four, what is the implied range of shortage cost per machine?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Demand for rug-cleaning machines at Clyde’s U-Rent-It is shown in the following table. Machines
are rented by the day only. Profit on the rug cleaners is $10 per day. Clyde has four rug-cleaning
machines.
Demand Frequency
0 .30
1 .20
2 .20
3 .15
4 .10
5 .05
1.00
a. Assuming that Clyde’s stocking decision is optimal, what is the implied range of excess cost
per machine?
b. Your answer from part a has been presented to Clyde, who protests that the amount is too low.
Does this suggest an increase or a decrease in the number of rug machines he stocks? Explain.
c. Suppose now that the $10 mentioned as profit is instead the excess cost per day for each
machine and that the shortage cost is unknown. Assuming that the optimal number of
machines is four, what is the implied range of shortage cost per machine?
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