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 studentsenrolled, 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:DemandProbability650.10Stock700.3065This textbook costs the bookstore $82 and sells for $112. 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:65p=0.10750.2070p=0.30800.10Demand75p=0.2080p = 0.1085p=0.30850.30

Sales Price = 112 Cost Price = 82 Profit = Sales Price - Cost Price = 112-82 = 30 Refund of…

Answered: Demand Probability 65 0.10 Stock 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...

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SoundsUp, a local amphitheater is getting ready for the upcoming summer concert season. They want to purchase reusable plastic water bottles to sell to concert attendees. Bottles cannot be reused as they will be customized with that week's artist and date. The expectation for this upcoming concert is an average demand for 3000 bottles with a standard deviation of 600. The bottles sell for $20.00 each and cost SoundsUp $12 per bottle. In the event some bottles are left over after the concert, a local radio station has indicated that they will purchase some of the leftover bottles for $15 per bottle for use in promotions, but they have not committed to any particular number that they will buy. SoundsUp estimates a 5% chance that the radio station will purchase no bottles, a 10% chance they purchase 150, a 40% chance they purchase 175, a 30% chance they purchase 225, and a 15% chance they purchase 275. If SoundsUp has any leftover bottles that are not purchased by the radio station, then…
XYZ Company's Inventory conversion period is 110 days, Receivable collection period is 169 days and Average payment period is 105 days. Then, the cash conversion cycle of the company is: a. None of these b. 174 days c. 46 days d. 164 days
Suppose the business receives the revenue at the end of the month, what is the CLV value computed from the initial assumption? (Keep 2 decimal places, no $ sign). A 1 Chum Rate 2 Retention Rate 3 Interest Rate 4 Profit Growth Rate month 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 M 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Skip question 0.25 CLV per customer (Net Present Value $ 0.75 Converting to beginning of period 0.15 $ 0 MeanProfit (if still here) Number of Customers in Cohort (100.00) 30.00 30.00 30.00 30.00 30.00 30.00 1 $ 2 $ 3 $ 4 $ 5 $ 6 $ 7 $ 8 $ 9 $ 10 $ 11 $ 12 $ 13 $ 14 $ 15 $ 16 $ 17 $ 18 $ 19 $ 20 $ 21 $ 22 $ 23 $ 24 $ 25 $ 26 $ 27 $ 28 $ 29 $ 30 $ Start Solving 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 Exit Profit 1000 $ (100,000.00) 979 $ 29,375.00 28,763.02 28,163.79 27,577.05 27,002.52 26,439.97 25,889.14 25,349.78 24,821.66 24,304.54 23,798.20 23,302.40 22,816.94…
A raw material sales reрresentative will get 2 % commission on the first Ρhр 200,000.00 of his sales. 3.5 % on the next Ρhр 200,000.00 sales and 5 % on all sales in excess of sum of the first two sales. What was his commission last May for his sales that amounted to Ρhр 482,785.00 ?
Q3. Suppose that a publishing company periodically replenish its supply of paper stock. The paper comes in large rolls and that the printer uses 90 rolls per quarterly. The cost of one roll paper is OMR 150. The cost of replenishment is OMR 10 per order. The cost of keeping the paper on hand, including rent for space occupied, insurance, and interest on the capital tied up is 10 percent per roll per year. Calculate: 1)The EOQ. 2)No. of orders in a year, and 3)Time between two successive orders 4)Average yearly cost of Inventory 4)Total inventory cost 5)Total Cost
2) Daily demand for a product is normally distributed with a mean of 100 and a standard deviation of 12. The lead time is normally distributed with a mean of 5 days and a standard deviation of 1.5 days. a) What is the ROP to satisfy a %90 probability of not stocking out? b) What is the safety stock? c) What is the probability of stocking out if the manager has decided not to keep any safety stock? What is the Z value, and what is the probability?
Suppose that a publishing company periodically replenish its supply of paper stock. The paper comes in large rolls and that the printer uses 60 rolls per bi-month. The cost of one roll paper is OMR 150. The cost of replenishment is OMR 10 per order. The cost of keeping the paper on hand, including rent for space occupied, insurance, and interest on the capital tied up is 10 percent per roll per year. Calculate: The EOQ. No. of orders in a year, and Time between two successive orders Average yearly cost of Inventory Total inventory cost Total Cost
5. An insurer charges a loading of 30% on its policies with limit $500,000, anda loading of 33% on its policies with limit $1,000,000. It purchases stoploss reinsurance of $500,000 over $500,000. The cost of this reinsurance is22% of total premiums. What is the reinsurer’s loading on the reinsurancepolicy?
Q3
An apartment complex has a vacancy rate of 5%. If the apartment's PG is $450,000, what is the apartment's vacancy cost? $32,000 $22.500 S2.050 $47,500
S5. Account
what is the rate of return when 10 shares of stock a, purchased for $30/share and sold for $380? the commission on the sale is $6

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