Famous Albert prides himself on being the Cookie King of the West. Small, freshly baked cookies are the specialty of his shop. Famous Albert has asked for help to determine the number of cookies he should make each day. From an analysis of past demand, he estimates demand for cookies as DEMAND PROBABILITY OF DEMAND 1,800 dozen 0.05 2,000 0.10 2,200 0.20 2,400 0.30 2,600 0.20 2,800 0.10 3,000 0.05 Each dozen sells for $0.69 and costs $0.49, which includes handling and transportation. Cookies that are not sold at the end of the day are reduced to $0.29 and sold the following day as day-old merchandise. Compute the expected profit or loss for each cookie making decision quantity. (Round your answers to the nearest whole number. Enter expected losses with a negative sign) Based on your answers to part a., what is the optimal number of cookies to make? By using marginal analysis, what is the optimal number of cookies to make?
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.
Famous Albert prides himself on being the Cookie King of the West. Small, freshly baked cookies are the specialty of his shop. Famous Albert has asked for help to determine the number of cookies he should make each day. From an analysis of past demand, he estimates demand for cookies as
| DEMAND | PROBABILITY OF DEMAND | |
|---|---|---|
| 1,800 | dozen | 0.05 |
| 2,000 | 0.10 | |
| 2,200 | 0.20 | |
| 2,400 | 0.30 | |
| 2,600 | 0.20 | |
| 2,800 | 0.10 | |
| 3,000 | 0.05 |
Each dozen sells for $0.69 and costs $0.49, which includes handling and transportation. Cookies that are not sold at the end of the day are reduced to $0.29 and sold the following day as day-old merchandise.
-
Compute the expected profit or loss for each cookie making decision quantity.
(Round your answers to the nearest whole number. Enter expected losses with a negative sign)
-
Based on your answers to part a., what is the optimal number of cookies to make?
-
By using marginal analysis, what is the optimal number of cookies to make?
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