he Home and Garden (HG) chain of superstores imports decorative planters from Italy. Weekly demand for planters averages 1,500 with a standard deviation of 800. Each planter costs $10. HG incurs a holding cost of 25% per year to carry inventory. HG has an opportunity to set up a superstore in the Bakersfield region. Each order shipped from Italy incurs a fixed transportation and delivery cost of $10,000. Consider 52 weeks in the year. If the delivery lead time from Italy is 1 week and HG wants to provide its customers a cycle service level of 90%, how much safety stock should it carry? 1,025 1,776 1,940 2,253 A firm sells electronic components through catalogs. Catalogs are printed once every year. Each printing run incurs a variable production cost of $5 per catalog. Annual demand for catalogs is estimated to be normally distributed with a mean of 16,000 and standard deviation of 4,000. Data indicates that, on average, each customer ordering a catalog generates a profit of $35 from sales. Assuming that the firm wants only one printing run in each year, how many catalogs should be printed in each run? hint: Solve by newsvendor logic (optimal service level and Prob(R
he Home and Garden (HG) chain of superstores imports decorative planters from Italy. Weekly demand for planters averages 1,500 with a standard deviation of 800. Each planter costs $10. HG incurs a holding cost of 25% per year to carry inventory. HG has an opportunity to set up a superstore in the Bakersfield region. Each order shipped from Italy incurs a fixed transportation and delivery cost of $10,000. Consider 52 weeks in the year. If the delivery lead time from Italy is 1 week and HG wants to provide its customers a cycle service level of 90%, how much safety stock should it carry? 1,025 1,776 1,940 2,253 A firm sells electronic components through catalogs. Catalogs are printed once every year. Each printing run incurs a variable production cost of $5 per catalog. Annual demand for catalogs is estimated to be normally distributed with a mean of 16,000 and standard deviation of 4,000. Data indicates that, on average, each customer ordering a catalog generates a profit of $35 from sales. Assuming that the firm wants only one printing run in each year, how many catalogs should be printed in each run? hint: Solve by newsvendor logic (optimal service level and Prob(R
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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The Home and Garden (HG) chain of superstores imports decorative planters from Italy. Weekly demand for planters averages 1,500 with a standard deviation of 800. Each planter costs $10. HG incurs a holding cost of 25% per year to carry inventory. HG has an opportunity to set up a superstore in the Bakersfield region. Each order shipped from Italy incurs a fixed transportation and delivery cost of $10,000. Consider 52 weeks in the year.
If the delivery lead time from Italy is 1 week and HG wants to provide its customers a cycle service level of 90%, how much safety stock should it carry?
1,025
1,776
1,940
2,253
A firm sells electronic components through catalogs. Catalogs are printed once every year. Each printing run incurs a variable production cost of $5 per catalog. Annual demand for catalogs is estimated to be normally distributed with a mean of 16,000 and standard deviation of 4,000. Data indicates that, on average, each customer ordering a catalog generates a profit of $35 from sales. Assuming that the firm wants only one printing run in each year, how many catalogs should be printed in each run?
hint: Solve by newsvendor logic (optimal service level and Prob(R
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