Inventory manager of a retail store wants to order plastic Easter eggs, demand for which is highly seasonal. Easter eggs come in a special value box (250 eggs per box). The manufacturer is located in China, so a long lead time required to receive the orders. After the order is placed, eggs will arrive just in time before the Easter Holiday. Therefore, if stocks out, the inventory manager will not be able to place a second order. The demand follows a normal distribution with a mean of 4,000 boxes and a standard deviation of 500 boxes. Each ordered special value box will cost $3 and will retail at $7. Leftover eggs will be salvaged at $2 per box after the Easter Holiday. Customer goodwill cost is estimated to be $0.934 for each lost sale. Find optimal order quantity and Expected Sold (Assume f_u(z)=0.25). Group of answer choices Cannot be calculated using the information given Q*=4,480 boxes, E[Sold]=4,000 boxes Q*=3,956 boxes, E[Sold]=4,480 boxes Q*=4,480 boxes, E[Sold]=3,956 boxes Q*=4,000 boxes, E[Sold] = 4,480 boxes
Inventory manager of a retail store wants to order plastic Easter eggs, demand for which is highly seasonal. Easter eggs come in a special value box (250 eggs per box). The manufacturer is located in China, so a long lead time required to receive the orders. After the order is placed, eggs will arrive just in time before the Easter Holiday. Therefore, if stocks out, the inventory manager will not be able to place a second order. The demand follows a normal distribution with a mean of 4,000 boxes and a standard deviation of 500 boxes. Each ordered special value box will cost $3 and will retail at $7. Leftover eggs will be salvaged at $2 per box after the Easter Holiday. Customer goodwill cost is estimated to be $0.934 for each lost sale. Find optimal order quantity and Expected Sold (Assume f_u(z)=0.25). Group of answer choices Cannot be calculated using the information given Q*=4,480 boxes, E[Sold]=4,000 boxes Q*=3,956 boxes, E[Sold]=4,480 boxes Q*=4,480 boxes, E[Sold]=3,956 boxes Q*=4,000 boxes, E[Sold] = 4,480 boxes
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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Inventory manager of a retail store wants to order plastic Easter eggs, demand for which is highly seasonal. Easter eggs come in a special value box (250 eggs per box). The manufacturer is located in China, so a long lead time required to receive the orders. After the order is placed, eggs will arrive just in time before the Easter Holiday. Therefore, if stocks out, the inventory manager will not be able to place a second order. The demand follows a normal distribution with a mean of 4,000 boxes and a standard deviation of 500 boxes. Each ordered special value box will cost $3 and will retail at $7. Leftover eggs will be salvaged at $2 per box after the Easter Holiday. Customer goodwill cost is estimated to be $0.934 for each lost sale. Find optimal order quantity and Expected Sold (Assume f_u(z)=0.25).
Group of answer choices
Cannot be calculated using the information given
Q*=4,480 boxes, E[Sold]=4,000 boxes
Q*=3,956 boxes, E[Sold]=4,480 boxes
Q*=4,480 boxes, E[Sold]=3,956 boxes
Q*=4,000 boxes, E[Sold] = 4,480 boxes
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