(MULTI-PERIOD MODEL). We have a probabilistic inventory model where demand is accumulated and orders are received with zero delivery delays. delivery delays. The probability distribution function of the demand per period is uniform between 0 and 10. period is uniform between 0 and 10, and the cost parameters are - Selling price per unit $2 - Purchase price per unit $1 - Storage cost per unit per month $0.10 - Penalty cost per unit and per month $3 - Discount factor = 0.8 Determine the optimal inventory policy for the two periods, assuming that the starting inventory for period 1 is zero. initial inventory for period 1 is zero.

(MULTI-PERIOD MODEL). We have a probabilistic inventory model where demand is accumulated and orders are received with zero delivery delays. delivery delays. The probability distribution function of the demand per period is uniform between 0 and 10. period is uniform between 0 and 10, and the cost parameters are - Selling price per unit $2 - Purchase price per unit $1 - Storage cost per unit per month $0.10 - Penalty cost per unit and per month $3 - Discount factor = 0.8 Determine the optimal inventory policy for the two periods, assuming that the starting inventory for period 1 is zero. initial inventory for period 1 is zero.

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...

See similar textbooks

Similar questions

I have collected real data on the sale of a microwavable cup of soup across 20 different cities for the same time period (a month). The variables in the dataset are: Quantity sold in the city for that month: Measured in thousands of units Price: measured in dollars Average Income in the city: Measured in thousands of dollars Ads: Average number of ads run in stores for that city during that month. Price of a substitute product: measured in dollars Population of the city: measured in thousands of people The dataset is on Canvas and, using Excel or any other statistical software, please answer the following questions: 1. Describe the patterns in quantity sold and own and rival prices during this time period using basic descriptive statistics. Graphs are welcome as well. 2. Take the logs of the variables, and estimate the demand function. a. Interpret the R-square. b. Interpret the coefficients for logP and logPsub c. Interpret the p-values associated with each independent…
Need help please!
Forecasting: 1. How does the number of periods in moving average affect the responsiveness of the forecast? 2. Contrast the terms sales and demand. 3. KA commercial bakery has recorded sales (in dezens) for three products, as shown below: Blueberry MuHins Cinnamon Buns Day Cupcakes 30 18 45 34 17 26 32 19 27 34 23 35 2 22 30 23 48 23 29 34 36 25. 20 29 24 14 10 31 26 18 35 31 11 27 47 28 26 27 37 34 13 14 31 24 15 33 33 22 a. Predict orders for the following day for cach of the products using an appropriate naive method. b What should the use of sales data instead of demand imply. RNN N N N H.NM p
Suppose you are a production manager for a small firm that manufactures designer phone cases. Your production facility utilizes three machines. Quality is binary — each phone case is either defective or it is not defective. Each hour, Machines 1, 2, and 3 produce 10, 10 and 20 phone cases, respectively. But because the machines differ slightly in their technology, data on past production has shown that they differ in terms of their rates of defective output — specifically, Machines 1, 2, and 3 have rates of defective production of 2%, 4%, and 5%, respectively. If one phone case is selected randomly from one hour’s total output, and that phone case is found to be defective, what is the probability that it was produced by Machine 1? Machine 2? Machine 3?
TIP ($) 250 225 200 175 150 125 100 75 50 25 0 0 A SONNY'S SCATTERPLOT B 100 200 300 400 Ⓒ2020 Radha Bose Florida State University Department of Statistics C D E SALE AMOUNT ($) *F H 500 600 700 800 900 1000 1100 1200 1. Which sale received the best tip, that is, which sale had the tip that was highest above the tip predicted for it? 2. Which data point has the smallest residual? 3. The residual for data point B is closest to
Suppose we obtain data on prices of big-screen televisions and estimate the following model: In(Price) = 4.06 + 0.06 * Size +0.23 * Wide + 0.34 * Plasma + 0.21 * LCD+0.09 * Memory where the dependent variable has been transformed, Size is the screen size measured in inches, Wide is a dummy variable equal to one if the television is a widescreen, Plasma is a dummy variable equal to one if the television is a Plasma screen, LCD is equal to one if the television is an LCD screen, and Memory is a dummy variable equal to one if the television has any memory card slots. What is the estimated price of a 42" Widescreen Plasma television with 2 memory card slots? Select one: O a. 7.24 O b. 7.33 1525.38 O d. 1394.09 • e 1881.83 Clear my choice
Short Case:2 Annual sales of Macro company as follows: Year 2016 2017 2018 2019 2020 Sales (in Millions) 200 250 300 350 400 a) Find the trend values for the years 2019 and 2020 by using the method of least squares. b) Estimate the annual sales for the years 2021 and 2022.
Beagle Clothiers uses a weighted score for the evaluation and selection of its suppliers of trendy fashion garments. Each supplier is rated on a 10-point scale (10 = highest) for four different criteria: price, quality, delivery, and flexibility (to accommodate changes in quantity and timing). Because of the volatility of the business in which Beagle operates, flexibility is given twice the weight of each of the other three criteria, which are equally weighted (the sum of the four weights equals 1). The table shows the scores for three potential suppliers for the four performance criteria. Supplier A Supplier decimal place.) Criteria 1. Price 2. Quality 3. Delivery 4. Flexibility Based on the highest weighted score, which supplier should be selected? should be selected, with a total weighted score of 6 7 5 co C Rating Supplier B Supplier C 8 9 8 6 8 7 5 8 6 (Enter your response rounded to one
4. Movements along versus shifts of demand curves Consider the market demand for chicken wings. Complete the following table by indicating whether an event will cause a movement along the demand curve for chicken wings or a shift of the demand curve for chicken wings, holding all else constant. Event An increase in income of consumers An increase in the price of burgers (a substitute for chicken wings) An increase in the price of chicken wings Movement Along Shift O
A group of researchers carried out a survey of household expenditure for an average family and the data are shown in Table 3. Table 3 Commodity 2016 2017 Quantity 105 Price Quantity 100 Price Rice (kg) Bread (loaf) Cocoa powder (kg) Milk (liter) Sugar (kg) 7.30 8.60 3.02 16 3.10 18 10.26 25 7.83 33 6.10 56 6.55 78 2.85 11 2.95 15 (i) Compute the Average Price Relative (APR) index for 2016 and 2017, using 2016 as the base year. (ii) Calculate Paasche Price Index for 2017 (year 2016 = 100). Interpret the answer. (iii) Calculate Laspeyres Price Index for 2017 (year 2016 = 100). Interpret the answer. (iv) Calculate the Fisher's Price index.
Overbooking is the practice of selling more items than are currently available. Overbooking is common in the travel industry; it allows a vehicle (airline, train, bus, cruise ship, hotel, and so forth) to operate at or near capacity, despite cancellations, no-shows, or late arrivals. Overselling is when more confirmed customers show up to use the vehicle than there is space available. When this happens, at least one customer will be denied the service that they paid for, either voluntarily (sometimes with an incentive provided by the supplier) or involuntarily. This is called getting "bumped." Suppose that for a particular flight, an airline believes that 2% of ticket holders do not make the flight. The jet making the trip holds 189 passengers. If the airline sells 192 tickets, what is the probability that the flight will be oversold and they will have to bump a passenger? Assume that cancellations are independent. Calculate the probabilities that one, two, and three people will be…