Question 22 Use the information below to select the closest answer to the following questions. If you need to calculate the z-value based on a given probability (or vice versa), you can either use Excel or the table at https://www.math.arizona.edu/~rsims/ma464/standardnormaltable.pdf . Publisher's selling price to newsvendor: $0.70 per unit • Newsvendor's selling price to customers: $1.00 per unit • Newsvendor's salvage value for unsold items: $0.10 per unit • Demand is normally distributed with an average of 100 and a standard deviation of 40. Question 1: The understocking cost is $ [Select] [Select] the overstocking cost is $ and the critical ratio is [Select 1. Question 2: The optimal order quantity is [Select] units. Question 3: Following the optimal ordering policy, the retailer will run out of stock with a probability of [Select] Question 4: If the newsvendor orders 79 units, it will be facing a [Select] in-stock probability. Question 5: Assume that the newsvendor purchases 72 units in the morning and looks at an expected (unsold) inventory of 6 units. The newsvendor's expected profit is $162. Question 6: Now assume that the newsvendor cannot earn the salvage value of the product at the end of the day, but has to pay $0.20 per unit to dispose of any unsold item. The critical ratio is recalculated as [Select]
Question 22 Use the information below to select the closest answer to the following questions. If you need to calculate the z-value based on a given probability (or vice versa), you can either use Excel or the table at https://www.math.arizona.edu/~rsims/ma464/standardnormaltable.pdf . Publisher's selling price to newsvendor: $0.70 per unit • Newsvendor's selling price to customers: $1.00 per unit • Newsvendor's salvage value for unsold items: $0.10 per unit • Demand is normally distributed with an average of 100 and a standard deviation of 40. Question 1: The understocking cost is $ [Select] [Select] the overstocking cost is $ and the critical ratio is [Select 1. Question 2: The optimal order quantity is [Select] units. Question 3: Following the optimal ordering policy, the retailer will run out of stock with a probability of [Select] Question 4: If the newsvendor orders 79 units, it will be facing a [Select] in-stock probability. Question 5: Assume that the newsvendor purchases 72 units in the morning and looks at an expected (unsold) inventory of 6 units. The newsvendor's expected profit is $162. Question 6: Now assume that the newsvendor cannot earn the salvage value of the product at the end of the day, but has to pay $0.20 per unit to dispose of any unsold item. The critical ratio is recalculated as [Select]
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...
Related questions
Question
Y9
![Incorrect
Question 22
Use the information below to select the closest answer to the
following questions. If you need to calculate the z-value based
on a given probability (or vice versa), you can either use Excel or
the table
at https://www.math.arizona
.
Publisher's selling price to newsvendor: $0.70 per unit
Newsvendor's selling price to customers: $1.00 per unit
.
• Newsvendor's salvage value for unsold items: $0.10 per unit
edu/~rsims/ma464/standardnormaltable.pdf
.
• Demand is normally distributed with an average of 100 and
a standard deviation of 40.
Question 1: The understocking cost is $
[Select]
[Select]
the overstocking cost is $
, and the critical ratio is [ Select
1.
Question 2: The optimal order quantity is
[Select]
units.
Question 3: Following the optimal ordering policy, the retailer
will run out of stock with a probability of
[Select]
Question 4: If the newsvendor orders 79 units, it will be facing
a [Select]
in-stock probability.
Question 5: Assume that the newsvendor purchases 72 units in
the morning and looks at an expected (unsold) inventory of 6
units. The newsvendor's expected profit is $162.
Question 6: Now assume that the newsvendor cannot earn the
salvage value of the product at the end of the day, but has to
pay $0.20 per unit to dispose of any unsold item. The critical
ratio is recalculated as
[Select]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4f269f54-574c-43cc-bc6a-62a16784f2e8%2Ffb4dd654-7be2-4655-8923-6b3446fb68b0%2Fo6o07xh_processed.png&w=3840&q=75)
Transcribed Image Text:Incorrect
Question 22
Use the information below to select the closest answer to the
following questions. If you need to calculate the z-value based
on a given probability (or vice versa), you can either use Excel or
the table
at https://www.math.arizona
.
Publisher's selling price to newsvendor: $0.70 per unit
Newsvendor's selling price to customers: $1.00 per unit
.
• Newsvendor's salvage value for unsold items: $0.10 per unit
edu/~rsims/ma464/standardnormaltable.pdf
.
• Demand is normally distributed with an average of 100 and
a standard deviation of 40.
Question 1: The understocking cost is $
[Select]
[Select]
the overstocking cost is $
, and the critical ratio is [ Select
1.
Question 2: The optimal order quantity is
[Select]
units.
Question 3: Following the optimal ordering policy, the retailer
will run out of stock with a probability of
[Select]
Question 4: If the newsvendor orders 79 units, it will be facing
a [Select]
in-stock probability.
Question 5: Assume that the newsvendor purchases 72 units in
the morning and looks at an expected (unsold) inventory of 6
units. The newsvendor's expected profit is $162.
Question 6: Now assume that the newsvendor cannot earn the
salvage value of the product at the end of the day, but has to
pay $0.20 per unit to dispose of any unsold item. The critical
ratio is recalculated as
[Select]
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