The village board of Park City, Utah, arranges for the clearing of all snow incity streets. Weekly snowfall during the winter is normally distributed witha mean of 10 inches and a standard deviation of 4 inches. The board isconsidering a long term contract with a snow removal company. The long-term contract costs $1000 per truck per week. Thus, if the board signs along-term contract for 12 inches, they pay $12,000 per week whether thetrucks are used or not. Each truck is capable of clearing 1 inch of snow perweek. If snowfall in a week exceeds the quantity that can be handled bythe trucks included in the long term lease, the board must makeemergency arrangements at a cost of $2,500 for each additional truckbrought in.For how many trucks should the board sign a long term contract?

Weekly Snowfall is normally distributed.Mean = 10 inchesStandard Deviation = 4 inchesCost of long…

Answered: The village board of Park City, Utah,…

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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A manufacturer and a retailer are evaluating to form a supply chain (i.e. to act like a single company). They are currently supplying winter gloves. The manufacturer is producing each pair of winter gloves at $3, and selling each pair to the retailer at $6. The retailer is selling to the customers at $12 per pair. The retailer is philanthropic and donates all unsold winter gloves to a nearby charity home at the end of the season. The customer demand at the retailer is uniformly distributed between 5 and 55. The retailer places only one order per season. Compute the expected profit with and without the supply chain relationship and comment if they should form such a supply chain relationship.
On the morning of October 31st, Elaine Black, Chief Information Officer at Robatelli'sPizzeria, was waiting for both Jim Saxton, database administrator, and PeterGreyton, operations manager, to come to her office for a meeting. While waiting,Elaine was thinking about the surge of telephone and Internet orders expected to bereceived through the company's customer order center within the next 12 hours.Halloween had always been the most popular day of the year for people in thegreater Pittsburgh area to order pizza from Robatelli's. There were 53 restaurantlocations to serve these customers, but only one location to receive all of the ordersand forward them to the right restaurant. Elaine's thoughts were interrupted as Jimand Peter entered her office. The following conversation took place:ELAINE Well, guys, it's here again, our biggest day of the year. Not only isHalloween a busy day, but we have the upcoming day afterThanksgiving, the week before Christmas, and Super Bowl Sunday. Canour…
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In preparing for the upcoming holiday season, Fresh Toy Company (FTC) designed a new doll called The Dougle that teaches children how to dance. The fixed cost to produce the doll is $100,000. The variable cost, which includes material, labor, and shipping costs, is $29 per doll. During the holiday selling season, FTC will sell the dolls for $37 each. If FTC overproduces the dolls, the excess dolls will be sold in January through a distributor who has agreed to pay FTC $10 per doll. Demand for new toys during the holiday selling season is extremely uncertain. Forecasts are for expected sales of 60,000 dolls with a standar deviation of 15,000. The normal probability distribution is assumed to be a good description of the demand. FTC has tentatively decided to produce 60,000 units (the same as average demand), but it wants to conduct an analysis regarding this production quantity before finalizing the decision. unit production quantity and a more conservative 50,000-unit production…
On the morning of October 31st, Elaine Black, Chief Information Officer at Robatelli'sPizzeria, was waiting for both Jim Saxton, database administrator, and PeterGreyton, operations manager, to come to her office for a meeting. While waiting,Elaine was thinking about the surge of telephone and Internet orders expected to bereceived through the company's customer order center within the next 12 hours.Halloween had always been the most popular day of the year for people in thegreater Pittsburgh area to order pizza from Robatelli's. There were 53 restaurantlocations to serve these customers, but only one location to receive all of the ordersand forward them to the right restaurant. Elaine's thoughts were interrupted as Jimand Peter entered her office. The following conversation took place:ELAINE Well, guys, it's here again, our biggest day of the year. Not only isHalloween a busy day, but we have the upcoming day afterThanksgiving, the week before Christmas, and Super Bowl Sunday. Canour…
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