Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Chapter 10.5, Problem 19P
In Problem 12 of the previous section, suppose that the demand for cars is
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A book and paper store distributes one specialized monthly magazine. When looking at the sales the last years, they have concluded that the demand for each issue of the magazine will be normally distributed with an expected sale of 250 and a standard deviation of 100. The purchase price for the magazine is $20. and the sales price is $50.The store has an agreement with a second -hand store that buys unsold magazines for $5 each. How many magazines should the store buy of each issue?
15) JBs needs to determine what quantity of a new tennis racquet to order for the upcoming summer
season. They sell the racquet for $110 and procure it from their supplier for $70. Any leftovers
will be marked down 60% and are expected to all sell at that price. Anticipated demand is
modeled with a normal distribution where the mean is 120 and the standard deviation is 25. How
many racquets should JBs order if they want to meet a 95% target fill rate?
A) 130
C) 162
B) 127
D) 149
A distributor of large appliances needs to determine the order quantities and reorderpoints for the various products it carries. The following data refer to a specii c refrigeratorin its product line:Cost to place an orderHolding costCost of refrigeratorAnnual demandStandard deviation of demand during lead timeLead time$10020 percent of product cost per year$500 each500 refrigerators10 refrigerators7 daysConsider an even daily demand and a 365-day year.a. What is the economic order quantity?b. If the distributor wants a 97 percent service probability, what reorder point, R, shouldbe used?
Chapter 10 Solutions
Practical Management Science
Ch. 10.2 - Use the RAND function and the Copy command to...Ch. 10.2 - Use Excels functions (not @RISK) to generate 1000...Ch. 10.2 - Use @RISK to draw a uniform distribution from 400...Ch. 10.2 - Use @RISK to draw a normal distribution with mean...Ch. 10.2 - Use @RISK to draw a triangular distribution with...Ch. 10.2 - Use @RISK to draw a binomial distribution that...Ch. 10.2 - Use @RISK to draw a triangular distribution with...Ch. 10.2 - We all hate to keep track of small change. By...Ch. 10.4 - Prob. 11PCh. 10.4 - In August of the current year, a car dealer is...
Ch. 10.4 - Prob. 13PCh. 10.4 - Prob. 14PCh. 10.4 - Prob. 15PCh. 10.5 - If you add several normally distributed random...Ch. 10.5 - In Problem 11 from the previous section, we stated...Ch. 10.5 - Continuing the previous problem, assume, as in...Ch. 10.5 - In Problem 12 of the previous section, suppose...Ch. 10.5 - Use @RISK to analyze the sweatshirt situation in...Ch. 10.5 - Although the normal distribution is a reasonable...Ch. 10.6 - When you use @RISKs correlation feature to...Ch. 10.6 - Prob. 24PCh. 10.6 - Prob. 25PCh. 10.6 - Prob. 28PCh. 10 - Six months before its annual convention, the...Ch. 10 - Prob. 30PCh. 10 - A new edition of a very popular textbook will be...Ch. 10 - Prob. 32PCh. 10 - W. L. Brown, a direct marketer of womens clothing,...Ch. 10 - Assume that all of a companys job applicants must...Ch. 10 - Lemingtons is trying to determine how many Jean...Ch. 10 - Dilberts Department Store is trying to determine...Ch. 10 - It is surprising (but true) that if 23 people are...Ch. 10 - Prob. 40PCh. 10 - At the beginning of each week, a machine is in one...Ch. 10 - Simulation can be used to illustrate a number of...Ch. 10 - Prob. 43PCh. 10 - Prob. 46PCh. 10 - If you want to replicate the results of a...Ch. 10 - Suppose you simulate a gambling situation where...Ch. 10 - Prob. 49PCh. 10 - Big Hit Video must determine how many copies of a...Ch. 10 - Prob. 51PCh. 10 - Prob. 52PCh. 10 - Why is the RISKCORRMAT function necessary? How...Ch. 10 - Consider the claim that normally distributed...Ch. 10 - Prob. 55PCh. 10 - When you use a RISKSIMTABLE function for a...Ch. 10 - Consider a situation where there is a cost that is...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand will grow at 5% a year. If the company builds a plant that can produce x units of Wozac per year, it will cost 16x. Each unit of Wozac is sold for 3. Each unit of Wozac produced incurs a variable production cost of 0.20. It costs 0.40 per year to operate a unit of capacity. Determine how large a Wozac plant the company should build to maximize its expected profit over the next 10 years.arrow_forwardWhen you use a RISKSIMTABLE function for a decision variable, such as the order quantity in the Walton model, explain how this provides a fair comparison across the different values tested.arrow_forward13 Pam’s demand for hats is normally distributed with mean 500 and standard deviation 100. She sells her hats for $50 each and buys hats for $10 each, and anything she can't sell by the end of the year, the wholesaler will buy for $5 each. How many hats should she order for next year to maximize profit?arrow_forward
- Please help to solve step by steparrow_forwardplease answer within 30 minutes and make sure you answer both the parts of the question else i will give thumbs down.arrow_forwardMagdeleine James is a sole trader, who sells souvenir T-shirts. She wishes to sell her T-shirts at the Tobago Jazz festival. Each t-shirt cost $165 to produce and sells for $225. After the festival, she reduces the sale price of the T-shirts by 70% in order to sell them off. Experience from previous years has shown that the demand for these T-shirts at the festival is 82, with a standard deviation of 21. How many T-shirts should Magdeleine take to sell at the festival?arrow_forward
- do not give solution in imagearrow_forwardA product with an annual demand of 800 units has Co = $20.00 and Ch = $6. The demand exhibits some variability such that the lead-time demand follows a normal probability distribution with µ = 26 and σ = 6.arrow_forwardGreen Thumb, a manufacturer of lawn care equipment has introduced a new product. Each unit cost $150 to manufacture, and the introductory price is to be $200. At this price, the anticipated demand is normally distributed, with a mean of 100 and a standard deviation of 40. Any unsold units at the end of the season are unlikely to be very valuable and will be disposed of in a fire sale for $50 each. It costs $20 to hold a unit in inventory for the entire season. If the manufacturing costs decrease, how does this affect the optimal number of units to manufacture and the cycle service level? *Note you can construct a graph if you prefer. What is the expected profit from this policy? (Using excel formulas from the text) On average, how many customers does Green Thumb expect to turn away because of stocking out? (hint: computed expected number of units that are understocked).arrow_forward
- Green Thumb, a manufacturer of lawn care equipment has introduced a new product. Each unit cost $150 to manufacture, and the introductory price is to be $200. At this price, the anticipated demand is normally distributed, with a mean of 100 and a standard deviation of 40. Any unsold units at the end of the season are unlikely to be very valuable and will be disposed of in a fire sale for $50 each. It costs $20 to hold a unit in inventory for the entire season. How many units should Green Thumb manufacture for sale? What is the cycle service level (probability of not stocking out) associated with this policy? If the holding costs increase, how does this affect the optimal number of units to manufacturer and the cycle service level? *Note you can construct a graph if you preferarrow_forwardPlease answer the Operation Research problem solving with a topic of SIMULATION.arrow_forward3. Cynthia Knott’s oyster bar buys fresh Louisiana oysters for $5 per pound and sells them for $12 per pound. Any oysters not sold that day are sold to her cousin, who has a nearby grocery store, for $1 per pound. Cynthia believes that demand follows the normal distribution, with a mean of 100 pounds and a standard deviation of 15 pounds. a) What is the cost of underestimating demand for each pound? b) What is the overage cost per pound? c) How many pounds of oyster should she order each day? d) What is the stockout risk for this order size?arrow_forward
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