Practical Management Science
5th Edition
ISBN: 9781305250901
Author: Wayne L. Winston, S. Christian Albright
Publisher: Cengage Learning
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Chapter 12.5, Problem 19P
Summary Introduction
To use: A probability argument to show the reason why
Inventory and supply chain models:
The functions of inventory and supply chain are one of the most important business decision areas for an organization. The first important aspect of these concepts is to have adequate inventory on hand. The second important aspect is to carry a little amount of inventory as possible.
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A warehouse manager at Mary Beth Marrs Corp. needs to simulate the demand placed on a product that does not fit
standard models. The concept being measured is "demand during lead time," where both lead time and daily demand are
variable. The historical record for this product, along with the cumulative distribution, appear in the table.
Demand During
Lead Time
Cumulaive
Probability
Probability
120
0.01
0.01
140
0.12
0.13
160
0.35
0.48
180
0.20
0.68
200
0.04
0.72
220
0.08
0.80
240
0.20
1.00
The following random numbers have been generated: 9, 78, 40, 41, and 99. (Note: Assume the random number interval
begins at 01 and ends at 00.)
Based on the given probabilty distribution, for the given random number the demand during the lead time is:
Random Number
9
78
40
41
99
Demand
The average demand during the lead time is
(enter your response as an integer).
The total demand during the lead time based on the five simulations is (enter your response as an integer).
Green Thumb, a manufacturer of lawn care equipment, has introduced a new product. Each unit costs $180 to manufacture, and the introductory price is $250. At this price, the anticipated demand is normally distributed, with a mean of μ = 300 and a standard deviation of σ = 60. Any unsold units at the end of the season are unlikely to be valuable and will be disposed of in a post-season sale for $50 each. How many units should Green Thumb manufacture for sale? What is the expected profit from this policy? On average, how many customers does Green Thumb expect to turn away because of stocking out?
Please show workings and formula in excel
Chapter 12 Solutions
Practical Management Science
Ch. 12.4 - Prob. 1PCh. 12.4 - Prob. 2PCh. 12.4 - Prob. 3PCh. 12.4 - Prob. 4PCh. 12.4 - Prob. 5PCh. 12.4 - Prob. 6PCh. 12.4 - Prob. 7PCh. 12.4 - Prob. 8PCh. 12.4 - Prob. 9PCh. 12.4 - Prob. 10P
Ch. 12.4 - Prob. 11PCh. 12.5 - Prob. 12PCh. 12.5 - Prob. 13PCh. 12.5 - Prob. 14PCh. 12.5 - Prob. 15PCh. 12.5 - Prob. 16PCh. 12.5 - Prob. 17PCh. 12.5 - Prob. 18PCh. 12.5 - Prob. 19PCh. 12.5 - Prob. 20PCh. 12.5 - Prob. 21PCh. 12 - Prob. 27PCh. 12 - Prob. 28PCh. 12 - Prob. 29PCh. 12 - Prob. 30PCh. 12 - Prob. 31PCh. 12 - Prob. 32PCh. 12 - Prob. 33PCh. 12 - Prob. 34PCh. 12 - Prob. 35PCh. 12 - Prob. 36PCh. 12 - Prob. 38PCh. 12 - Prob. 39PCh. 12 - Prob. 40PCh. 12 - Prob. 42PCh. 12 - Prob. 43PCh. 12 - Prob. 44PCh. 12 - Prob. 45PCh. 12 - Prob. 46PCh. 12 - Prob. 47PCh. 12 - Prob. 48PCh. 12 - Prob. 49PCh. 12 - Prob. 53PCh. 12 - Prob. 54PCh. 12 - In terms of K, D, and h, what is the average...Ch. 12 - Prob. 56PCh. 12 - Prob. 57PCh. 12 - Prob. 58PCh. 12 - Prob. 59PCh. 12 - Prob. 60PCh. 12 - Prob. 61PCh. 12 - Prob. 62PCh. 12 - Prob. 63PCh. 12 - Prob. 64PCh. 12 - Prob. 65PCh. 12 - Prob. 66PCh. 12 - Prob. 67PCh. 12 - Prob. 68PCh. 12 - Prob. 69PCh. 12 - Prob. 70PCh. 12 - Prob. 71PCh. 12 - Prob. 1.1CCh. 12 - Prob. 1.2CCh. 12 - Prob. 1.3C
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