Spreadsheet Modeling & Decision Analysis: A Practical Introduction To Business Analytics, Loose-leaf Version
8th Edition
ISBN: 9781337274852
Author: Ragsdale, Cliff
Publisher: South-Western College Pub
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Anxlege supplies firms with apparel containing their logo to be used for promotional purposes.
Anxlogo has three enterprise customers: IBM, HP, and Dell. During the holiday season, the logos
are adorned with a Christmas motif. Demand from each firm for apparel with the Christmas
motif is normally distributed, as shown below.
IBM
HP
Dell
Мean
7000
6000
5000
Standard Deviation
3000
1000
2000
Anxlogo currently uses a manufacturer in Sri Lanka to produce all the apparel including the
logo embroidery in advance of the holiday season. Due to long lead times, there can be only a
single order for the holiday season. The manufacturer charges $15 for each unit, which is then
sold by Anylego.for $50 to its customers.
Any leftover inventory at the end of the holiday season is essentially worthless and cannot be
repurposed for a different customer, due to company logo and Christmas motif embroidery. It is
thus donated by AnyLego to charity. Holding the apparel in inventory adds another %20 to the…
A home improvement store sells hydrangea plants during the spring planting season. The hydrangeas cost the store $15 per unit, and sell to customers for $45, but any leftovers at the end of the season are salvaged to a local landscaper for $7/unit. A competitor has advertised that it guarantees 99% of customers find the product they’re looking for in stock. The competitor’s posted price for hydrangeas is $50, and they salvage to the same local landscaper for $7/ hydrangea plant. If the competitor’s advertised service level is correct for hydrangeas and they follow an optimal stocking policy, what does it imply their cost per hydrangea is?
Emily works for a small software company and oversees software quality assurance. The company recently developed an inventory control system for a national clothing manufacturer. The system gathers sales information on an hourly basis from clothing retailers nationwide. This information is then used by all departments (including the accounting, shipping, and ordering departments) to control the functions of the clothing manufacturer.
Emily suspects that the inventory functions of the system are not sufficiently tested, although they have passed all their contracted (legal) tests. However, she is pressured by her employers to sign off on the software. Whilst she is only required to perform tests which have been agreed to in the original contract, her considerable experience in software testing has led her to be concerned over the quality of the system. Her employers say that they will go out of business if they do not deliver the software on time.
Emily knows that if any section of…
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