Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 5, Problem 45AP
Summary Introduction
Interpretation: Optimal number of bagels to be baked each day is to be calculated.
Concept Introduction: Poisson distribution is the probability distribution of discrete random variable series in which frequency of outcomes is calculated in a given period of time.
Standard deviation is the numerical expression of showing the error from the average.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Please answer the question with as much details as possible
Please do not give solution in image format thanku
Brynn is the owner of a spa store that operates 50 weeks per year. Dazzle Shampoo is a high margin stock-keeping unit (SKU), but the product goes out of stock frequently. She decides to use a fixed-quantity system (FQS) and orders boxes of Dazzle Shampoo containing 10 bottles per box from a vendor 160 miles away. She collects the following data with respect to the sales of Dazzle Shampoo.
Demand
10 boxes per week
Order Cost
$40 per order
Item Cost
$80 per box per year
Inventory-Holding Cost
15 percent per year
Lead Time
3 weeks
Standard Deviation in Weekly Demand
6
Service Level
96 percent
Using the given data, it can be concluded that the economic order quantity (EOQ) of the Dazzle Shampoo boxes is
a.
more than 25 but less than or equal to 35 boxes.
b.
less than 25 boxes.
c.
more than 35 but less than or equal to 45 boxes.
d.
more than 55 boxes.
Chapter 5 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 5.2 - Prob. 1PCh. 5.2 - Prob. 2PCh. 5.2 - Prob. 4PCh. 5.3 - Prob. 7PCh. 5.3 - Prob. 9PCh. 5.3 - Prob. 12PCh. 5.5 - Prob. 16PCh. 5.5 - Prob. 18PCh. 5.6 - Prob. 21PCh. 5.7 - Prob. 24P
Ch. 5.7 - Prob. 25PCh. 5.7 - Prob. 26PCh. 5.7 - Prob. 27PCh. 5 - Prob. 28APCh. 5 - Prob. 31APCh. 5 - Prob. 32APCh. 5 - Prob. 33APCh. 5 - Prob. 37APCh. 5 - Prob. 38APCh. 5 - Prob. 40APCh. 5 - Prob. 41APCh. 5 - Prob. 43APCh. 5 - Prob. 44APCh. 5 - Prob. 45APCh. 5 - Prob. 46APCh. 5 - Prob. 47APCh. 5 - Prob. 48APCh. 5 - Prob. 49APCh. 5 - Prob. 50APCh. 5 - Prob. 51AP
Knowledge Booster
Learn more about
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
- General Motors is trying to determine how frequently they should have tires delivered to their Flint, Michign truck assembly plant. The tires are large and expensive to hold in inventory, and there is also a sgiicant fee each te a tire delivery is made. Which of the following tools would be most useful in making this decision O A/F Ratio Method Newsvendor Model Base Stock Model Economic Order Quantity Model Minimum Cycle Length Modelarrow_forwardAlgro Inc. keeps a wide range of parts and materials on hand for use in its production processes. Management has recently had difficulty managing parts inventory as demand for its finished goods has increased; they frequently run out of some critical parts while having an endless supply of others. They would like to classify their parts inventory according to the ABC approach to better control inventory. The following is a list of parts, along with their annual usage and unit value: Item Annual Unit Item Annual Unit Number Usage Cost Number Usage Cost 1 36 $350 2 510 30 3 50 23 4 300 45 5 18 1900 6 500 8 7 710 4 8 80 26 9 344 28 10 67 440 11 510 2 12 682 35 13 1216 95 50 14 10 3 15 820 1 KARAN2222222222 16 60 $610 17 120 20 18 270 15 19 45 50 20 19 3200 21 910 3 12 4750 23 30 2710 24 24 1800 25 870 105 26 244 30 27 750 15 28 45 110 29 46 160 30 165 25 a. Classify the inventory items according to the ABC approach using the dollar value of annual demand. b. Clearly explain why you…arrow_forwardHelp me understand how to do this questionarrow_forward
- Aboloway Company stocks a part that has a daily demand represented by the empirical distribution (shown in the table below). When restocking this part, the average lead time from the supplier is 3 days with a standard deviation of 0.5 days. The plant manager wants to determine how much safety stock to maintain for this part to ensure that stock-outs will not be incurred in more than 5.5% of the order cycles. Daily demand (d) in units Frequency 5 10 10 35 15 65 20 32 25 8 Total Observations = 150 3a. Find the mean and standard deviation for demand. 3b. Based on the information in problems 3 and 3a, what is the mean and standard deviation of demand during the lead time? 3c. Based on the information in problems 3, 3a, and 3b, how much safety stock should the plant manager maintain to ensure that stock-out will not be incurred in more than 5.5% of the order cycles?arrow_forwardPlease help to solve step by steparrow_forwardA fish restaurant sells fish for 50$ per kg and buys it from the suppliers for 10$ per kg. Fish that were not sold during the day go bad. A manager has estimated that daily demand for fish is normally distributed with a mean of 20kg and a standard deviation of 5 kg. The manager has to decide how much fish to order per day. Find a profit-maximizing order.arrow_forward
- please answer within 30 minutes.arrow_forwardProblem 12-37 (Algo) A small grocery store sells fresh produce, which it obtains from a local farmer. During the strawberry season, demand for fresh strawberries can be reasonably approximated using a normal distribution with a mean of 36 quarts per day and a standard deviation of 5 quarts per day. Excess costs run 50 cents per quart. The grocer orders 41 quarts per day. Use Table. What is the implied cost of shortage per quart? (Round your z value to 2 decimal places, your service level probability to 4 decimal places and your final answer to 2 decimal places.) Shortage cost per quartarrow_forwardThe bullwhip effect (also known as the Forrester effect) is defined as the demand distortion that travels upstream in the supply chain from the retailer through to the wholesaler and manufacturer due to the variance of orders which may be larger than that of sales. What causes the bullwhip effect in supply chain? Demand forecast updating: Members of the supply chain updating their demand forecasting Order batching: Members of the supply chain rounding up or down the quantity of orders Price fluctuations: Usually driven by discounting resulting in larger quantities of purchases Rationing and gaming: Buyers and sellers delivering over or under their order quantities An example of the bullwhip effect Let’s consider a retailer sells on average 10 ice creams per day in the summer season. Following a heatwave the retailer's sales increase to 30 units per day, in order to meet this new demand, the retailer increases their demand forecast and places an increased order on the wholesaler…arrow_forward
- K Suppose that in month 1, both the retailer and the wholesaler in a supply chain ordered 20,000 units. Then in month 2, the retailer decreases its order size by 500 units. If the wholesaler then decreases its order size in month 2 by 700 units, which of the following is TRUE? OA. The wholesaler is contributing to the bullwhip effect. OB. Neither amplification nor smoothing is present. OC. The bullwhip measure for the wholesaler equals 0.70. OD. The wholesaler is providing both amplification and smoothing. OE. The wholesaler is providing a dampening (anti-bullwhip) effect.arrow_forwardPlease answer the Operation Research problem solving with a topic of SIMULATION.arrow_forwardPlease help to solve step by step.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY