Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 5, Problem 46AP
Summary Introduction
Interpretation: Optimal number of cards to print is to be determined.
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.
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Consider a toy retailer with warehouses in St. Louis and Kansas City, Missouri. The warehouses stock an identical popular toy delivered to stores in the two cities. Assume a warehouse serves only stores in its city. Weekly demand for St. Louis is normally distributed with mean 2,000, and standard deviation 400 (that is N(μ = 2,000, σ = 400)). Weekly demand for KansasCity is distributed N(μ = 2,000, σ = 300). We assume that the two cities are far enough apart so that demand in the two cities is independent.The following parameters are seen by both warehouses:Replenishment lead time in weeks ~ N(μ = 2, σ = 0.1);Fixed shipping cost of replenishment: $500;Cost per toy: $10; andHolding cost per toy 20 percent of toy’s value per year.How many toys should each location order at a time and when should they reorder if they want a 99 percent cycle service level? What if they pool the two locations?
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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
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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_forwardPlease help to solve step by steparrow_forwardPlease help to solve step by step.arrow_forward
- Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardSuppose 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. B. Neither amplification nor smoothing is present. OC. The bullwhip measure for the wholesaler equals 0.70. D. The wholesaler is providing both amplification and smoothing. O E. The wholesaler is providing a dampening (anti-bullwhip) effect.arrow_forwardZack Pop has been a producing plant production manager for the last 10 years. One produce item, zucchini, is sold in cases, with daily sales averaging 400 cases. Daily sales are also assumed to be normally distributed. Furthermore, 85% of the time sales are between 350 and 450 cases. Each case is purchased for $10 wholesale and sells for $15 retail. All cases that are not sold must be discarded. 1) Estimate the standard deviation of the sales distribution. 2) Using the standard deviation found in part a, determine how many cases of zucchini Zach should stock.arrow_forward
- The 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_forwardplease answer within 30 minutes.arrow_forwardGeneral 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_forward
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