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 47AP
Summary Introduction
Interpretation: Number of cars to be purchased every three months is to be determined.
Concept Introduction: Laplace distribution is a continuous probability distribution in which two independent exponential functions are evaluated. These exponential functions are independent of each other with different parameters.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
3. Gursoy is selling Christmas trees. She purchases trees for $10 and sells for $25
each. The number of trees she can sell is normally distributed with a mean of 100
and standard deviation of 30. How many trees should Gursoy purchase?
is selling Christmas trees. She purchases trees for $10 and sells for $25
each. The number of trees she can sell is normally distributed with a mean of 100
and standard deviation of 30. How many trees should
purchase?
A manufacturer of industrial sales has production capacity of 1,000 units
per day. Currently, the firm sells production capacity for $10 per unit. At this price,
all production capacity gets booked about one week in advance. A group of customers
have said that they would be willing to pay $15 per unit if capacity was available on
the last day. About ten days in advance, demand for the high-price segment is
normally distributed with a mean of 250 and a standard deviation of 100. How much
production capacity should the manufacturer reserve for the last day? Show the
answer clearly.
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
- Dilberts Department Store is trying to determine how many Hanson T-shirts to order. Currently the shirts are sold for 21, but at later dates the shirts will be offered at a 10% discount, then a 20% discount, then a 40% discount, then a 50% discount, and finally a 60% discount. Demand at the full price of 21 is believed to be normally distributed with mean 1800 and standard deviation 360. Demand at various discounts is assumed to be a multiple of full-price demand. These multiples, for discounts of 10%, 20%, 40%, 50%, and 60% are, respectively, 0.4, 0.7, 1.1, 2, and 50. For example, if full-price demand is 2500, then at a 10% discount customers would be willing to buy 1000 T-shirts. The unit cost of purchasing T-shirts depends on the number of T-shirts ordered, as shown in the file P10_36.xlsx. Use simulation to determine how many T-shirts the company should order. Model the problem so that the company first orders some quantity of T-shirts, then discounts deeper and deeper, as necessary, to sell all of the shirts.arrow_forwardSuppose two distributions with the following characteristics are given. Distribution A -46,100 -6,339 Distribution B -30.30 =5.54 If a value from distribution A is 55,600 and a value from distribution B is 34, convert each value to a standardized z-value and indicate which one is relatively closer to its respective mean by choosing one of the options below. The value from distribution A is relatively closer to its mean because its corresponding z-value is smaller than the z-value corresponding to the value from distribution B. The value from distribution B is relatively closer to its mean because its corresponding z-value is smaller than the z-value corresponding to the value from distribution A. The value from distribution B is relatively closer to its mean because its corresponding z-value is larger than the z-value corresponding to the value from distribution A. The value from distribution A is relatively closer to its mean because its corresponding z-value is larger than the…arrow_forwardD. Given the following data on the number of CitChat brand prepaid card (in units) that has been sold in the first eight months in a telecommunication shop in Jitra, Kedah: Bulan/Month Iualan/sales 785 2 600 3 578 4 590 5 770 6 805 7 710 8 900 Compute a 3-months moving average for the period from month 5 until 8 (of the next year).arrow_forward
- Don't use Aiarrow_forwardThe Instant Paper Clip Office Supply Company sells and delivers office supplies to companies, schools, and agencies within a 50-mile radius of its warehouse. The office supply business is competitive, and the ability to deliver orders promptly is a big factor in getting new customers and maintaining old ones. (Offices typically order not when they run low on supplies, but when they completely run out. As a result, they need their orders immediately.) The manager of the company wants to be certain that enough drivers and vehicles are available to deliver orders promptly and that they have adequate inventory in stock. Therefore, the manager wants to be able to forecast the demand for deliveries during the next month. From the records of previous orders, management has accumulated the following data for the past 10 months: Month Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Orders 145 70 115 85 120 54 82 141 123 94 Compute the…arrow_forwardDrug Inc. sells a high runner product that is ordered every 20 days when a sales person visits from one of the pharmaceutical companies. This product has an average daily demand of 1,500 units. The standard deviation of daily demand was calculated from evaluating data over the past three months and was found to be 550 units. Once an order is started, it takes seven days to arrive. The company would like to satisfy 95 percent of their demand. The sales person just arrived, and there are currently 10,000 units in warehouse. How many units should be ordered during that Time Period? Formula = Reorder point (time period) – On hand inventoryarrow_forward
- The Instant Paper Clip Office Supply Company sells and delivers office supplies to companies, schools, and agencies within a 50-mile radius of its warehouse. The office supply business is competitive, and the ability to deliver orders promptly is a big factor in getting new customers and maintaining old ones. (Offices typically order not when they run low on supplies, but when they completely run out. As a result, they need their orders immediately.) The manager of the company wants to be certain that enough drivers and vehicles are available to deliver orders promptly and that they have adequate inventory in stock. Therefore, the manager wants to be able to forecast the demand for deliveries during the next month. From the records of previous orders, management has accumulated the following data for the past 10 months: Month Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Orders 145 70 115 85 120 54 82 141 123 94 Compute the…arrow_forwardThe Instant Paper Clip Office Supply Company sells and delivers office supplies to companies, schools, and agencies within a 50-mile radius of its warehouse. The office supply business is competitive, and the ability to deliver orders promptly is a big factor in getting new customers and maintaining old ones. (Offices typically order not when they run low on supplies, but when they completely run out. As a result, they need their orders immediately.) The manager of the company wants to be certain that enough drivers and vehicles are available to deliver orders promptly and that they have adequate inventory in stock. Therefore, the manager wants to be able to forecast the demand for deliveries during the next month. From the records of previous orders, management has accumulated the following data for the past 10 months: Month: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Orders: 1230 1155 1263 1159 1361 1273 1147 1250 1356 1155 Create tables to support your answer: a. Compute the monthly…arrow_forwardIn a production phase, a corporation requires 85 circuit boards every day.This is the maxim that the individual who orders the boards follows: When the number of boards on hand reaches 625, place an order. Orders are usually shipped six days after they are placed. With a mean of six days and a standard deviation of 1.10 days, the distribution period is average. If circuit boards are reordered as the number on hand decreases to 625, what is the likelihood that the stock will be depleted before the order is received?arrow_forward
- It is usually fairly straightforward to predict the shape of the output distribution from the shape(s) of the input distribution(s). TRUE OR FALSEarrow_forwardGood Shoes Company manufactures ski boots for children each pair of which costs $40 to manufacture. Good Shoes sells the boots to a well-known sports goods retailer and the retailer sells each pair for $100. Any boots not sold (by the retailer) during the season are sold to a discount retailer for $20 a pair. Demand during the season is assumed to have a Normal distribution with a mean of 850 and a standard deviation of 350. What should the manufacturer charge the retailer per pair to maximize its expected profits? Assume that Good Shoes will consider a price from the following set: (60,65,70,75,80,85 90,95), i.e., The manufacturer's price will be either $60, or $65 or $70, or ......,,$95).arrow_forwardou have been pricing Samsung-Galaxy SmartWatch in several stores. Three stores have the identical price of $400. Each store charges 18 percent APR, has a 30-day grace period, and sends out bills on the first of the month. On further investigation, you find that store A calculates the finance charge by using the average daily balance method, store B uses the adjusted balance method, and store C using the previous balance method. Assume you purchased the SmartWatch on May 5 and made a $100 payment on June 15. What will the finance charge for June be if you made your purchase from store A? From store B? From store C?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,
Single Exponential Smoothing & Weighted Moving Average Time Series Forecasting; Author: Matt Macarty;https://www.youtube.com/watch?v=IjETktmL4Kg;License: Standard YouTube License, CC-BY
Introduction to Forecasting - with Examples; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=98K7AG32qv8;License: Standard Youtube License