Operations Management: Sustainability and Supply Chain Management (12th Edition)
12th Edition
ISBN: 9780134130422
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Chapter A, Problem 11P
The University of Miami bookstore stocks textbooks in preparation for sales each semester. It normally relies on departmental
This textbook costs the bookstore $82 and sells for $112. Any unsold copies can be returned to the publisher, less a restocking fee and shipping, for a net refund of $36.
- a. Construct the table of conditional profits.
- b. How many copies should the bookstore stock to achieve highest expected value?
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The University of Miami bookstore stocks textbooks in preparation for sales each semester. It normally relies on departmental forecasts and preregistration records to determine how many copies of a text are needed. Preregistration shows 85 operations
management students enrolled, but bookstore manager Vaidy Jayaraman has second thoughts, based on his intuition and some historical evidence. Vaidy believes that the distribution of sales may range from 65 to 85 units, according to the following
probability model:
Demand
65
70
75
80
85
Probability
0.15
0.20
0.30
0.20
0.15
This textbook costs the bookstore $65 and sells for $90. Any unsold copies can be returned to the publisher, less a restocking fee and shipping, for a net refund of $30.
a) Based on the given information, Vaidy's conditional profits table for the bookstore is:
Demand
65
70
75
80
85
Stock
p = 0.15
p = 0.20
p = 0.30
p = 0.20
p = 0.15
65
The University of Miami bookstore stocks textbooks in preparation for sales each semester. It normally relies on departmental forecasts and preregistration records to determine how many copies of a text are needed. Preregistration shows 85 operations management students enrolled, but bookstore manager Vaidy Jayaraman has second thoughts, based on his intuition and some historical evidence. Vaidy believes that the distribution of sales may range from 65 to 85 units, according to the following probability model:
Demand
65
70
75
80
85
Stock
0.1
0.25
0.2
0.1
0.35
This textbook costs the bookstore $70 and sells for $95 Any unsold copies can be returned to the publisher, less a restocking fee and shipping, for a net refund o $30.
a) Based on the given information, Vaidy's conditional profits table for the bookstore is:
Demand
65
70
75
80
85
Stock
0.1
0.25
0.2
0.1
0.35
65
?
?
?
?
?
The University of Miami bookstore stocks textbooks in preparation for sales each semester. It normally relies on departmental forecasts and preregistration records to determine how many copies of a text are needed. Preregistration shows 85 operations management students
enrolled, but bookstore manager Vaidy Jayaraman has second thoughts, based on his intuition and some historical evidence. Vaidy believes that the distribution of sales may range from 65 to 85 units, according to the following probability model:
Demand
Probability
65
0.10
Stock
70
0.30
65
This textbook costs the bookstore $82 and sells for $112. Any unsold copies can be returned to the publisher, less a restocking fee and shipping, for a net refund of $30.
a) Based on the given information, Vaidy's conditional profits table for the bookstore is:
65
p=0.10
75
0.20
70
p=0.30
80
0.10
Demand
75
p=0.20
80
p = 0.10
85
p=0.30
85
0.30
Chapter A Solutions
Operations Management: Sustainability and Supply Chain Management (12th Edition)
Ch. A - Prob. 1DQCh. A - Prob. 2DQCh. A - Prob. 3DQCh. A - Prob. 4DQCh. A - Prob. 5DQCh. A - Question: 6. Explain how decision trees might be...Ch. A - Prob. 7DQCh. A - Prob. 8DQCh. A - Question 9. Identify the five steps in analyzing a...Ch. A - Prob. 10DQ
Ch. A - Question 11. The expected value criterion is...Ch. A - Question 12. When are decision trees most useful?Ch. A - Given the following conditional value table,...Ch. A - Prob. 2PCh. A - Prob. 3PCh. A - Jeffrey Helm owns a health and fitness center...Ch. A - Prob. 5PCh. A - Prob. 6PCh. A - Prob. 7PCh. A - Prob. 8PCh. A - Prob. 9PCh. A - Prob. 10PCh. A - The University of Miami bookstore stocks textbooks...Ch. A - Palmer Jam Company is a small manufacturer of...Ch. A - Prob. 13PCh. A - Prob. 14PCh. A - Prob. 21PCh. A - Prob. 22PCh. A - Prob. 23PCh. A - Prob. 24PCh. A - Prob. 25PCh. A - Prob. 26PCh. A - Philip Musa can build either a large video rental...Ch. A - Prob. 28PCh. A - Prob. 29PCh. A - Question A.24 On the opening page of Module A and...Ch. A - Question Warehouse Tenting at the Port of Miami...Ch. A - Question Warehouse Tenting at the Port of Miami...Ch. A - Question Warehouse Tenting at the Port of Miami...
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