Operations Management: Sustainability and Supply Chain Management (12th Edition)
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 forecasts and preregistration records to determine how many copies of a text are needed. Preregistration shows 90 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 70 to 90 units, according to the following probability model:

Chapter A, Problem 11P, The University of Miami bookstore stocks textbooks in preparation for sales each semester. It

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.

  1. a. Construct the table of conditional profits.
  2. 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
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