Operations Management: Processes and Supply Chains (11th Edition)
11th Edition
ISBN: 9780133872132
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter C, Problem 11P
A
Summary Introduction
Interpretation:Order size of vaccine for the maximization of profits is to be calculated.
Concept Introduction: Lot size is necessary for ordering as profit maximization is the order size and expected payoff is the amount received from a project in all respects.
B
Summary Introduction
Interpretation: The eligibility (profit maximization) of the clinic for accepting federal program if cost reduced to $ 2,charging not more than $ 10per vaccine
Concept Introduction: Lot size is necessary for ordering as profit maximization is the order size and expected payoff is the amount received from a project in all respects.
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Problem 20-10 (Algo)
You are a newsvendor selling San Pedro Times every morning. Before you get to work, you go to the printer and buy the day's paper
for $0.30 a copy. You sell a copy of San Pedro Times for $1.10. Daily demand is distributed normally with mean = 265 and standard
deviation = 53. At the end of each morning, any leftover copies are worthless and they go to a recycle bin.
a. How many copies of San Pedro Times should you buy each morning? (Use Excel's NORMSINV() function to find the correct critical
value for the given a-level. Round your z-value to 2 decimal places and final answer to to 2 decimal places.)
Optimal order quantity
b. Based on a, what is the probability that you will run out of stock? (Round your answer to the nearest whole number.)
Probability
Chapter C Solutions
Operations Management: Processes and Supply Chains (11th Edition)
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