MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
12th Edition
ISBN: 9780134742366
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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Sam's Pet Hotel operates 51 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $11.00 per bag. The following information is available about these bags: > Demand 95 bags/week > Order cost $52.00/order > Annual holding cost = 25 percent of cost > Desired cycle-service level = 80 percent >Lead time 4 weeks (24 working days) > Standard deviation of weekly demand = 15 bags > Current on-hand inventory is 320 bags, with no open orders or backorders. a. Suppose that the weekly demand forecast of 95 bags is incorrect and actual demand averages only 75 bags per week. How much higher will total costs be, owing to the distorted EOQ caused by this forecast error? The costs will be $ higher owing to the error in EOQ. (Enter your response rounded to two decimal places.)
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