Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134855424
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter C, Problem 13P
Summary Introduction
Interpretation:Using the payoff matrix, the number of hot dogs to buy for the game is to be calculated.
Concept Introduction: Probability refers to describing the possibility of how likely an event would be true than not, numerical. Sale is exchanging of withheld goods or services for money.
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The Aggies will host Tech in this year’s homecomingfootball game. Based on advance ticket sales, the athleticdepartment has forecast hot dog sales as shown in the fol-lowing table. The school buys premium hot dogs for $1.50and sells them during the game at $3.00 each. Hot dogs leftover after the game will be sold for $0.50 each to the Aggiestudent cafeteria, where they will be used in making hotdogcasserole.Sales Quantity Probability2,000 0.103,000 0.304,000 0.305,000 0.206,000 0.10Use a payoff matrix to determine the number of hot dogs tobuy for the game.
Roger Co. implemented activity-based costing in the current year. To select the appropriate driver for Cost Pool A, Roger performed regression analyses for two
independent variables, Driver 1 and Driver 2, using monthly operating data. The monthly levels of Cost Pool A were the dependent variables in both regressions.
Output results from the regression analyses were as follows:
Driver 1
R squared
Intercept
X variable (slope)
At the budgeted production level for next month, the levels of Driver 1 and Driver 2 are expected to be 5,880 and 7,000, respectively. Based on this information,
what is the budgeted amount for Cost Pool A for next month?
O A. $3,280
OB. $2,624
O C. $3,464
O D. $3,785
0.46
$551.00
Driver 2
$0.55
0.80
$970.00
$0.33
In the past, Peter Kelle's tire dealership in Baton Rouge sold an average of 1,000 radials each year. In the past 2 years, 240 and 240, respectively were sold in fall, 350 and 320 in winter,150 and165 in spring, and 340 and 195 in summer. With a major expansion planned, Kelle projects sales next year to increase to 1,200 radials.
Based on next year's projected sales, the demand for each season is going to be (enter your responses as whole numbers):
Fall:
Winter:
Spring:
Summer:
Chapter C Solutions
Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
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