OPERATIONS MANAGEMENT CUSTOM ACCESS
11th Edition
ISBN: 9780135622438
Author: KRAJEWSKI
Publisher: PEARSON EDUCATION (COLLEGE)
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
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.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
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 CUSTOM ACCESS
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?arrow_forwardThe Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon spawn during a 24-hour period and must be canned immediately. Tinkan has the following agreement with the salmon industry. The company can deliver as many cans as it chooses. Then the salmon are caught. For each can by which Tinkan falls short of the salmon industrys needs, the company pays the industry a 2 penalty. Cans cost Tinkan 1 to produce and are sold by Tinkan for 2 per can. If any cans are left over, they are returned to Tinkan and the company reimburses the industry 2 for each extra can. These extra cans are put in storage for next year. Each year a can is held in storage, a carrying cost equal to 20% of the cans production cost is incurred. It is well known that the number of salmon harvested during a year is strongly related to the number of salmon harvested the previous year. In fact, using past data, Tinkan estimates that the harvest size in year t, Ht (measured in the number of cans required), is related to the harvest size in the previous year, Ht1, by the equation Ht = Ht1et where et is normally distributed with mean 1.02 and standard deviation 0.10. Tinkan plans to use the following production strategy. For some value of x, it produces enough cans at the beginning of year t to bring its inventory up to x+Ht, where Ht is the predicted harvest size in year t. Then it delivers these cans to the salmon industry. For example, if it uses x = 100,000, the predicted harvest size is 500,000 cans, and 80,000 cans are already in inventory, then Tinkan produces and delivers 520,000 cans. Given that the harvest size for the previous year was 550,000 cans, use simulation to help Tinkan develop a production strategy that maximizes its expected profit over the next 20 years. Assume that the company begins year 1 with an initial inventory of 300,000 cans.arrow_forwarda) For an upcoming red carpet evening, a company is selling tickets at $60 per person at a large theatre which has a capacity of 10,000 people. Each attendant is expected to buy $12 of food and merchandise at the film evening. The cost of providing the food and merchandise is estimated to be $5 per person. All other ancillary services will be provided by the theatre. Initial analysis indicates that the ancillary cost of providing food and merchandise, as well as the staff needed to handle ticket sales, may be described as a semi-variable cost. Data on these costs and tickets sold from three similar events held at the venue have been collected and are tabulated below: Tickets Sold Cost ($) 2100 6640 3824 11284 4650 13525 Use the high-low method to estimate the total cost function relating to these ancillary costs. b) The company will be renting the theatre which will host the upcoming red carpet evening. The budgeted fixed cost of both renting the theatre and paying the…arrow_forward
- The Aggies will host Tech in this year's homecoming football game. Based on advance ticket sales, the athletic department has forecast hot dog sales as shown in the following table: TT Sales Quantity Probability 1,000 2,000 3,000 4,000 5,000 0.10 0.20 0.30 0.20 0.20 The school buys premium hot dogs for $1.60 and sells them during the game at $2.80 each. Hot dogs left over after the game will be sold for $0.60 each to the Aggie student cafeteria to be used in making hotdog casserole. Use a payoff matrix to determine the number of hot dogs to buy for the game. hot dogs. (Enter your response as an integer.)arrow_forwardUse the table below to answer the following question(s). Fiberia Accessories, a clothing retailer, is planning to introduce a new line of sweaters as part of the winter collection for $65 with an inventory of 1500. The main selling season is 60 days between November and December. The store then sells the remaining units in a clearance sale at 65 percent discount. Out of the 60 main retail days, Fiberia sells the sweaters at full retail price for only 45 days, while giving a discount of 25 percent for the remaining 15 days. The demand functions a, and b are given as 79.5 and 1.1 respectively. Marked Down Pricing Model for Fiberia Accessories's new sweater Data Retail Price Inventory Selling Season (days) Days at Full Retail Intermediate Markdown Clearance Markdown Demand Function A B $65 1500 60 45 25 percent |65 percent 79.5 1.1 Compute the everyday sales throughout the discount sales period.arrow_forwardK Kim Epson operates a full-service car wash, which operates from 8 A.M. to 8 P.M. seven days a week. The car wash has two stations: an automatic washing and drying station that can handle 30 cars per hour and an interior cleaning station that can handle 210 cars per day. Based on a recent year-end review of operations, Kim estimates that future demand for the interior cleaning station for the seven days of the week, expressed in the average number of cars per day, would be as follows: Kim should not Day Cars should Mon. 160 Tues. 180 Wed. 150 Thurs. 140 Fri. 270 By installing additional equipment (at a cost of $60,000) Kim can increase the capacity of the interior cleaning to 300 cars per day. Each car wash generates a pretax contribution of $3.00. Should Kim install the additional equipment if she expects a pretax payback period of three years or less? install the additional equipment because the payback period is years. (Enter your response rounded to two decimal places.) Sat. 260…arrow_forward
- Data collected on the yearly demand for 50- pound bags of fertilizer at Wallace Garden Supply are shown in the following table. Estimate demand for vear 12 with a weighted moving average in which sales in the most recent year are given a weight of 2 and sales in the other two years are each given a weight of 1. Year Demand (Bags) 4 6. 3 4. 4. 10 6 8. 8. 8. 12 10 14 11 15 O A. 13.67 O B. 14.00 OC. 14.87 O D. 11.79 Click to select your answer. Us MacBook Air 888 * ES F2 F4 F6 F7 4) F9 F10 %23 2$ & * 4 6. 7 8 9. Q W R T Y F C V В alt command command option %#3arrow_forwardGrand Garden is a hotel with 140 suites. Its regular suite price is $210 per night per suite. The hotel’s total cost per night is $150 per suite and consists of the following. Variable cost $ 110 Fixed cost 40 Total cost per night per suite $ 150 The hotel manager receives an offer to hold the local Bikers’ Club meeting at the hotel in March, which is the hotel’s slow season with a low occupancy rate per night. The Bikers’ Club would reserve 120 suites for one night if the hotel accepts a price of $118 per night.(a) What is the contribution margin from this special offer?(b) Should the Bikers’ Club offer be accepted or rejected?arrow_forwardHudson Corporation is considering three options for managing its data processing operation: continuing with its own staff, hiring an outside vendor to do the managing, or using a combination of its staff and an outside vendor. The profit of the corporation depends on future demand. The annual profit of each option (in thousands of dollars) depends on demand as follows: Demand Staffing Options High Median Low Own staff 650 650 600 Outside vendor 900 600 300 Combination 800 650 500 Recommend a decision based on the use of the optimistic, conservative, and minimax regret approaches. If the demand probabilities are 0.2, 0.5, and 0.3, respectively for High, Median, and Low demands, use the expected value approach to determine the optimal decision(show steps).arrow_forward
- The following is the forecasted demand for Olives Company over the next few months. Month Forecasted Demand Jan 9025 Feb 9000 Mar 9450 Apr 9830 May 9630 10100 Jun Olives Company plans on using a constant production of 9,250 units a month at a $941 per unit cost. The company has an inventory balance of 300 units at the beginning of January. Stockout cost due to loss sale is estimated to be $202 per unit. Monthly inventory holding cost are $20 per unit. Olives Company can produce an additional 10% of its' regular production in overtime at the cost of $80 more per unit. Assume that Olives Company will avoid stockout if possible Under this plan how much will will Olives Company spend on inventory holding cost (answer to the nearest whole number)arrow_forwardUse the following for the next 2 questions: A company forecasts that it will ship 120,000 boxes of product in June. The product has a monthly turnover of 3. The company plans to use its facility to ship 80,000 boxes and the balance of the 40,000 boxes will ship from a rented facility. Space may be rented for a charge of $7 per box per month with an in-and-out handling charge of $0.45 per box shipped. 1. What is the rented (fixed) storage cost for June? - $280,000 - $180,000 - $42,500 - $250,000 - $93,333 - $153,333 - $173,333 2. What is the rented variable cost for June? - $33,333 - $43,333 - $6,000 - $38,000 - $18,000 - $28,000 - $23,333arrow_forwardTonya Stephani is the front office manager/RM at the 200-room Hilton Garden hotel. Tonight, she has 100 stay-over rooms and 100 arrivals. Based on her own forecasts, she anticipates 10 no-shows tonight. The average rate to be paid by each arriving guest is $199.99. Tonya has a signed agreement with the local Sheraton hotel that states each property is willing (subject to blackout dates) to accept the other’s walks at the rate of $99.00 per night. Tonight, the Sheraton has available rooms and has agreed to take up to ten walked guests. The cost of transporting guests to the Sheraton and back, as well as other walk related costs incurred by the Hilton, average $15.00 per room. Assume Tonya decides to overbook by ten rooms. Excluding any potential no-show billings, how much extra room revenue will be gained from overbooking if Tonya indeed experiences ten no-shows but overbooks by ten rooms and thus achieves a 100 percent occupancy? How much extra cost will the hotel incur if it sells…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY