Concept explainers
a)
To determine: The demand on Day 3.
Introduction: Simulation is the model that can be used in operations, which would imitate the real world process. Simulation uses random sampling for the generation of realistic variability.
b)
To determine: The total net-profit at the end of 6 days.
Introduction: Simulation is the model that can be used in operations, which would imitate the real world process. Simulation uses random sampling for the generation of realistic variability.
c)
To determine: The lost goodwill on day 6.
Introduction: Simulation is the model that can be used in operations, which would imitate the real world process. Simulation uses random sampling for the generation of realistic variability.
d)
To determine: The net-profit on day 2.
Introduction: Simulation is the model that can be used in operations, which would imitate the real world process. Simulation uses random sampling for the generation of realistic variability.
e)
To determine: The number of papers ordered for day 5.
Introduction: Simulation is the model that can be used in operations, which would imitate the real world process. Simulation uses random sampling for the generation of realistic variability.
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Operations Management
- Question 4 Santizit, Inc. produces a constant supply of hand sanitizer bottles (adjusted for seasonality) to its distributors. Recently the sales team increased their forecast to the distributors. With the updated sales forecast, the operations management met to discuss the need to revise their optimal, or economic, order quantity. During the meeting, your manager assigns you to calculate the economic order quantity of cases of hand sanitizer bottles that the plant would need to achieve to meet the forecasted supply to the distributors. The operations supervisor provides you with some key information. • There are 12 bottles in each innerpack. • Each case contains 5 innerpacks. • The average annual holding cost per case is $6. • The cost per order is $130. • The plant operates Monday through Friday and has two weeks per year that it is shut down for maintenance. The maximum inventory at the end of each production run is 4% greater than the demand. • Assume daily demand of 12,703 bottles…arrow_forwardQuestion 3: Jerry has preferences over cats, c, and hats, h, that can be described by u(c, h) = min{2c, 2h}. Sketch the following curves (where pertinent, put c on the horizontal axis and h on the vertical axis): (1) Jerry's price consumption curve as the price of cats p. changes. (2) Jerry's demand curve for cats. (3) Jerry's income consumption curve. (4) Jerry's Engel curve for cats and Jerry's Engel curve for hats.arrow_forwardQuestion Nyame Bekyere Wholesale Supply and Distribution Company sells parts, equipment, and supplies for recreational activities like plastic slides, bouncy castles, swings and electronic trains. In addition, NBWSDC has a service department for the repair and service of the recreational items. The owner, Mr. Osei Nyame Bekyere, bought the company five years ago from its original owner. The organization is set up in three divisions: service, retail parts and supplies, and wholesale. The owner and president, has a vice president for each operating division, for example the warehouse has three groups: receiving (checking orders for completeness, returning defective merchandise, stocking the shelves, filling orders), service parts, and order filling for distribution to customers. The warehouse group is responsible for all activities related to parts and supplies receiving, storage, and distribution. The retail sales division includes all functions related to selling of parts and…arrow_forward
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