Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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Textbook Question
Chapter F, Problem 4DQ
Question:
4. Explain the difference between simulated average demand and expected average demand.
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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…
v Question Completion Status:
QUESTION 11
The accompanying table shows the demand and supply schedules for lobster. The U.S. government decides that the incomes of lobster farmers should be maintained at a level that
allows them to survive. It therefore implements a price floor of $14 per pound by buying surplus lobster until the market price is $14 per pound.
Quantity Demand
(thousands of pounds)
Quantity Supplied
(thousands of pounds)
Price of Lobster
(per pound)
$22
0.
360
20
20
320
18
40
280
16
60
240
14
80
200
12
100
160
10
120
120
8
140
80
6
160
40
4
180
Reference: Ref 2-1
Since lobster is an important source of protein and omega-3, the government decides to provide the surplus lobster it purchases to nursing homes at a price of only $12 per pound.
Assume that nursing homes will buy any amount of lobsters available at this low price, but families of nursing home patients now reduce their purchases of lobsters at any price by 60
thousand pounds because their family members are…
Question 2
an estimate of the number of times a customer wanted a
The Texas Gladiators won the Super Bowl last year. As a
cap when it was not available but did not aşk for it.)
result, sportswear such as hats, sweatshirts, sweat-
pants, and jackets with the Gladiator's togo are popular.
The Gladiators operate an apparel store outside the foot-
ball stadium. It is near a busy highway, so the store has
heavy customer traffic throughout the year, not just on
game days. In addition, the stadium has high school or
Week
Demand
Week
Demand
Week
Demand
1
38
11
28
21
52
2
51
12
41
22
38
3
25
13
37
23
49
4
60
14
44
24
46
college football and soccer games almost every week in
the fall, and baseball games in the spring and summer.
The most poputar single item the stadium store sells is a
red and silver baseball-style cap with the Gladiators' logo
on it. The cap has an elastic headband inside it, which
conforms to different head sizes. However, the store has
5
35
15
45
25
47
42
16
56
26
41
29
17
62…
Chapter F Solutions
Operations Management
Ch. F - Question: 1 State the seven steps, beginning with...Ch. F - Question: 2. List the advantages of simulation.Ch. F - Prob. 3DQCh. F - Question: 4. Explain the difference between...Ch. F - Question: 5. What is the role of random numbers in...Ch. F - Prob. 6DQCh. F - Question: 7. What is Monte Carlo simulation? What...Ch. F - Question: 8. List six ways that simulation can be...Ch. F - Question: 9. Why is simulation such a widely used...Ch. F - Prob. 10DQ
Ch. F - Prob. 11DQCh. F - Prob. 12DQCh. F - Prob. 13DQCh. F - Prob. 1PCh. F - Prob. 2PCh. F - Prob. 3PCh. F - Prob. 4PCh. F - Question F.5 Arnold Palmer Hospital is studying...Ch. F - Prob. 6PCh. F - Question: F.7 A warehouse manager at Mary Beth...Ch. F - Prob. 8PCh. F - Prob. 9PCh. F - Question: F.10 The number of cars arriving at...Ch. F - Prob. 11PCh. F - Prob. 12PCh. F - Prob. 13PCh. F - Question: F.14 Refer to the data in Solved...Ch. F - Question: F.15 Connecticut Tanning has two...Ch. F - Prob. 16PCh. F - Prob. 17PCh. F - Prob. 18PCh. F - Prob. 1CSCh. F - Prob. 2CS
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