answer all parts 3. Daily demand for tablets of amazon is normallydistributed, with a mean of 100 and standarddeviation of 30. The tablet supplier takes an averageof 15 days to replenish inventory at Amazon. Thestandard deviation of the supplier lead time is 5 days.Amazon follows a "periodic review policy" with areview period of 30 days. Amazon is targeting a CSLof 98% for its tablet inventory. (a) What is the meandemand during lead time and review period?What is the standard deviation of demand duringlead time and review period? (c) What is the safety(b)stock (in units) during lead time and review period?

Given data: Daily mean demand=100 The standard deviation of demand=30 The time to replenish…

Answered: 3. Daily demand for tablets of amazon…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Forrest and Dan make boxes of chocolates for which the demand is uncertain. Forrest says, “That’s life.” On the other hand, Dan believes that some demand patterns exist that could be useful for planning the purchase of sugar, chocolate, and shrimp. Forrest insists on placing a surprise chocolatecovered shrimp in some boxes so that “You never know what you’ll get.” Quarterly demand (in boxes of chocolates) for the last 3 years follows: Quarter Year 1 Year 2 Year 3 1 2 3 4 3,000 1,700 900 4,400 3,300 2,100 1,500 5,100 3,502 2,448 1,768 5,882 Total 10,000 12,000 13,600 a. Use intuition and judgment to estimate quarterly demand for the fourth year.b. If the expected sales for chocolates are 14,800 cases for year 4, use the multiplicative seasonal method to prepare a forecast for each quarter of the year. Are any of the quarterly forecasts different from what you thought you would get in part (a)?
Dorothy’s pastries are freshly baked and sold at several spe-cialty shops throughout Perth. When they are a day old, theymust be sold at reduced prices. Daily demand is distributedas follows:Demand Probability50 0.25150 0.50200 0.25Each pastry sells for $1.00 and costs $0.60 to make. Each onenot sold at the end of the day can be sold the next day for$0.30 as day-old merchandise. How many pastries should bebaked each day?
XYZ company is determining the inventory policy for product A which has annual demand distributed as Normal (500, 120). The value of each item is $25. The fixed ordering cost per order is $200. The lead time from supplier of an order is stochastic with mean 4 weeks and standard deviation 2 weeks. The company calculates the holding cost by using an interest rate of 25%. a) Determine the (Q, R) values if the company desires to use a Type 1 service level of 98%. b) Determine the (Q, R) values if the company desires to use a Type 2 service level of 95%. c) Determine the (Q, R) values if the company desires to use a shortage cost of $6.74 per unit of unsatisfied demand.
Native Customs sells two popular styles of hand-sewn footwear: a sandal and a moccasin. The cost to make a pair of sandals is $18, and the cost to make a pair of moccasins is $24. The demand for these two items is sensitive to the price, and historical data indicate that the monthly demands are given by S = 360 − 9P1 and M = 400 − 20P2, where S = demand for sandals (in pairs), M = demand for moccasins (in pairs), P1 = price for a pair of sandals, and P2 = price for a pair of moccasins. To remain competitive, Native Customs must limit the price (per pair) to no more than $60 and $75 for its sandals and moccasins, respectively. Formulate this nonlinear programming problem to find the optimal production quantities and prices for sandals and moccasins that maximize total monthly profit.
Suppose the weekly demand at each regional distribution center (RDC) is normally distributed with a mean =117 and standard deviation =23. The company is considering to replace the RDCs with one central distribution center (CDC). The CDC would continue to have a continuous review policy, and the delivery lead time from Asia will remain 8 weeks. What is the average weekly demand at CDC?
Suppose that the retailer SnowInc buys ski jackets from the Chinese manufacturerJacketCo. Due to the short selling season and long delivery lead time for this fashiongood, this is a one-time purchase decision. SnowInc estimates the season’s demand forone type of jacket to be normally distributed with mean 500 and standard deviation 100.Retail price for the jacket is $100. If not sold at the end of the season they unload themfor $10 per jacket. The wholesale price JacketCo charges is $30 per jacket and JacketCo’sper unit manufacturing cost is $12. How many jackets should SnowInc order and what arethe two firms’ profits? If both firms were owned by the same company, how would theseanswers change?
Weiss’s paint store keeps an inventory of white latex paint product in the gallon size. The manager reviews the stock level every 4 months. Demand is observed to be normally distributed with a monthly mean of 28 gallons and a standard deviation of 8. Re-supply lead time is 2.5 months. The store manager targets a 98 percent in-stock probability during the lead time. • What is the target inventory position?
The manager of Alaina’s Garden Center must make the annual purchasing plans for rakes, gloves, and other gardening items. One of the items the company stocks is Fast-Grow, a liquid fertilizer. The sales of this item are seasonal, with peaks in the spring, summer, and fall months. Quarterly demand (in cases) for the past 2 years follows: Quarter Year 1 Year 2 1 2 3 4 45 339 299 222 67 444 329 283 Total 905 1,123 If the expected sales for Fast-Grow are 1,850 cases for year 3, use the multiplicative seasonal method to prepare a forecast for each quarter of the year.
The purchasing manager for the Atlantic Steel Company must determine a policy for orderingcoal to operate 12 converters. Each converter requires exactly 5 tons of coal per day to operate,and the firm operates 360 days per year. The purchasing manager has determined that the orderingcost is $80 per order and the cost of holding coal is 20% of the average dollar value of inventoryheld. The purchasing manager has negotiated a contract to obtain the coal for $12 per ton forthe coming year. If 5 days of lead time are required to receive an order of coal, how much coal should be on hand when an order is placed?
3. Cynthia Knott’s oyster bar buys fresh Louisiana oysters for $5 per pound and sells them for $12 per pound. Any oysters not sold that day are sold to her cousin, who has a nearby grocery store, for $1 per pound. Cynthia believes that demand follows the normal distribution, with a mean of 100 pounds and a standard deviation of 15 pounds. a) What is the cost of underestimating demand for each pound? b) What is the overage cost per pound? c) How many pounds of oyster should she order each day? d) What is the stockout risk for this order size?
A company will begin stocking remote control devices. Expected monthly demand is 800 units. Thecontrollers can be purchased from either supplier A or supplier B. Their price lists are as follows:SUPPLIER A SUPPLIER BQuantity Unit Price Quantity Unit Price1–199 $14.00 1–149 $14.10200–499 13.80 150–349 13.90500 + 13.60 350 + 13.70 Ordering cost is $40 and annual holding cost is 25 percent of unit price per unit. Whichsupplier should be used and what order quantity is optimal if the intent is to minimize totalannual costs?
XYZ Company must order tires from its warehouse. It costs $10400 to place an order and to review the inventory level. Annual tire sales are normally distributed with mean 18000 and variance 4,000,000. It costs $8 per year to hold a tire in inventory, and each order arrives two weeks after being placed. The Company uses periodic review (R, S) policy. What is the review interval R (in years), estimated using EOQ.? Select one: a. 0.3801 b. 0.19 c. 0.2687 d. 1.075 e. 0.1267

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