A fish restaurant sells fish for 50$ per kg and buys it from the suppliers for 10$ per kg. Fish that were not sold during the day go bad. A manager has estimated that daily demand for fish is normally distributed with a mean of 20kg and a standard deviation of 5 kg. The manager has to decide how much fish to order per day. Find a profit-maximizing order
Q: The demand for a product of Carolina Industries varies greatly from month to month. Based on the…
A: Given, Unit Demand…
Q: Heineken sells beer in 12 packs for $13, in 24 packs for $25, and in 5-liter mini- kegs for $21.…
A: Cost of beer offered - 1. 12 packs for $13 , total beer in 12 packs = .355*12= 4.26 liter…
Q: A grocer purchases plums for $2.95 per pound and sells them for $4.62 per pound. At the end of the…
A:
Q: A retailer uses a periodic review order-up-to model to control the inventory of one of its high…
A: In this question, we have been given, Average demand=2580 units per week The standard deviation of…
Q: Economic order quantity. Maximum level of stock. Minimum level of stock.
A: There are multiple sub-parts in one question, as per the guideline, I should answer only the first…
Q: The bullwhip effect (also known as the Forrester effect) is defined as the demand distortion that…
A: A Bull whip effect can be defined as a phenomenon that describes how can a small fluctuation in the…
Q: CWD Electronics sells Televisions (TV), which it orders from the USA. Because of shipping and…
A: Given, Lead time (weeks) Probability Demand/week Probability 1 0.45 1 0.15 2…
Q: The Noname Computer Company builds a computer-designated model ICU2. It imports the motherboard of…
A: Given - Noname Computer Company manufactures an ICU2 computer by utilizingthe following things- 1…
Q: A company manufactures dog leashes that sell for $19.81, including shipping and handling. The…
A: The Break-even point is the point at which the production cost and the production revenue of the…
Q: The economic order quantity of Geo Co. is determined to be 450 units and it sells its only product…
A: A Small Introduction about Purchasing Buying is the purchasing of labor and products. A thing that…
Q: School stocks special printers that have variable lea bêcause of the difficulty of importing the…
A: Given: Mean demand(d) = 300/weekS.D of demand = 75/weekLead time (L) = 8 weeksS.D of…
Q: DETERMINING SAFETY STOCK WITH PROBABILISTIC DEMAND AND CONSTANT LEAD TIMEDavid Rivera Optical has…
A: Given Reorder point = 50 units Carrying cost = $5 per frame per year Stockout cost = $40 per frame
Q: A phone retailer buys three phone models from the same supplier. The retailer pays per unit cost of…
A: A = Annual usage in units (Demand)S = ordering cost (per order) in dollars or rupeesi = annual…
Q: A retail outlet sells a seasonal product for $10 per unit. The cost of the product is $8 per unit.…
A: Given data: Selling price = $10 per unit Cost price = $8 per unit Salvage cost
Q: Consider the following list of retail items sold in a small neighborhood gift shop.(given) a. Rank…
A: The profit for each item can be calculated as follows:
Q: A tire store orders its stock for a popular winter tire once every year. The cost of a tire for the…
A:
Q: 3. Daily demand for tablets of amazon is normally distributed, with a mean of 100 and standard…
A: Given data: Daily mean demand=100 The standard deviation of demand=30 The time to replenish…
Q: Ananda Fields is the CEO of a company that operates a very large number of quick service…
A: Ananda Fields is the CEO of a company that operates a very large number of quick service…
Q: for managing its data processing operation: continuing with its own staff, hiring an outside vendor…
A: When the expected value of a decision alternative is turned as the sum of weigh payoffs for the…
Q: The following data is extracted from the books of Gulf company, Fixed cost OMR 12.000. Selling price…
A: The breakeven variety of units, because the name suggests, is that the variety of units of products…
Q: Tech Company is a medium-sized consumer electronics retailer. The company reported $155,000,000 in…
A:
Q: The home appliance department in a large department store is using a (Q, R) system to control the…
A: Given data: Radios selling each week = 12 Weekly demand of normal distribution ,variance = 30…
Q: Pierre's can bake the bread only in batches of a dozen loaves each. Each loaf costs 25¢ to make.…
A: Below is the solution
Q: MANAGEMENT ACCOUNTING a) The following information is provided: Possible future demand with…
A: Given data is
Q: North Dakota Electric Company estimates its demand trend line (in millions of kilowatt hours) to…
A: The demand forecast : D = (80 + 0.43Q) x Multiplicative seasonal factor
Q: Marigold Corp. sells 2,750 dim-night bulbs per year, and places orders for 670 of these bulbs at a…
A: To calculate the safety stock,first have to calculate no: of order Marigold estimates a 60% chance…
Q: 3. Daily demand for tablets of amazon is normally distributed, with a mean of 100 and standard…
A: Here, the firm is following a periodic review policy, the review period is 30 days, considering the…
Q: You are a newsvendor selling the San Pedro Times every morning. Before you get to work, you go to…
A: Cost of under estimating (CU)=$ 1.00-$.25=$ .75 Cost of overestimating (CO) =$ .25 Service…
Q: A golf specialty wholesaler operates 50 weeks per year. Management is trying to determine an…
A: Formula:
Q: Gyona purchases meat from the local supermarket at $5 per kilo and sell it at $9 per kilo. any…
A: Given that: selling price SP 9 PURCHASE COST FOR RETAILER PC 5 DISPOSAL COST S 2
Q: You are a newsvendor selling the San Pedro Times every morning. Before you get to work, you go to…
A: Given data, Daily demand = 250 Standard deviation = 50 Underestimating cost Overestimating cost =…
Q: Soup4U is a restaurant that sells soup. Soup4U makes production decisions using the news vendor…
A: A news vendor model is one of the core concepts in the supply chain and inventory management. Given,…
Q: Cynthia Knott's oyster bar buys fresh Louisiana oysters for $3 per pound and sells them for $9 per…
A: Given data; Cost price 3 $ per pound Selling price 9 $ per pound Salvage price 2 $ per…
Q: nearby grocery store, for $2 per pound. The demand for oysters follows the normal distribution, with…
A: Given data: Selling price of Oyster P= $ 13/poundPurchase price of Oyster C = $6/pound Salvage…
Q: Target is considering opening mini-Target stores in airports across the United States. Target knows…
A: The above question is from the topic: Accounting. The answer to the questions is given below:
Q: A company uses the newsvendor model to manage its inventories and faces normallydistributed demand…
A: Inventory management refers to the process including ordering, storing and using a company's…
Q: A book and paper store distributes one specialized monthly magazine. When looking at the sales the…
A: Demand D = 250 Standard deviation = 100 Purchase price = $20 Sales price = $50 Scrap price /…
Q: 3
A: retailing selling price = $100 leftover books = $ 30
Q: The manager of Alaina's Garden Center must make the annual purchasing plans for rakes, gloves, and…
A: Forecasting is a process of predicting the future demand based on past available information. Here,…
Q: An ophthalmologist's office operates 52 weeks per year, 6 days a week. It purchases disposable…
A: Given thatOrder Size Q In some problems, Q is given. Here it is not, so let us use Q=EOQ set Q = EOQ…
Q: Find the mean and standard deviation for demand. 3b. Based on the information in problems 3 and 3a,…
A: THE ANSWER IS AS BELOW:
Q: Reports from industry experts suggest that NetWorks’ cost structure is similar to GearNet’s cost…
A: ANSWER IS AS BELOW:
Q: I need a detailed explanation and assistance to solve this problem: Wineco produces wine cooler as a…
A: Since the model is needed to solve for the quantities of ingredients to be purchased in order to…
Q: A hot dog vendor at Wrigley Field sells hot dogs for$1.50 each. He buys them for $1.20 each. All the…
A: a.
Q: An automotive warehouse stocks a variety of parts that are sold at neighborhoodstores. One…
A:
Q: Magdeleine James is a sole trader, who sells souvenir T-shirts. She wishes to sell her T-shirts at…
A: Below is the solution:-
Q: Target is considering opening mini-Target stores in airports across the United States. Target knows…
A: The above questions are from the topic: Accounting The answer to the questions are given below:
Q: Manufacturer Distributor Wholesaler Retailer Last year the retailer's weekly variance of demand was…
A: Given, Demand - 210 units Variance order- 470,610,770,1300 units.
Q: Cars are shipped from three distribution centres to five dealers. The shipping cost is based on the…
A: D1 D2 D3 D4 D5 Supply S1 100 150 200 140 35 400 S2 50 70 60 65 80 200 S3 40 90 100 150 130…
Q: The average basket size per purchase per agent in the fashion category in April is Rp.180.000,-. A…
A: Since we have our own strict guidelines in terms of answering your question, for that reason we can…
A fish restaurant sells fish for 50$ per kg and buys it from the suppliers for 10$ per kg. Fish that were not sold during the day go bad. A manager has estimated that daily demand for fish is
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- A retailer uses a periodic review order-up-to model to control the inventory of one of its high volume products. Average demand is 2580 units per week with a standard deviation of 1270. The review period is 5 weeks, the lead time is 11 weeks, and the safety factor used is 0.61. How many stockouts should the retailer expect for this product next year?You are a newsvendor selling the New York Times every morning. Before you get to work, you buy the day’s newspaper for $0.90 a copy. You sell a copy of the New York Times for $4.0. Daily demand is distributed normally with a mean of 130 and a standard deviation of 20. At the end of each morning, any leftover copies can be sold to a recycling center for $0.10. How many copies of the New YorkPlease provide STEP BY STEP instructions using the SINGLE PERIOD MODEL. Cynthia Knott’s oyster bar buys fresh Louisiana oysters for $5 per pound and sells them for $9 per pound. Any oysters not sold that day are sold to her cousin, who has a nearby grocery store, for $2 per pound. Cynthia believes that demand follows the normal distribution, with a mean of 100 pounds and a standard deviation of 15 pounds. How many pounds should she order each day?
- Goop Inc needs to order a raw material to make a special polymer. The demand for the polymer is forecasted to be Normally distributed with a mean of 250 gallons and a standard deviation of 125 gallons. Goop sells the polymer for $25 per gallon. Goop’s purchases raw material for $10 per gallon and Goop must spend $5 per gallon to dispose of all unused raw material due to government regulations. If demand is more than Goop can make, then Goop sells only what they made and the rest of demand is lost. Suppose Goop wants to ensure that there is a 92% probability that they will be able to satisfy the customer's entire demand. How many gallons of the raw material should they purchase? *Use Table in image and round your answer to the nearest integer.A grocer purchases plums for $2.95 per pound and sells them for $4.62 per pound. At the end of the sales cycle, leftover plums are sold for a closeout price of $1.76 per pound. The grocer purchases 10,380 pounds of plums. Expected demand is normally distributed with a mean of 8,304 pounds and a standard deviation of 1,038. What is the grocer's expected profit?An automotive warehouse stocks a variety of parts that are sold at neighborhoodstores. One particular part, a popular brand of oil filter, is purchased by thewarehouse for $1.50 each. It is estimated that the cost of order processing andreceipt is $100 per order. The company uses an inventory carrying charge based on warehouse for $1.50 each. It is estimated that the cost of order processing andreceipt is $100 per order. The company uses an inventory carrying charge based ona 28 percent annual interest rate.The monthly demand for the filter follows a normal distribution with mean280 and standard deviation 77. Order lead time is assumed to be five months.Assume that if a filter is demanded when the warehouse is out of stock, then thedemand is back-ordered, and the cost assessed for each back-ordered demand is$12.80. Determine the following quantities:a. The optimal values of the order quantity and the reorder level.b. The average annual cost of holding, setup, and stock-out associated…
- Answer the given question with a proper explanation and step-by-step solution. An E-commerce firm has four regional fulfillment centers (warehouses). Weekly demand for an item (Product_A) at each warehouse is random and is normally distributed with a mean of 10,000 per week and a standard deviation of 2,000 units per week. Product_A’s unit cost is $10. The inventory holding cost of the company is 25% per year. Assume 50 weeks per year. Each replenishment order from the supplier of Product_A costs $1,000, which includes the costs associated with placing the order, transportation, receiving, inspection, and put-away labor expenses. The replenishment lead time from the supplier is 1 week. The company’s service level goal is 95% (probability of having sufficient inventory to meet demand). On average, how long does a unit of inventory spend in the warehouse before being sold? Hint: Think Little's Law 2.5 weeks 6.6 weeks 5.3 weeks 1.3 weeksAAA auto supply store sells snow tires which are ordered every Friday to meet next week's demand. The sales price for the most popular size is $50 per tire and its cost for AAA is $35. If too many tires are ordered AAA incurs an inventory carrying cost of $2 per tire. If AAA is out of stock, it forgoes the profits from missed sales. AAA has the option to order 100, 150, or 200 tires to meet next week's demand which can be either 100, 150, or 200 tires.Based on its historical demand distribution, assume that AAA Inc. has determined the followingprobability information: P(100) = 0.4, P(150) = 0.3, and P(200) = 0.3 e. Which alternative should be chosen based on the minimax regret criterion? f. Which alternative should be chosen using the expected monetary value (EMV) criterion? g. What is the expected value under perfect information (EVPI)? Show WorkAAA auto supply store sells snow tires which are ordered every Friday to meet next week's demand. The sales price for the most popular size is $50 per tire and its cost for AAA is $35. If too many tires are ordered AAA incurs an inventory carrying cost of $2 per tire. If AAA is out of stock, it forgoes the profits from missed sales. AAA has the option to order 100, 150, or 200 tires to meet next week's demand which can be either 100, 150, or 200 tires.Based on its historical demand distribution, assume that AAA Inc. has determined the followingprobability information: P(100) = 0.4, P(150) = 0.3, and P(200) = 0.3.a. Which alternative should be chosen based on the maximax criterion?b. Which alternative should be chosen based on the maximin criterion?c. Which alternative should be chosen based on the Lapalce criterion?d. Which alternative should be chosen based on criterion of realism with alpha = 0.7?e. Which alternative should be chosen based on the minimax regret criterion?f. Which…
- A retailer sells winter jackets for $120 in the winter season. The cost of a jacket is $70. Unsold jackets discounted and sold for $50 after the winter season. Demand is normally distributed with a mean of 2500 units and standard deviation of 600 units. Replenishments cannot be ordered once the winter season starts due to long lead-times. The retailer wants to determine how many jackets to order for the winter season. The optimal service level is . 714.714 (enter your answer to 3 decimal places). The optimal quantity to order is ...(enter your answer rounded to the nearest integer).A car dealer must pay $20,000 for each car purchased. The annual holding cost is estimated to be 25% of the dollar value of inventory. The dealer sells an average of 500 cars per year. He is willing to backlog some demand but estimates that if he is short one car for one year, he will lose $20,000 worth of future profits. Each time the dealer places an order for cars, the ordering cost is $10,000. Determine the dealer’s optimal ordering policy. What is the maximum shortage that will occur? Assume it costs $5000 to store a car for a yearThe Fast Service Food Mart stocks frozen pizzas in a refrigerated display case. The average daily demand for the pizzas is normally distributed, with a mean of 8 pizzas and a standard deviation of 2.5 pizzas. A vendor for a packaged food distributor checks the market’s inventory of frozen foods every 10 days, and during a particular visit, there were no pizzas in stock. The lead time to receive an order is 3 days. Determine the order size for this order period that will result in a 99% service level. During the vendor’s following visit, there were 5 frozen pizzas in stock. What is the order size for the next order period?