A supermarket in Seattle must decide how many wedding cakes to prepare for the upcoming weekend. Cakes cost $33 each to make, and they sell for $60 each. At the very last hour of the day, any unsold boxes are reduced to “half-price”. Holding cost is negligible. Analysis of recent demand resulted in the following table: Demand  Probability 0 .15 1 .35 2 .30 3 .20 How many cakes should be prepared to maximize expected profit?

1) Assume that you are a manager of one of the hotels in the UAE. As you know, UAE has an excellent weather from October to April, so the room occupancy rate is high during this period. However, the occupancy rate becomes low during the period from May to September due to the hot weather and this happens every year. Based on the above information: 1- What is type of demand state that you face in this situation? Explain it? 2- And explain how can you manage this demand state in detail? 2) In this course, you were requested to provide relevant recommendations to intensive growth strategies for a selected hotel of your choice in the UAE, write a report to explain each one of them and show their relevant recommendations as follows: 1- Market penetration strategy (explain and write recommendations) 2- Market development strategy (explain and write recommendations) 3- Product development strategy (explain and write recommendations) 4- Related diversification strategy (explain and write…

Assuming Normal Distribution, what would the optimal (s,Q) policy be for the given parameters below? Given data: Demand daily has mu  = 1768, sigma = 5.37, with a unit purchased cost is $15 (annual interest rate is 20%). The order cost is  $50 with a back ordering cost of $25. The order lead time is 3 days.

As with other products, Fisher-Price faces the decision of how many Weather Teddy units to order for the comingholiday season. Members of the management team suggested order quantities of 15,000, 18,000, 24,000, or28,000 units. The wide range of order quantities suggested indicates considerable disagreement concerning themarket potential. The product management team asks you for an analysis of the stock-out probabilities forvarious order quantities, an estimate of the profit potential, and to help make an order quantity recommendation.Fisher-Price expects to sell Weather Teddy for $24 based on a cost of $16 per unit. If inventory remains afterthe holiday season, Fisher-Price will sell all surplus inventory for $5 per unit. After reviewing the sales historyof similar products, Fisher-Price’s senior sales forecaster predicted an expected demand of 20,000 units with a.95 probability that demand would be between 10,000 units and 30,000 units. Question: One of Fisher-Price’s managers felt…

Suppose that we would like to determine Reorder Point for the product. From the historical data the manager determined demand during lead-time for that product fits Normal distribution with a mean of 200 and standard deviation of 10 products. The maximum stock out risk is 10%. Answer the following questions according to the (Q, R) system. a) Find the safety stock if the lead time is 2 weeks. b) Find the reorder point. c) Find the reorder point if the stock out risk decreases to 1%. Comment on the result.

The local supermarket buys lettuce each day to ensure really fresh produce. Each morning, any lettuce that is left from the previous day is sold to a dealer that resells it to farmers who use it to feed their animals. This week, the supermarket can buy fresh lettuce for $8.00 a box. The lettuce is sold for $16.00 a box and the dealer that sells old lettuce is willing to pay $1.80 a box. Past history says that tomorrow's demand for lettuce averages 245 boxes with a standard deviation of 38 boxes. How many boxes of lettuce should the supermarket purchase tomorrow? (Use Excel's NORMSINV() function to find the correct critical value for the given a-level. Do not round intermediate calculations. Round your answer to the nearest whole number.) Number of boxes

1. Demand for walnut fudge ice cream at the Sweet Cream Dairy can be approximated by a normal distribution with a mean of 21 gallons per week and a standard deviation of 5 gallons per week. The new manager desires a service level of 90 percent. Lead time is 8 days, and the dairy is open seven days a week. (Hint: Work in terms of weeks.) If the ROP model is used, what is the appropriate  safety stock level  to achieve the desired service level? Round to two decimal places.  Answer: _________