43 please help me with all of these parts SFamous Albert prides himself on being the Cookie King of the West. Small, freshly baked cookies are the specialty of his shop. FamousAlbert has asked for help to determine the number of cookies he should make each day. From an analysis of past demand, heestimates demand for cookies asDEMAND2,100 dozen2,3002,5002,7002,9003,1003,300PROBABILITY OFDEMAND0.030.090.300.300.150.030.10Each dozen sells for $0.68 and costs $0.50, which includes handling and transportation. Cookies that are not sold at the end of theday are reduced to $0.32 and sold the following day as day-old merchandise.a. Compute the expected profit or loss for each cookie making decision quantity.Note: Round your answer to the nearest whole number. Enter expected losses with a negative sign.Cookies Baked(Dozen)2,1002,3002,5002,7002,9003,1003,300ProbabilityDemand0.030.090.300.300.150.030.10Optimal number of cookiesExpectedProfit/Lossb. Based on your answers to part a., what is the optimal number of cookies to make?dozen b. Based on your answers to part a., what is the optimal number of cookies to make?Optimal number of cookiesdozenc. By using marginal analysis, what is the optimal number of cookies to make?Optimal number of cookiesdozen

Given data: Demand (dozen) Probablity of demand 2100 0.03 2300 0.09 2500 0.30 2700 0.30…

Answered: Famous Albert prides himself on being…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter10: Introduction To Simulation Modeling

Section10.4: Simulation With Built-in Excel Tools

Problem 14P

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A distributor of large appliances needs to determine the order quantities and reorderpoints for the various products it carries. The following data refer to a specii c refrigeratorin its product line:Cost to place an orderHolding costCost of refrigeratorAnnual demandStandard deviation of demand during lead timeLead time$10020 percent of product cost per year$500 each500 refrigerators10 refrigerators7 daysConsider an even daily demand and a 365-day year.a. What is the economic order quantity?b. If the distributor wants a 97 percent service probability, what reorder point, R, shouldbe used?
Your company makes hand sanitizer in two lines: Moisturizing+, and StandardSoap. On the market, Moisturizing+ retails for $175/L and StandardSoap retails for $95/L. You make the hand sanitizer by combining lotion, soap, and secret ingredient SpecialX. These ingredients are purchased from a mysterious supplier, and you can purchase at most 4000L of lotion, 5000L of soap, and 750L of SpecialX in a month. Lotion costs $25/L, soap costs $10/L, and SpecialX costs $35/L. To make 1L of Moisturizing+, you need to combine 0.5L of lotion, 0.3L of soap, and 0.2L of SpecialX. To make 1L of StandardSoap, you need to combine 0.4L of lotion, 0.55L of soap, and 0.05L of SpecialX. Your company has committed to donating 500L of StandardSoap to a local charity. Since this is a donation, you will not receive any revenue. However, the costs and purchasing limits apply to both the hand sanitizer that is sold on the market and donated to charity. You want to maximize your monthly profit. Assume that…
Please do not give solution in image formate thanku. A given product has an expected demand of 240 units per month, with a standard deviation of 70 units per month. Leadtime is 0.5 months. Customer service level (CSL) has been set so that we have a value of k=1.28. We want to manage this product's inventory using a (R, S) periodic review policy. We plan to order every 2 months (R = 2 months). Using the k value from above, what is the order up to level, S, for this policy? Give your answer rounded to the closest integer. Since orders are placed every 2 months, and the demand is variable, the order quantities are not identical. But we can estimate an average order size. What is the expected average order size for the policy described above? Under this policy, how many orders are placed per year? Placing each order costs $100. What is the annual ordering cost?
A company begins a review of ordering policies for its con-tinuous review system by checking the current policies for asample of SKUs. Following are the characteristics of one item.Demand 1D2 = 64 units>week 1Assume 52 weeks per year2Ordering or setup cost 1S2 = $50>orderHolding cost 1H2 = $13>unit>yearLead time 1L2 = 2 weeksStandard deviation of weekly demand = 12 unitsCycle@service level = 88 percenta. What is the EOQ for this item?b. What is the desired safety stock?c. What is the reorder point?d. What are the cost implications if the current policy for thisitem is Q = 200 and R = 180?
Vallie Enterprise sells a product that cost $200 per unit and has a monthly demand of 500 units. The annual holding cost per unit is calculated as 2% of the unit purchase price. It costs the business $30 to place a single order. The maximum number of units sold for any one week is 150 and minimum sales 80 units. The vendor takes anywhere from 2 to 4 weeks to deliver the merchandise after the order is placed. The EOQ model is appropriate. i) What is the cost minimizing solution for this product each year? ii) Determine the re-order level, minimum inventory level and maximum inventory level for the product.
Consider two products A and B that have identical cost, retail price and demand parameters and the same short selling season. The newsvendor model is used to manage inventory for both products. Product A is to be discontinued at the end of the season this year, and the leftovers will be salvaged at 65% of the cost. Product B will be re-offered next summer, so any leftovers this year can be carried over to the next year while incurring a holding cost on each leftover unit equal to 20% of the product's cost. How do the stocking quantities for these products compare? Multiple Choice Stocking quantity of product A is higher. Stocking quantity of product B is higher. The answer cannot be determined from the data provided. Stocking quantities are equal.
Halloween is the big holiday for a candy manufacturer—more than half of its salesoccur in the month leading up to Halloween. As a result, the manufacturer produces a largestockpile of inventory before the holiday. Which of the following best explains the reason forthis inventory?a. Seasonalityb. Batchingc. Buffersd. Uncertain demande. Pricing
Jane Nursery grows pink and peach roses in her 100 by100 foot garden. She then sells it at the local farmers'market. Two month ago, she was able to produce andsell 12,000 buds of roses. Last month, she tried a newfertilizer that promised a 50% increase in yield. Sheharvested 1,980 buds of roses. Did the fertilizer live up toits promise?
AAA 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 Work
AAA 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…
Change the ordering simulation so that emergencyorders are never made. If demand in any week isgreater than supply, the excess demand is simplylost. Simulate the same (s, S) policies as in theexample.
Please do not give solution in image format thanku A company produces sandals in four different patterns for summer. The demand for all four patterns is seasonal and normally distributed. Each of the four patterns has an expected demand of 10,000 pairs with a standard deviation of 4,000 pairs. Currently, all patterns are produced before the start of the season. Production cost is $20 per pair, and they are sold for a wholesale price of $36 per pair. Any unsold sandal at the end of the season is sold at discounted price of $15 per pair. It costs $1 per pair to hold the sandals in inventory for the entire season if it does not sell. The company is considering the postponement of printing the pattern of the sandals. This will require the base sandals to be made in advance (identical for each of the four models) and the final patterns to be printed later. This will increase production cost of sandals to $22. 5 per pair. What is the optimal cycle service level before postponement? (choose…

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