James Calender is the buyer for "Joe's Radio Hut", a local electronics chain that has developed a loyal customer base with its quality service and competitive pricing. Due to the short selling lives of electronics products, James has only a single opportunity to order the new GO multifunction photo printer and hair dryer. The item sells for $139.24 and the per unit cost is $128.93. Any units remaining at the end of the season must be disposed of at a cost of $18.04. Demand for the item is believed to be normally distributed with a mean 605 and standard deviation 145.2. What is the cost of shortage? (specify answer to 2 decimal places) What is the critical fractile? (specify answer to 3 decimal places) What is the cost minimizing order quantity? (specify answer as a whole number)
Q: CALCULATOR PRINTER VERSION 4 BACK NEX Problem 6.6 Patricia Zell, a dollmaker from Olney, Maryland,…
A: Break-even point = Fixed costcontibution per unit contribution per unit = selling price/unit -…
Q: The owner of old -Fashioned Berry Pies, S. Simon, is contemplating adding a new line of pies, which…
A: Hi! We are supposed to answer only 3 parts at a time. Since you have not mentioned which parts to…
Q: Acadia Logistics anticipates that it will need more distribution center space to accommodate what it…
A: Given: Requirement(in sq. Ft.) Probability 210,000 0.45 360,000 0.25 510,000 0.15…
Q: Bernie’s Bike Shop receives the following trade discounts: 20/15/15. The vendor’s price list…
A: Given - Manufacturer’s list price = $550 Trade discounts: 20/15/15
Q: CASE: The manager of a community pharmacy is reordering his stock of generic atenolol when he notes…
A: Financial considerations in any businesses are more important than others considerations or…
Q: Medaas Electronics is a fictional producer of laser printers. The company's production planner,…
A:
Q: As a new account assistant, Miss Fizah has been assigned to calculate the amount that should appear…
A: Ethics are the set of rules or norms followed by the individuals in the organization. It is the rule…
Q: Ramly Food Processing Sdn. Bhd or Ramly Group, is one of the Malaysian noble platform to produce…
A: Considering the above situation of Ramly food processing or Ramly group which produce halal,…
Q: Amy Lloyd is interested in leasing a new Hónda and has contacted three automobile dealers for…
A: Given-
Q: Prince Electronics, a manufacturer of consumer electronic goods, has five distribution centers in…
A: Formula:
Q: Faizah is travelling to the United Kingdom for her 2022 family trip. She is planning to rent a car…
A: Options for Car dealers Weekly rental Mileage allowance Extra cost Avis 275 36000 0.15 Europcar…
Q: The Sofaworld Company purchases upholstery materialfrom Barrett Textiles. The company uses 45,000…
A: Optimal Order Quantity or Economic Order Quantity is at method of inventory control in which a…
Q: Lake Grove Confectionaries (LGC) sells chocolates for the holiday season in specially designed…
A: THE ANSWER IS AS BELOW:
Q: An entrepreneurial resident of the Oklahoma City metropolitan area is interested in securing a new…
A: Let (X,Y) be the coordinates for the location of the franchise outlet. Using Pythagoras theorem, we…
Q: Special Order; Strategy; International Williams Company, located in southern Wisconsin,manufactures…
A: 1. Determine how many additional direct labor hours (DLHs) will be required each month to fill the…
Q: HERO Corporation is considering three options for managing its data processing operation: continuing…
A: 1. note: if payoff was profit and not cost, max formula would have been used. conservative…
Q: ATK-Auto obtains one of the critical parts from its sub-constructor located in Belgium. Daily demand…
A: Thank you for posting the question ,As per the policy we will answer the first 3 questions for you,…
Q: Every summer Marianna offers a special convertible roof on the Sport Coupe model. The demand for the…
A:
Q: Hair Zone manufactures a brand of hair-styling gel. It is considering adding a modifiedversion of…
A: The variable cost refers to the cost which is not constant or same for a manufacturer. The variable…
Q: Annie McCoy, a student at Tech, plans to open a hot dog stand inside Tech's football stadium during…
A: Given data Fixed Cost will be calculated by adding the vendor’s fee and equipment and stand fee for…
Q: Acadia Logistics anticipates that it will need more distribution center space to accommodate what it…
A: Given data: Requirements Probabilities 230000 0.35 430000 0.40 630000 0.20 830000 0.05
Q: Maruti Suzuki plants at Gurgaon and Maneshar also manufacture the Nexa range of Cars. The production…
A: Find the Given details below: Given details: Monthly Demand (Mean) 18000 cars/Month Yearly…
Q: Ontario Sweet Shop makes special boxes of Valentine’s Day chocolates. Each costs $15 in material and…
A: Below is the solution:-
Q: Greenfield's Tannery supplies leather to the South Fork Boot Company on a monthly basis for…
A: From the given data: Here is the excel Formulation for Three month and Five month moving average
Q: Samsung implements a Continuous Inventory System for an electronic component. The inventory manager…
A:
Q: A pizzeria in downtown Changloon is trying to determine the best order quantity for its pizza…
A: The step by step solution of the same is as follows:
Q: A firm’s manager must decide whether to make or buy a certain item used in the production of vending…
A: Given- Make Buy Annual fixed cost $150,000 None Variable cost/unit $60 $80 Annual volume…
Q: Prince Electronics, a manufacturer of consumer electronic goods, has five distribution centers in…
A: Formula:
Q: Andrea is ordering supplies for summer camp and notices the supplier has a special offer on four…
A: SOLUTION: There are 2 methods to solve this problem- 1) using linear programming 2) As one option…
Q: A firm is considering the replacement of a machine, whose cost price is Rs 12,200 and its scrap…
A: We are given the running cost, R(n), the scrap value S = Rs 200, and the cost of the machine, C = Rs…
Q: Knights Ltd Wayne tells you he is planning the 30 June 2021 Audit of Knights Ltd, a company that…
A: Below will be the business risk effects for Knights Ltd: There will be an effect of financial risk…
Q: Describe what is meant by the shadow price in linear programming
A: The Shadow price associated with a particular constraint tells you how much the optimal value of the…
Q: The Sofaworld Company purchases upholstery materialfrom Barrett Textiles. The company uses 45,000…
A: Given 1. Annual demand (D)=45000 yards of material 2. Ordering cost (Co)=$1500 per order 3. Holding…
Q: What is Jaclyn’s new break-even point? If she sells 264 bubble teas, which option does she prefer?
A: THE ANSWER IS AS BELOW:
Q: How does the presence of one production constraint affect the relevant cost analysis model? Two…
A: Production is a process of converting the raw material into the finished goods. Now, in modern era,…
Q: When Molly Lai purchased the Clean Clothes Corner Laundry, she thought that she would automatically…
A: With the purchase of the Clean Clothes Corner Laundry, owner, Molly Lai initially focused her…
Q: A calculator company produces a scientific calculator and a graphing calculator. Long-term…
A: Let x be the no. of scientific calculator produce and y be the no. of Graphical Calculator produce.…
Q: The Rolling Creek Textile Mill produces denim. The fixed monthly cost is $21,000, and the variable…
A:
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: H&M’s chief demand planner has estimated that 9,250,000 units of clothing will be sold in 2021.…
A:
Q: Phillip Witt, president of Witt Input Devices, wishes to create a portfolio of local suppliers for…
A: Expected market value (EMV) is the total value of each various class of securities held in an…
Q: The DellaVecchia Garden Center purchases and sells Christmas trees during the holiday season. It…
A: Payoffs and Payoff Table (a & b)Purchase price = $10 and sales price = $20, therefore profit =…
Q: A chef must decide how many chocolate lava cakes to prepare for the upcoming Mother's Day Dinner…
A: Given data, Let's assume P and D be the number of cakes prepared and demanded respectively. D >…
Q: Comfort Plus Inc. (CPI) manufactures a standard dining chair used in restaurants. The demand…
A: Q1 Q2 Demand 3700 4200 DAP 12.50 13.75 $/seat CPI 10.25 $/seat (up…
Q: Acadia Logistics anticipates that it will need more distribution center space to accommodate what it…
A: Expected value identifying the possible cost based on probable demand with the consideration of unit…
Q: GoodMed Drug Company produced an antibiotic that is supposed to treat several bacterial infections.…
A: CORPORATE SOCIAL RESPONSIBILITY: Corporate social responsibilities (CSR) refers to the social…
Q: David Austin recently purchased a chain of dry cleaners in northern Wisconsin. Although the business…
A: Given Fixed cost = $15,400Variable cost = $0.25 per shirtUnit price = $1.10 per shirt
Q: Toyco produces a line of Bonnie dolls and accessories at its plants in New York and Baltimore that…
A: Find the Given details below: From/To Pittsburgh Denver Chicago Los Angeles Supply New York 182…
Q: Anxloge supplies firms with apparel containing their logo to be used for promotional purposes.…
A: Given, IBM HP Dell Mean 7000 6000 5000 Standard Deviation 3000 1000…
James Calender is the buyer for "Joe's Radio Hut", a local electronics chain that has developed a loyal customer base with its quality service and competitive pricing. Due to the short selling lives of electronics products, James has only a single opportunity to order the new GO multifunction photo printer and hair dryer.
The item sells for $139.24 and the per unit cost is $128.93. Any units remaining at the end of the season must be disposed of at a cost of $18.04. Demand for the item is believed to be
What is the cost of shortage? (specify answer to 2 decimal places)
What is the critical fractile? (specify answer to 3 decimal places)
What is the cost minimizing order quantity? (specify answer as a whole number)
Step by step
Solved in 2 steps with 3 images
- Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon spawn during a 24-hour period and must be canned immediately. Tinkan has the following agreement with the salmon industry. The company can deliver as many cans as it chooses. Then the salmon are caught. For each can by which Tinkan falls short of the salmon industrys needs, the company pays the industry a 2 penalty. Cans cost Tinkan 1 to produce and are sold by Tinkan for 2 per can. If any cans are left over, they are returned to Tinkan and the company reimburses the industry 2 for each extra can. These extra cans are put in storage for next year. Each year a can is held in storage, a carrying cost equal to 20% of the cans production cost is incurred. It is well known that the number of salmon harvested during a year is strongly related to the number of salmon harvested the previous year. In fact, using past data, Tinkan estimates that the harvest size in year t, Ht (measured in the number of cans required), is related to the harvest size in the previous year, Ht1, by the equation Ht = Ht1et where et is normally distributed with mean 1.02 and standard deviation 0.10. Tinkan plans to use the following production strategy. For some value of x, it produces enough cans at the beginning of year t to bring its inventory up to x+Ht, where Ht is the predicted harvest size in year t. Then it delivers these cans to the salmon industry. For example, if it uses x = 100,000, the predicted harvest size is 500,000 cans, and 80,000 cans are already in inventory, then Tinkan produces and delivers 520,000 cans. Given that the harvest size for the previous year was 550,000 cans, use simulation to help Tinkan develop a production strategy that maximizes its expected profit over the next 20 years. Assume that the company begins year 1 with an initial inventory of 300,000 cans.
- The DellaVecchia Garden Center purchases and sells Christmas trees during the holiday season. It purchases the trees for $10 each and sells them for $20 each. Any trees not sold by Christmas day are sold for $2 each to a company that makes wood chips. The garden center estimates that four levels of demand are possible: 100, 200, 500, and 1,000 trees.a. Compute the payoffs for purchasing 100, 200, 500, or1,000 trees for each of the four levels of demand.b. Construct a payoff table, indicating the events and alternative courses of action.c. Construct a decision tree.d. Construct an opportunity loss table. Use the Optimistic (maximax) to choose the best choice.e.Use the Pessimistic (maximin) to choose the best choice.f.Use the Criterion of realism (Hurwicz) to choose the best choice. α = 0.6g.Use the Equally likely (Laplace) to choose the best choice. h.Use the Minimax regret to choose the best choice.i.Use the expected monetary value to make a choice. ( Probability for the four level…The DellaVecchia Garden Center purchases and sells Christmas trees during the holiday season. It purchases the trees for $10 each and sells them for $20 each. Any trees not sold by Christmas day are sold for $2 each to a company that makes wood chips. The garden center estimates that four levels of demand are possible: 100, 200, 500, and 1,000 trees.a. Compute the payoffs for purchasing 100, 200, 500, or1,000 trees for each of the four levels of demand.b. Construct a payoff table, indicating the events and alternative courses of action.c. Construct a decision tree.d. Construct an opportunity loss table. Use the Optimistic (maximax) to choose the best choice.e.Use the Pessimistic (maximin) to choose the best choice.f.Use the Criterion of realism (Hurwicz) to choose the best choice. α = 0.6g.Use the Equally likely (Laplace) to choose the best choice.h.Use the Minimax regret to choose the best choice.i.Use the expected monetary value to make a choice. ( Probability for the four level…I need a detailed explanation and assistance to solve this problem: Wineco produces wine cooler as a blend of wine, grape juice and apple juice ingredients, which it sells for $4 per gallon. The costs of ingredients are given in the following table: Cooler Ingredient Price per Gallon ($) wines 1.20 grape juice 1.40 Apple juice 0.60 Wineco owns a blending plant with a production capacity of 200 gallons per day. Because the plant is fully automated, all other production costs are negligible by comparison to the cost of ingredients, and can be ignored. Government regulations mandate that wine cooler products must satisfy the following guidelines: At least 10% of the blend produced must be grape juice. The ratio of apple juice to grape juice in the blend produced must be 2.5:1 The blend produced must contain between 20% and 25% wine. Wineco wishes to use LP in order to determine the quantities of ingredients to buy for a day’s production of wine cooler, so…
- The Rolling Creek Textile Mill produces denim. The fixed monthly cost is $21,000, and the variable cost per yard of denim is $0.45. The mill sells a yard of denim for $1.30. a. For a monthly volume of 18,000 yards of denim, determine the total cost, total revenue, and profit. b. Determine the annual break-even volume for the Rolling Creek Textile Mill.PROBLEM 8 Jim Huang and Roderick Wheeler were sales representatives in a computer store at a shopping mall in Arlington, Virginia, when they got the idea of going into business in the burgeoning and highly competitive microcomputer market. Jim went to Taiwan over the summer to visit relatives and made a contact with a new firm producing display monitors for microcomputers, which was looking for an East Coast distributor in America. Jim made a tentative deal with the firm to supply a maximum of 500 monitors per month and called Rod to see if he could find a building they could operate out of and some potential customers. Rod went to work. The first thing he did was send bids to several universities in Maryland, Virginia, and Pennsylvania for contracts as an authorized vendor for monitors at the schools. Next, he started looking for a facility to operate from. Jim and his operation would provide minor physical modifications to the monitors, including some labeling,…Comfort Plus Inc. (CPI) manufactures a standard dining chair used in restaurants. The demand forecasts for quarter 1 (January–March) and quarter 2 (April–June) are 3700 chairs and 4200 chairs, respectively. CPI has a policy of satisfying all demand in the quarter in which it occurs. The chair contains an upholstered seat that can be produced by CPI or purchased from DAP, a subcontractor. DAP currently charges $12.50 per seat, but has announced a new price of $13.75, effective April 1. CPI can produce the seat at a cost of $10.25. CPI can produce up to 3800 seats per quarter. Seats that are produced or purchased in quarter 1 and used to satisfy demand in quarter 2 cost CPI $1.50 each to hold in inventory, but maximum inventory cannot exceed 300 seats. Define the decision variables needed to model this problem. Give the objection function. Write the constraints. What is the final answer? Explain in detail.
- The manufacturing plant of Carilla Ltd. specializes in crafting specialized pieces for carnival. With a monthly production capacity of 15,000 pieces, the company currently manufactures and sells 11,000 pieces per month. Typically priced at $200 per piece, the company's cost breakdown for the ongoing production level is outlined below: Variable costs that vary with number of units producedDirect materials $ 440,000Direct manufacturing labor 495,000Variable costs (for setups, materials handling, quality control, etc.)that vary with number of batches, 220 batches * $500 per batch 110,000 Fixed CostsFixed manufacturing costs 300,000Fixed marketing costs 200,000Total costs $1,545,000Carilla has just received a special one-time-only order for 4,000 pieces at $150 per piece. Accepting the special order would not affect the company’s regular business. Carilla makes pieces for its existing customers in batch sizes of 50 pieces (220 batches 50 pieces per batch = 11,000 pieces). The special…The manufacturing plant of Carilla Ltd. specializes in crafting specialized pieces for carnival. With a monthly production capacity of 15,000 pieces, the company currently manufactures and sells 11,000 pieces per month. Typically priced at $200 per piece, the company's cost breakdown for the ongoing production level is outlined below: Variable costs that vary with number of units producedDirect materials $ 440,000Direct manufacturing labor 495,000Variable costs (for setups, materials handling, quality control, etc.)that vary with number of batches, 220 batches * $500 per batch 110,000 Fixed CostsFixed manufacturing costs 300,000Fixed marketing costs 200,000Total costs $1,545,000Carilla has just received a special one-time-only order for 4,000 pieces at $150 per piece. Accepting the special order would not affect the company’s regular business. Carilla makes pieces for its existing customers in batch sizes of 50 pieces (220 batches 50 pieces per batch = 11,000 pieces). The special…Travis Kellogg is a sales representative for Xerox and his territory includes St. Louis and the surrounding suburbs. One of his accounts is Cintas, which offers a wide range of products to businesses. Travis was working with the Cintas division manager, Kiera Valentine, to gain her approval to purchase a networked printer and copier for the local office. The price of the printer/copier including installation would be $5,490, but Kiera has a spending limit of $5,000. She and Travis try to negotiate how Xerox can get the order and Kiera can get the printer but stay within her division’s budget. Eventually, they agreed to a deal of $5,000 for the printer/copier, plus Cintas would deliver and maintain welcome mats or rugs in Xerox’s St. Louis office. Travis and Kiera successfully utilized _____ to facilitate the exchange. A.trade B.credit C.money D.bartering E. negotiation
