Please do. Fast ASAP An oyster bar buys fresh Louisiana oysters for $6 per pound and sells them for $13 per pound. Any oyster not sold that day is sold to anearby grocery store, for $2 per pound. The demand for oysters follows the normal distribution, with a mean of 70 pounds and astandard deviation of 10 pounds.a. What is the stockout probability that she should achieve in order to maximize the profit? [A] (Please fill your answer in a decimalnumber with two decimal places)

Given data: Selling price of Oyster P= $ 13/poundPurchase price of Oyster C = $6/pound Salvage…

Answered: nearby grocery store, for $2 per pound.…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...

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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?
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?
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…
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?
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)?
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.
A golf specialty wholesaler operates 50 weeks per year. Management is trying to determine an inventory policy for its 1-irons, which have the following characteristics:Demand (D) = 2,000 units/yearDemand is normally distributedStandard deviation of weekly demand = 3 unitsOrdering cost = $40/orderAnnual holding cost (H) = $5/unitsDesired cycle-service level = 90 percentLead time (L) = 4 weeksa. If the company uses a periodic review system, what should P and T be? Round P to the nearest week.b. If the company uses a continuous review system, what should R be?
A health and nutrition store stocks a multivitamin with an annual demand of 1,000 bottles has Co = $24.50 and Ch = $7.The demand exhibits some variability such that the lead-time demand follows a normal probability distribution with ? = 25 and ? = 5. (a)What is the recommended order quantity? (Round your answer to the nearest integer.) (b)What are the reorder point and safety stock if the store desires at most a 4% probability of stock-out on any given order cycle? (Round your answers to the nearest integer.) reorder pointsafety stock (c)If a manager sets the reorder point at 30, what is the probability of a stock-out on any given order cycle? (Round your answer to four decimal places.) How many times would you expect a stock-out during the year if this reorder point were used? (Round your answer to the nearest integer.)
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…
Please do not give solution in image format thanku Deltic sells this component for 55 per unit with a 4-month delivery lead time. Assume Deltic covers all transportation and related processing until delivery. TCX’s demand forecast for the upcoming selling season (12 months) is a normal distribution with mean 13500 and standard deviation 3736,4 . TCX sells each unit, after integrating their proprietary software, for 135. Assume that TCX uses a holding cost rate of 25 %, and any leftover units can be sold for 30 on average. Due to the long lead time and high minimum order quantity required, TCX is planning on a single order from Deltic to meet their needs in the next year. How many of these components should TCX order? Calculate the resulting expected annual profits for TCX.
A health and nutrition store stocks a multivitamin with an annual demand of 1,000 bottles has Co = $26.50 and Ch = $7. The demand exhibits some variability such that the lead-time demand follows a normal probability distribution with ? = 25 and ? = 5. (a) What is the recommended order quantity? (Round your answer to the nearest integer.):________ (b) What are the reorder point and safety stock if the store desires at most a 6% probability of stock-out on any given order cycle? (Round your answers to the nearest integer.) reorder point:________ safety stock:________ (c) If a manager sets the reorder point at 30, what is the probability of a stock-out on any given order cycle? (Round your answer to four decimal places.):________ How many times would you expect a stock-out during the year if this reorder point were used? (Round your answer to the nearest integer.):________

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