probability of stock out?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Hello! I need help solving this with the Newsvendor Model / Equation in Operations Management. I'm stuck!
Sarah and her fiancé are planning for their wedding. Distribution of the number of guests coming to the party is normal with the mean 100 and the standard deviation 10. They need to determine how many guests to book for food from a caterer.
The caterer makes the following charges: $50 for each guest that is booked in advance; $90 for each guest who is not booked in advance but shows up on the wedding day. The caterer does not offer any refund even if some booked guests may not show up.
- What is the optimal number of guests to book in advance?
- How much Sarah can save by booking the optimal quantity from a) in advance?
- What is the expected number of guests that will come to their wedding?
- If Sarah and her fiancé book 90 guests in advance with the caterer, what is the probability of stock out?
- If Sarah and her fiancé book 100 guests in advance with the caterer, what is the expected number of meals to be wasted?
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