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• You are selling books in a James and Mackenzie's bookstore. You plan to order a newly- published book that is on the 2018 best-seller list. The retail selling price of the book is $100, and the leftover books will be sold for $30 at the end of year. The demand for the book is normally distributed with a mean of 2,000 units and a standard deviation of 400 units, You can buy the printed books from Jim Press for a net amount of $40 per book. However, you should place an order in advance such that Jim Press has enough time to print books (i.e., Jim Press's delivery time is four maonths). You have another option to buy the same books from Emma Press for a net amount of $60 has a 100% fill rate and one-day delivery lead time. So, you can place a late season book. This publisher second order! 问题1 (a) You plan to procure books from both publishers. You will order some books from Jim Press and will use Emma Press to fill the demand that exceeds what you ordered from Jim Press. Assuming the production capacity of both publishers is unlimited, how many books, Q, should you order from Jim Press to maximize the total expected profit (Hint: you are calculating the first order)? 问题2 (b) Based on the results of Part a, what would be your total expected profit (Hint: your total expected profit is your expected profit on 1st order plus your expected profit on 2nd order)? 问题3 (c) Compute the mismatch cost using your expected total profit from Part b and the maximum expected profit:

• You are selling books in a James and Mackenzie's bookstore. You plan to order a newly- published book that is on the 2018 best-seller list. The retail selling price of the book is $100, and the leftover books will be sold for $30 at the end of year. The demand for the book is normally distributed with a mean of 2,000 units and a standard deviation of 400 units, You can buy the printed books from Jim Press for a net amount of $40 per book. However, you should place an order in advance such that Jim Press has enough time to print books (i.e., Jim Press's delivery time is four maonths). You have another option to buy the same books from Emma Press for a net amount of $60 has a 100% fill rate and one-day delivery lead time. So, you can place a late season book. This publisher second order! 问题1 (a) You plan to procure books from both publishers. You will order some books from Jim Press and will use Emma Press to fill the demand that exceeds what you ordered from Jim Press. Assuming the production capacity of both publishers is unlimited, how many books, Q, should you order from Jim Press to maximize the total expected profit (Hint: you are calculating the first order)? 问题2 (b) Based on the results of Part a, what would be your total expected profit (Hint: your total expected profit is your expected profit on 1st order plus your expected profit on 2nd order)? 问题3 (c) Compute the mismatch cost using your expected total profit from Part b and the maximum expected profit:

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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• You are selling books in a James and Mackenzie's bookstore. You plan to order a newly- published book that is on the 2018 best-seller list. The retail selling price of the book is $100, and the leftover books will be sold for $30 at the end of year. The demand for the book is normally distributed with a mean of 2,000 units and a standard deviation of 400 units, You can buy the printed books from Jim Press for a net amount of $40 per book. However, you should place an order in advance such that Jim Press has enough time to print books (i.e., Jim Press's delivery time is four maonths). You have another option to buy the same books from Emma Press for a net amount of $60 has a 100% fill rate and one-day delivery lead time. So, you can place a late season book. This publisher second order! 问题1 (a) You plan to procure books from both publishers. You will order some books from Jim Press and will use Emma Press to fill the demand that exceeds what you ordered from Jim Press. Assuming the production capacity of both publishers is unlimited, how many books, Q, should you order from Jim Press to maximize the total expected profit (Hint: you are calculating the first order)? 问题2 (b) Based on the results of Part a, what would be your total expected profit (Hint: your total expected profit is your expected profit on 1st order plus your expected profit on 2nd order)? 问题3 (c) Compute the mismatch cost using your expected total profit from Part b and the maximum expected profit:
Transcribed Image Text:• You are selling books in a James and Mackenzie's bookstore. You plan to order a newly- published book that is on the 2018 best-seller list. The retail selling price of the book is $100, and the leftover books will be sold for $30 at the end of year. The demand for the book is normally distributed with a mean of 2,000 units and a standard deviation of 400 units, You can buy the printed books from Jim Press for a net amount of $40 per book. However, you should place an order in advance such that Jim Press has enough time to print books (i.e., Jim Press's delivery time is four maonths). You have another option to buy the same books from Emma Press for a net amount of $60 has a 100% fill rate and one-day delivery lead time. So, you can place a late season book. This publisher second order! 问题1 (a) You plan to procure books from both publishers. You will order some books from Jim Press and will use Emma Press to fill the demand that exceeds what you ordered from Jim Press. Assuming the production capacity of both publishers is unlimited, how many books, Q, should you order from Jim Press to maximize the total expected profit (Hint: you are calculating the first order)? 问题2 (b) Based on the results of Part a, what would be your total expected profit (Hint: your total expected profit is your expected profit on 1st order plus your expected profit on 2nd order)? 问题3 (c) Compute the mismatch cost using your expected total profit from Part b and the maximum expected profit:
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