University of Florida football programs are printed 1 week prior to each home game. Attendance averages 90,000 screaming and loyal Gators fans, of whom two-thirds usually buy the program, following a normal distribution, for $5 each. Unsold programs are sent to a recycling center that pays only 10 cents per program. The standard deviation is 5,000 programs, and the cost to print each program is $2. Refer to the standard normal table for z-values. Part 2 a) What is the cost of underestimating demand for each program? Cs=$________ (round your response to two decimal places). Part 3 b) What is the overage cost per program? Co=$_______ (round your response to two decimal places). Part 4 c) How many programs should be ordered per game? ________ programs should be ordered per game (round your response to the nearest whole number). Part 5 d) What is the stockout risk for this order size? Stockout risk=________ (round your response to four decimal places)
University of Florida football programs are printed 1 week prior to each home game. Attendance averages 90,000 screaming and loyal Gators fans, of whom two-thirds usually buy the program, following a normal distribution, for $5 each. Unsold programs are sent to a recycling center that pays only 10 cents per program. The standard deviation is 5,000 programs, and the cost to print each program is $2. Refer to the standard normal table for z-values. Part 2 a) What is the cost of underestimating demand for each program? Cs=$________ (round your response to two decimal places). Part 3 b) What is the overage cost per program? Co=$_______ (round your response to two decimal places). Part 4 c) How many programs should be ordered per game? ________ programs should be ordered per game (round your response to the nearest whole number). Part 5 d) What is the stockout risk for this order size? Stockout risk=________ (round your response to four decimal places)
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter7: Nonlinear Optimization Models
Section: Chapter Questions
Problem 67P
Related questions
Question
University of Florida football programs are printed 1 week prior to each home game. Attendance averages
normal distribution , for
90,000
screaming and loyal Gators fans, of whom two-thirds usually buy the program, following a $5
each. Unsold programs are sent to a recycling center that pays only
10
cents per program. The standard deviation is
5,000
programs, and the cost to print each program is
$2.
Refer to the
standard normal table
for z-values.Part 2
a) What is the cost of underestimating demand for each program?
Cs=$________
(round your response to two decimal places).Part 3
b) What is the overage cost per program?
Co=$_______
(round your response to two decimal places).Part 4
c) How many programs should be ordered per game?
________
programs should be ordered per game (round your response to the nearest whole number).Part 5
d) What is the stockout risk for this order size?
Stockout
risk=________
(round your response to four decimal places).![ndard Normal Table
102]
11
0.5000 0.5040 0.5080|| 05120|| |0.5160| |0.5199|05230|| 05278 04319 05350
0.5398 0.5438 0.5478 0.5517 0.5557 0.5596 0.5636 0.5675 0.5714 0.5754
0.5793 0.5832 0.5871 0.5910 0.5948 0.5987 0.6026 0.6064 0.6103 0,6141
03 06179 0.6217| 06255| 06293| 0,6331| 06368|||06406|||08443| 0.6480 0.6517
0.4 0.6554 0.6591 0.6828 0.6884 0.6700 0.8738 0.6772 0,8808 0.6844 0.6870
0.5 0.6915 0.8950 0.6985 0.7019||0,7054|0,7088|07123| 07157||0.7190 0.7224
0.7258 0.7291 0.7324 0.7357 0.7389 0.7422 0.7454 0.7488 0.7518 0.7549
0.7580 07612 0.7642| 07873| 07704|0,7734|07764|07794|07823| 07852
0.7881 0.7910 0.7939 0.7967 0.7996 0.8023 0.8051 0.8079 0.8106 0.8133
0.8159 0.8186 0.8212 0.8238 0.8264 0.8289 0.8315 0.8340 | 0.8385 0.8389
0.8413 0.8438 0.8461 0.8485 0.8508 0.8531 0.8554 0.8577 0.8599 0.8621
0.8343 0.8885 0.8886 0.8708 0.8729 0.8748 0.8770 0.8790 0.8810 0.8830
0.8849 0.8889 0.8888 0.8907 0.8925 0.8944 0.8962 0.8980|| 0.8997 0.9015
1.3 0.9032 0.9049| 0.9066 0.9082|0.8099|0,9115|| 08131| 08147| 08162 09177
0.9192 0.9207 0.9222 0.9238 0.8251 0.8265 0.8278 | 0.8292|| 0.8308 | 0.9319
1.5 0.8332 0.9345||0,8357| |0.8370 | 0.8382||0,8394||0:2405 | 0.9418||0,8430 | 0.9441
0.9452 0.94863 0.9474 0.9485 0.9485 0.9505 0.9515 0.9525 0.9535 0.9545
17 09554 09554||0,8573 | 0.9582 | 0.9591|0:9599|09308|0,9318|09825 09333
1.8 0.8841 0.8649 | 0.9656 | 0.8334|0.8371|0937G|0.9388|0,8693 | 0.9700 | 0.8703|
0.9713 0.9718 0.9726 0.9732 | 0.8738 | 0.9744|| 0.9750|| 0.9756|| 0.9782|| 0.9787
0.9773 0.9778 0.8783 0.9788|| 0.8783|| 0.9798 | 078803 0.9808 0.8812 0.9817
0.8821 0.8828 0.8830 0.98834 0.8838 0.8842 0.8846 | 0.8850 | 0.8854 || 0.9857
08881 0.8385 0.8888 | 0.8371 0.8875 0.8878 0.8881 0.8884 0 9387 0.9890
0.8883 0.88868 0.8888 0.9901 0.8804 0.8908|| 0.8909 0.8911 0.6913 0.8916
0.9918 0.8920 0.8822 0.8825 | 0.8827 | 0.9928 | 0.8931 0.9932 08934 || 0.8838
0883808840|08941|08843| 0.8945|0.9846
0.8943 0.8845 | 0.8948 | 0.8948 | 0.8949 || 0,9851 | | 0.8952
0.9959 0.8855 0.8858 0.8867|| 0.9858|| 0.8860| 0.9961| 0.9982| 0.8983|| 0.8834
25
26
|
F4330|64880|24830 |14880|04880|89830|29230|40880|09280 28880
0.8874 0.8976 0.9978 0.8877| 0.8977 0.8878 0.9979| 0.9980|||0 2880 | 0.8881
0:9981 |0.9982| 0.9983||#9933| 019984|
0.9994||0.9935|0.9995|0:9986|0.893
Done](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5eaed3dc-0299-4a07-b152-b47d45cc4e24%2F2c137500-aa3d-4957-bcca-ab0fee952b03%2Fb6xwp9.jpeg&w=3840&q=75)
Transcribed Image Text:ndard Normal Table
102]
11
0.5000 0.5040 0.5080|| 05120|| |0.5160| |0.5199|05230|| 05278 04319 05350
0.5398 0.5438 0.5478 0.5517 0.5557 0.5596 0.5636 0.5675 0.5714 0.5754
0.5793 0.5832 0.5871 0.5910 0.5948 0.5987 0.6026 0.6064 0.6103 0,6141
03 06179 0.6217| 06255| 06293| 0,6331| 06368|||06406|||08443| 0.6480 0.6517
0.4 0.6554 0.6591 0.6828 0.6884 0.6700 0.8738 0.6772 0,8808 0.6844 0.6870
0.5 0.6915 0.8950 0.6985 0.7019||0,7054|0,7088|07123| 07157||0.7190 0.7224
0.7258 0.7291 0.7324 0.7357 0.7389 0.7422 0.7454 0.7488 0.7518 0.7549
0.7580 07612 0.7642| 07873| 07704|0,7734|07764|07794|07823| 07852
0.7881 0.7910 0.7939 0.7967 0.7996 0.8023 0.8051 0.8079 0.8106 0.8133
0.8159 0.8186 0.8212 0.8238 0.8264 0.8289 0.8315 0.8340 | 0.8385 0.8389
0.8413 0.8438 0.8461 0.8485 0.8508 0.8531 0.8554 0.8577 0.8599 0.8621
0.8343 0.8885 0.8886 0.8708 0.8729 0.8748 0.8770 0.8790 0.8810 0.8830
0.8849 0.8889 0.8888 0.8907 0.8925 0.8944 0.8962 0.8980|| 0.8997 0.9015
1.3 0.9032 0.9049| 0.9066 0.9082|0.8099|0,9115|| 08131| 08147| 08162 09177
0.9192 0.9207 0.9222 0.9238 0.8251 0.8265 0.8278 | 0.8292|| 0.8308 | 0.9319
1.5 0.8332 0.9345||0,8357| |0.8370 | 0.8382||0,8394||0:2405 | 0.9418||0,8430 | 0.9441
0.9452 0.94863 0.9474 0.9485 0.9485 0.9505 0.9515 0.9525 0.9535 0.9545
17 09554 09554||0,8573 | 0.9582 | 0.9591|0:9599|09308|0,9318|09825 09333
1.8 0.8841 0.8649 | 0.9656 | 0.8334|0.8371|0937G|0.9388|0,8693 | 0.9700 | 0.8703|
0.9713 0.9718 0.9726 0.9732 | 0.8738 | 0.9744|| 0.9750|| 0.9756|| 0.9782|| 0.9787
0.9773 0.9778 0.8783 0.9788|| 0.8783|| 0.9798 | 078803 0.9808 0.8812 0.9817
0.8821 0.8828 0.8830 0.98834 0.8838 0.8842 0.8846 | 0.8850 | 0.8854 || 0.9857
08881 0.8385 0.8888 | 0.8371 0.8875 0.8878 0.8881 0.8884 0 9387 0.9890
0.8883 0.88868 0.8888 0.9901 0.8804 0.8908|| 0.8909 0.8911 0.6913 0.8916
0.9918 0.8920 0.8822 0.8825 | 0.8827 | 0.9928 | 0.8931 0.9932 08934 || 0.8838
0883808840|08941|08843| 0.8945|0.9846
0.8943 0.8845 | 0.8948 | 0.8948 | 0.8949 || 0,9851 | | 0.8952
0.9959 0.8855 0.8858 0.8867|| 0.9858|| 0.8860| 0.9961| 0.9982| 0.8983|| 0.8834
25
26
|
F4330|64880|24830 |14880|04880|89830|29230|40880|09280 28880
0.8874 0.8976 0.9978 0.8877| 0.8977 0.8878 0.9979| 0.9980|||0 2880 | 0.8881
0:9981 |0.9982| 0.9983||#9933| 019984|
0.9994||0.9935|0.9995|0:9986|0.893
Done
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