QUESTION 12(Using the same problem) A vendor for the local ballpark food stand is questioning whether to stock his concession with a large or smallinventory. He believes that it will depend upon the size of the crowd. He has developed a payoff matrix for the various alternatives (stockingdecision) and states of nature (size of crowd). What is the answer using the criterion of minimax regret?AlternativesLarge InventorySmall InventoryProbabilityO A) -$2,000O B) $130,000O C) $0O D) $20,000O E) $153,400LargeCrowd$220,000$90,000.20PROFIT ($)AverageCrowd$50,000$70,000.50SmallCrowd-$2,000-$5,000.30

The minimax regret approach is a decision-making technique that involves minimizing the maximum…

Answered: (Using the same problem) A vendor for…

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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Question content area Part 1 Phillip Witt, president of Witt Input Devices, wishes to create a portfolio of local suppliers for his new line of keyboards. As the suppliers all reside in a location prone to hurricanes, tornadoes, flooding, and earthquakes, Phillip believes that the probability in any year of a "super-event" that might shut down all suppliers at the same time at least 2 weeks is 3%. Such a total shutdown would cost the company approximately $480,000. He estimates the "unique-event" risk for any of the suppliers to be 5%. Assuming that the marginal cost of managing an additional supplier is $14,800 per year, how many suppliers should Witt Input Devices use? Assume that up to three nearly identical local suppliers are available. Part 2 Find the EMV for alternatives using 1, 2, or 3 suppliers. EMV(1)=$________ (Enter your response rounded to the nearest whole number.) Part 3 EMV(2)=$________ (Enter your response rounded to the nearest whole…
Question 1AA CEO of a multihospital system is planning to expand operations into various states. It will take several years toget certificate of need (CON) approvals so that the new facilities can be constructed. The eventual cost (in millionsof dollars) of building a facility will differ among states, depending upon finances, labor, and the economic andpolitical climate. An outside consulting firm estimated the costs for the new facilities as based on declining,similar, or improving economies, and the associated probabilities as shown in the Table below.Decisionalternatives Declining Same ImprovingKentucky 22.00 19.00 15.00Maryland 19.00 18.50 18.00North carolina 19.50 17.00 15.50Tennesee 23.00 17.00 14.00Virginia 25.00 21.00 13.00 (e) Using a minimax regret approach, what alternative should the firm choose? (f) Economists have assigned probabilities of 0.25, 0.40, and 0.35 to the possible economic climate ofdeclining, same and improving respectively. Using expected monetary values,…
question 5 At Dot Com, a large retailer of popular books, demand is constant at 20,400 books per year. The cost of placing an order to replenish stock is $75, and the annual cost of holding is $6.00 per book. Stock is received 12 working days after an order has been placed. No backordering is allowed. Assume 325 working days a year. a. Dot Com's optimal order quantity is______ books. (Enter your response rounded to the nearest whole number.) b. The optimal number of orders per year is_____ orders. (Enter your response rounded to the nearest whole number.) c. The optimal interval (in working days) between orders is____ days. (Enter your response rounded to one decimal place.) d. The demand during lead time is ______ books. (Enter your response rounded to the nearest whole number.) e. The reorder point is _____ books. (Enter your response rounded to the nearest whole number.) f. The inventory position immediately after an order has been placed is _______ books.…
7. Question content area left Part 1 Leah Johnson, director of Urgent Care of Brookline, wants to increase capacity to provide low-cost flu shots but must decide whether to do so by hiring another full-time nurse or by using part-time nurses. The table below shows the expected costs of the two options for three possible demand levels: States of Nature (demand) Alternatives Low Medium High Hire full−time $300 $480 $680 Hire part−time $0 $340 $1,200 Probabilities 0.20 0.55 0.25 Part 2 a) The alternative with the least expected cost is ▼ a. Hire full-time b. Hire part-time The expected cost of this alternative is $ ______ (enter your answer as a whole number). .
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question 6 In a Q system, the demand rate for strawberry ice cream is normally distributed, with an average of 295pints per week.The lead time is 8 weeks. The standard deviation of weekly demand is 10 pints. Refer to the standard normal table1 for z-values. a. The standard deviation of demand during the 8-weeklead time is ______pints. (Enter your response rounded to the nearest whole number.) b. The average demand during the 8-week lead time is_____ pints. (Enter your response as an integer.) c. The reorder point that results in a cycle-service level of 92percent is _______ pints. (Enter your response rounded to the nearest whole number.) 1: Data Table The table below shows the total area under the normal curve for a point that is Z standard deviations to the right of the mean. Z 0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.0 0.5000 0.5040 0.5080 0.5120 0.5160 0.5199 0.5239 0.5279 0.5319 0.5359 0.1 0.5398…
Question 7 FastBus Inc. FastBus Inc. offers low-cost bus transportation between Philadelphia and New York City. The company has 2 buses, each bought for $300,000. Each bus can carry 40 passengers per trip and does 7 daily round trips between Philadelphia and New York City. The price of each one-way ticket is $12. The company sells 28 seats on average per one-way trip, so the load factor is 70%. The annual fixed cost of running the company is $3,000,000. The major variable cost in their line of business is gasoline, which costs $25 per one-way trip. Fast Bus Inc. buses operate 365 days a year. Define the return on invested capital as the ratio of the profits (PER YEAR) and the invested capital. You can draw an ROIC tree in the same way that we drew a KPI tree in class. Simply have the ROIC as “the root” of the tree instead of profits. Then answer the question: What is the current number of customers that are served each year? Assume that FastBus operates 365 days per year and that…
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Question Nyame Bekyere Wholesale Supply and Distribution Company sells parts, equipment, and supplies for recreational activities like plastic slides, bouncy castles, swings and electronic trains. In addition, NBWSDC has a service department for the repair and service of the recreational items. The owner, Mr. Osei Nyame Bekyere, bought the company five years ago from its original owner. The organization is set up in three divisions: service, retail parts and supplies, and wholesale. The owner and president, has a vice president for each operating division, for example the warehouse has three groups: receiving (checking orders for completeness, returning defective merchandise, stocking the shelves, filling orders), service parts, and order filling for distribution to customers. The warehouse group is responsible for all activities related to parts and supplies receiving, storage, and distribution. The retail sales division includes all functions related to selling of parts and…
Question 3 Dr. Peter Kraljic claims that there is no single best way existed for managing purchasing in allcircumstances. He proposed “Kraljic Purchasing Portfolio model”. Elaburate the FOUR (4)Purchasing Portfolio with suitable examples answer should be elaborated with proper examples.
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