1 You are a vendor selling programs in front of the stadium of a certain pro football team that has not had a playoff win in over 10000days. You have the chance to buy programs from the printer for $0.30 a copy, that you will in turn resell for $1.10. The demanddistribution is expected to be normal with a mean = 265 and standard deviation = 53. After the game, any leftover copies will beworthless (nobody will want to remember the game).a. How many programs should you buy? Round your z value to 2 decimal places (e.g., 0.58) and your final answer to the nearest wholenumber.Optimal order quantityb. Based on the optimal quantity (before rounding), what is the approximate probability that you will run out of stock? Hint: Think aboutthe service level that you found for part a to identify the optimal quantity (before rounding), and then think about the relationshipbetween that service level and the probability of running out of stock (don't overthink this by adjusting for the fact that you roundedyour answer for part a). Round your answer to the nearest whole percent (e.g., if the answer is 83.6%, enter 84, not .84 or 84%).Probability

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Answered: You are a vendor selling programs in…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter10: Introduction To Simulation Modeling

Section10.5: Introduction To @risk

Problem 20P: Use @RISK to analyze the sweatshirt situation in Problem 14 of the previous section. Do this for the...

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You have been pricing Samsung-Galaxy SmartWatch in several stores. Three stores have the identical price of $600. Each store charges 12 percent APR, has a 30-day grace period, and sends out bills on the first of the month. On further investigation, you find that store A calculates the finance charge by using the average daily balance method, store B uses the adjusted balance method, and store C using the previous balance method. Assume you purchased the SmartWatch on May 5 and made a $100 payment on June 15. What will the finance charge for June be if you made your purchase from store A? From store B? From store C?
You have been pricing Samsung-Galaxy SmartWatch in several stores. Three stores have the identical price of $400. Each store charges 18 percent APR, has a 30-day grace period, and sends out bills on the first of the month. On further investigation, you find that store A calculates the finance charge by using the average daily balance method, store B uses the adjusted balance method, and store C using the previous balance method. Assume you purchased the SmartWatch on May 5 and made a $100 payment on June 15. What will the finance charge for June be if you made your purchase from store A?
ou have been pricing Samsung-Galaxy SmartWatch in several stores. Three stores have the identical price of $400. Each store charges 18 percent APR, has a 30-day grace period, and sends out bills on the first of the month. On further investigation, you find that store A calculates the finance charge by using the average daily balance method, store B uses the adjusted balance method, and store C using the previous balance method. Assume you purchased the SmartWatch on May 5 and made a $100 payment on June 15. What will the finance charge for June be if you made your purchase from store A? From store B? From store C?
Aventis is a major manufacturer of the flu (influenza) vaccine in the U.S. Aventis manufactures the vaccine before the flu season at a cost of $10 per dose (a “dose” is vaccine for one person). During the flu season Aventis sells doses to distributors and to health-care providers for $25. However, sometimes the flu season is mild and not all doses are sold — if a dose is not sold during the season then it is worthless and must be thrown out. Aventis anticipates demand for next flu season to follow a normal distrbituion with a mean of 60 million units and a standard deviation of 15 million units. Which one of the following is CORRECT? 1. Aventis should order more than 82.5 million units. 2. Aventis should order more than 60 million units. 3. Aventis should order more than 67.5 million units. 4. Aventis should order more than 75 million units.
Consider the case where the left tail of the implied distribution is thinner than that of the log-normal distribution and the right tail of the implied distribution is fatter than that of the log-normal distribution with the same mean and standard deviation. Which of the following statements is correct? A) The implied volatility of a deep out-of-the money put is greater than the one obtained from the Black-Scholes price. B) The implied volatility decreases as the strike price increases. C) The implied volatility of a deep out-of-the money call is smaller than the one obtained from the Black-Scholes price. D) The implied volatility increases as the strike price increases. Please explain and justify your choice. In your answer, discuss the shape of the relation of implied volatility to the strike price and explain how this is obtained.
You are managing a business that design products for specific medical purposes. Your potential demand is very short lived and uncertain. Your production cycle is very long which means you need to have the products ready in advance. If the demand for your product arises (only 30% chance), they will be sold well; if not, the products will remain unsold, and you will need to liquidate them for 500 each. You predict that the demand will be normally distributed with mean= 15000 and standard deviation= 7000. The production cost of your product is, on average, $5500. You will sell your product for $12500. Suppose you make 18000 products, and you get lucky and demand will occur this year. What is your expected profit?
Imagine that you run a business that manufactures a unique medical product. The potential demand for the product is very short lived and uncertain. Your production cycle is very long, which means you need to have the products ready in advance. If the demand for your product arises (only 30% chance), they will be sold well; if not, the products will remain unsold and you will need to liquidate them for $500 each. You predict that the demand will be normally distributed with mean= 15000 and standard deviation= 7000. The production cost of your product is, on average, $5500. You will sell your product for $12500. Suppose you make 18000 products, and you get lucky and demand will occur this year. What is your expected profit?
From several years’ records, a fish market manager has determined that the weight of deep sea bream sold in the market (X), is approximately normally distributed with a mean of 500 grams and a standard deviation of 100 grams. Assuming this distribution will remain unchanged in the future, the expected proportions of deep sea bream sold over the next year weighing .(i) Between 300 grams and 400 grams is A. 0.1359 B. 0.4681 C. 0.5319 D. None of the options above
At a recent manufacturing workshop, XYZ, Incorporated explained that demand for disposable masks increase rapidly in March 2020 when quarantine mandates first took effect. At the time, retailers could only place a single order to cover demands through the end of the summer. A certain retailer purchased disposal masks from a supplier at a cost of $20 per unit and sold them for $30 per unit. By the end of summer, demand for masks subsided considerably and all masks that weren't sold during the summer could be sold at a discounted price of $18 per unit. The retailer estimated that demand between March and August would be Normally distributed with mu = 10,000 and sigma = 1525 units With, supply chains becoming more stable since March 2020, the retailer is currently in the process of establishing a contract with a disposable mask supplier. The supplier has agreed to sell masks to the retailer for $18 per unit and will make deliveries any time the supplier places an order for a cost of $100…
A model is effectively an explicit record of the assumptions and of the ______ relationships between items. -Proven -Linear -Hypothesized -No choice given -Absolute KINDLY EXPLAIN
You are a new salesperson at a large software manufacturing firm. It is three weeks from the end of the sales quarter and you and your sales manager have both already met your sales quotas for the quarter. In addition, you just closed another deal with a new customer for $100,000 worth of software and customer service. This order would put you way over your sales quota for the current quarter. Your manager suggests that you hold this new order so it gets recorded against next quarter. She explains that because sales during the next three months tend to slow down, salespeople frequently miss their quotas and associated sales bonuses for that quarter. Holding this large order to next quarter would help you get an excellent start and almost guarantee that you meet your quota. What would you do?
For a given perishable product, a retailer pays $5 for each unit, then sells them for $10 each. At the end of the day, units not sold at the store are disposed of, and the retailer receives just $1 for each. Given the following probability distribution describing daily demand, how many units should be stocked? x Prob. (Demand = x) x Prob. (Demand = x) 0 0.01 7 0.18 1 0.02 8 0.14 2 0.04 9 0.09 3 0.07 10 0.05 4 0.09 11 0.02 5 0.12 12 0.01 6 0.15 13 0.01

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