Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Chapter 10, Problem 35P
Lemington’s is trying to determine how many Jean Hudson dresses to order for the spring season. Demand for the dresses is assumed to follow a
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Target is considering opening mini-Target stores in airports across the United States. Target knows that 25% of the items in its store account for 70% of the store's sales and expects that this Pareto relationship will hold for the mini-Target stores. The mini-Targets will each carry 50 items, but it's unknown at this point which 50 items will be stocked. The annual sales of a mini-Target is forecasted to be $500,000.
Assume A items are top 20% of items sold, B items are the next 30% and C items are the bottom 50% of items sold. Turnover is expected to be for A items = 50, B items = 40 and C items = 10.
1. The top 20% of items in the min-Target store will account for what percent of sales?
- 42.9%
- 56.2%
- 68.7%
- 63.6%
2. What is the annual item sales expected to be for the 25th best selling product in the mini-Target store?
- $113
- $4,510
- $437,500
- $76,350
Target is considering opening mini-Target stores in airports across the United States. Target knows that 25% of the items in its store account for 70% of the store's sales and expects that this Pareto relationship will hold for the mini-Target stores. The mini-Targets will each carry 50 items, but it's unknown at this point which 50 items will be stocked. The annual sales of a mini-Target is forecasted to be $500,000.
Assume A items are top 20% of items sold, B items are the next 30% and C items are the bottom 50% of items sold. Turnover is expected to be for A items = 50, B items = 40 and C items = 10
1. The top 20% of items in the min-Target store will account for what percent of sales?
A. 63.6%
B. 68.7%
C. 56.2%
D. 42.9%
2. What is the annual item sales expected to be for the worst selling product in the mini-Target store?
A. $145
B. $1,453
C. $13,905
D. $32,781
PROBLEM
The Seminole Company wishes to apply the Miller-Orr model to manage its cash investment. Seminole’s management has determined that the cost of either investing in or selling marketable securities is $200. By looking at Seminole Company’s past cash needs, they have determined that the variance of daily cash flows is $10,000. Seminole Company’s opportunity cost of cash, per day, is estimated to be 0.05%. Seminole management has figured, based on their experience dealing with the cash flows of the company, that there should be a cushion— a safety stock—of cash of $20,000.
1. How much is the variance of daily cash flows? (Use a number, no decimal value, no commas, no currency, no space) *
2. How much is the opportunity cost of cash, per day? (Use a number, must be in decimal form. eg. 6.3%/100, encode 0.063 , no commas, no currency, no space) *
3. How much is the cost per transaction? (Use a number, no decimal value, no commas, no currency, no space) *
PLEASE ANSWER ALL QUESTIONS.…
Chapter 10 Solutions
Practical Management Science
Ch. 10.2 - Use the RAND function and the Copy command to...Ch. 10.2 - Use Excels functions (not @RISK) to generate 1000...Ch. 10.2 - Use @RISK to draw a uniform distribution from 400...Ch. 10.2 - Use @RISK to draw a normal distribution with mean...Ch. 10.2 - Use @RISK to draw a triangular distribution with...Ch. 10.2 - Use @RISK to draw a binomial distribution that...Ch. 10.2 - Use @RISK to draw a triangular distribution with...Ch. 10.2 - We all hate to keep track of small change. By...Ch. 10.4 - Prob. 11PCh. 10.4 - In August of the current year, a car dealer is...
Ch. 10.4 - Prob. 13PCh. 10.4 - Prob. 14PCh. 10.4 - Prob. 15PCh. 10.5 - If you add several normally distributed random...Ch. 10.5 - In Problem 11 from the previous section, we stated...Ch. 10.5 - Continuing the previous problem, assume, as in...Ch. 10.5 - In Problem 12 of the previous section, suppose...Ch. 10.5 - Use @RISK to analyze the sweatshirt situation in...Ch. 10.5 - Although the normal distribution is a reasonable...Ch. 10.6 - When you use @RISKs correlation feature to...Ch. 10.6 - Prob. 24PCh. 10.6 - Prob. 25PCh. 10.6 - Prob. 28PCh. 10 - Six months before its annual convention, the...Ch. 10 - Prob. 30PCh. 10 - A new edition of a very popular textbook will be...Ch. 10 - Prob. 32PCh. 10 - W. L. Brown, a direct marketer of womens clothing,...Ch. 10 - Assume that all of a companys job applicants must...Ch. 10 - Lemingtons is trying to determine how many Jean...Ch. 10 - Dilberts Department Store is trying to determine...Ch. 10 - It is surprising (but true) that if 23 people are...Ch. 10 - Prob. 40PCh. 10 - At the beginning of each week, a machine is in one...Ch. 10 - Simulation can be used to illustrate a number of...Ch. 10 - Prob. 43PCh. 10 - Prob. 46PCh. 10 - If you want to replicate the results of a...Ch. 10 - Suppose you simulate a gambling situation where...Ch. 10 - Prob. 49PCh. 10 - Big Hit Video must determine how many copies of a...Ch. 10 - Prob. 51PCh. 10 - Prob. 52PCh. 10 - Why is the RISKCORRMAT function necessary? How...Ch. 10 - Consider the claim that normally distributed...Ch. 10 - Prob. 55PCh. 10 - When you use a RISKSIMTABLE function for a...Ch. 10 - Consider a situation where there is a cost that is...
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