Operations Management
2nd Edition
ISBN: 9781260484687
Author: CACHON, Gerard
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 13, Problem 13CQ
Summary Introduction
To identify: The most likely result.
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Weekly demand for Lego at a Wal-Mart store is normally distributed with a mean of 2,500 boxes and a standard deviation of 500. Demand is assumed to be stationary and the mean demand is used as forecast. Each order costs Wal-Mart $145 and holding cost per box per year is estimated at $1.5. Lead time is 2 weeks and the store manager has decided to review inventory every 4 weeks. (Assume a periodic review policy)
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Company ABC manufactures a seasonal product with uncertain demand. The production cost of the product is $130 per unit, and the product will be sold to the customers at $160 per unit. The demand of the product during a selling season is normally distributed with mean 1000 and standard deviation 300. At the end of the selling season, any unsold quantity can be disposed of in a clearance sale for $80 per unit. In order to reach the required standard imposed by an ethical and sustainable supplier certification program, ABC must improve its corporate social responsibility (CSR) performance. ABC is considering two possible investments that enable it to meet the required standard. These investments will lead to a higher CSR level, which will result in greater market demand. Investment 1 has a lump-sum cost of $2000, and it will increase the mean and standard deviation of the demand by 100 units and 20 units, respectively. Investment 2 has a lump-sum cost of $3000, and it will increase the…
Demand in each period is normally distributed with a mean of 100 and standard deviation of 50. Assuming demand across periods are independent, what is the standard deviation of the total demand over 4 periods?
Chapter 13 Solutions
Operations Management
Ch. 13 - Which of the following is NOT true about the...Ch. 13 - A newsvendor orders the quantity that maximizes...Ch. 13 - Prob. 3CQCh. 13 - Suppose the newsvendor model describes a firms...Ch. 13 - Prob. 5CQCh. 13 - Prob. 6CQCh. 13 - A retailer has two merchandizers, Sue and Bob, who...Ch. 13 - Prob. 8CQCh. 13 - Which of the following changes in the in-stock...Ch. 13 - Prob. 10CQ
Ch. 13 - Prob. 11CQCh. 13 - Prob. 12CQCh. 13 - Prob. 13CQCh. 13 - Prob. 14CQCh. 13 - Dan McClure owns a thriving independent bookstore...Ch. 13 - Flextrola, Inc., an electronics systems...Ch. 13 - Monsanto sells genetically modified seed to...Ch. 13 - Fashionables is a franchisee of The UnLimited, the...Ch. 13 - Teddy Bower is an outdoor clothing and accessories...Ch. 13 - Prob. 6PACh. 13 - Goop Inc. needs to order a raw material to make a...Ch. 13 - Geoff Gullo owns a small firm that manufactures...Ch. 13 - Prob. 9PACh. 13 - Prob. 10PACh. 13 - Prob. 11PA
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