Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 13.7, Problem 28P
Summary Introduction
Interpretation:
The optimal time for replacement:
Concept Introduction:
The objective of optimal policy is to determine the value of 't’ that minimizes the total cost of maintenance and replacement over an infinite horizon.
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Palmer Jam Company is a small manufacturer of several different jam products. One product is an organic jam that has no preservatives, sold to retail outlets. Susan Palmer must decide how many cases of jam to manufacture each month. The probability that demand will be
7
cases is
0.10,
for
8
cases it is
0.25,
for
9
cases it is
0.45,
and for
10
cases it is
0.20.
The cost of every case is
$50,
and the price Susan gets for each case is
$90.
Unfortunately, any cases not sold by the end of the month are of no value as a result of spoilage.
Based on the given information, Susan's conditional profits table for jam is:
Demand
7
cases
8
cases
9
cases
10
cases
Produce
p=0.10
p=0.25
p=0.45
p=0.20
7
cases
enter your response here
enter your response here
enter your response here
enter your response here
8
cases
enter your response here
enter your response here
enter your response here
enter your response here…
Palmer Jam Company is a small manufacturer of several different jam products. One product is an organic jam that has no preservatives, sold to retail outlets. Susan Palmer must decide how many cases of jam to manufacture each month. The probability that demand will be 7 cases is 0.10, for 8 cases it is 0.25, for 9 cases it is 0.45, and for 10 cases it is 0.20. The cost of every case is $50, and the price Susan gets for each case is $90. Unfortunately, any cases not sold by the end of the month are of no value as a result of spoilage.
Based on the given information, Susan's conditional profits table for jam is:
Demand
7
cases
8
cases
9
cases
10
cases
Produce
p=0.10
p=0.25
p=0.45
p=0.20
7
cases
enter your response here
enter your response here
enter your response here
enter your response here
8
cases
enter your response here
enter your response here
enter your response here
enter your response here…
A retail outlet sells a seasonal product for $10 per unit. The cost of the product is $8 per unit. All units not sold during the regular season are sold for half the retail price in an end-of-season clearance sale. Assume that demand for the product is uniformly distributed between 200 and 800.
What is the recommended order quantity?
What is the probability that at least some customers will ask to purchase the product after the outlet is sold out? That is, what is the probability of a stock-out using your order quantity in part (a)?
To keep customers happy and returning to the store later, the owner feels that stock-outs should be avoided if at all possible. What is your recommended order quantity if the owner is willing to tolerate a 0.15 probability of a stock-out?
Chapter 13 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 13.1 - Prob. 3PCh. 13.1 - Prob. 4PCh. 13.1 - Prob. 5PCh. 13.1 - Prob. 6PCh. 13.2 - Prob. 7PCh. 13.2 - Prob. 9PCh. 13.3 - Prob. 13PCh. 13.3 - Prob. 14PCh. 13.4 - Prob. 15PCh. 13.4 - Prob. 16P
Ch. 13.4 - Prob. 17PCh. 13.4 - Prob. 18PCh. 13.4 - Prob. 19PCh. 13.4 - Prob. 20PCh. 13.6 - Prob. 21PCh. 13.6 - Prob. 22PCh. 13.6 - Prob. 23PCh. 13.6 - Prob. 24PCh. 13.6 - Prob. 25PCh. 13.7 - Prob. 26PCh. 13.7 - Prob. 27PCh. 13.7 - Prob. 28PCh. 13.7 - Prob. 30PCh. 13.7 - Prob. 31PCh. 13.7 - Prob. 32PCh. 13.7 - Prob. 33PCh. 13.7 - Prob. 34PCh. 13.8 - Prob. 35PCh. 13.8 - Prob. 36PCh. 13.8 - Prob. 37PCh. 13.8 - Prob. 38PCh. 13.8 - Prob. 39PCh. 13.8 - Prob. 40PCh. 13.8 - Prob. 41PCh. 13 - Prob. 42APCh. 13 - Prob. 43APCh. 13 - Prob. 44APCh. 13 - Prob. 45APCh. 13 - Prob. 46APCh. 13 - Prob. 48APCh. 13 - Prob. 49APCh. 13 - Prob. 51APCh. 13 - Prob. 52APCh. 13 - Prob. 53AP
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