Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134855424
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 14, Problem 12P
Summary Introduction
Interpretation: Whether the company should purchase additional vehicles and hire drivers, under the expected value approach, is to be determined and the required number is to be calculated.
Concept Introduction: In order to accommodate its expansion, the company has to buy new vehicles between 25 and 40.
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Students have asked these similar questions
Transworld Deliveries is expanding its contract home delivery service into the Northeastern United States. The company anticipates that to accommodate this expansion it will need between 25 and 40 staffed delivery vehicles. Transworld is currently moving 25 of its own vehicles, with drivers, into the Northeast. The daily cost of operating its own fleet is $820 per vehicle, while the daily cost of leasing a vehicle and driver is expected to be $1,200 per vehicle. The expected demand requirements follow:
Requirements (in vehicles)
25
30
35
40
Probability
0.25
0.25
0.25
0.25
Using an expected value approach, should Transworld purchase additional vehicles and hire additional drivers? If so, how many would you recommend?
Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows:
MONTH
DEMAND (UNITS)
January
4,240
February
4,340
March
4,040
April
4,440
May
5,040
June
4,740
July
5,340
August
4,940
September
5,440
October
5,740
November
6,335
December
6,030
a. Using linear regression analysis, what would you estimate demand to be for each month next year? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
b. To be reasonably confident of meeting demand, Nina decides to use 4 standard errors of estimate for safety. How many additional units should be held to meet this level of confidence? (Do not round intermediate calculations. Round…
After applying the NWC Rule for the initial tableau of the given transportation model, evaluate the vacant
cells. What is the cell which has the most negative evaluation value and what is the cell evaluation value?
DESTINATION
SOURCE
DEMAND
X
Y
N
OX-R; 1
OY-S; -1
OX-S; -1
OY-S; -2
P
75
8
12
EI
11
Q
80
5
8
11
R
120
7
10
10
S
50
11
13
14
SUPPLY
100
125
100
325
Chapter 14 Solutions
Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
Ch. 14 - Prob. 1DQCh. 14 - Prob. 2DQCh. 14 - Prob. 3DQCh. 14 - Prob. 4DQCh. 14 - Prob. 5DQCh. 14 - Prob. 1PCh. 14 - Eight Flags operates several amusement parks in...Ch. 14 - Prob. 3PCh. 14 - Beagle Clothiers uses a weighted score for the...Ch. 14 - Prob. 5P
Ch. 14 - Prob. 6PCh. 14 - Prob. 7PCh. 14 - Prob. 8PCh. 14 - Prob. 9PCh. 14 - Prob. 10PCh. 14 - Acadia Logistics anticipates that it will need...Ch. 14 - Prob. 12PCh. 14 - Prob. 13PCh. 14 - Prob. 1VCCh. 14 - Prob. 2VCCh. 14 - Prob. 3VCCh. 14 - Prob. 4VCCh. 14 - Prob. 1CCh. 14 - Prob. 2CCh. 14 - Prob. 3C
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