OPERATIONS MANAGEMENT (LL)-W/ACCESS
17th Edition
ISBN: 9781260037821
Author: CACHON
Publisher: MCG
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Textbook Question
Chapter 14, Problem 3CQ
For products with slow-moving demand—for example, one unit per week—the Poisson distribution is likely to be a better model for demand than the
- a. the Poisson’s standard deviation is equal to the square root of its mean.
- b. the normal distribution does not allow the freedom to choose any standard deviation for any given mean.
- c. the Poisson distribution is a continuous distribution.
- d. only the standard normal distribution would apply in this setting.
- e. the Poisson distribution does not assign any probability to negative outcomes.
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For products with slow-moving demand—for example, one unit per week—the Poissondistribution is likely to be a better model for demand than the normal distributionbecause: (choose the best answer) a. the Poisson’s standard deviation is equal to the square root of its mean.b. the normal distribution does not allow the freedom to choose any standard deviationfor any given mean.c. the Poisson distribution is a continuous distribution.d. only the standard normal distribution would apply in this setting.e. the Poisson distribution does not assign any probability to negative outcomes.
A retailer uses the order-up-to model to manage inventory of an item in a store. The leadtime for replenishments is four weeks and it can place orders weekly. Weekly demand isPoisson with mean 0.10 unit. Its order-up-to level is five and unfilled demand is backordered. What is the coefficient of variation of its orders?
Daily demand of a chemical at an oil refinery is normally distributed with a mean of 60 litres and a standard deviation of 7. The supplier reliably delivers the chemical by maintaining a constant lead time of 1 week. There are no delivery charges from the supplier. Sales occur throughout the year.
An order placement requires one hour of an administrative employee who is paid $20 per hour. Receiving and storing a chemical shipment requires two workers to work for half an hour. Workers are paid $12 per hour each. Chemical’s purchase price is $500 per litre. Annual cost of capital is 5%. Other holding costs are estimated to be $0.5 per litre.
Find the order quantity and the reorder point to satisfy a 95% service level during the lead time.
(Round answers to 2 decimal places.)
Chapter 14 Solutions
OPERATIONS MANAGEMENT (LL)-W/ACCESS
Ch. 14 - Demand in each period follows the same normal...Ch. 14 - Prob. 2CQCh. 14 - For products with slow-moving demandfor example,...Ch. 14 - Prob. 4CQCh. 14 - Prob. 5CQCh. 14 - Prob. 6CQCh. 14 - Prob. 7CQCh. 14 - Prob. 8CQCh. 14 - If the target in-stock probability increases, then...Ch. 14 - Prob. 10CQ
Ch. 14 - Prob. 11CQCh. 14 - Prob. 12CQCh. 14 - Prob. 13CQCh. 14 - Prob. 14CQCh. 14 - Prob. 15CQCh. 14 - Prob. 16CQCh. 14 - Prob. 17CQCh. 14 - Prob. 18CQCh. 14 - Prob. 19CQCh. 14 - Prob. 1PACh. 14 - Prob. 2PACh. 14 - Prob. 3PACh. 14 - You are the owner of Hotspices.com, an online...Ch. 14 - Prob. 5PACh. 14 - Prob. 6PACh. 14 - Prob. 7PACh. 14 - Prob. 1CCh. 14 - Prob. 2CCh. 14 - Prob. 3CCh. 14 - CASE WARKWORTH FURNITURE1 Warkworth Furniture...Ch. 14 - CASE WARKWORTH FURNITURE1 Warkworth Furniture...
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