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 5, Problem 33AP
a
Summary Introduction
Interpretation:Number of gallons to be purchased is to be calculated.
Concept Introduction:
b
Summary Introduction
Interpretation:Number of gallons to purchase when 94% fill rate criterion is adopted.
Concept Introduction:
Normal distribution is the probability function with continuous series. It is bell shaped distribution function where mean, median and mode are same.
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Students have asked these similar questions
Three years ago, Barbara Jones started a business that creates and delivers holiday and birthday gift baskets to students at the local university. Barbara sells the baskets for $ 29 each, and her variable costs are $ 19 per basket. She incurs $ 12,500 in fixed costs each year.
Last year, Barbara sold 4,000 baskets, and she believes that demand this year will be stable at 4,000 baskets. The following are the actions Barbara could take if she wants to earn $ 30,900 in operating income by selling only 4,000 baskets. Consider each action independently. (Round per unit answers to 2 decimal places, e.g. 52.75 and fixed cost to 0 decimal places, e.g. 5,275.)
Raise selling price per unit to?
Reduce variable costs per unit to?
Reduce fixed costs to?
A tire store orders its stock for a popular winter tire once every year. The cost of a tire for the store is $120. The store sells a tire for $140 at the regular price. The regular demand per year is 1,000 tires, which is normally distributed with a standard deviation of 70 tires. Customers do not prefer to buy from an older stock; hence the store does not keep the tires for the next year. The store is able to sell the excess stock at a reduced price of $80 per tire.
How many tires the store should order each year?
Doc Nix Productions sells specialty T-Shirts that are sold at a single basketball game each. Doc Nix is trying to decide how many to buy for an upcoming game. During the game itself, which lasts one evening, Doc can sell T-Shirts for $10 apiece. However, when the game ends unsold T-shirts have no value. Due to a licensing agreement, Doc needs to make sure that leftover shirts are destroyed using a method that ends up costing $0.50 for each unsold T-Shirt. It costs Doc $6.50 to buy a specialty T-Shirt from the supplier. The supplier he uses has a cost per shirt of $2. Doc estimates that demand is distributed as shown below.
Demand
300
350
400
450
500
550
Probability
0.05
0.15
0.20
0.10
0.30
0.20
How many specialty T-Shirts should Doc Nix buy from the supplier to maximize his profits?
What is his expected profit?
What is the total supply chain profit?
Chapter 5 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 5.2 - Prob. 1PCh. 5.2 - Prob. 2PCh. 5.2 - Prob. 4PCh. 5.3 - Prob. 7PCh. 5.3 - Prob. 9PCh. 5.3 - Prob. 12PCh. 5.5 - Prob. 16PCh. 5.5 - Prob. 18PCh. 5.6 - Prob. 21PCh. 5.7 - Prob. 24P
Ch. 5.7 - Prob. 25PCh. 5.7 - Prob. 26PCh. 5.7 - Prob. 27PCh. 5 - Prob. 28APCh. 5 - Prob. 31APCh. 5 - Prob. 32APCh. 5 - Prob. 33APCh. 5 - Prob. 37APCh. 5 - Prob. 38APCh. 5 - Prob. 40APCh. 5 - Prob. 41APCh. 5 - Prob. 43APCh. 5 - Prob. 44APCh. 5 - Prob. 45APCh. 5 - Prob. 46APCh. 5 - Prob. 47APCh. 5 - Prob. 48APCh. 5 - Prob. 49APCh. 5 - Prob. 50APCh. 5 - Prob. 51AP
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