EBK PRODUCTION AND OPERATIONS ANALYSIS
7th Edition
ISBN: 8220102480681
Author: Olsen
Publisher: WAVELAND
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Chapter 5, Problem 45AP
Summary Introduction
Interpretation: Optimal number of bagels to be baked each day is to be calculated.
Concept Introduction: Poisson distribution is the probability distribution of discrete random variable series in which frequency of outcomes is calculated in a given period of time.
Standard deviation is the numerical expression of showing the error from the average.
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Brynn is the owner of a spa store that operates 50 weeks per year. Dazzle Shampoo is a high margin stock-keeping unit (SKU), but the product goes out of stock frequently. She decides to use a fixed-quantity system (FQS) and orders boxes of Dazzle Shampoo containing 10 bottles per box from a vendor 160 miles away. She collects the following data with respect to the sales of Dazzle Shampoo.
Demand
10 boxes per week
Order Cost
$40 per order
Item Cost
$80 per box per year
Inventory-Holding Cost
15 percent per year
Lead Time
3 weeks
Standard Deviation in Weekly Demand
6
Service Level
96 percent
Using the given data, it can be concluded that the economic order quantity (EOQ) of the Dazzle Shampoo boxes is
a.
more than 25 but less than or equal to 35 boxes.
b.
less than 25 boxes.
c.
more than 35 but less than or equal to 45 boxes.
d.
more than 55 boxes.
Chapter 5 Solutions
EBK PRODUCTION AND OPERATIONS ANALYSIS
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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