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 5.3, Problem 7P
Summary Introduction
Interpretation:accurately measure the daily demand of newspaper.
Concept introduction:new vendor formula assumes that the demand in the period was described by a continuous probability distribution.
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A newsvendor keeps careful records of the number of papers he sells each day and thevarious costs that are relevant to his decision regarding the optimal number of newspapers to purchase. For what reason might his results be inaccurate? What would heneed to do in order to accurately measure the daily demand for newspapers?
Struggling with answering this question
A manufacturer produces three types of humidifiers. The retail price of Humidifier Regular (HR) is $60 with variable costs of $20. Humidifier Advanced (HA) sells for $200 for its advanced features. This model’s variable costs are $80. Humidifier Simple (HS) is a simplified version and only sells for $25 with variable costs of $15. The manufacturer has machines and facilities worth $320,000 annually. The sales data show that 1000 units of HR, 2000 units of HA, and 10,000 units of HS was sold last year. Calculate the break-even point of the firm. The firm has some idle capacity at these volumes and chooses to cut the selling price of HR from $60 to $45, believing that its sales volume will rise from 1000 units to 2500 units. What is the revised break-even point?
Forecasts must be continually adjusted in response to unforeseen changes in projected revenues and/or expenses.
True
False
Taxes, Insurance, and storage are typical costs associated with carrying inventory,
True
False
Cycle counting errors will be reduced if the time during which the counts are taken is also when the product being counted is not moving.
True
False
To determine inventory "turn" - divide throughput by the average inventory.
True
False
One reason for maintaining multiple warehouse locations is to facilitate employee communication, e.g., avoid miscommunication.
True
False
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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