. Goop Inc. needs to order a raw material to make a special polymer. The demand forthe polymer is forecasted to be normally distributed with a mean of 250 gallons anda standard deviation of 100 gallons. Goop sells the polymer for $25 per gallon. Gooppurchases raw material for $10 per gallon and must spend $5 per gallon to dispose of allunused raw material due to government regulations. (One gallon of raw material yieldsone gallon of polymer.) If demand is more than Goop can make, then Goop sells onlywhat it has made and the rest of the demand is lost.a. How many gallons should Goop purchase to maximize its expected profit? b. Suppose Goop purchases 150 gallons of raw material. What is the probability that itwill run out of raw material? c. Suppose Goop purchases 300 gallons of raw material. What are the expected sales (ingallons)? d. Suppose Goop purchases 400 gallons of raw material. How much should it expect tospend on disposal costs (in dollars)? e. Suppose Goop wants to ensure that there is a 92 percent probability that it will be ableto satisfy its customers’ entire demand. How many gallons of the raw material shouldit purchase?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
. Goop Inc. needs to order a raw material to make a special polymer. The demand for
the polymer is
a standard deviation of 100 gallons. Goop sells the polymer for $25 per gallon. Goop
purchases raw material for $10 per gallon and must spend $5 per gallon to dispose of all
unused raw material due to government regulations. (One gallon of raw material yields
one gallon of polymer.) If demand is more than Goop can make, then Goop sells only
what it has made and the rest of the demand is lost.
a. How many gallons should Goop purchase to maximize its expected profit?
b. Suppose Goop purchases 150 gallons of raw material. What is the probability that it
will run out of raw material?
c. Suppose Goop purchases 300 gallons of raw material. What are the expected sales (in
gallons)?
d. Suppose Goop purchases 400 gallons of raw material. How much should it expect to
spend on disposal costs (in dollars)?
e. Suppose Goop wants to ensure that there is a 92 percent probability that it will be able
to satisfy its customers’ entire demand. How many gallons of the raw material should
it purchase?
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