17. A manager of an inventory system believes that inventory models are importantdecision-making aids. The manager has experience with the EOQ policy, but has neverconsidered a backorder model because of the assumption that backorders were "bad"and should be avoided. However, with upper management's continued pressure forcost reduction, you have been asked to analyze the economics of a backorder policyfor some products that can possibly be backordered. For a specific product withD = 800 units per year, C. = $150, C₁ = $3, and C₁ = $20, what is the differencein total annual cost between the EOQ model and the planned shortage or backordermodel? If the manager adds constraints that no more than 25% of the units can bebackordered and that no customer will have to wait more than 15 days for an order,should the backorder inventory policy be adopted? Assume 250 working days peryear.

Answered: Image /qna-images/answer/f761607a-7c98-4103-aa15-f3f66676c78e.jpg

Answered: A manager of an inventory system…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Using the actual sales (in units) over the past 15 months, a demand planner at a leading e-commerce firm has forecasted the demand for a popular consumer product as shown below. Forecast 1 and Forecast 2 represent the outputs of two comparative forecasting methods currently used by the sales and marketing, and operations departments of the firm. Month October 22 November 22 December 22 January 23 February 23 March 23 April 23 May 23 June 23 July 23 August 23 September 23 October 23 November 23 December 23 Actual sales (units) 120 000 138 000 172 000 120 000 114 000 98 000 118 000 112 000 132 000 138 000 108 000 126 000 144 000 162 000 189 000 QUESTION 24 Determine the mean absolute deviation of Forecast 1. A 234 290 units a 18 721 units c 19 524 units 22 670 units QUESTION 25 Determine the mean absolute deviation of Forecast 2. A 21 638 units a 35 280 units c. 19 330 units 23 600 units Forecast 1 (units) 133 280 130 620 127 300 121 440 120 750 119 000 121 600 124 900 121 500 122400 126…
1. Here is data testing dosage amounts for a new drug used to treat pain. Due to its recent development, researchers want to know what is the appropriate dosage to treat chronic pain in arthritis patients. Each participant was given either a sugar pill, 50 mg, or 100 mg of the new medication. It is predicted that the 50 mg will be more effective than the placebo, and the 100 mg will be more effective than both the placebo and 50 mg. After a month, each participant rated their pain level. The higher the value, the more pain they felt. Use alpha = .05 Placebo/Sugar Pill 50 mg 100 mg X1 = 14 SS, = 932 X2 = 12 X3 = 7 SS2 = 654 SS3 = 620 ni = 40 n2 = 40 n3 = 40 SS Total 3106 A. State the hypotheses. B. Make a decision about the null. C. State your conclusion. D. Relate your conclusion to the research. E. If allowed, conduct analytical comparisons. a. State the hypotheses. b. Make a decision about the null. c. State your conclusion. d. Relate your conclusion to the research.
The new business venture, Best-In-World, has been manufacturing technology devices for over 20 years and is considering adding a new technology device to its music line. They have an established reputation for building quality devices, but they are rather novice in the music industry. The Chief Innovation and Design Officer, Julie Naugle-Hall, is tasked with hiring a marketing firm to conduct a survey to determine the feasibility and demand for their new music device. The follow decision table illustrates the potential payoffs for a high demand, moderate demand and low demand for the new music device. The decision will be whether to start production on this new device in small scale, large scale or not at all. Alternatives Answer Small-scale production Large-scale production No production Probabilities Step 2 of 3: What is the Expected Value with Perfect Information? $ Decision Table High Demand 850,000 1,700,000 0 0.20 State of Nature Moderate Demand 300,000 700,000 0 0.50 Low Demand…
1. Suppose that you estimate a model of house prices to determine the impact of having beach frontage on the value of a house.14 You do some research, and you decide to use the size of the lot instead of the size of the house for a number of theoretical and data availability rea- sons. Your results (standard errors in parentheses) are: PRICE; = 40 + 35.0 LOT¡ – 2.0 AGE; + 10.0 BED; – 4.0 FIRE; (1.0) (5.0) (10.0) (4.0) (10) N = 30 R2 =.63 where: PRICE¡ =the price of the th house (in thousands of dollars) =the size of the lot of the th house (in thousands of square feet) = the age of the th house in years =the number of bedrooms in the th house =a qualitative/dummy variable for a fireplace (1 = yes for the th house) LOT; AGE; BED; FIRE; a. You expect the variables LOT and BED to have positive coefficients. Create and test the appropriate hypotheses to evaluate these expectations at the 5-percent level. b. You expect AGE to have a negative coefficient. Create and test the appropriate…
An enquiry into the budgets of middle class families in Mumbai gave the following information : Clothing Fuel 20% Expenses on Food Rent Misc 35% 15% 10% 20% Pace (2016) ($) ence (2017) ($) 2500 2000 1400 400 600 2850 2200 1498 500 960 What changes in the cost of living figure of 2017 have taken place compared to2016?
Table 1. The manager of Carpet City outlet store needs to be able to forecast accurately demand for Soft Shang carpet. Demand for the past 20 weeks appears in table 1 below. week Demand Forecast Error ABS. Dev Squared Error APE 1 20 2 28 3 22 4 18 5 22 6 22 7 22 8 26 9 23 10 23 11 23 12 27 13 25 14 22 15 23 16 14 17 14 18 15 19 11 20 16 21 22 23 24…
5
An automobile manufacturer is considering mechanical design changes in one of its top-selling cars to reduce the weight of the car by at least 420 pounds to improve its fuel efficiency. Design engineers have identified 10 changes that could be made in the car to make it lighter (e.g., using composite body pieces rather than metal). The weight saved by each design change and the estimated costs of implementing each change are summarized in the following table. Design Change 1 2 3 4 6 7 8 10 Weight Saved (Ibs) 50 75 25 150 60 95 200 40 80 30 Cost (in $1,000s) 150 350 50 650 90 35 450 75 110 30 Changes 4 and 7 represent alternate ways of modifying the engine block and, therefore, only one of these options could be selected. The company wants to determine which changes to make in order to reduce the total weight of the car by at least 420 pounds in the least costly manner. (a) Formulate an ILP model for this problem to minimize cost (in thousands of dollars). (Let X, = 1 if design change i…
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Overhead Door (OD) Corporation’s founder, C. G. Johnson, invented the upward-lifting garage door in 1921 and the electric garage door opener in 1926. Since then OD has been a leading supplier of commercial, industrial, and residential garage doors sold through a nationwide network of more than 450 authorized distributors. They have built a solid reputation as a premier door supplier, commanding 15 % share of the market. Suppose that customers assess door quality first in terms of the ease of operation, followed by its durability. The quality improvement team (QIT) might then assign an engineering team to determine the factors that contribute to these two main problems. Smooth operation of a garage door is a critical quality characteristic that affects both problems: If a door is too heavy, it’s difficult and unsafe to balance and operate; if it’s too light, it tends to buckle and break down frequently or may not close properly. Suppose the design engineers determine that a standard…
The new business venture, Best-In-World, has been manufacturing technology devices for over 20 years and is considering adding a new technology device to its music line. They have an established reputation for building quality devices, but they are rather novice in the music industry. The Chief Innovation and Design Officer, Julie Naugle-Hall, is tasked with hiring a marketing firm to conduct a survey to determine the feasibility and demand for their new music device. The follow decision table illustrates the potential payoffs for a high demand, moderate demand and low demand for the new music device. The decision will be whether to start production on this new device in small scale, large scale or not at all, Alternatives Answer Small-scale production Large-scale production No production Probabilities Step 1 of 3: Calculate the EMV for each alternative. Decision Table High Demand 900,000 1,500,000 0 0.25 EMV (small-scale) = = S EMV (large-scale) = = $ EMV (no production) = S State of…

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