Beth Perry purchases strawberries for P4.00 a case and sells them for P9.00 a case. Therather high mark-up reflects the perishability of the item and the great risk of stockingit, the product has no salvage value after the first day it is offered for sale. Beth facesthe problem of how many order for tomorrow's business. A 90-day observation of pastdemand is shown in Table below. Find the stock level (in cases) of strawberries thatBeth must buy to have a maximum profit.No. of DaysDailyDemandDemanded109.11271236131890

Answered: Image /qna-images/answer/1871c3f6-f5f8-42fd-9d47-78c115ca9351.jpg

Answered: Beth Perry purchases strawberries for…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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can you please help me answer this question.... Rebar Company prepared the following analysis of its year-end inventory on December 31. First, determine the total lower of cost or market value for each product in Rebar Company's inventory. Second, prepare the journal entry needed at year-end to value the inventory at LCM, if applicable. Historical Cost Replacement Cost Product Quantity per unit per unit A 17 $430 $499 B 140 325 299 C 38 75 69
21- Which one of the following represent FIFO method of inventory evaluation? a. Old items remain in inventory b. Old merchandise is sold first c. New merchandise is sold first d. Average number of goods are sold
As with other products, Fisher-Price faces the decision of how many Weather Teddy units to order for the comingholiday season. Members of the management team suggested order quantities of 15,000, 18,000, 24,000, or28,000 units. The wide range of order quantities suggested indicates considerable disagreement concerning themarket potential. The product management team asks you for an analysis of the stock-out probabilities forvarious order quantities, an estimate of the profit potential, and to help make an order quantity recommendation.Fisher-Price expects to sell Weather Teddy for $24 based on a cost of $16 per unit. If inventory remains afterthe holiday season, Fisher-Price will sell all surplus inventory for $5 per unit. After reviewing the sales historyof similar products, Fisher-Price’s senior sales forecaster predicted an expected demand of 20,000 units with a.95 probability that demand would be between 10,000 units and 30,000 units. Compute the probability of a stock-out for the…
As with other products, Fisher-Price faces the decision of how many Weather Teddy units to order for the comingholiday season. Members of the management team suggested order quantities of 15,000, 18,000, 24,000, or28,000 units. The wide range of order quantities suggested indicates considerable disagreement concerning themarket potential. The product management team asks you for an analysis of the stock-out probabilities forvarious order quantities, an estimate of the profit potential, and to help make an order quantity recommendation.Fisher-Price expects to sell Weather Teddy for $24 based on a cost of $16 per unit. If inventory remains afterthe holiday season, Fisher-Price will sell all surplus inventory for $5 per unit. After reviewing the sales historyof similar products, Fisher-Price’s senior sales forecaster predicted an expected demand of 20,000 units with a.95 probability that demand would be between 10,000 units and 30,000 units. Question: One of Fisher-Price’s managers felt…
Add two (2) new customers, two (2) old customers and two (2) new POS transactions. SalesID InvoiceNo TransDate Item Description Color Size qty Price StoreID YearID Brand Name Address CurrID YEARVAL 82605 10828 06-Dec-09 8720400000227 REGULAR CIGARS 1 21.74 TCS 2009 HENRI WINTERMANS Yetty BDS 2009 47075 45036325 26-Aug-08 POSTCARDS POSTCARDS 1 1.4 CS 2008 Guenna BDS 2008 4590 60007295 14-Jan-08 3707-11-6 BLOUSES BLK/MLT L 1 586 CC 2008 GOTTEX Yankee CORAL REEF HOTEL USD 2008 4599 60007301 15/1/2008 3007-319-18 PANTS CORAL XS 1 200 CC 2008 CUT LOOSE Quigly YEARWOOD RD BLK ROCK USD 2008
The annual demand for an automobile part is 3200 units. The unit cost is 60 OMR and inventory carrying charge is 25% of unit cost. Ordering cost is 20 OMR per order. (i) Determine the economic order point (ii) If you place an order for 110 units every time, is it profit or loss? How much and Why? (iii) Why demand forecasting is important for an organization? Compare qualitative and quantitative forecasting technique with an example.
"If the demand for a good decreases when a consumer's income rises, the demand for that good must decrease when its price rises". This statement is valid for Nora's demand for cheese. This statement is not valid for Chris' demand for pasta. Q1 a) Using an appropriate model with a diagram, explain in detail Nora's demand for cheese.
20. Identifying true or false: I - Just-in-time purchasing is guided solely by the economic order quantity. II - Companies that implement JIT purchasing will switch their suppliers when another supplier offers alower price. III - Just-in-time purchasing describes the flow of goods, services, and information from the initial sourcesof materials and services to the delivery of products to consumers, regardless of whether those activities occur in the same organization or in other organizations Group of answer choices All are false. T, T, F F, F, T All are true T, F, T
Annual demand is 16000 units, cost per order is $75 and carrying cost per unit as a percentage is 10%. The company works 250 weeks a year; the lead-time on all orders placed is 6 working days. Assuming constant lead-time demand, and a unit cost of $45 what is the economic order quantity? What is the reorder point. If lead-time demand shows variability that follows a normal distribution with a mean μ =420 and a standard deviation σ =20, what will the revised reorder point if two stock-outs (shortages) are allowed? What is the company’s reorder point if the probability of a stock-out on any cycle is restricted to 0.05?
The Suregrip Tire Company carries a certain type oftire with the following characteristics:Average annual sales = 600 tiresOrdering cost = $40 per orderCarrying cost = 25 percent per yearItem cost = $50 per tireLead time = 4 daysStandard deviation of daily demand = 1 tirea. Calculate the EOQ.b. For a Q system of inventory control, calculate the safety stock required for service levels of 85, 90, 95,97, and 99 percent.c. Construct a plot of total inventory investment versus service level.d. What service level would you establish on the basis of the graph in part c? Discuss.
11. Determine planned purchases (a) at retail and (b) at cost for a month with the following planned figures: Round to the nearest dollar. Sales $148,000 Markdowns 8,400 BOM Stock 310,500 EOM Stock 340,000 Markup 48%
The following data give monthly Demband >1300 units Ordenng cost Holding lo st to Q - $ 15 pe oder $2/ units peo year 464 Lead time 4 days %3D wha t is the tolal annua / vanable inventory Cost Cie total annus! total aroual ordening) © $968 $ 8 ® $484 D $ I436 14520

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