Consider the following single-period inventory model (probabilistic demand). The Smith shoecompany is currently selling an athletic shoe for the spring and summer months. It does notexpect to sell any shoes in the fall, thus it will not sell after July 31. The shoes cost Smith $110per pair and Smith will sell them retail at a price of $140. During the August sale, the shoes willsell for $70 a pair. The demand for shoes is assumed to be uniformly distributed with the rangeof demand going from 2,000 pairs to 3,800 pairs.Answer these questionsQuestion 7. What is the value of co?(b)(a)Question 8. What is the value of cu?

Given data; Cost price 110 $ per pair Selling price 140 $ per pair Salvage price 70 $ per…

Answered: Consider the following single-period…

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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Given scenario A hospital is administering a polio vaccine (“polio drops”) to children under the age of 5 in Mexico. It costs the hospital $2 to purchase one shot, and they charge $3 for administering it to a child. Unused vaccines are destroyed. The hospital management needs to decide the number of vaccines to be ordered. Since the hospital has been administering these shots for the last 6 years (24 quarters), they have been able to compile the demand for the vaccine. Determine the optimal service level and optimal order quantity, for the vaccine. Quarter Demand 1 15 2 18 3 21 4 15 5 17 6 22 7 20 8 16 9 22 10 18 11 25 12 15 13 26 14 29 15 16 16 30 17 17 18 25 19 18 20 16 21 19 22 23 23 20 24 15
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Pls help with below homework. Select the correct option and explain it in 7-8 sentences.
A retailer has 7 stores in different cities in northern Ontario. The weekly demand for each store follows the normal distribution with a mean value of 60 and a standard deviation of 10. The retailer is planning to use a single centralized store in northern Ontario and they think the demand in the single store will be equal to the sum of the demand in all 7 cities. It takes 3 weeks for the supplier to send the products to the retailer. Calculate the safety stock for the centralized and decentralized cases if the correlation of demands between different cities is 0.3. Assume the planned customer service level is 98%. Please post answer in excel showing formula and answer

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