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- Question 10.6 Storage Limited operates a 50-week working year. It produces a product called "GENERAL' for which demand any week in the year is described by the probability distribution below: Demand 2 3 4. 7 8. 9 Probability 0.07 0.10 0.11 0.13 0.15 0.17 0.13 0.08 0.04 0.02 Demand can only be satisfied (if at all) from stocks. The stockholding costs are N4 per item per year. Fixed costs per re-order are N16 and the variable, re-order costs are N30 per unit Lead time is one week. The costs of being out of stock are N12 per unit short. You are required to calculate: (i) The average weekly demand; [i] The Economic Order Quantity; [iv] The number of ordering cycles in the year; and [v] State briefly the main reason for holding inventory, and explain why good inventory management is a very important aspect of overall company management. [ii The average annual demand;7Need d and e
- QUESTION 12 A vendor for the local ballpark food stand is questioning whether to stock his concession with a large or small inventory. He believes that it will depend upon the size of the crowd. He has developed a payoff matrix for the various alternatives (stocking decision) and states of nature (size of crowd). What is the answer using the criterion of maximin? Alternatives Large Inventory Small Inventory Probability OA) -$2,000 O B) $0 OC) $51,667 OD) $220,000 O E) -$5,000 Large Crowd $220,000 $90,000 .20 PROFIT (S) Average Crowd $50,000 $70,000 1.50 Small Crowd -$2,000 -$5,000 30Module 5 Question 8 Mayborn Enterprises, LLC runs a number of sporting goods businesses and is currently analyzing a new T-shirt printing business. Specifically, the company is evaluating the feasibility of this business based on its estimates of the unit sales, price per unit, variable cost per unit, and fixed costs. The company's initial estimates of annual sales and other critical variables are shown here: Base CaseUnit sales 7,500Price per unit $16.00Variable cost per unit $10.00Fixed cash expense per year $10,000Depreciation expense $4,000 a. Calculate the accounting and cash break-even annual sales volume in units. b. Bill Mayborn is the grandson of the founder of the company and is currently enrolled in his junior year at the local state university. After reviewing the accounting break-even calculation done in part a, Bill wondered if the depreciation expense should be included in the calculation. Bill had just completed his first finance class…Graphical Method
- Table Q4. Average monthly discharge of Athi River City, m³/s Year Jan Feb Mar 1987 2.92 5.10 1.95 Apr 4.42 May Jun 3.31 2.24 Jul Aug 1.05 Sep 0.74 1.02 Oct Nov Dec 1.08 3.09 7.62 2 1988 24.3 11.5 17.2 12.6 7.28 7.53 3.03 10.2 10.9 17.6 16.7 3 1989 15.3 13.3 14.2 36.3 13.5 3.62 1.93 1.83 1.93 4 1990 11.5 4.81 8.61 27.0 4.19 2.07 1.15 2.04 5 1991 11.1 7.90 41.1 6.77 8.27 4.76 2.78 2.10 1.70 1.44 4.02 3.29 5.98 12.7 3.12 2.97 4.45 4.45 3.03 12.2 7.22 1.98 6 1992 2.92 5.10 28.7 0.91 0.67 1.33 2.38 2.69 3.03 7 1993 7.14 10.7 9.63 21.1 10.2 5.13 3.03 10.9 3.12 2.61 3.00 3.82 14.0 14.2 8 1994 4.96 7.36 47.4 29.4 2.29 1.70 1.56 1.56 2.04 2.35 9 1995 2.89 9.57 17.7 16.4 6.83 3.74 1.60 1.13 1.13 1.42 1.98 2.12 24.7 10 1996 1.78 1.95 7.25 6.26 8.92 3.57 1.98 1.95 3.09 3.94 12.7 11 1997 13.8 6.91 12.9 11.3 3.74 1.98 1.33 1.16 0.85 2.63 6.49 5.52 12 1998 4.56 8.47 59.8 9.80 6.06 5.32 2.14 1.98 2.17 3.40 8.44 11.5 13 1999 13.8 29.6 38.8 13.5 37.2 22.8 6.94 3.94 2.92 2.89 6.74 3.09 14 2000 2.51 13.1…8Q7. The president of Rose Bowl Enterprises, Desmond Howard, projects the firms aggregate DEMAND requirements over the next 8 months as follows: These are the monthly DEMAND, not production. MONTH JAN FEB MAR APR MAY JUN JULY AUG DEMAND 1,400 1,600 1,800 1,800 2,200 2,200 1,800 1,800 PRODUCTION 1,600 from December INVENTORY 200 from Dec plus 200 His operations manager is considering a new plan, which begins in January with 200 units on hand. Stockout cost of lost sales is $100 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle time costs. The plan is called plan A. Plan A: Vary the workforce level to execute a strategy that produces the quantity demanded in the prior month. The December demand was given as 1,600 units per month. Therefore, the production for JAN will be 1,600. However, only 1,400 are needed. Therefore, the extra 200 produced go into inventory and there is a holding cost for inventory. Also, per the above, you already have 200 units in inventory…
- Q3 The Muscat Chocolate Company produces all types of chocolate candy that is boxed before being sent to the retail outlets. After the chocolate has been poured, the candy production goes through all types of operation from adding fillings, shaping, decorating, coating, and the like, before being put into boxes, wrapped, and put into cartons. This production/assembly operation operates for 5 days/week, 8 hours/day. Weekly demand of boxes of the chocolates is shown in Table Q3. Production/packaging consists of 9 operations. These together with estimated time for completion, are given in Table Q3. Determine the following: (i) Draw the precedence diagram; (ii) The cycle time and theoretical number of workstations; (ii) The efficiency of the assembly line if the most tasks following rule/criteria is being followed. Table Q1 Weekly Demand Operations A B 6,100 Time (sec) Precedence 6. 8. A 9 B 11 12 B C. D A F 14 G 9 F 5 E 12 G, HQuestion 4 Right now is Quarter 2 of 2020. You are developing an aggregate production plan for 2021. rvey Suppose the beginning inventory at the first quarter of 2021 is estimated to be 196 units. ing The demand for Quarter 1 of 2021 is forecasted to be 1.208 units while the demand for Quarter 2 2021 is forecasted to be 891 units. Overtime production and subcontract will not be available in the first two quarters of 2021. If the regular production in Quarter 1 is 1,950 units and the regular production in Quarter 2 is 891 units, what is the ending inventory level in Quarter 2 of 2021?Q: Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease $B$5 consider Cake (C) 0 -0.5 4.5 0.5 1E+30 $C$5 consider Dozen Cookies (D) 10 0 10 1E+30 1 what does the value minus .5 for the reduced cost of C mean (other than it is the change in thevalue of the coefficient in the objective function so that the solution includes a positive amountof C)?
