Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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1. Safety stock and service levels are positively correlated.
True
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- true or false Q5. Because the decision maker does have difficulties in judging the cost-benefit trade-off, it is insufficient for them to make a choice according to the options on the efficient frontierarrow_forwardExercise 1: You are the operations manager at the company Servicios de Salud, Inc., which provides care services to the elderly. An important aspect of your job is ensuring that nursing homes have a healthy inventory of nutritional drinks for residents. Below is the historical demand for the product for one year: Month Historical demand (boxes) Forecasted demand (boxes) January 300 February 340 March 370 April 410 ¿? May 470 ¿? June 570 ¿? July 630 ¿? August 720 ¿? September 640 ¿? October 460 ¿? November 420 ¿? December 390 ¿? a. Calculate the average demand for each period from April to December using the 3-month simple moving average. Presents calculations and findings in a clear and organized manner. b. Discuss any trends or patterns observed in the calculated moving average demand values. c. Make an interpretation of the results and their implications for forecasting…arrow_forward18 If the standard deviation of demand is six per week, demand is 50 per week, and the desired service level is 95%, approximately what is the statistical safety stock? Select one: a. 16 units b. 64 units c. 10 units d. Cannot be determined without lead time data. e. 8 unitsarrow_forward
- 1 - Which revenue model is based on a 130 year old practice that stemmed from door to door sales people and direct mailings? Fee for Transaction Advertising Fee-for-Content Web Catalogarrow_forwardBeginning Quantity Ending Inventory Order? Lost Week Demand inventory on-order inventory position (yes/no) Sales 1 100 53 2 40 3 36 4 38 5 55 6 34 7 30 8 31 9 40 10 57 11 30 12 53arrow_forwardTaylor Products distributes two premium kid chairs-Hayden Recliner and Hadley Rocking. Fixed expenses total $390,000 per month. Sales Contribution Margin Ratio Hayden Recliner Hadley Rocking $600,000 $300,000 75% 45% Based on the current sales mix, what is the break-even point in dollar sales for Hayden Reclin O $400,000 $450,000 O $387,000 O $415,000 $392,000arrow_forward
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