University of Florida football programs are printed 1 week prior to each home game. Attendance averages 60,000 screaming and loyal Gators fans, of whom two-thirds usually buy the program, following a normal distribution, for $5 each. Unsold programs are sent to a recycling center that pays only 10 cents per program. The standard deviation is 5,000 programs, and the cost to print each program is $2. Refer to the standard normal table for z-values. a) What is the cost of underestimating demand for each program? Cs = $ (round your response to two decimal places). b) What is the overage cost per program? Co = $ c) How many programs should be ordered per game? programs should be ordered per game (round your response to the nearest whole number). d) What is the stockout risk for this order size? Stockout risk = (round your response to two decimal places). (round your response to four decimal places).

Dalia, the office manager of a desktop publishing outfit, stocks replacement toner cartridges for laser printers. Demand for cartridges is approximately 30 per year and is quite variable (Le., can be represented using the Poisson distribution). Cartridges cost $100 each and require three weeks to obtain from the vendor. Dalia uses a (Q, r) approach to control stock levels (a). If Dalia wants to restrict replenishment orders to twice per year on average, what batch size Q should she use? If she wants to ensure a service level (i.e., probability of having the cartridge in stock when 2 out of 2 needed) of at least 98 percent, what reorder point r should she use? (Hint: Use Table 2.6.(b). If Dalia is willing to increase the number of replenishment orders per year to six, how do Q and r change? Explain the difference in r.

A small grocery store sells fresh produce, which it obtains from a local farmer. During the strawberry season, demand for fresh strawberries can be reasonably approximated using a normal distribution with a mean of 36 quarts per day and a standard deviation of 7 quarts per day. Excess costs run .40 cents per quart. The grocer orders 42 quarts per day.Use Table.  What is the implied cost of shortage per quart?

Caring Hospital's dispensary reorders doses of a drug when the supply on hand falls to 18 units. Lead time for resupply is three days. Given the typical usage over the last 10 days, what service level is achieved with the hospital's reorder policy? (Hint. Use the following formula.) (Do not round intermediate calculations. Round your "z" value and final answer to 2 decimal places.) Use Table. ROP =dLT +2 (od) √LT Day Units 1 3 2 3 4 4 7 5 Service level Click here for the Excel Data File 5 5 % 6 6 7 4 8 3 9 4 10 5