What is false about service level and stock out?Service level and stock out risk are probabilities of mutually exclusive eventsService level is the probability of attending the demand and stock out risk it theprobability of not attending the demandService level and stock out risk are inversely relatedService level and stock our risk are directly related

It is true that the service level and stock out risk are probabilities of mutually exclusive events…

Answered: What is false about service level and…

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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If the farmer uses pesticides he expects a crop of 60,000 bushels; if he does not use pesticides he expects a crop of 55,000 bushels. The cost of pesticides is $20,000 and the other costs associated with planting and harvesting the crop total $450,000. The price of corn at harvest time will either be $10.00 with probability of 0.50 or it will be $12.00 with probability 0.50, so if the farmer decides to sell the crop at harvest, the expected price per bushel that he will receive is $11.00. What will be his total production cost if he uses pesticides? a. $430,000.00 b. $470,000.00 c. $450,000.00 d. $660,000.00
An insurance company has a life insurance policy, which have 10,000 clients, each client pays 200 yuan per year. If the client died in this year, the company paid out the beneficiary of 10,000 yuan. The mortality rate for the client is 0.017 , and what is the probability of the insurance company will deficit in this year?
Consider a consumer who searches to buy a new coffee mug and assume the only feature she cares about is the mug's price. Also, suppose she has visited a bookstore and learned that the price of a mug there was $12.99. She is aware of two other stores, Store A and Store B, that also sell mugs and she is considering whether to also search those stores. The consumer expects these stores to charge $9.99 and $11.99, respectively, for a mug. For what search cost might the consumer include both Store À and Store B in her consideration set? A. $0.99 B. $1.49 C. $1.99 D. $2.49 E. $2.99
All the answers below are reasons for performing risk management EXCEPT. O a. Planning for known and unknown events O b. Ensure the occurrence of opportunities. O c. Elimination of issues O d. Reduce the impact of threats
Suppose that you have two four-sided dice that are each equally weighted (i.e. equal chance of any of the four sides landing face up). One of them has values [12.5968, 2, -2 and -12.5968] , the other [12.5968, 4, -2 and -12.5968] Which of them has a σ of 9 using the probability model approach. a) [12.5968, 2, -2 and -12.5968] B) [12.5968, 4, -2 and -12.5968]
How would I calculate the expected values for probabilities that aren't a single value such as 1-4% and >4%?
When a choice is communicated in terms of potential losses, most people choose the option with less risk. -True -False
A farmer must decide whether to take protective action to limit damage to his grapefruit crop in the event that the overnight temperature falls to a level well below freezing. If the temperature drops too low he runs the risk of losing his entire crop, valued at $75,000. Based on the National Weather Service, the probability of such a temperature drop is 60%. He can insulate his crop by spraying water on all the trees, which will cost $20,000. This action might succeed in protecting the crop, with the following possible outcomes: Probability Damage 0.30 $0 0.15 $5,000 0.10 $10,000 0.15 $15,000 0.30 $20,000 Construct a decision tree to help the farmer make his decision. What should he do? Explain your answer. Find the highest cost of insulating the grapefruits for which the farmer prefers to insulate his crop. Suppose the farmer is uncertain about the reliability of the National Weather Service forecast. If he thinks the probability of…
An emerging issue in the practice of risk management is that, based on a study, there is no alignment with current sustainability reports * True False
Which statement regarding Time-Cost Models tradeoffs is true? Crashing a project reduces the duration of noncritical activities Projects with multiple critical paths cannot be crashed The crash time of an activity exceeds the normal time of the activity To crash a project, costs are increased on critical activities to reduce their duration Noncritical activities cannot become critical after crashing
true or false Some speculative risks are insurable (T) The possibility of not meeting the annual sales target of one million dollar set by the top management is an example of strategic risk. ABC Insurance Company plans to sell fire insurance in Kedah. ABC expects that eight buildings out of every 100, on average, will report claims each year. The variation between the loss that ABC expects to occur and the loss that actually occurs can be measured by range, variance, standard deviation or coefficient of variation A total loss to the car that could happen to a driver as a result of a collision is an example of pure risk.
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