Operations Management
2nd Edition
ISBN: 9781260484687
Author: CACHON, Gerard
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 1, Problem 3PA
Summary Introduction
To determine: The subcomponents of consumption utility in a customer utility function.
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Gary's Shoes and Accessories is attempting to quantify the value of a loyal customer. Al Bundy, Gary's data analyst, has carefully analyzed ten years of data and determined that its customers tend to purchase a new pair of shoes every two years and its customer defection rate is 25%. Gary's fixed costs are 20%, and it makes a before-tax profit of 10%. The revenue for the store's Peggy line of shoes, which accounts for virtually all of the sales, is $250. An aggressive marketing campaign is planned that Al estimates will increase the store's share of customers by 8,000. What is the market value increase?
a. $2,800,000
b. $400,000
c. $1,200,000
d. $800,000
Below is a table of data collected over a six-month period in a local grocery store. Construct a Pareto analysis of the data and determine the percentage of total complaints represented by the two most common categories.
Checker
59
General
58
Service level
55
Policy/Procedures
40
Price Marking
45
Product Quality
87
Product Request
105
Checkout Queue
33
Stockout Condition
170
Other
71
12.2. The manager of the I-85 Carpet Outlet needs to be able to forecast accurately the demand for Soft Shag carpet (its biggest seller). If the manager does not order enough carpet from the carpet mill, customers will buy their carpets from one of the outlet’s many competitors. The manager has collected the following demand data for the past eight months:
Month Demand for Soft Shag Carpet (1000 yd)1 52 103 64 85 146 107 98 12
a. Compute a three-month moving average forecast for months 4 through 9.
b. Compute a weighted three-month moving average forecast for months 4 through 9. Assign weights of .55, .33, and .12 to the months in sequence, starting with…
Chapter 1 Solutions
Operations Management
Ch. 1 - Prob. 1CQCh. 1 - Prob. 2CQCh. 1 - Prob. 3CQCh. 1 - Prob. 4CQCh. 1 - Prob. 5CQCh. 1 - Prob. 6CQCh. 1 - Prob. 7CQCh. 1 - Prob. 8CQCh. 1 - Prob. 9CQCh. 1 - Prob. 1PA
Ch. 1 - Prob. 2PACh. 1 - Prob. 3PACh. 1 - Prob. 4PACh. 1 - Prob. 5PACh. 1 - Prob. 6PACh. 1 - Four regional less-than-truckload (LTL) carriers...Ch. 1 - Prob. 8PACh. 1 - Prob. 9PACh. 1 - Prob. 10PACh. 1 - Prob. 11PACh. 1 - Prob. 12PACh. 1 - Prob. 13PACh. 1 - Prob. 14PACh. 1 - Prob. 15PACh. 1 - Prob. 16PACh. 1 - Prob. 17PA
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