Operations Management
17th Edition
ISBN: 9781259142208
Author: CACHON, Gérard, Terwiesch, Christian
Publisher: Mcgraw-hill Education,
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Chapter 13, Problem 5CQ
Summary Introduction
To identify: The statement that is true.
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Students have asked these similar questions
. A newsvendor faces normally distributed demand and the critical ratio is .8. If theprofit-maximizing quantity is ordered, which of the following statements is true? a. Expected sales are less than expected demand.b. Expected sales are greater than expected demand.c. Expected sales are exactly equal to expected demand.d. Expected sales could be less than, equal to, or greater than expected demand.
Which of the following statements is a correct definition of the order cost method?
a)
It is a method that only assigns variable production expenses to production costs and reflects all fixed production expenses to the income-expense table by examining them as period expenses.
B)
It is a method that charges all of the variable production costs, and only the part of the fixed production costs, which falls on the capacity used, to the production costs.
NS)
It is a method developed to determine the costs on a lot basis.
D)
It is a method that assigns all of the production expenses of the period to the cost of the production made in that period, regardless of the fixed-variable expense distinction.
TO)
It is the method that determines the costs of the manufactured goods, after the production is made, based on the actual (realized) amounts of the production expenses.
A customer buys 1 ABC Jan 35 put for a premium of $3 and simultaneously buys 100 shares of ABC stock for $35 per share. The customer will break even when the stock is selling for what price per share at expiration?
Chapter 13 Solutions
Operations Management
Ch. 13 - Which of the following is NOT true about the...Ch. 13 - A newsvendor orders the quantity that maximizes...Ch. 13 - Prob. 3CQCh. 13 - Suppose the newsvendor model describes a firms...Ch. 13 - Prob. 5CQCh. 13 - Prob. 6CQCh. 13 - A retailer has two merchandizers, Sue and Bob, who...Ch. 13 - Prob. 8CQCh. 13 - Which of the following changes in the in-stock...Ch. 13 - Prob. 10CQ
Ch. 13 - Prob. 11CQCh. 13 - Prob. 12CQCh. 13 - Prob. 13CQCh. 13 - Prob. 14CQCh. 13 - Dan McClure owns a thriving independent bookstore...Ch. 13 - Flextrola, Inc., an electronics systems...Ch. 13 - Monsanto sells genetically modified seed to...Ch. 13 - Fashionables is a franchisee of The UnLimited, the...Ch. 13 - Teddy Bower is an outdoor clothing and accessories...Ch. 13 - Prob. 6PACh. 13 - Goop Inc. needs to order a raw material to make a...Ch. 13 - Geoff Gullo owns a small firm that manufactures...Ch. 13 - Prob. 9PACh. 13 - Prob. 10PACh. 13 - Prob. 11PA
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- For products with slow-moving demand—for example, one unit per week—the Poissondistribution is likely to be a better model for demand than the normal distributionbecause: (choose the best answer) a. the Poisson’s standard deviation is equal to the square root of its mean.b. the normal distribution does not allow the freedom to choose any standard deviationfor any given mean.c. the Poisson distribution is a continuous distribution.d. only the standard normal distribution would apply in this setting.e. the Poisson distribution does not assign any probability to negative outcomes.arrow_forwardPls do fast within 5 minutes and i will give like for sure Solution must be in typed form Taylor Supply is a wholesaler of office supplies and equipment. Taylor purchases cartons of staples from Barker Manufacturing. Barker offers a price of $7 per carton of staples. Taylor incurs a fixed charge of $90 per order to cover order equipment and clerical costs. Each order takes 3 days to arrive . Taylor has projected sales to be 603 boxes per day. Taylor's accounting department has determined the holding costs relevant for inventory decisions are 28% of unit cost. Assume Q=3000. What is the demand for staples during lead time? 1) Assume Q=3000. What is the demand for staples during lead time? 2) Assume Q=3000. What z value is associated with a 90% confidence level? 3) Assume Q=3000. If Taylor wants a 90% service level, and the standard deviation in daily demand is 250, what is the appropriate reorder point? 4) Assume Q=3000. If Taylor wants to improve their service level to 95%, and…arrow_forwardWhich of the following is most controllable by company management? a. The environmental factors, particularly the competitive and economic factors b. The elasticity of demand c. The proportions of debt and equity used to finance the company’s assets d. The long-term bond yield and the equity risk premiumarrow_forward
- Suppose the newsvendor model is used to manage inventory. Which of the followingcan happen when the order quantity is increased by one unit? a. Expected sales increases by more than one unit.b. Expected leftover inventory increases by more than one unit.c. Expected sales decrease by less than one unit.d. Expected leftover inventory increases by less than one unit.arrow_forwardFrom the following; refers the term "Inventory" O a. Materials in stock O b. Forecast value of a product O C. Actual demand of a product o d. Difference between actual value and demand voaluearrow_forwardAnnie bought one dozen smartphones for 200,000 pesos with a discount of 5%. She sold half dozen at a price of 18,000 pesos per unit. However, a new model of smartphone became available in the market, so she sold the remaining half dozen at 12,000 pesos each unit. What was her profit or loss? Compute the following requirements: a. Gross profit rate b. Operating profit margin rate c. Net profit margin rate d. Return on investmentarrow_forward
- A change in which of the following results in a change in the maximum profit in a newsvendor setting? a. The revenue received from salvaging inventoryb. The regular selling price of the productc. The standard deviation of the demand forecastd. The coefficient of variation of the demand forecastarrow_forwardA. You are thinking about opening an oil change shop. Your fixed costs will be $13,000 per month. You will charge customers $28 for a lube-oil filter. The cost of materials is in addition to your fixed costs and is estimated at $8 per customer. How many customers must you have each month in order to break even? Hint: "Break Even" means revenues equal expenses, so we could say "fixed costs+variable costs=revenues" B. If your shop is open an average of 25 days each month., how many customers do you need each day to break even? Answer for a: 650 customers Answer for b: 26 customers per day please help me set up the equation needed to solve and get the correct answer.arrow_forwardYour firm uses a periodic review system for all SKUs classified, using ABC analysis, as B or C items. Further, it uses a continuous review system for all SKUs classified as A items. The demand for a specific SKU, currently classified as an A item, has been dropping. You have been asked to evaluate the impact of moving the item from continuous review to periodic review. Assume your firm operates 52 weeks per year; the item’s current characteristics are:Demand 1D2 = 15,080 units/yearOrdering cost 1S2 = $125.00/orderHolding cost 1H2 = $3.00/unit/yearLead time 1L2 = 5 weeksCycle@service level = 95 percentDemand is normally distributed, with a standard deviation of weekly demand of 64 units.a. Calculate the item’s EOQ.b. Use the EOQ to define the parameters of an appropriate continuous review and periodic review system for this item.c. Which system requires more safety stock and by how much?arrow_forward
- A company uses the newsvendor model to manage its inventories and faces normallydistributed demand with a coefficient of variation of 0.75. The company decides toorder a quantity that exactly equals the mean of its demand forecast. Which of the following is true regarding this company’s performance measures? a. There is a .50 probability that there is enough inventory to serve all demand.b. Expected inventory equals 50 percent of the mean of the demand forecast.c. The stockout probability is .25.d. Expected inventory is 0.arrow_forward20. Identifying true or false: I - Just-in-time purchasing is guided solely by the economic order quantity. II - Companies that implement JIT purchasing will switch their suppliers when another supplier offers alower price. III - Just-in-time purchasing describes the flow of goods, services, and information from the initial sourcesof materials and services to the delivery of products to consumers, regardless of whether those activities occur in the same organization or in other organizations Group of answer choices All are false. T, T, F F, F, T All are true T, F, Tarrow_forwarda. List the major assumptions of the EOQ model.b. How would you respond to the criticism that EOQ models tend to provide misleading resultsbecause values of D, S, and H are, at best, educated guesses?arrow_forward
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