Operations and Supply Chain Management
Operations and Supply Chain Management
14th Edition
ISBN: 9780078024023
Author: F. Robert Jacobs
Publisher: MCG
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Chapter 2, Problem 13OQ

The assessment of the probability of a negative event against the aggregate severity of the related loss is called ____________________.

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The number of hybrid cars that have be requested for rental from a car rental office during a 50 day sample period is given in the following table.       Demand for Cars      Number of Days     Probability                  3                          3                    0.06                  4                          7                    0.14                  5                        12                    0.24                  6                        14                    0.28                  7                        10                    0.20                  8                          4                    0.08                                            50                    1.00What is the expected (mean) number of hybrid rentals per day?  Compute to one decimal place.
How would you go about calculating the likelihood of a "super-event" or a "unique event?" What variables would you take into account ?
A plastic injection molding machine operates 334 days a year. It is the bottleneck workstation in a process that produces plastic housed wall clocks. Industrial engineers collected data on the probability of machine breakdowns, the costs of preventive maintenance, and the cost of a breakdown. Number of Molding Machine Breakdowns per Day Probability of a breakdown 0 0.32 1 0.27 2 0.22 3 0.13 4 0.06 The cost of preventive maintenance is high due to performing it between 1 and 4 a.m. each day by two machine experts. The preventive maintenance cost is $2,030 per day including replacement parts, cleaning, and software upgrades. The cost of a breakdown of $1,940 is also high because the downstream workstations can only work until all work-in-progress inventory is completed; then the entire process must stop. What are the economics of the situation? Do not round intermediate calculations. Round your answers to the nearest cent. The expected cost of a breakdown per day is $ The manufacturing…
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