Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 5, Problem 46AP
Summary Introduction
Interpretation: Optimal number of cards to print is to be determined.
Concept Introduction: Poisson distribution is the probability distribution of discrete random variable series in which frequency of outcomes is calculated in a given period of time.
Standard deviation is the numerical expression of showing the error from the average.
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Consider a toy retailer with warehouses in St. Louis and Kansas City, Missouri. The warehouses stock an identical popular toy delivered to stores in the two cities. Assume a warehouse serves only stores in its city. Weekly demand for St. Louis is normally distributed with mean 2,000, and standard deviation 400 (that is N(μ = 2,000, σ = 400)). Weekly demand for KansasCity is distributed N(μ = 2,000, σ = 300). We assume that the two cities are far enough apart so that demand in the two cities is independent.The following parameters are seen by both warehouses:Replenishment lead time in weeks ~ N(μ = 2, σ = 0.1);Fixed shipping cost of replenishment: $500;Cost per toy: $10; andHolding cost per toy 20 percent of toy’s value per year.How many toys should each location order at a time and when should they reorder if they want a 99 percent cycle service level? What if they pool the two locations?
Suppose that in month 1, both the retailer and the wholesaler in a supply chain ordered 20,000 units. Then in month 2, the retailer decreases its order
size by 500 units. If the wholesaler then decreases its order size in month 2 by 700 units, which of the following is TRUE?
OA. The wholesaler is contributing to the bullwhip effect.
B. Neither amplification nor smoothing is present.
OC. The bullwhip measure for the wholesaler equals 0.70.
D. The wholesaler is providing both amplification and smoothing.
O E. The wholesaler is providing a dampening (anti-bullwhip) effect.
Zack Pop has been a producing plant production manager for the last 10 years. One produce item, zucchini, is sold in cases, with daily sales averaging 400 cases. Daily sales are also assumed to be normally distributed. Furthermore, 85% of the time sales are between 350 and 450 cases. Each case is purchased for $10 wholesale and sells for $15 retail. All cases that are not sold must be discarded.
1) Estimate the standard deviation of the sales distribution.
2) Using the standard deviation found in part a, determine how many cases of zucchini Zach should stock.
Chapter 5 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 5.2 - Prob. 1PCh. 5.2 - Prob. 2PCh. 5.2 - Prob. 4PCh. 5.3 - Prob. 7PCh. 5.3 - Prob. 9PCh. 5.3 - Prob. 12PCh. 5.5 - Prob. 16PCh. 5.5 - Prob. 18PCh. 5.6 - Prob. 21PCh. 5.7 - Prob. 24P
Ch. 5.7 - Prob. 25PCh. 5.7 - Prob. 26PCh. 5.7 - Prob. 27PCh. 5 - Prob. 28APCh. 5 - Prob. 31APCh. 5 - Prob. 32APCh. 5 - Prob. 33APCh. 5 - Prob. 37APCh. 5 - Prob. 38APCh. 5 - Prob. 40APCh. 5 - Prob. 41APCh. 5 - Prob. 43APCh. 5 - Prob. 44APCh. 5 - Prob. 45APCh. 5 - Prob. 46APCh. 5 - Prob. 47APCh. 5 - Prob. 48APCh. 5 - Prob. 49APCh. 5 - Prob. 50APCh. 5 - Prob. 51AP
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