Mylab Operations Management With Pearson Etext -- Access Card -- For Operations Management: Sustainability And Supply Chain Management (13th Edition)
13th Edition
ISBN: 9780135225899
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter A, Problem 12P
Palmer Jam Company is a small manufacturer of several different jam products. One product is an organic jam that has no preservatives, sold to retail outlets. Susan Palmer must decide how many cases of jam to manufacture each month. The probability that demand will be 6 cases is .1, for 7 cases it is .3, for 8 cases it is .5, and for 9 cases it is .1. The cost of every case is $45, and the price Susan gets for each case is $95. Unfortunately, any cases not sold by the end of the month are of no value as a result of spoilage. How many cases should Susan manufacture each month?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Demand(box)
10
11
12
13
14
15 and
and
more
less
Possibility
0.1
0.18
0.26
0.24
0.12
0.1
A business that will open a gift shop in Los Angeles is considering making and selling love-
themed magnets. It is thought that it will not be possible to order new magnets during the
fair period, and magnets that are not sold during the fair period will not be sold later. A
box of magnets costs the business $100 and generates $460 from its sale. The table
includes predictions about demand probabilities.
a-) What is the overstocking cost of the business in dollars/box?
b-) How many dollars/box is the missing stocking cost?
Breakeven between Two AlternativesGiven:Option A – Buying a MachineFC = 400,000.00 pesosSV = 80,000.00 pesosi = 10.00%n = 8 yearsAnnual Maintenance cost = 5,000.00 pesos/yearProduction cost = 800.00 pesos/dayOutput = 40 units/dayOption B – Manual ManufacturingAnnual cost = 30,000.00 pesos/yearProduction cost = 1200.00 pesos/dayOutput = 30 units/daya. Option A Annual Cost Equation = ?b. Option B Annual Cost Equation = ?c. Units per year for Breakeven = ?
d. Which of the following has the highest Purchasing Power Risk and why?
1. A store building Rented for 30 years at Fixed Rent
2. An office building Rented for 15 years at Fixed Rent
3. A Hotel with constant adjustment of overnight prices
Chapter A Solutions
Mylab Operations Management With Pearson Etext -- Access Card -- For Operations Management: Sustainability And Supply Chain Management (13th Edition)
Ch. A - Prob. 1DQCh. A - Prob. 2DQCh. A - Prob. 3DQCh. A - Prob. 4DQCh. A - Prob. 5DQCh. A - Question: 6. Explain how decision trees might be...Ch. A - Prob. 7DQCh. A - Prob. 8DQCh. A - Question 9. Identify the five steps in analyzing a...Ch. A - Prob. 10DQ
Ch. A - Question 11. The expected value criterion is...Ch. A - Question 12. When are decision trees most useful?Ch. A - Given the following conditional value table,...Ch. A - Prob. 2PCh. A - Prob. 3PCh. A - Jeffrey Helm owns a health and fitness center...Ch. A - Prob. 5PCh. A - Prob. 6PCh. A - Prob. 7PCh. A - Prob. 8PCh. A - Prob. 9PCh. A - Prob. 10PCh. A - The University of Miami bookstore stocks textbooks...Ch. A - Palmer Jam Company is a small manufacturer of...Ch. A - Prob. 21PCh. A - Prob. 22PCh. A - Prob. 23PCh. A - Prob. 13PCh. A - Prob. 24PCh. A - Prob. 25PCh. A - Prob. 26PCh. A - Philip Musa can build either a large video rental...Ch. A - Prob. 14PCh. A - Prob. 29PCh. A - Prob. 15PCh. A - Prob. 16PCh. A - Prob. 17P
Knowledge Booster
Learn more about
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
- If the mean = 20.3834 standard deviation = 101.53 1. What is the probability that daily demand will be less than 90 units? excel formula 2. What is the probability that daily demand will be more than 120 units? 3. What is the probability that daily demand will be between 80 and 110 units? 4. What is the probability that daily demand will be exactly 100 unitsarrow_forwardIf the mean = 20.3834 standard deviation = 101.53 What is the probability that daily demand will be less than 90 units?arrow_forwardPHARMACEUTICAL CALCULATIONS 5. A physician offers a patient the option of prescribing 30 scored ZOLOFT 100-mg tablets (for the patient to break in half with a dose of one-half tablet) or 60 tab- lets containing 50 mg of the drug. Calcu- late the cost differential and indicate the most economical option for the patient if the 100-mg tablets cost $192.76 per 100 tablets and the 50-mg tablets cost $187.34 per 100 tablets. 6 Calculate the daily drug cost differentialarrow_forward
- Q1 (a) Looking at the Sensitivity table above explain briefly by answering if the demand by any of these the classes is not satisfied. (b) Write down how many bookings the hotel should accept in each rental class?arrow_forwardN5 Managing quality & statistical process control is component of strategic OM decesions which requires decesions that considers facility capacity and production demand. true or false?arrow_forward16. The sales of High-Brite Toothpaste are believed to be approximately normal, with a mean of 10,000 tubes per week and standard deviation of 1500. To have a 95% probability that the company will have sufficient stock to cover the weekly demand, at least how many tubes should be produced?arrow_forward
- The two primary advantages of options are there limited risk characteristics and their excitability. True or Falsearrow_forwardThe Gorman Manufacturing Company must decide whether to manufacture a component part at its Milan, Michigan, plant or purchase the component part from a supplier. The resulting profit is dependent on the demand for the product. The following payoff table shows the projected profit (in thousands of dollars): (bold and underline is answer/ --- = needs answer) State of Nature Low Demand Medium Demand High Demand Decision Alternative s1 s2 s3 Manufacture, d1 -20 40 100 Purchase, d2 10 45 70 The state-of-nature probabilities are P(s1) = 0.40, P(s2) = 0.40, and P(s3) = 0.20. Do not round your intermediate calculations. (a) Use a decision tree to recommend a decision. Purchase Component Part (b) Use EVPI to determine whether Gorman should attempt to obtain a better estimate of demand. Enter your answer in thousands dollars. For example, an answer of $200 thousands should be entered as 200,000. Gorman should attempt to obtain a better estimate of…arrow_forward"If the demand for a good decreases when a consumer's income rises, the demand for that good must decrease when its price rises". This statement is valid for Nora's demand for cheese. This statement is not valid for Chris' demand for pasta. Q1 a) Using an appropriate model with a diagram, explain in detail Nora's demand for cheese.arrow_forward
- Hotel ReservationsA hotel near the university always fills up in the evening before football games. History has shown that when the hotel is fully booked, the number of last-minute cancellations has a mean of 5 and a standard deviation of 3. The average room rate is $80. When the hotel is overbooked, the policy is to find a room in a nearby hotel and to pay for the room for the customer. This usually costs the hotel approximately $200 because rooms booked on such late notice are expensive. How many rooms should the hotel overbook?arrow_forwardHair Zone manufactures a brand of hair-styling gel. It is considering adding a modifiedversion of the product—a foam that provides stronger hold. Hair Zone’s variable costs and prices to wholesalers are: Current Hair Gel New Foam Product Unit selling price 2.00 2.25 Unit variable costs . 85 1.25Hair Zone expects to sell 1 million units of the new styling foam in the first year after introduction, but it expects that 60% of those sales will come from buyers who normally purchase Hair Zone’s styling gel. Hair Zone estimates that it would sell 1.5 million units of the gel if it did not introduce the foam. If the fixed cost of launching the new foam will be $100,000 during the first year, should Hair Zone add the newproduct to its line? Why or why not?arrow_forwardAt an Oxford grocery store, the manager Jenny Produce buys lettuce each day to ensure really fresh produce. In her focus on quality, each morning any lettuce that is left from the previous day is sold to a dealer that resells it to farmers who use it to feed their animals. This week Jenny can buy fresh lettuce for $10.00 a box. The lettuce is sold for $22.00 a box and the dealer that sells old lettuce is willing to pay $2.00 a box. Past history says that tomorrow's demand for lettuce averages 270 boxes with a standard deviation of 44 boxes. How many boxes of lettuce should Jenny purchase tomorrow? (Use Excel's NORMSINV() function to find the Z-score. Round intermediate calculations to four decimal places. Round your answer to the nearest whole number.) I have asked this 3 times and nobody has got it right.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY