Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter C, Problem 11P
A
Summary Introduction
Interpretation:Order size of vaccine for the maximization of profits is to be calculated.
Concept Introduction: Lot size is necessary for ordering as profit maximization is the order size and expected payoff is the amount received from a project in all respects.
B
Summary Introduction
Interpretation: The eligibility (profit maximization) of the clinic for accepting federal program if cost reduced to $ 2,charging not more than $ 10per vaccine
Concept Introduction: Lot size is necessary for ordering as profit maximization is the order size and expected payoff is the amount received from a project in all respects.
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SoundsUp, a local amphitheater is getting ready for the upcoming summer concert season. They want to purchase reusable plastic water bottles to sell to concert attendees. Bottles cannot be reused as they will be customized with that week's artist and date. The expectation for this upcoming concert is an average demand for 3000 bottles with a standard deviation of 600. The bottles sell for $20.00 each and cost SoundsUp $12 per bottle. In the event some bottles are left over after the concert, a local radio station has indicated that they will purchase some of the leftover bottles for $15 per bottle for use in promotions, but they have not committed to any particular number that they will buy. SoundsUp estimates a 5% chance that the radio station will purchase no bottles, a 10% chance they purchase 150, a 40% chance they purchase 175, a 30% chance they purchase 225, and a 15% chance they purchase 275. If SoundsUp has any leftover bottles that are not purchased by the radio station, then…
Problem 20-10 (Algo)
You are a newsvendor selling San Pedro Times every morning. Before you get to work, you go to the printer and buy the day's paper
for $0.30 a copy. You sell a copy of San Pedro Times for $1.10. Daily demand is distributed normally with mean = 265 and standard
deviation = 53. At the end of each morning, any leftover copies are worthless and they go to a recycle bin.
a. How many copies of San Pedro Times should you buy each morning? (Use Excel's NORMSINV() function to find the correct critical
value for the given a-level. Round your z-value to 2 decimal places and final answer to to 2 decimal places.)
Optimal order quantity
b. Based on a, what is the probability that you will run out of stock? (Round your answer to the nearest whole number.)
Probability
Problem 20-10 (Algo)
You are a newsvendor selling San Pedro Times every morning. Before you get to work, you go to the printer and buy the day’s paper for $0.50 a copy. You sell a copy of San Pedro Times for $1.25. Daily demand is distributed normally with mean = 335 and standard deviation = 67. At the end of each morning, any leftover copies are worthless and they go to a recycle bin.
a. How many copies of San Pedro Times should you buy each morning? (Use Excel's NORMSINV() function to find the correct critical value for the given α-level. Round your z-value to 2 decimal places and final answer to to 2 decimal places.)
b. Based on a, what is the probability that you will run out of stock? (Round your answer to the nearest whole number.)
Chapter C Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
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