Sample Quiz.xlsx

# Sample Quiz.xlsx - Co = Cost Salvage value consultant Given...

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Given: Co = Cost - Salvage value consultant \$1200 per ticket Consultant demand has a mean Consultant demand has a std dev
Cu = Price - Cost general public \$350

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in one production cycle, there are three setup and three production for \$5, \$10 a Batch size = 10 notes per sec x 60 sec x 90 min = 54000 notes [remark: 90 min be Setup = 90min x 60 sec = 5400 sec [remark: is expressed in sec as sec is the basis] FR = 10 notes per sec therefore, 24hrs per day = 24*60smin* 60 sec = 86400 seconds Capacity = B/ S + (B*P) x 24hrs per day (i.e. 86400 sec) Q (a) 432000 notes per day 144000 Q (b) \$5 + \$10 + \$50 = \$65 therefore, 432000/ 3 types of note = 144000 notes. Hence, value is 144000 x \$65 \$ 9,360,000 9360000 Q (c) Setup = 45min x 60 sec = 2700 sec [remark: from 90min setup to 45min as to red Capacity = 576000 notes per day therefore, 576000/ 3 types of note = 192000 notes. Hence, value is 192000 x \$65 Therefore, answer \$ 3,120,000 [remark: \$12480000- Question hints normal distribution hence use newsvendor model Qc Comments: As cost is expressed per min, hence, the basis has to be in min. This m Given Price = \$60 while Cost = \$25; hence Co = \$25 while Cu = 60-25 = \$35 Newsvendor model with normally distributed demand 300 60 Optimal Order Quantity 25 35 0.5833 Inputs are in red , outputs in black Mean demand, : Standard deviation of demand, : Overage penalty, C o : Underage penalty, C u : Critical ratio: C u / ( C o + C u )

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z 0.2104 Q 313 Answer for optimal sc Order quantity to achieve a target in-stock probability Target in-stock 0.9000 z 1.28 Q - Qb Newsvendor model with normally distributed demand 60 10 Optimal Order Quantity 350 850 0.7083 z 0.5485
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