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

Info icon This preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Given: Co = Cost - Salvage value consultant $1200 per ticket Consultant demand has a mean Consultant demand has a std dev
Image of page 2
Cu = Price - Cost general public $350
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
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 )
Image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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
Image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern