MGMT 6360 Quiz 5.docx - MGMT 6360 Quiz 5 1 A lab is trying to determine how many test kits it should order from its supplier They use 780 kits per year

# MGMT 6360 Quiz 5.docx - MGMT 6360 Quiz 5 1 A lab is trying...

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MGMT 6360 Quiz 5 1. A lab is trying to determine how many test kits it should order from its supplier. They use 780 kits per year. The annual holding cost is \$3 per kit per year. The ordering cost is \$15 per order. The supplier delivers their orders all at one time, but offers a quantity discount. What is the optimum condition (order quantity) and total cost (ordering, holding and item cost)? Draw the Order quantity (Q) verses Total Annual Cost graph with 3 item prices (as shown in Figure 12.7 of the textbook). Quantity \$Price 1-72 60 73-144 56 145 and more 53 2. A company wants to produce and sell a July 4th T-shirt. Sales price is \$12.95, Cost is \$5.00, and Salvage value is \$0.50. From previous years’ sales the following sales data is available. Setup the payoff table. How many T-shirts should they produce and stock? Demand Probability 75,000 15% 80,000 25% 85,000 30% 90,000 20% 95,000 10% 3. Please include quantitative examples with made up numbers when possible. You will be

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Unformatted text preview: graded on quality/quantity. Some sample topics to choose from: ● What is ABC inventory system? What is economic order quantity? ● What is economic production quantity? ● Some operations use fixed order period instead of fixed order quantity. Examples? ● At what condition, do we have the best operating condition in terms of order quantity and item price when suppliers offer discounts? ● What are examples of single period inventory model? Can we use it for an annual 1 marathon event shirts? Other examples? ● How do we set up a single period model payoff table? ● For a single period model, how do we calculate payoff values for each cell? 4. Please create a specific business scenario which is appropriate for hypothesis testing of population mean with population standard deviation sigma given. Follow all the steps in the textbook (from hypothesis determination to result interpretation at least) to test the hypothesis. 2...
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