Homework#3 - IE 5351 Advanced Production and Inventory...

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IE 5351: Advanced Production and Inventory Control Homework #3. Due Mar/03/10 1. Problem 9 chapter 2 in book
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2. Problem 10 chapter 2 in book
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3. Billy’s bakery bakes fresh bagels each morning. The daily demand for bagels is a random variable with a distribution estimated from prior experiences given by: Number of bagels sold in one day Probability 0 0.05 5 0.10 10 0.10 15 0.20 20 0.25 25 0.15 30 0.10 35 0.05 The Bagels cost Billy’s 8 cents to make, and they are sold for 35 cents each. Bagels unsold at the end of the day are purchased by a nearby charity soup kitchen for 3 cents each. a) How many bagels should Billy’s bake at the start of each day? b) If you were to approximate the discrete distribution, would you expect the resulting solution to be close to the answer that you obtained in part (a)? Why? Why not? c) Determine the optimal number of bagels to bake each day using a normal approximation. (Hint: you must compute the mean and the variance of the demand from the given discrete distribution
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Homework#3 - IE 5351 Advanced Production and Inventory...

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