Homework%204_%20Solutions

# Homework%204_%20Solutions - PROBLEM10.3 p= v= B= g= k= j0...

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PROBLEM 10.3 p= 100 v= 60 mu 550.00 B= 0 cu= 40 g= 51 co= 9 k= 0.9015 px<=(Q)= 0.82 j0 300 400 500 600 pj(j0) 0.1 0.1 0.4 0.2 pj<(j0) 0.1 0.2 0.3 0.7 (x_i - mu)^2 57600 19600 1600 3600 [(x_i - mu)^2]*p_i 5760 1960 640 720 Profit 8400.00 13300.00 18200.00 23100.00 a. x_hat= 540 units (Expected Demand) Therefore, the best strategy is to take (700-540) or 160 units above the average d b. what is the standard deviation of demand? Sigma= 135.65 c. How many units to acquire? Q*= 700.00 110.81 1.63 d. Expected Profit? E(P(Q))=  \$19,270.00  e.  What is the recommended order quantity if follows a Normal Distribution? Q= 662 Round to 700 f.  If the discrete distribution is the true one, what cost penalty is incurred by the use  None, they both give the same order quantity.

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0.18 700 800 0.1 0.1 0.9 1 25600 67600 2560 6760 28000.00 24000.00 demand  of the somewhat simpler normal model?
PROBLEM 10.4 p= 100 v= 55 mu 550.00 B=

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## This note was uploaded on 02/15/2011 for the course EIN 6336 taught by Professor Staff during the Spring '08 term at University of Florida.

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Homework%204_%20Solutions - PROBLEM10.3 p= v= B= g= k= j0...

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