157hmk03_w11rw09

157hmk03_w11rw09 - ARE 157 ANALYSIS FOR PRODUCTION...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ARE 157 Winter 2011 M.Whitney ANALYSIS FOR PRODUCTION MANAGEMENT Homework 3--Due Wednesay., March.2nd, in class (10) 1. Shelly sells Valentine bouquets by the roadside on Valentine = s Day. Each bouquet sells for $16.50. The flowers she uses for each bouquet cost $9 wholesale, while the plastic heart, ribbon and tissue paper she uses for each bouquet costs $1.50. If any bouquets don = t sell, she discards the flowers (but doesn = t need to use or discard the ribbon/tissue). wrap the bouquets or ring them up if they are donated. Based on past sales experience, Shelly knows the probability of selling various quantities of papers is: # of bouquets P(d) P(D) 26 0 27 .10 28 .10 29 .20 30 .25 31 .15 32 .10 33 .06 34 .04 35 or more 0 a.. Find P(D), the probability of A stocking out @ (selling every bouquet in stock) for each level of bouquets stocked. b. What is the optimal probability of stocking out? How many bouquets should Shelly prepare for Valentine = s Day? c. About how many bouquets does she expect to sell on an A average @ Valentine = s day (keeping in mind that sometimes she runs out)?. How many does she expect to discard an average V-day? What is her total profit on an average V-day? (10)2.
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

157hmk03_w11rw09 - ARE 157 ANALYSIS FOR PRODUCTION...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online