Homework #4
EOQ and Newsvendor
BUAD311 Operations Management
Spring 2011
Amy Ward
Due inclass on April 14
Homework 4 has a maximum of 50 points. There are 4 questions. Students can discuss
homework questions with each other, with TAs, or with the instructor, provided that the
actual work is done individually.
Do not just provide answers. Show your work. Explain, wherever applicable, how you
come to your answer. You may not receive a full credit if you just provide an answer
without showing any work.
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[10 points] Question 1, Page 219 in your book.
Please explicitly write out
your underage and overage costs when solving the question.
2.
[5 points] Question 3, Page 219 in your book.
3.
[10 points] Question 19, Page 222 in your book.
Please explicitly write out
the cumulative probabilities when solving the question.
4.
Trojan Sandwiches uses the same bread for all of its sandwiches, ordered
from Bakery XYZ.
Bakery XYZ charges $5 for a loaf of its bread, from which
10 sandwiches can be made.
Every shipment of bread from Bakery XYZ to
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 Spring '07
 Vaitsos
 Management, Toast, Trojan Sandwiches

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