Op Man HW 6 Chapters 20 &amp; 23

# How many box es of lettuc e s hould the s upermark et

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Unformatted text preview: the dealer that s ells old lettuc e is willing to pay \$1.00 a box . Pas t his tory s ay s that tomorrow's demand for lettuc e av erages 220 box es with a s tandard dev iation of 30 box es . How many box es of lettuc e s hould the s upermark et purc has e tomorrow? (Use Excel's NORMSINV() function to find the correct critical value for the given α­level. Do not round interm ediate calculations. Round your answer to the nearest whole num ber.) Number of box es 252 Worksheet Problem 20­4 Learning Objective: 20­02 Analyze how different inventory control systems work. Problem 20-4 The loc al s upermark et buy s lettuc e eac h day to ens ure really fres h produc e. Eac h morning any lettuc e that is left from the prev ious day is s old to a dealer that res ells it to farmers who us e it to feed their animals . This week the s upermark et c an buy fres h lettuc e for \$2.00 a box . The lettuc e is s old for \$8.00 a box and the dealer that s ells old lettuc e is willing to pay \$1.00 a box . Pas t his tory s ay s that tomorrow's demand for lettuc e av erages 220 box es with a s tandard dev iation of 30 box es . How many box es of lettuc e s hould the s upermark et purc has e tomorrow? (Use Excel's NORMSINV() function to find the correct critical value for the given α­level. Do not round interm ediate calculations. Round your answer to the nearest whole num ber.) Number of box es 252 ± 1% Explanation: Cu = \$8 − \$2 = \$6 Co = \$2 − \$1.00 = \$1.00 P ≤ Cu Co + Cu = 6 1.00 + 6 = 0.8571, NORMSINV(0.8571) = 1.0674 Should purc has e 220 + 1.0674(30) = 252.021 or 252 box es of lettuc e. http://e z to.mhe c loud.mc gr a w- hill.c om/hm.tpx? todo= pr intvie w 5/10 1/29/2014 4. Assignme nt Pr int Vie w awar d: 0.50 out of 0.50 points Problem 20-12 Ray 's Satellite Emporium wis hes to determine the bes t order s iz e for its bes t­s elling s atellite dis h (model TS111). Ray has es timated the annual demand for this model at 1,700 units . His c os t to c arry one unit is \$110 per y ear per unit, and he has es timated that eac h order c os ts \$26 to plac e. Us ing the EOQ model, how many s hould Ray order eac h time? (Round your answer to the nearest whole num ber.) Optimal order quantity 28 units Worksheet Problem 20­12 Learning Objective: 20­02 Analyze how different inventory control systems work. Problem 20-12 Ray 's Satellite Emporium wis hes to determine the bes t order s iz e for its bes t­s elling s atellite dis h (model TS111). Ray has es timated the annual demand for this model at 1,700 units . His c os t to c arry one unit is \$110 per y ear per unit, and he has es timated that eac h order c os ts \$26 to plac e. Us ing the EOQ model, how many s hould Ray order eac h time? (Round your answer to the nearest whole num ber.) Optimal order quantity 28 ± 1% units Explanation: http://e z to.mhe c loud.mc gr a w- hill.c om/hm.tpx? todo= pr intvie w 6/10 1/29/2014...
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