Op Man HW 6 Chapters 20 & 23

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

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

Ask a homework question - tutors are online