Problem 11. Eastern Airlines knows that 20% of its customers fly first clas, 20% fly business class, and the rest fl
Coast while 30% are from elsewhere. in addition, of those customers who fly business class, 50% are from the E
coach class, 75% are from e
Economic Order Quantity
Price of Product
Savings Rate
Annual Usage
Cost of transportation
Cost of PO preparation
Warehouse Rental
$1.50
12%
16240
$200
$60
$8
EOQ=
2xAxS
C x I + Ra
EOQ=
2 x 16,240 x 269.50
1.50 x 0.12 + 8.00
EOQ=
1,034.45
order
order
piece
Chapter 8 Study Guide Solutions
Selected Solutions to Problems in Chapter 8
Problem 1
A local company manufactures two lines of rocking chairs called type a and b. Each
rocking chair requires hand-assembled materials, which totals the amount of 3,000
poun
Step 1 - identify the problem that exists is the first step in the business decision modeling
process. Many experts believe this is the most critical step. If we do not identify the problem
correctly all of the subsequent steps are worthless. A statement
Chapter 1
Based on the excel problem of chapter 1, if the total capacity for this business is 725 will you stay in it?
In my opinion this amount is very little for a profit, but also it is on my part that the business prospers. If
I want to have more prof
Problem 4- Wayne owns a shaved ice stand. He sells 700 shaved iced cups per month at $1.50 each,
making the total revenue $1,050. Each shaved ice costs Wayne $0.50 and he has fixed costs of $750,
making his total costs $1,100. Therefore, he realizes a los
88
95
99
100
102
Number (N)
Mean Data set 1=
Data Set 1
120
75
87
71
67
81
68
94
104
65
15
87.73
Median Data set 1=
65
67
68
71
75
81
87
88
94
95
99
100
102
104
120
Standard deviation Data set 1=
16.26
Data Set 1
65
67
68
71
75
81
87
88
94
95
Bins
69
79
8
HomeworkWK5
Topic:EconomicOrderQuantity
Determine the Economic Order Quantity in Excel for:
Price of Product: $150
Savings Rate: 12%
Annual Usage: 16240
Cost of transportation: $200/order
Cost of PO preparation: $60/order
Warehouse Rental: $8/piece
Topic:
Chapter Two Analysis
Based on the excel problem of chapter 2, between cost and sales which column shows more
stability or control?
If you compare the trend of cost/unit versus the profit/unit using a scatter chart, what can you
infer from their behavior?