Question
In: Statistics and Probability
Lemington’s is trying to determine how many Jean Hudson dresses to order for the spring season....
Lemington’s is trying to determine how many Jean Hudson dresses to order for the spring season. Demand for the dresses is assumed to follow a normal distribution with mean 400 and standard deviation 100. The contract between Jean Hudson and Lemington’s works as follows. At the beginning of the season, Lemington’s reserves x units of capacity. xxLemington’s must take delivery for at least 0.8xdresses and can, if desired, take delivery on up to xdresses. Each dress sells for $160 and Hudson charges $50 per dress. If Lemington’s does not take delivery on all x dresses, it owes Hudson a $5 penalty for each unit of reserved capacity that is unused. For example, if Lemington’s orders 450 dresses and demand is for 400 dresses, Lemington’s will receive 400 dresses and owe Jean 400($50)+50($5). How many units of capacity should Lemington’s reserve to maximize its expected profit? Using @RISK.
Solutions
orchestra answered 1 year agoRelated Solutions
Lemington’sis trying to determine how many Jean Hudson dresses to order for the spring season. Demand...
Lemington’sis trying to determine how many Jean Hudson dresses
to order for the spring season. Demand for the dresses is assumed
to follow a normal distribution with mean of 400 and standard
deviation of 100. The contract between Jean Hudson and Lemington’s
works as follows. At the beginning of the season, Lemington’s
reserves x units of capacity. Lemington’s must take delivery for at
least 0.8x dresses and can, if desired, take delivery on up to x
dresses. Each dress sells...
A local gift shop is trying to determine how many photos frames to order. The shop...
A local gift shop is trying to determine how many photos frames
to order. The shop feels it will sell approximately 800 photos
frames in the next year at a unit price of R18.00.The wholesale
price that the store pays per photo frame is R12.00. The cost of
carrying one photo frame is estimated at R1.60 per year, while
ordering costs are estimated at 825.00 per batch ordered.
REQUIRED
(a) Explain the meaning of economic order quantity (EOQ) and
reorder...
A lab is trying to determine how many test kits it should order from its supplier....
A lab is trying to determine how many test kits it should order
from its supplier. They use 780 kits per year. The annual holding
cost is $3 per kit per year. The ordering cost is $15 per order.
The supplier delivers their orders all at one time, but offers a
quantity discount. What is the optimum condition (order quantity)
and total cost (ordering, holding and item cost)? Draw the Order
quantity (Q) verses Total Annual Cost graph with 3...
Einstein faces the decision of how many GiggleBloxx units to order for the coming holiday season....
Einstein faces the decision of how many GiggleBloxx units to
order for the coming holiday season. Members of the management team
suggested order quantities of 25,000, 36,000, 48,000, or 65,000
units. The wide range of order quantities suggested indicates
considerable disagreement concerning the market potential. The
product management team asks you for analysis of the stock-out
probabilities for various order quantities, an estimate of the
profit potential, and help with making an order quantity
recommendation. Einstein expects to sell GiggleBloxx...
Problem #32) Diamond Jewelers is trying to determine how to advertise in order to maximize their...
Problem #32) Diamond Jewelers is trying to determine how to
advertise in order to maximize their exposure. Their weekly
advertising budget is $10,000. They are considering three possible
media: TV, newspaper, and radio. Information regarding cost and
exposure is given in the table below:
Medium
audience reached per ad
cost per ad ($)
maximum ads per week
TV (T)
7,000
800
10
Newspaper (N)
8,500
1000
7
Radio (R)
3,000
400
20
Based on problem #32, which of the following...
The supervisor of a manufacturing plant is trying to determine how many of two parts, Part...
The supervisor of a manufacturing plant is trying to determine
how many of two parts, Part X and Part Y, are to be produced per
day. Each part must be processed in three sections of the plant.
The time required for the production along with the profit
contribution for each part are given in the following table. Time
required (Minutes/Unit) Section 1 Section 2 Section 3 Profit/Unit
Part X 50 30 18 $2 Part Y 80 45 22 $3 Available...
The supervisor of a manufacturing plant is trying to determine how many of two parts, Part...
The supervisor of a manufacturing plant is trying to determine
how many of two parts, Part X and Part Y, are to be produced per
day. Each part must be processed in three
sections of the plant. The time required for the
production along with the profit contribution for each part are
given in the following table.
Time required (Minutes/Unit)
Section 1
Section 2
Section 3
Profit/Unit
Part X
50
30
18
$2
Part Y
80
45
22
$3
Available time (minutes)...
136. Schrank Company is trying to decide how many units of merchandise to order each month....
136. Schrank Company is trying to decide how many units of
merchandise to order each month. The company's policy is to have
25% of the next month's sales in inventory at the end of each
month. Projected sales for August, September, and October are
44,000 units, 34,000 units, and 54,000 units, respectively. How
many units must be purchased in September?
136B. The sales budget for Modesto Corp. shows that 21,100 units
of Product A and 23,100 units of Product B...
1. You are trying to determine how much you need in order to retire comfortably. You...
1. You are trying to determine how much you need in order to
retire comfortably. You would like a monthly retirement income of
$20,000 and anticipate living for 30 years in retirement. The first
retirement check will come at the end of your first month of
retirement. You have already saved $40,000. You expect to earn 6%
on your investments. You have 40 years until you retire. How much
must you save at the end of each month between now...
2. The missing Monkey Poo Company is trying to determine how many poo fabricating machines to...
2. The missing Monkey Poo Company is trying to determine how
many poo fabricating machines to buy for its factory. The of a new
fabricating machine is 50 units of output, and the price of a
one-year-old machine is 42 unit of output. These relative prices
are expected to be the same in the future. The expected future
marginal product of fabricating machines, measured in units of
output, is 140-2K, where K is the number of machines in use. There...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- (2) Cite an example on how organizations like Google, Facebook, Youtube etc collect data for image...
- The legal landscape is perpetually changing. Psychologists must remain abreast of these changes to avoid potentially...
- We are evaluating a project that costs $1.68 million, has a six-year life, and has no...
- In C++ Having call-by-reference allows one to use storeback parameters, i.e., parameters whose values are transmitted...
- You must evaluate a proposal to buy a new milling machine. The base price is $175,000,...
- “Triangle Guessing” game in Python The program accepts the lengths of three (3) sides of a...
- THIS PROGRAM HAS TO BE WRITTEN IN C Single function to perform the parity computation on...
ADVERTISEMENT