Burger Prince buys top-grade ground beef for $1.00 per pound. A large sign over the entrance guarantees that the meat is fresh daily.Any leftover meat is sold to the local high school cafeteria for 80 cents per pound. Four hamburgers can be prepared from eachpound of meat. Burgers sell for 60 cents each. Labor, overhead, meat, buns, and condiments cost 50 cents per burger. Demand isnormally distributed with a mean of 397 pounds per day and a standard deviation of 35 pounds per day. What daily order quantity isoptimal? (Hint: Shortage cost must be in dollars per pound.) (Round your answer to 1 decimal place.)Use Table.Optimal daily order quantitypounds

Burger price = 60 cents each = $0.60 Cost per Burger = 50 cents = $0.50 Cost price of beef = $1.00…

Answered: Burger Prince buys top-grade ground…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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40) PLEASE HELP WITH THIS! Gentle Ben's Bar and Restaurant uses 5,000 quart bottles of an imported wine each year. The effervescent wine costs $3 per bottle and Is served only in whole bottles because it loses its bubbles quickly. Ben figures that it costs $10 each time an order is placed, and holding costs are 20 percent of the purchase price. It takes three weeks for an order to arrive. Weekly demand is 100 bottles (closed two weeks per year) with a standard devlation of 30 bottles. Ben would like to use an inventory system that minimizes inventory cost and will provide a 95 percent service probability. b. At what inventory level should he place an order? Note: Use Excel's NORM.S.IN( function to find the z value. Round z value to 2 decimal places and final answer to the nearest whole number.
Shop sells bread for $2 per loaf that costs $0.40 per loaf to make. Shop gives a 90% discount for its bread at the end of the day. Based on the critical ratio determined, the company would expect the stockout rate to be ______ % (round to the two decimal places )
Jack's clothing sells on average, 25 shirts per week, sometimes a little more, sometimes a little less but typically a deviation of about 3. The cost per jacket is $65. Because Jack's is located in a sketchy part of town their insurance on inventory is 33% on all goods. The good news is free shipping to customers although UPS charges Jack's $8.50 for every delivery. It takes 2 weeks from the time jackets are ordered until they are received. Jack's supplier has said they only ship by pallet, and each pallet contains 75 jackets. How much is the average inventory? SHOW YOUR WORK. ANSWER MUST BE ONE OF THE 3 GIVEN CHOICES!!! A. 50 B. 37.5 C. 75 Please do fast ASAP fast
1) Weekly demand for a product is 300 units with a standard deviation of 35 units. The cost of placing an order is $80, and the time from ordering to receipt is three weeks. The annual inventory carrying cost is $1 per unit. (Company operates for 52 weeks) a) How many units should the production manager order each time? (Round up your answer) b) What is the re-order point if the manager wants to provide a 97.5 percent service probability? (Roundup your answer) c) Suppose the production manager is told to reduce the safety stock of this item by 50 units. If this is done, what will the new service probability be? What is the Z value, and what is the probability?
Weekly Average Demand 110 Standard deviation of (weekly) demand 30 Setup cost ($) 1400 Lead time (in weeks) 2 Procurement cost ($) 200 Holding cost /unit/week ($) 3 You are given the demand and inventory related information about a grocery store’s product in the table. The store is open for 46 weeks in a year. What is the reorder point if it wants to achieve a service level of 97%? (Do not round your intermediate calculations. Round your final answers to the nearest whole number.
Sam's Pet Hotel operates 52 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $13.00 per bag. The following information is available about these bags: ≻Demand=75 bags/week ≻Order cost=$55.00/order ≻Annual holding cost=25 percent of cost ≻Desired cycle-service level=80 percent ≻Lead time=4 weeks (24 working days) ≻Standard deviation of weekly demand=15 bags ≻Current on-hand inventory is 320 bags, with no open orders or backorders. Part 2 a. Suppose that the weekly demand forecast of 75 bags is incorrect and actual demand averages only 50 bags per week. How much higher will total costs be, owing to the distorted EOQ caused by this forecast error? The costs will be $enter your response here higher owing to the error in EOQ. (Enter your response rounded to two decimal places.) a. What is the EOQ? What would the average time between orders (in weeks)? b. What should R be? c. An inventory withdraw…
Q. Green Airways flies several daily flights from Dallas to Chicago with 150-seat planes. Based on historical data, the flight on Wednesday evening before Thanksgiving is always sold-out. However, there are usually no-shows, so the airline decides to improve revenue by overbooking. The distribution of no-shows is according to the table below and the airline estimates that the cost of bumping a passenger is about 10 times more than the ticket price. How many seats should Green Airways overbook? Number of no-shows Probability 0 0.01 1 0.10 2 0.63 3 0.26
Exercise 4 Gentle Ben's Bar and Restaurant uses 5.000 quart bottles of an imported wine each year. me effervescent wine costs $3 per bottle and is served only in whole bottles because it loses its bubbles quickly. Ben figures that it costs $10 each time an order is placed, and holding costs are 20% of the purchase price. It takes three weeks for an order to arrive, Weekly demand is 100 bottles (closed two weeks per year) with a standard deviation of 30 bottles. Ben would like to use an inventory system that minimizes inventory cost and will provide a 95% service level. a) What is the economic quantity for Ben to order? b) At what inventory level should he place an order?
Daily demand for product sample kits is normally distributed with a mean of 35 units and a standard deviation of 4. Supply is virtually certain with a lead time of 9 days. The cost of placing an order is $20, and annual carrying costs for one kit is 25 percent. The price of one kit is $12.50. Assume a year has 365 days.If a 99% service level is desired, what is average inventory on hand? If demand had no variation, what would the reorder point be?
The new office supply discounter, Paper Clips, Etc. (PCE), sells a certain type of ergonomically correct office chair which costs $300. The annual holding cost rate is 40%, annual demand is 900, and the order cost is $20 per order. The lead time is 4 days. Because demand is variable (standard deviation of daily demand is 2.4 chairs), PCE has decided to establish a customer service level of 90%. The store is open 300 days per year. a. What is the optimal order quantity? b. What is the safety stock? c. What is the reorder point?
Please do not give solution in image format thanku 3. SunValley Supermarket is open 360 days per year. Daily use of cash register tape averages 10 rolls. Usage appears normally distributed with a standard deviation of 2 rolls per day. The cost of ordering tape is $1, and carrying costs are 40 cents per roll a year. Lead time is three days. a. What is the EOQ? b. What ROP will provide a service level of 95 percent? c. What would be the ROP for the tape if the lead time has a standard deviation of 1 days?
The Chemco Company uses a highly toxic chemical in oneof its manufacturing processes. It must have the productdelivered by special cargo trucks designed for safe shipment of chemicals. As such, ordering (and delivery) costsare relatively high, at $3600 per order. The chemical product is packaged in 1-gallon plastic containers. The cost ofholding the chemical in storage is $50 per gallon per year.The annual demand for the chemical, which is constantover time, is 7,000 gallons per year. The lead time fromtime of order placement until receipt is 10 days. The company operates 310 working days per year. Compute theoptimal order quantity, total minimum inventory cost, andthe reorder point.

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