About the Cost of lost sale

Assignment Help Operation Management

Reference no: EM13966979

Henry has a newspaper stand where he sells them for $0.50 each. The papers cost him $0.30 each, giving him a $0.20 profit on each one he sells. From past experiences, he knows that:

20% of the time he sells 100 papers

20% of the time he sells 150 papers

30% of the time he sells 200 papers

30% of the time he sells 250 papers

Assuming that Henry believes the cost of lost sale is $0.10 and any unsold paper costs him $0.30, simulate Henry’s profit outlook over five days if he orders 200 papers for each of the 5 days. Use random numbers: 52, 06, 50, 88, and 53

Reference no: EM13966979

Questions Cloud

Comparing and contrasting six sigma and baldridge approaches : Write a 3 to 5 page report that, comparing and contrasting Six Sigma , ISO9000, and the Baldridge approaches. Describe in etail the similarities and differences among them

Containers to use for incoming parts for kanban system : A manager wants to determine the number of containers to use for incoming parts for a kanban system to be installed next month. The process will have a usage rate of 81 pieces per hour. How many Containers should be used? As the system improves, will..

What is vertical force component that is acting at forearm : The biceps brachii produces a force of 100 N while acting at a 115 degree angle to the right horizontally positioned forearm. What is the vertical force component that is acting at the forearm?

Describe strategies to make the off-label use of drugs safer : An explanation of circumstances under which children should be prescribed drugs for off-label use. Then, describe strategies to make the off-label use and dosage of drugs safer for children from infancy to adolescence

About the Cost of lost sale : Henry has a newspaper stand where he sells them for $0.50 each. The papers cost him $0.30 each, giving him a $0.20 profit on each one he sells. From past experiences, he knows that: Assuming that Henry believes the cost of lost sale is $0.10 and any ..

Minimum number of trauma bays necessary to meet requirement : The local hospital’s emergency department has 6 trauma bays. On average, patients requiring a trauma bay arrive every 30 minutes (with a coefficient of variation of 1) What percentage of the patients requiring trauma bays end up being sent to another..

Standard normal concept : Speedy Business Cards, Inc., supplies customized business cards to commercial and individual customers. The company is preparing a bid to supply cards to the Nationwide Realty Company, a large association of independent real estate agents.

Develop a plan to become an nurse practitioner : Develop a plan to become an nurse practitioner. First, take time to examine the roles of the advanced practice nurse within the context of the United States healthcare delivery system

Determining the decision trees : Keystone Manufacturing, Inc., is analyzing a new bid to supply the compa- ny with electronic control systems. Alpha Corporation has been supplying the systems, and Keystone is satisfied with its performance. However, a bid has just been received f..

User Account

All Pages