Demand is expected to be uniformly distributed

Assignment Help Operation Management

Reference no: EM132239750

Consider a newsvendor environment where demand is expected to be uniformly distributed between 1000 and 4000 units. The variable production cost is $20 per unit and the sales price is $50 per unit. In addition, the producer must pay $5 to discard any unsold units. How many units should be produced?

(Already know the answer is 2636 units, but what is the process?)

Suppose that a manufacturer has one major buyer who orders its EOQ of 20,000 units about once per month. Annual demand is 240,000 units. The manufacturer has a setup cost of $180 per order and a holding cost per unit of $10. If the manufacturer practices lot-for-lot production, what would be the manufacturer’s annual holding and setup cost?

(Already know the answer is $2160 but what is the process?)

Reference no: EM132239750

Questions Cloud

Empowerment and motivation of all the employees : You would like to maximise the empowerment and motivation of all the employees in your section.

How was the term data mining formed : How has data mining evolved since it originated? Be sure to show a time line of major dates in this evolution.

Small business administration loan to remodel the club : This was to be a Small Business Administration loan to remodel the club. Define promissory estoppel, and tell why this theory will or will not favor the club.

How an organization managed their stakeholder groups : Write an 4 page paper documenting how an organization managed their stakeholder groups in a variety of situations.

Demand is expected to be uniformly distributed : Consider a newsvendor environment where demand is expected to be uniformly distributed between 1000 and 4000 units.

Disadvantages of the grievance procedure in the workplace : Discuss the advantages and disadvantages of the grievance procedure in the workplace in detail.

How the artist and work represent abstract expressionism : Select an artist and a specific work by him or her from 1930s-1940s. Explain how the artist and specific work represent Abstract Expressionism.

Analyze the key benefits of practicing in multicultural city : Analyze the key benefits and/or consequences of practicing in a multicultural city such as Miami, FL. Select one (1) scholarly practice-based article.

Discuss three tactics aimed at the community : The local cancer society is beginning a community-awareness campaign. The text states that executives are the face of the organization.

User Account

All Pages