Single-period inventory system

Assignment Help Operation Management

Reference no: EM13964320

Single-Period Inventory System. The restaurant you are working at makes one massive batch of meatballs each day. If you run out before the end of the day, the last few customers are less than satisfied, but if you make too much, it can be sold to the local hog farmer for feed. Every serving costs $2.25 to make and can be sold for $12.00 to customers. You have to pay $0.25 per serving to transport the extra servings to the hog farmer, but the hog farmer will pay you $0.80 per serving. The average daily demand is 142 servings with a standard deviation of 47 servings.

a) What is the target service level?

b) How many servings of meatballs should your restaurant make each day to meet this service level?

Reference no: EM13964320

Questions Cloud

Contrast the width and depth of assortment of big box store : Compare and contrast the width and depth of assortment of a big box store (like Wal-mart), a convenience store, a premium food retailer (like Whole Foods) and a category killer (like Home Depot).

Determine the average number of cakes waiting for a wrapper : Cakes baked by The Charm City Bakery are transported from the ovens to be packaged by one of five wrappers. Each wrapper can wrap an average of 35 cakes per hour. The cakes are brought to the wrappers at the rate of 160 per hour. Assuming it is a mul..

Explain the cost of quality concept : Explain the cost of quality concept—both the advantages and disadvantages. Discuss how having an effective cost of quality program at suppliers can improve the overall quality of supplier-delivered components and services to the receiving organizatio..

A bank has one drive-up teller : A bank has one drive-up teller. The teller can serve at the rate of 11.5 bank customer in an hour. Customers arrive at the drive-up window on an average every 7.5 minutes. The bank is currently analyzing the possibility of adding a second drive-up wi..

Single-period inventory system : Single-Period Inventory System. The restaurant you are working at makes one massive batch of meatballs each day. If you run out before the end of the day, the last few customers are less than satisfied, but if you make too much, it can be sold to the..

What order quantity will result in lowest total annual cost : Quantity Discounts The UWM Bookstore orders Panther t-shirts from a supplier. The demand for these t-shirts is 7,396 per year. There is a $20 charge for placing an order and the cost per t-shirt to hold it in inventory for the year is $2.50. What is ..

Analyze and prepare to discuss at least three problems : Use the below Case Study to Identify, analyze and prepare to discuss at least three problems and/or issues related to the successful formation, development and operation of cross-cultural teams in the case context.

Economic order quantity-what is total ordering cost for year : An energy company orders railcar loads of coal at a rate of 62,500 tons per year. Delivery lead time is variable, but has averaged 5 days. The annual cost to hold inventory is $200 per ton and each order that is placed with the supplier costs $2,500 ..

Preparation of a persuasive speech : Discuss the challenges one would have in the preparation of a persuasive speech. How can one overcome these challenges? What advice would you give to your peers/colleagues?

User Account

All Pages