Supplier of chemicals-equipment used by some photographic

Assignment Help Operation Management

Reference no: EM13759647

Foto Color is a Des Moines supplier of chemicals and equipment used by some photographic stores to process 35mm film. One product that Foto Color supp lies is BC-6. Brad Meyer, president of Foto Color, normally stocks 11, 12, or 13 cases of BC-6 each week. For each case that Brad sells, he receives a profit of $35.

Because BC-6, like many photographic chemicals, has a very short shelf life, if a case is not sold by the end of the week Brad must discard it. Because each case costs Brad $56, he loses $56 for every case that is not sold by the end of the week. There is a probability of 0.45 of selling 11 cases, a probability of 0.35 of selling 12 cases, and a probability of 0.2 of selling 13 cases.

a) What is your recommended course of action?

b) If Brad is able to develop BC-6 with an ingredient that stabilizes BC-6 so it no longer has to be discarded, how would this change your recommended course of action?

Reference no: EM13759647

Questions Cloud

The average time for the gift wrapping operation : Jeff Lee Beans is famous for its boxed candies, which are sold primarily to businesses. One operator had the following observed times for gift wrapping in minutes 2.3, 2.6, 2.2, 2.4, 2.3. The operator has a performance rating of 110% and an allowance..

Described their operation far more organic than mechanistic : In a recent job interview a company representative described their operation as "far more organic than mechanistic," which left you largely confused. You have always wanted to work for a company that considers the professional development of employee..

Forecasting methods gives a responsive forecast : Which of the following forecasting methods gives a responsive forecast?

Decide between two different conveyor belt system : Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $212,000, has a four-year life, and requires $68,000 in pretax annual operating costs. System B costs $300,000, has a six-year life..

Supplier of chemicals-equipment used by some photographic : Foto Color is a Des Moines supplier of chemicals and equipment used by some photographic stores to process 35mm film. One product that Foto Color supp lies is BC-6. Brad Meyer, president of Foto Color, normally stocks 11, 12, or 13 cases of BC-6 each..

Stockholder activism-Ethical and economic responsibilities : Which of these is the largest and fastest growing segment of social investing? Guideline portfolio investing, Global investing, Stockholder activism, Ethical and economic responsibilities

Demand for canned soup might be shaped strategy : How might the demand for a product such as television be shaped in the same way the demand for canned soup might be shaped strategy (Simchi-Levi, Kaminsky, & Simchi-Levi, 2008, 203)?

Represent a pollution prevention strategy in an organization : Which of these represent a pollution prevention strategy in an organization? Automation of manufacturing facility, Transforming business from manufacturing to service operations, Changing the materials used or redesigning how operations are bid out, ..

Principal set of inputs to the company mission : Which of these is not a principal set of inputs to the company mission? demands of stakeholder groups, identification of csr auditors, managerial operating philosophy, or determinants of the product market offerings

User Account

All Pages