Uses the newsvendor model to manage its inventory

Assignment Help Operation Management

Reference no: EM132253108

1. Store A uses the newsvendor model to manage its inventory. Demand for its product is normally distributed with a mean of 500 and a standard deviation of 250. Store A purchases the product for $10 each unit and sells each for $30. Inventory is salvaged for $5. What is its expected profit if Store A’s order quantity is 400 units?

2. Restaurant A uses 60 bags of tomatoes each month. The tomatoes are purchased from a supplier for a price of $80 per bag and an ordering cost of $20 per order. Restaurant A’s annual inventory holding cost percentage is 40%. If Restaurant A chooses to use the economic order quantity when placing an order for tomatoes, what are its ordering and holding costs per year expressed as a percentage of the annual purchasing cost?

Reference no: EM132253108

Questions Cloud

Write a c program source code to binary represent : C program: write a C program source code to binary represent a floating point number?

Write a void function called transformarray : Write a void function called transformArray that takes two parameters - a reference to a pointer to a dynamically allocated array of ints

Describe how the website violated the law : Describe how the website violated the law, why it was considered an unfair or deceptive trade practice and what penalty was imposed.

Discuss the importance of the balance of payments : One of the more important measures in regard to international economics is the balance of payments. Think of it as a national accounting measure that looks.

Uses the newsvendor model to manage its inventory : Store A uses the newsvendor model to manage its inventory. What is its expected profit if Store A’s order quantity is 400 units?

Files or directories that you create : In linux how could you automatically prevent a user from having access to any files or directories that you creat

Winning team is that one that wins the most matches : The winning team is that one that wins the most matches. Note: It is not necessarily the team that scores the most number of points

Is the given good for the united states and if so why : In 1944, finance specialists and bankers from around the world met to discuss what the post-WWII monetary system would be. Given the instability of the pre-war.

What are the newest uses of the concept geolocation : What are the newest uses of the concept Geolocation? specifically used in Marketing

User Account

All Pages