What is the stock-in and stock-out probability

Assignment Help Operation Management
Reference no: EM131279369

A product costs $20 and sells for $50. It has a salvage value of 4$ if it does not sell.

a) What is the stock-in and stock-out probability?

b) Assume the demand is uniformly distributed from 0 to 1,000, as in the exercise seen in class.

What is the optimal number of products to buy?

c) Given that you bought a number of products following b), what are the net profits if you observe a demand of 500?

d) Given that you bought a number of products following b), what are the net profits if you observe a demand of 500? What is the stock-out cost?

Reference no: EM131279369

Questions Cloud

Why is eva a better measure of financial performance : Why is EVA a better measure of financial performance than are accounting measures such as earnings per share and return on equity?
How far will it bubble up if the scale reading is 5.0 : The scale reading on the rotameter shown in Fig. P8.130 and Video V8.15 (also see Fig. 8.46) is directly proportional to the volumetric flowrate. With a scale reading of 2.6 the water bubbles up approximately 3 in. How far will it bubble up if the..
What is a key performance indicator : Why is it important to be familiar with the comparative data set?-  What is a key performance indicator (KPI)? A dashboard?
Write a movie discussion on the movie review of the verdict : Write a movie discussion on the movie review of The Verdict."The Ingredients of Conflict," what are some areas that you would address and why?How important are "needs," "perceptions," "values and principles," and "feelings and emotions" when it com..
What is the stock-in and stock-out probability : A product costs $20 and sells for $50. It has a salvage value of 4$ if it does not sell. What is the stock-in and stock-out probability? Assume the demand is uniformly distributed from 0 to 1,000, as in the exercise seen in class. What is the optimal..
Determination of the friction factor in a pipe for laminar : This problem involves the determination of the friction factor in a pipe for laminar and transitional flow conditions. To proceed with this problem, go to Appendix H, which is located in WileyPLUS or on the book's web site, www.wiley.com/college/m..
What is the purpose of a business operating plan : Why do financial planners need to be familiar with the business's strategic plan? -  What is the purpose of a business's operating plan?
Obtain information about bioengineering applications : Bioengineering applies engineering principles to help solve problems in the medical field for human health. Obtain information about bioengineering applications in blood flow. Summarize your findings in a brief report.
What advice would you give to dean based upon your analysis : What advice would you give to the dean based upon your analysis of the data? Conduct a hypothesis test to determine if the proportion of business students at RockyUniversity who were not involved.

Reviews

Write a Review

Operation Management Questions & Answers

  Employment relationship

According to Walsh (2013), it can be difficult to tell whether an "employment relationship" truly exists between employer A and individual B. Why is this true and why does the exact nature of the relationship matter? As HR manager of a company, what ..

  Difference between project risk mitigation-risk avoidance

Describe the difference between project risk mitigation and risk avoidance. take one side of the debate on which is a better strategy to circumvent variances in your planned project schedule. Name at least one input in the PMBOK Guide for planning ri..

  The senior human resource executive of firm

The senior human resource executive of a firm had succeeded in increasing the diversity in its workforce substantially. However, the firm had some unfortunate financial setbacks and the senior human resource executive has no choice but to lay off 300..

  Employees arrive randomly to use the fax machine

Employees arrive randomly to use the fax machine at an average rate of 20 per hour. This arrival process is approximated by a Poisson distribution. Employees spend an average of two minutes using the fax machine, either transmitting or receiving item..

  Operations team of a midsize manufacturing company

You are a new member of the operations team of a midsize manufacturing company with 500 employees. The decision makers at your manufacturing plant are struggling to meet production performance levels. After evaluating the company's performance lev..

  Displace homeowners in the process

Give your opinion on whether governments should be able to rezone and condemn residential land and displace homeowners in the process, in order to facilitate commercial development. Explain your rationale.

  Define the type of organizational structure

Define the type of organizational structure you’ve chosen to investigate and briefly describe its pros and cons. Find an article (in the library or on the Internet) about a company that is structured this way. Chose a company that has sufficient info..

  Toyota the maker of the scion brand utilizing what type of

1 toyota the maker of the scion brand using what kind of brand strategy with scion products?a. blanket family namesb.

  Reasons for establishing a private trucking operation

Service and cost are two areas most often cited as reasons for establishing a private trucking operation. Discuss the reasons why private trucking is such a popular alternative in the United States and other countries. Incorporate examples and inform..

  Discuss the most common biological foodborne hazards

Discuss the most common biological foodborne hazards and ways to reduce the risk from these hazards in a healthcare facility.

  Compute the average cost of coal in cents per million btu

Compute the average cost of coal in cents per million BTUs for each generating unit (a measure of the cost of fuel for the generating units).

  Determining whether to add new product to existing facility

You are determining whether to add a new product to an existing facility. You determine the fixed cost will be $50,000 for the year to add up to 1000 units of capacity per month. Variable cost will be $10 per unit. You believe demand will be 800 unit..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd