4/24/2017 Problems/Solutions

Home >Chapter13>Problems/Solutions

CoursewideContent
DataSets
Problems/Solutions
ExcelTemplates (Seerelatedpages)
PowerWeb
WebLinks
OperationsManagement... Problems
InteractiveOM
UpdatesandErrata 1.Anautomobilemanufacturerusesabout60,000pairsofbumpers(frontbumperandrearbumper)peryear,whichitordersfroma
[Link]$3.00tokeeponepairof
Chapter13 bumpersininventoryforonemonth,anditcosts$[Link]$150.00.
News,Articles&Links
NewsFeeds [Link]:theinstantaneousmodel,thenoninstantaneousmodel,orthesingleperiodmodel?
PowerWebArticles Howdoyouknow?
WeeklyUpdateArchive [Link].
Quizzes [Link].
MultipleChoiceQuiz
TrueorFalse
[Link].
SelfQuizfromCD [Link]?
InteractiveExercises [Link]?
InteractiveOM [Link]?
MoreResources [Link]?
Problems/Solutions i.Whatisthetotalannualexpenseofordering600pairsofbumperseverytime?HowmuchissavedperyearbyorderingtheEOQ?
Glossary
[Link].About60,000pairsofbumpers
(frontbumperandrearbumper)areorderedbytheautocompanyperyear,atapriceof$[Link]
atarateofabout400perworkingday,[Link],andit
mustsetupthemanufacturingsystemforaproductionorderforpairsofbumpers,whichcosts$[Link]$2.50tostoreonepair
ofbumpersforonemonth.

[Link]:theinstantaneousmodel,thenoninstantaneousmodel,orthesingleperiodmodel?How
doyouknow?
[Link].
[Link].
[Link].
[Link]?
[Link]?
[Link]?
[Link]?
i.Whatisthetotalannualexpenseofmanufacturing3,000pairsofbumpersperproductionrun?Howmuchissavedperyearby
producingtheEOQeverytime?

3.UsethedatafromProblem1tosolvethisproblem,[Link],as
follows:

OrderQuantityCostperPairDiscount
1to299pairs$150.000%
300to499pairs$150.004%
500ormorepairs$150.0010%

[Link]:theinstantaneousmodel,thequantitydiscountmodel,orthesingleperiodmodel?How
doyouknow9
b.Writetheannualtotalcostfunctionforordersforlessthan300pairs.
c.Writetheannualtotalcostfunctionforordersfor300to499pairs.
d.Writethetotalcostfunctionforordersforatleast500pairs.
[Link].
[Link]?
[Link],includingthepurchasingcostoforderingtheEOQeverytime?

[Link],withamean
[Link]
reliable,whenanorderisplaced(onday0),[Link]
disks,andthepurchasingagenthasestablisheda99.5percentservicelevel.

[Link],fixedleadtimeandvariabledemand,variableleadtimeandfixeddemand,orvariable
demandandvariableleadtime?
[Link]?
[Link]?
[Link]?DrawadiagramliketheoneinFigure1311inyourtextbook.
[Link]?
[Link]?

5.Thepurchasingagenthasascertainedthattheemployeesuseabout50pencilsperday,[Link]
[Link]
establisheda95percentservicelevelforpencils.

[Link]:variabledemandandfixedleadtirne,fixeddemandandvariableleadtime,orvariable
demandandvariableleadtime?
[Link]?
[Link]?
[Link]?DrawadiagraminthestyleofFigure1313inyourtextbook.
[Link]?
[Link]?

6.Thepurchasingagenthasascertainedthattheusageofletterheadpaperhasanapproximatelynormaldistributionwithameanof200
[Link],
withameanof25workingdaysandavarianceof4workingdays.Thepurchasingagenthasestablisheda99percentservicelevelfor
letterheadpaper.

[Link]:variabledemandandfixedleadtime,fixeddemandandvariableleadtime,orvariable
demandandvariableleadtime?
[Link]?
[Link]?
[Link]?DrawadiagraminthestyleofFigure1313inyourtextbook.
[Link]?
[Link]?

7.(Onestepbeyondbasedonstatistics.)[Link],uprightunitswhich
[Link]
fromthefactory,whichisveryreliableandwilldelivertheorderwithinoneweek(7calendardays)[Link]
ofsalesforthepast50weeks:2,1,4,5,2,0,3,6,7,3,4,2,2,4,3,5,5,1,3,6,4,5,1,0,1,4,3,5,7,6,3,5,4,1,5,5,4,5,6,4,
3,2,5,4,1,5,2,5,[Link].Thestoremanagerwishestoestablisha95percentservicelevel.

[Link] 1/5
4/24/2017 Problems/Solutions
[Link]?Doesitappeartobeapproximatelynormal?
[Link]?
[Link]?
[Link]?
[Link]?(Hint:usethecumulativeprobabilitydistribution.)
[Link]?

8.Anappliancestoreknowsthatthedistributionofmonthlysalesof50"TVsetsisapproximatelynormalwithameanof6setsanda
[Link]$2,750each,andarepricedat$4,[Link]
10thofthemonth(ortheprecedingbusinessday),andthereisaleadtimeofsevenbusinessdays.Thereare20businessdaysinatypical
[Link]
31,thestorehadfive50"[Link]:

MonthSales
April4sets
May8sets
June7sets

[Link]:thefixedquantityandvariableorderintervalmodel,thevariablequantityandfixed
orderintervalmodel,orthesingleperiodmodel?
b.HowmanysetsshouldbeorderedonApril10?
c.WhatwillbetheendinginventoryonApril30?
d.HowmanysetsshouldbeorderedonMay10?
e.WhatwillbetheendinginventoryonMay31?
f.HowmanysetsshouldbeorderedonJune10?

9.UseTable133inyourtextbooktoanswerthesequestions.

a.WhatistheexpectednumberofunitsshortpercycleinProblem4?
b.WhatistheimplicationoftheexpectednumberofunitsshortinProblem4?
c.WhatistheexpectednumberofunitsshortinProblem5?
d.WhatisthesignificanceoftheexpectednumberofunitsshortinProblem5?

10.Hereisalistof15items,containingtheannualvolumeofsalesandtheunitprice,AnABCinventorysystemistobeestablishedon
thebasisoftheannualdollarvalueofeachitem.ClassificationAwillcontainabout60%ofthedollarvalueBwillcontainabout30%and
Cwillcontainabout10%.Determinetheitemswhichbelongineachcategory.

Item Annual Unit Annual

Volume Price DollarValue

a 800 26

b 300 20

c 9,000 7

d 7,000 5

e 200 65

f 100 83

g 1,000 42

h 1,800 6

i 450 18

j 7,500 10

k 350 9

l 700 28

m 500 95

n 750 30

o 900 72

[Link].
[Link]?TotheBcategory?TotheCcategory?

[Link]
tothecustomers'[Link].
Potatosaladsellsfor$1.49perpound,andcosts$[Link]
meanof60poundsperdayandavarianceof256.

[Link]:thesingleperiodmodel,theinstantaneousmodel,orthequantitydiscountmodel?How
doyouknow?

[Link], Image95?

[Link], Image96?
[Link]?

12.(Onestepbeyond)[Link]
shirtswhichareinscribed:

FAMILYFUN
THESTATEFAIR
FORALLAGES

Thepriceofthetshirtswillbe$[Link]$864pergross(144shirts),
witha3%discountforpaymentwithin10days,[Link],herself,and
estimatesthatherlaborisworth$[Link],butcanbesoldtoascrapdealerfor$0.16perpoundthere
[Link],ofcourse,[Link],basedonprevious
experience,Ms.Whiteestimatesthatthemeansalesare3gross,andthattheprobabilityofsellingmorethan3grossdecreasesasthe
quantityincreases.

[Link],thequantitydiscountmodel,orthesingleperiodmodel?
[Link]?
[Link],Cs?
[Link],Ce?
[Link]?
[Link](ingross)?
[Link]'sprofitsforyouranswerinf.

[Link] 2/5
4/24/2017 Problems/Solutions
[Link]'sSpeedyServiceStationcalculatesthathesellsabout15,[Link]
gasfromselfservicepumpsandwishestomaintainaservicelevelof99%[Link]
seasons,heestimatesthatitaveragesabout$[Link]$.[Link]$25.00toplaceand
receiveoneorder.Theleadtimeforanorderis1dayandthestandarddeviationofsalesisabout5gallonsperday.

[Link]?
[Link]?
[Link]?
d.Whatleadtimeservicelevelisnecessaryforthe99%servicelevel?

Solutions

[Link].
[Link]=HQ/2=3(12)Q/2=18Q.
[Link]=DS/Q=60000(25)/Q=1500000/Q.
[Link]=18Q+1500000/Q.

e. Image97 Image98289pairsofbumpers.
[Link],itshouldorder289pairsofbumpers.
[Link]=(Q/2)H+(D/Q)S=(289/2)36+(60,000/289)25=$10,392.00peryear.
[Link]=D/Q=60000/289208peryear.
[Link]=18(600)+1500000/600=$13,[Link]$13,300$10,392=$2,908.00.

[Link].
[Link]=(HQ/2)[(PU)/P]=(2.50(12)Q/2)[(40060000/240)]/400=5.625Q.
[Link]=DS/Q=60000(250)/Q=15000000/Q.
[Link]=5.625Q+15000000/Q.

[Link]= Image99 Image100= Image101x= Image1021,633pairsofbumpers.

f.Thecompanyshouldplaceaproductionorderfor1,633pairsofbumperseverytime.
[Link]=5.625EOQ+15000000/EOQ=5.625(1633)+15000000/1633$18,371.00peryear.
[Link]=D/EOQ=60000/1633=36.74runsperyear.
[Link]=5.625(3000)+15000000/3000=$21,[Link]$21,875.00$18,371.00=
$3,504.00.

[Link].
[Link]=18Q+1500000/Q+150D.
[Link]=150(1d)=150(1.04)=$[Link]=18Q+1500000/Q+144D.
[Link]=150(1d)=150(1.10)=$[Link]=18Q+1500000/Q+135D.
e.
[Link],whichis500pairsofbumpers.
[Link]=18(500)+1500000/500+135(500)=$79,500.00

[Link].
[Link]= Image103(LT)=30(5)=150floppydisks.

[Link]= Image104floppydisks.

[Link]= Image103(LT)+z(standarddeviations)=150+2.58(8.94)=173.08floppydisks

e.Whenthequantityoffloppydisksonhandfallsto173.08disks(orfewer)placeanorderfortheeconomicorderquantity.
[Link]=ROPmeanusage=173.08150=23.08floppydisks.

[Link].
[Link]=d Image105=50(10)=500pencils.

[Link]= Image106pencils.

[Link]= Image103(LT)+z(standarddeviations)=500+1.65(100)=665pencils.
e.Whenthequantityofpencilsonhandfallsto665(orfewer),placeanorderfortheeconomicorderquantity
[Link]=ROPthemeanusage=665500=165pencils.

[Link].

[Link]= Image103(LT)=200(25)=5,000sheets.

[Link]= Image107= Image108= Image109=

405.25Sheets.
[Link]=Themeanusage+z(standarddeviations)=5000+2.33(405.25)=5,944.23sheets.
e.Whenthequantityofletterheadpaperonhandfallsto5,944.23sheets(orfewer)placeanorderfortheEconomicOrderQuantity.
[Link]=ROPthemeanusage=5,944.235,000=944.23sheets.

7.a,b,c

Freezer x p Cumulative

Sales(x) p

0 2 0 .04 .04

1 6 6 .12 .16

2 6 12 .12 .28

3 8 24 .16 .44

4 10 40 .20 .64

5 12 60 .24 .88

6 4 24 .08 .96

7 2 14 .04 1.00

50 180 1.00

Thefrequencydistributionishighlyskewnegativeandisnotapproximatelynormal.

d. Image110freezersperweek.

[Link] 3/5
4/24/2017 Problems/Solutions
[Link].95is.96,andthereorderpointis6freezers.
[Link]=63.6=2.4freezers.

[Link] Image111quantitymodel.

[Link]= Image103(OI+LT)=6sets.
Thesafetystock=sets.
Theorderquantity=theexpecteddemand+thesafetystockthequantityonhand=6+1.9253sets.
c.TheendinginventoryonApril30willbe5+34=4sets.
[Link]=theexpecteddemand+thesafetystockthequantityonhand=6+1.9244sets.
e.TheendinginventoryonMay31willbe4+48=0sets.
[Link]=theexpecteddemand+thesafetystockthequantityonhand=6+1.9208sets.

9.a.E(z)=E(2.58)=.002
E(n)=E(z)(standarddeviations)=.002(8.94)=.02floppydisks.
[Link],noshortageshouldbeexperiencedinmost
order
cycles,butveryrarelytheremaybeashortageofonedisk.
c.E(z)=E(1.65).020.
E(n)=E(z)(standarddeviations)=.020(100)=2pencils.
[Link],sometimestherewillbeashortageofaround2pencils
(e.g.,1,2,3,or4,butprobablynotmore,pencils).

10.a.

Item Annual

DollarValue

a $20,800*

b 6,000

. .

. .

n 22,500

o 64,800
Total
$372,050

*(800x$26.00)
[Link]
arethefirstfewitems:

Item Annual Cumulative Cumulative

DollarValue Percent
DollarValue

o $64,800 $64,800 17.41%

c 63,000 127,800 34.35*

m 47,500 175,300 47.11

g 42,000 217,300 58.41

d 35,000 252,300 67.81

*34.35%=100(127,800)/372,[Link],c,m,[Link],n,a,l,e,[Link]
itemsf,i,j,b,andk.

[Link].
[Link]=Revenueperunitcostperunit=$1.49$0.80=$0.69perpound.
[Link]=Costperunit=salvagevalueperunit=$0.800=$0.80.
[Link]=Cs/(Cs+Ce)=.69/(.69+.80)=.46.
[Link]=[Link]=themeandemand+z(standarddeviations)=600.04(16)=59.36
poundsofpotatosalad.

[Link],sincethetshirtsaresalableonlyatoneevent.
[Link].

c. Image112=revenueperunitcostperunit=25(144)864(.97)=3600838.08=$2761.92.

d. Image113=costperunitsalvagevalueperunit=864(.97).02(144)=838.082.88=$835.20.

[Link]= Image114.
[Link]=3,inTableCtoobtainthesevalues:

x P(x)

0 .050

1 .199

2 .423

3 .647

4 .815

5 .916

6 .966

7 .988

8 .996

9 .999

[Link] 4/5
4/24/2017 Problems/Solutions
10 1.000

BecauseP(x)=.815isthelowestprobabilitytoexceed.7678,Ms.Whiteshouldprepare4grossoftshirts.
[Link]=revenuesexpenses=4(3600)4(838.08)=4(2761.92)=$11,[Link]'slaboras
anexpense.

13.a. Image115gal.

b. Image116gal.
c. [Link].
[Link](z).

Image118(Table134inyourtextbook)

Image119
[Link](z)=.35,z Image120.08andtheservicelevel Image120.53.

Tolearnmoreaboutthebookthiswebsitesupports,pleasevisititsInformationCenter.

Copyright 2017McGrawHillGlobalEducationHoldings,[Link].
AnyuseissubjecttotheTermsofUseandPrivacyCenter|ReportPiracy

[Link] 5/5