Question

The hotel has a bookstore, which buys business newspapers from a print house at $0.3 per...

The hotel has a bookstore, which buys business newspapers from a print house at $0.3 per copy and sells them at $0.5 per copy (Hint: that is the purchasing cost is $0.3 and the selling price is $0.5). Any extra unsold copies are returned to the print house for a half refund (Hint: that is the salvage value is $0.15). Demand for newspapers is uniformly distributed with minimum of 10 and maximum of 80.

a) How much is the underage cost, ?????

b) How much is the overage cost, ?????

c) What is the optimal service level?

d) How many newspapers should the bookstore order, ?? ? ?

e) How many newspapers should the bookstore order if any extra unsold copies can be returned to the print house for a full refund (Hint: that is the salvage value is $0.3)?

Formula Sheet:

???????? ???? ????????????????: ???? = ?????????????? ?????????? – ??????????????????? ????????

???????? ???? ??????????????: ???? = ??????????????????? ???????? – ?????????????? ??????????

?????????????? ?????????????? ?????????? = ???? ???? + ????

If demand is uniformly distributed with minimum demand of Min and maximum demand of Max then optimal order ?? ? is: ?? ? = ???? ???? + ???? (?????? ? ??????) + ?????

Business   Operations-Management   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Hotel California is a luxury hotel which has just got a new manager, Rocky. Given its...
Hotel California is a luxury hotel which has just got a new manager, Rocky. Given its location and quality, the hotel always had enough people making advance reservations to fill up all the rooms available. The hotel charges $200 per room per night for reservations made in advance (Hint: think of this $200 as the purchasing cost in the Newsvendor model). Rocky had taken the OPRE3310 at UTD last semester and decided to implement some of those techniques in his...
Total utility can be objectively measured in numbers that indicate usefulness or benefit to the consumer....
Total utility can be objectively measured in numbers that indicate usefulness or benefit to the consumer. ____ 2. Consumers should purchase quantities of a good to the point where MU > P. ____ 3. Voluntary exchange requires that there must be mutual gain. ____ 4. Points along a budget line represent the maximum combinations of two commodities that a consumer can afford. ____ 5. The budget line represents a consumer's preferences for a commodity. ____ 6. A change in consumer...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT