Question

The demand for a product of Carolina Industries varies greatly from month to month. The probability...

The demand for a product of Carolina Industries varies greatly from month to month. The probability distribution in the following table, based on the past two years of data, shows the company's monthly demand.

Unit Demand Probability

300 0.20

400 0.25

500 0.35

600 0.20

(a) If the company bases monthly orders on the expected value of the monthly demand, what should Carolina's monthly order quantity be for this product?

(b) Assume that each unit demanded generates $70 in revenue and that each unit ordered costs $50. How much will the company gain or lose in a month (in dollars) if it places an order based on your answer to part (a) and the actual demand for the item is 300 units?

Math   Statistics-And-Probability   
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
The demand for Carolina Industries’ product varies greatly from month to month. Based on the past...
The demand for Carolina Industries’ product varies greatly from month to month. Based on the past two years of data, the following probability distribution shows the company’s monthly demand: Unit Demand Probability 300 0.20 400 0.30 500 0.35 600 0.15 a. If the company places monthly orders equal to the expected value of the monthly demand, what should Carolina’s monthly order quantity be for this product? b. Assume that each unit demanded generates $70 in revenue and that each unit...
3) The demand for a product varies from month to month. Based on the past year's...
3) The demand for a product varies from month to month. Based on the past year's data, the following probability distribution shows MNM company's monthly demand. x f(x) Unit Demand Probability 0 .10 1,000 .10 2,000 .30 3,000 .40 4,000 .10 a. Determine the expected number of units demanded per month and the standard deviation
1. Boesenhofer, Inc., manufactures and sells ... Boesenhofer, Inc., manufactures and sells two products: Product N6...
1. Boesenhofer, Inc., manufactures and sells ... Boesenhofer, Inc., manufactures and sells two products: Product N6 and Product N7. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product N6 Product N7 Total Labor-related DLHs $ 345,060 2,100 5,000 7,100 Machine setups setups 128,534 600 800 1,400 Order size MHs 107,598 4,100 3,800 7,900 $ 581,192 The activity rate for the...
Pallets of Cake Mix Demanded Probability Cumulative Probability Fewer than 2 0.10 0.10 2 0.30 0.40...
Pallets of Cake Mix Demanded Probability Cumulative Probability Fewer than 2 0.10 0.10 2 0.30 0.40 3 0.55 0.95 4 0.04 0.99 5 0.007 0.997 6 0.003 1.00 Sum: 1 Just Baked grew from one retail store in 2009 to thirteen stores in early 2013. Demand for cupcakes exhibits patterns based on seasons, store location, day of the week, and time of day. The "freshness promise" implicit in the name Just Baked has to be supported by the daily baking...
1. The use of a production smoothing strategy creates inventory for products that experience a seasonal...
1. The use of a production smoothing strategy creates inventory for products that experience a seasonal fluctuation in demand.   True or False ? 2. Companies belonging to the same industry segment should have the same inventory turns.  True or False ? 3. Which of the following is a work-in-process inventory for C&A Bakery? A. Flour B. Cupcakes freshly out of the oven C. Ovens D. Cupcake mix prepared from scratch 4. C&A has on average $6000 in inventory and its daily...
Charter Airline Operating Decisions Firm-specific demand in the scheduled airline industry is segmented by customer class...
Charter Airline Operating Decisions Firm-specific demand in the scheduled airline industry is segmented by customer class and is highly uncertain so that an order may not realize revenue and a unit sale. Airlines respond to this dynamic, highly competitive environment by tracking reservations at preannounced fares and reassigning capacity to the various market segments (“buckets”) as business travelers, vacationers, and convention groups book the flights above or below expected levels several days and even weeks before scheduled departure. This systems...
After reading the following article, how would you summarize it? What conclusions can be made about...
After reading the following article, how would you summarize it? What conclusions can be made about Amazon? Case 12: Amazon.com Inc.: Retailing Giant to High-Tech Player? (Internet Companies) Overview Founded by Jeff Bezos, online giant Amazon.com, Inc. (Amazon), was incorporated in the state of Washington in July 1994, and sold its first book in July 1995. In May 1997, Amazon (AMZN) completed its initial public offering and its common stock was listed on the NASDAQ Global Select Market. Amazon quickly...
Analysis: This section should include the issue register as a bare minimum, but may include also...
Analysis: This section should include the issue register as a bare minimum, but may include also why-why diagrams, a Pareto chart, a waste table and/or value-added analysis table. Flow analysis or simulation of this case study might be possible but might require making a lot of assumptions given the provided data. The first part of the project: Introduction    Walmart has continued to retain the top position on the Fortune 500 list for a consecutive fifth year. The brand has...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary rivals? How will the acquisition of Reebok by Adidas impact the structure of the athletic shoe industry? Is this likely to be favorable or unfavorable for New Balance? 2- What issues does New Balance management need to address? 3-What recommendations would you make to New Balance Management? What does New Balance need to do to continue to be successful? Should management continue to invest...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT