Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5. The rising popularity of bubble and squeak as a breakfast item on the menu has resulted in a steady demand for peas. Over the

image text in transcribed 5. The rising popularity of bubble and squeak as a breakfast item on the menu has resulted in a steady demand for peas. Over the course of the past week, 457 patrons have ordered the hearty breakfast and each serving contains a half cup of English peas. It costs two cents to hold a half cup of peas in inventory for a year and $3 to place an order (remember they come all the way from England!). It takes two weeks to ship a container from England loaded with peas. a. What is the optimal order quantity? b. What is the average inventory if they order at the optimal order quantity? c. What is the cost of the inventory policy (excluding cost of goods) if the diner orders at the economic order quantity? d. How many orders per year does the diner place if they order at the economic order quantity? e. What is the average flow time of a half cup of peas if the diner orders at the economic order quantity? f. The diner orders at the economic order quantity but an analysis of dates on the cans of peas revealed that the flow time was actually 5 weeks. A quick check revealed that the computer had automatically adjusted up the economic order quantity as demand had risen during the past few months. What is the new weekly demand for English peas? 6. A Simit seller buys each simit at 0.80TL and sells them at 1.5TL. At the end of the day he can give the simits back to a bakery at 0.30TL. The daily demand for simits is Normally distributed with mean 100 and standard deviation 15. How many simits should the seller buy every day

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Applied Wildlife Habitat Management

Authors: Roel R. Lopez, Michael L. Morrison, Israel D. Parker

1st Edition

9781623495022

More Books

Students also viewed these General Management questions

Question

What is human nature?

Answered: 1 week ago