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I would like some assistance with the following quantitative methods exercise Waldo Books needs to decide how many copies of a new hardcover release to
I would like some assistance with the following quantitative methods exercise
Waldo Books needs to decide how many copies of a new hardcover release to purchase for its shelves. The store has assumed that demand will be 50, 100, 150, or 200 copies next month, and it needs to decide whether to order 50, 100, 150, or 200 books for this period. Each book costs Waldo $20 and can be sold for $30. Waldo can sell any unsold books to the supplier for $4. Which option should Waldo choose if it uses the minimax regret criterion? Select one: O a. Order 200 books O b. Order 100 books O c. Order 150 books O d. Order 50 books\fCC Chemicals manufactures chlorine gas by passing electricity through salt water in a diaphragm cell. The plant has 88 diaphragm cells that operate in parallel. Due to the harsh environment, failures occur that require the cell to be taken offline for maintenance. A cell fails on average every 30 hours according to the exponential probability distribution. Only one cell can be repaired at any given time. Using the current maintenance procedure, the repair time follows the general probability distribution given in Table SIM. Table RAN provides a set of random numbers. Table SIM Repair Hours Probability 8 0.05 10 0.12 12 0.15 14 0.32 15 0.22 17 0.14 Table RAN Day 1 2 3 4 5 6 8 9 10 Random Numbers 0.30 0.66 0.25 0.13 0.72 0.88 0.38 0.19 0.60 0.44 If repairs cost $1700 per hour, what is the expected maintenance cost, based on the 10 simulations done? Select one: a. $28,220.00 O b. $19,890.00 O c. $30, 260.00 O d. $22,950.00Step by Step Solution
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