pps Gmail YouTube Maps Inbox (5,009) - wi... * Course Hero Reading List CM5.docx - Edited ~ Times Regular |2 12 B TU 10 9 Ev 5 6 17 19 Engage Students in Questioning to Develop Their Critical Thinking Skills MANAGING SHORT-LIFE CYCLED PRODUCTS NEWSBOY BUSINESS SETTINGS AND CRITICAL RATIO ANALYSIS Typical final exam question: In a newsboy problem setting, critical ratio's being less than 50% implies that the risk of ............ UNDERAGE.. ...... IS much more than the risk of ............ OVERAGE...............; therefore, optimal initial order quantity to order or produce for the selling period is ......MORE............ than the average/expected demand for the given period. . Based on the original data: The Dishwasher Retailer I Which risk is more? The understocking cost or the overstocking cost? Accordingly, did we choose the optimum Q less than the Expected Demand or more than the Expected Demand? Write the relevant numbers for cu, co, Q, E(D), and make observations one by one and provide the concrete conclusions.ce General Paste BIU VY % " Condition Formatting Clipboard Font Alignment Number i SIGN IN TO OFFICE It looks like your stored credentials are out of date. Please sign in as hamiwd01@pfw.edu so we can verify your 128 B C E G H 1 H.H. Craig Dishwasher Example with Discrete Demand 2 Discrete Demand Forecasts: Finite/Countable Values with Likelihoods 3 Inputs 4 5 Regular selling price (r) $500 + 6|Cost from supplier (o] $300 7 Sale price (s) #150 8 |Loss of goodwill cost (p) $100 9 10 Probability distribution of demand 11 12 k 6 18 9 10 11 12 13 14 15 13 P (D=K ) 05 1.05 0.05 0.25 1 25 0. 15 0.05 0.03 0102 14 Folk] 0.05 0.1 0.15 0.25 0.5 0.75 0.9 0.95 0.98 15 16 Understocking cost $300 17 Overstocking cost $150 We find the smallest value in row 14 that is greater than or equal to Critical Ratio 0.674 Cul(Cu+Co) the ratio in cell B18, then look up the corresponding order quantity in 19 row 12. We see that Q=1 1 is optimal 20 21 Expected Demand 10.37 SUMPRODUCT (B12:K12,B13:K13) 22 23 Discrete Demand Forecasts + Ready Type here to search W DELL F2 F3 F4 F5DishwasherRetailer_new... - Last Modified: Tue at 9:49 PM - Search Will Hamilton WH X File Home Insert Page Layout Formulas Data Review View Help Share Comments Arial - 10 ~ A" A " = ab General Insert ~ Paste O B I U - F - SA- $ ~ % 2 08 -20 Conditional Format as Cell Delete Sort & Find & Analyze Formatting Table ~ Styles ~ Format ~ Filter ~ Select Data Clipboard Font Alignment Number Styles Cells diting Analysis SIGN IN TO OFFICE It looks like your stored credentials are out of date. Please sign in as hamiwd01@pfw.edu so we can verify your subscription. Sign In x J28 : XV fx are B D F 1 H.H. Craig Dishwasher Example with Discre O 2 Discrete Demand Forecasts: Finite/Countable Values 3 Inputs Editing 4 5 Regular selling price [r) 500 300 + 6 Cost from supplier (c] 7 Sale price (s] 150 Loss of goodwill cost (p] 100 Sig 9 10 Probability distribution of demand 11 12 k 18 9 10 P 13 P(D=k) 10.05 0.05 0. 15 0.03 0 14 Folk =B13 =B14+C13 = 014+013 FD14+E13 =E14+F13 =F14+G13 =G194-H13 =H14+113 =114+J13 = J14+K13 15 16 Understocking cost =B5-86+68 We find the smallest value in row 14 that is greater than or equal to the ratio in cell B18, then look up the corresponding o 17 Overstocking cost =B6-87 18 Critical Ratio = B16/SUM(B16:B17] Cul(Cu+Co) 12. We see that Q=11 is optimal. 19 20 21 Expected Demand =SUMPRODUCT(B12 * SUMPRODUCT (B12:K12,B13:K13) 22 24 25 26 27 28 31 Discrete Demand Forecasts 78% Ready 6:59 PM 71OF Partly sunny ~ ( 4 x Type here to search O i 10/5/2021 DELL