Determine the optimal number of donuts to prepare

Assignment Help Operation Management
Reference no: EM13963947

The university has given Vecino’s Bakery the concession to sell glazed donuts in the Graduate School of Business Administration during evening classes. It costs the bakery $.15 to produce each donut, and Vecino’s sells the donuts to students for $0.35 each. Any donuts that are unsold at the end of the evening are donated to a local charity, and the bakery obtains a tax credit equal to $.05 per donut. If Vecino’s produces too few donuts and does not have enough to satisfy all its customers, it incurs a customer goodwill cost of $.25 per donut demanded. The bakery hires a student to operate the concession and pays the student $15 per evening. After several months of operations, the bakery has determined that demand for glazed donuts on weekday evenings approximately follows a normal distribution with a mean of 120 and a standard deviation of 20. Vecino’s wishes to determine the optimal number of donuts to prepare for weekday evenings.

Reference no: EM13963947

What is the order quantity

Bill’s Bird Feed sees weekly, average demand of 18 units for its special bird feeder that is normally distributed with a standard deviation of weekly demand of 5 units. Orders

What is the value of the stock car being orderd

Marge’s Model Shop sells stock car replicas. The most popular model sells 100 units each week. The shop is open year-round except for a two-week holiday closing over Christmas

Describe the three dimensions of selecting product solution

List and describe the four parts of the consultative sales process guide. list and describe the four types of questions commonly used in the selling field. describe the three

What is the probability that delay will occur

The NWB Bank operates a drive-up teller window that allows customers to complete bank transactions without getting out of their cars. On weekly mornings, arrival to the drive-

Checkout counter where one employee operates cash register

The Fast Shop Drive-In Market has one checkout counter where one employee operates the cash register. Customers arrive at the rate of 24 per hour according to a Poisson distri

Deductible and coinsurance provision requiring

Ariana’s health insurance policy includes an $850 deductible and a coinsurance provision requiring her to pay 20 percent of all covered bills. Her total bill is $4,800. What i

Physical therapy sessions costing

A health insurance policy pays 85 percent of physical therapy costs after a $200 deductible. In contrast, an HMO charges $20 per visit for physical therapy. How much would a p

What are the disadvantages or work sampling

What are the disadvantages or work sampling. Should the data gathered in this manner be used for salary and performance reviews? why or why not. Would time study data be a bet

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd