Manufacturer reserve for the last day

Assignment Help Operation Management
Reference no: EM131330719

A manufacturer of industrial sales has production capacity of 1,000 units per day. Currently, the firm sells production capacity for $10 per unit. At this price, all production capacity gets booked about one week in advance. A group of customers have said that they would be willing to pay $15 per unit if capacity was available on the last day. About ten days in advance, demand for the high-price segment is normally distributed with a mean of 250 and a standard deviation of 100. How much production capacity should the manufacturer reserve for the last day?

Reference no: EM131330719

Questions Cloud

Compare financial reporting needs of the resource providers : Compare the financial reporting needs of the resource providers of government/not-for-profit organizations to the financial reporting needs of the resource providers of for-profit organizations.
Discuss the strategic importance of layout decisions : Q1. Discuss the strategic importance of layout decisions. How can a particular layout affect a company's strategic goals? Provide some specific examples from industry.
Small production facility in sydney : Bruno Fruscalzo decided to start a small production facility in Sydney to sell gelato to the local restaurants. His local milk supplier charges $0.50 per kg of milk plus a $20 delivery fee (the $20 fee is independent of the amount ordred). Bruno's..
Two page descriptive essay about trip to a theme park : Two page descriptive essay about trip to a theme park An example would be disneyland. the essay will require a thesis statement and be doubled space.
Manufacturer reserve for the last day : About ten days in advance, demand for the high-price segment is normally distributed with a mean of 250 and a standard deviation of 100. How much production capacity should the manufacturer reserve for the last day?
What are the various types of force majeure : What are the various types of force majeure? Which type might be of greatest concern to an organization in Las Vegas? Oklahoma City? Miami? Los Angeles?
What are the ethical aspects of mr wrongs action : Mr. Right and Mr. Wrong own an antique store in a partnership. How should Mr. Wrong have recorded the transaction? What are the ethical aspects of Mr. Wrong's action?
What is the mood of the poem : What is the poem about - What is the mood of the poem? Does the mood of the poem change from the beginning to the end and what impact do mood, imagery and simile/metaphor have on you and the poem?
Transportation problem by constructing appropriate cost : Formulate this problem as a transportation problem by constructing the appropriate cost and requirement table. Use the northwest rule to find an ibfs. Then use the transportation algorithm to find the optimal solution for this problem. (show your w..

Reviews

Write a Review

Operation Management Questions & Answers

  Compute the early-late and slack times for the activities

Compute the early, late, and slack times for the activities in the network below. Assuming a time-constrained network. Which activities are critical? Find minimum slack, smallest duration, and the slack for activity 1? 4? 5?

  Describe this critical path make sense do your predecessors

question 1 now that you have created a wbs and resource loaded schedule in ms projects what is your critical path? does

  What is the optimal product mix and resulting profit

Using the traditional method, which refers to maximizing the contribution margin per unit for each product, what is the optimal product mix and resulting profit?

  Religion based on the practices of the ancient celts

On the night of the first Tuesday of every month, the accounting firm of Jones & Smith holds an "update session" for junior partners. This session is designed to keep accountants up-to-date on various changes in statues, regulations, and rules that i..

  In order to achieve its impressive result

In order to achieve its impressive result, Subaru Indiana Automotive (SIA) needs employees who are hardworking, attentive to detail, and dependable. These characteristics are the ______ values that SIA expects its employees to live up to.

  The role of leadership style on leadership effectiveness

The role of leadership style on leadership effectiveness

  Analyze the historical context of public policy

Analyze the historical context, basic concepts, strategies, and / or models of public policy. Recommend policy alternatives to deal with a specific problem. Examine the nature, characteristics, models, and / or methods pertinent to the structuring of..

  Decided to offer certain securities for sale to the public

When Looking Glass Corporation decided to offer certain securities for sale to the public, it was required by federal law to provide sufficient information to Alice (as well as to all other interested unsophisticated investors), so she and the other ..

  How will this change effect medical institutions

In your opinion do you think Tort Reform will benefit the patients or the medical practitioners? How will this change effect medical institutions?

  Cost and cash flows are shown in the table

Monroe, Inc., is evaluating a project. The company uses a 13.8 percent discount rate for this project. Cost and cash flows are shown in the table. What is the NPV of the project?

  Kinds of technology in an organization

Kinds of technology in an organization. How technology create different competencies. How technology impacts organizational culture.

  How american airlines uses in order to reduce costs

discuss the techniques on how American Airlines uses in order to reduce costs and increase profits. The task for this activity goes beyond inventory management (although inventory management may be one technique) please answer with 150 words.

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