The farm has a policy of always satisfying customer demands

Assignment Help Operation Management

Reference no: EM13905504

A local farm produces cases of perishable food products. The products such as vegetables and fruits are packed in wooden cases. Each case costs $10 and sells for $20. If there are any cases not sold by the end of the day, they are sold to a large food processing company for $5 a case. The probability that daily demand will be 100 cases is 0.3, the probability that daily demand will be 200 cases is 0.4, and the probability that daily demand will be 300 cases is 0.3. The farm has a policy of always satisfying customer demands. If its own supply of cases is less than the demand, it buys the necessary vegetable from a competitor. The estimated cost of doing this is $35 per case. a) Draw a decision table for this problem. What do you recommend? b) Now assume that backlogging is possible and if a demand does not get satisfied, can be fulfilled in the following day with 20 percent discount. Redo the decision tree and recommendations.

Reference no: EM13905504

Questions Cloud

Identify key production planning considerations : Identify key production planning considerations (which, when and how much of each to produce, methods of dealing with short/long term changes in capacity demand). Discuss the significant aspects of quality control as they relate to this process. How ..

Developer a detailed bootstrap marketing plan : Developer a detailed bootstrap marketing plan for CoolPeopleCare that offer specific ideas on how to promote the business. Why do you think the elements of your plan will be successful?

Case study telemedicine an opportunity or distraction : Analyze the opportunities or needs for IS/ IT implementation in the firm by identifying the functional areas affected, the specific business processes involved, and the decision level that might be impacted. ( Case study Telemedicine an opportunity o..

Find the probability that a call takes : Nite Time Inn has a toll-free telephone number so that customers can call at any time to make a reservation. A typical call takes about 4 minutes to complete, and the time required follows and exponential distribution. Find the probability that a cal..

The farm has a policy of always satisfying customer demands : A local farm produces cases of perishable food products. The products such as vegetables and fruits are packed in wooden cases. Each case costs $10 and sells for $20. Now assume that backlogging is possible and if a demand does not get satisfied, can..

Describe the job functions they have offshored : Describe the job functions they have offshored. What country did they move to? Has this improved the overall performance of the organization

Action research-ethnography and grounded theory : What are the advantages of each of the following techniques: Action Research, Ethnography, and Grounded Theory and where might each be best used?

Cash profits-depreciation-cumulative flow-cash flow : The question was not answered completely. Please read the question completely. The answer should have five columns in the answer: (1) after-tax year, (2) cash profits, (3) depreciation, (4) cumulative flow, and (5) cash flow. Q) Determine the payback..

Determine if oliveira followed the kotter model : Analyze and synthesize the change based on Kotter’s eight (8) steps for leading change. Determine if Oliveira followed the Kotter model. Select one (1) of the steps to assess and determine if Oliveira accomplished this step. Why was this important st..

User Account

All Pages