What is the probability that you will run out of stock

Assignment Help Operation Management
Reference no: EM131133359

You are a newsvendor selling San Pedro Times every morning. Before you get to work, you go to the printer and buy the day’s paper for $0.35 a copy. You sell a copy of San Pedro Times for $1.35. Daily demand is distributed normally with mean = 305 and standard deviation = 61. At the end of each morning, any leftover copies are worthless and they go to a recycle bin.

a. How many copies of San Pedro Times should you buy each morning? (Round your answer to the nearest whole number)

b. Based on a, what is the probability that you will run out of stock? (Round your answer to 2 decimal places.)

Reference no: EM131133359

Questions Cloud

Describe motivation process according to expectancy theory : Describe the motivation process according to expectancy theory. Be sure to identify and describe the three core constructs and how they relate. Feel free also to draw a diagram if that would help in your explanations. Finally, explain how a manager’s..
The essence of project management is risk management : Consider the following statement: “The essence of project management is risk management.” What does it mean in terms of completing a project successfully? Support your response with evidence from the readings or other materials. Be sure to use APA fo..
Determine best order size for best-selling satellite dish : Ray's Satellite Emporium wishes to determine the best order size for its best-selling satellite dish (model TS111). Ray has estimated the annual demand for this model at 1,750 units. His cost to carry one unit is $65 per year per unit, and he has est..
Determine if process is in control or gone out of control : Process Control for variables can be done via Control Charts, such as Mean (X-bar) and Range (R-bar) Charts. Both of these charts are required to determine if a Process is in Control or Gone out of Control. The statement that best describes the diffe..
What is the probability that you will run out of stock : You are a newsvendor selling San Pedro Times every morning. Before you get to work, you go to the printer and buy the day’s paper for $0.35 a copy. You sell a copy of San Pedro Times for $1.35. How many copies of San Pedro Times should you buy each m..
Wholemark is an internet order business : Wholemark is an Internet order business that sells one popular New Year greeting card once a year. The cost of the paper on which the card is printed is $0.10 per card, and the cost of printing is $0.25 per card. The company receives $4.15 per card s..
Super discount overbook the flight : Next week, Super Discount Airlines has a flight from New York to Los Angeles that will be booked to capacity. The airline knows from past history that an average of 25 customers (with a standard deviation of 13) cancel their reservation or do not sho..
Durable medical equipment subsidiary : You are outside counsel to the Marcus Welby Healthcare Corporation, which among its other operations owns a durable medical equipment (DME) subsidiary, which sells equipment for home use such as crutches, wheelchairs, and oxygen concentrators. The su..
Business and risk-sharing objectives : How does air cargo differ from the passenger business in terms of revenue management? Which areas are more complex, and which can be managed more easily? What is the purpose of selling long-tem capacity contracts? Does Lufthansa Cargo effectively rea..

Reviews

Write a Review

 

Operation Management Questions & Answers

  Building sustainable competitive advantage

Building a sustainable Competitive Advantage – one that is hard to copy and can endure over time – is the focus and reason an entrepreneur takes the time to complete a thorough assessment of the environment. Define and be able to discuss the Competit..

  Is the globalization of health care good or bad for patients

Is the globalization of health care good or bad for patients? Who might benefit from the globalization of health care? Who might lose?

  Case study - midtown motors

Midtown Motors, Inc. has hired a marketing services firm to develop an advertising strategy for promoting Midtown's used-car sales.

  The operation of an airport

The operation of an airport

  What is the difference between a lean and an agile supply ch

What is the difference between a lean and an agile supply chain? Under which circumstances is each an appropriate supply chain approach to pursue

  Explain how you would apply either behavioral theories of

describe how you would apply either behavioral theories of learning or cognitive theories of learning to solve a

  Describe what happens with likelihood of a risk event occurr

Describe what happens with likelihood of a risk event occurring also cost of fixing risk event as a project proceeds through its life cycle.

  About the good business venture

Being new to the cuckoo clock business you are considering bringing 3 people with you: your business mentor that is conservative in the way they do business, a cousin that sells watches but can be cocky and arrogant, and a friend that repairs grandfa..

  Identify key gaps in planning for the exit

Identify key gaps in planning for the exit. Provide recommendations on the exit strategy. Is the sale the right one? What steps ought to be taken to maximize the sales-price?

  Demand rigid structural-measurement-human resource systems

Uncertain and changing industry structures demand rigid structural, measurement, and human resource systems. To diagnose an organization, the OD practitioner carefully examines the management team to discover the cause its problems.

  Production of sub-assemblies in lot sizes

Develop an MRP for Space Age Furniture Company using the information in the case including the production of sub-assemblies in lot sizes of 1,000.

  Predict the selling price

A real estate developer created a linear regression model to determine home prices. The price of the home (Y) is determined by the size (square footage = X). The model is: Y = 13,473 + 37.65X.

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