What is the implied range of shortage cost per machine

Assignment Help Operation Management
Reference no: EM13922281

Demand for rug-cleaning machines at Clyde's U-Rent-It is shown in the following table. Machines are rented by the day only. Profit on the rug cleaners is $10 per day. Clyde has four rug-cleaning machines.

Demand

Frequency

0

.30

1

.20

2

.20

3

.15

4

.10

5

.05

 

1.00

a. Assuming that Clyde's stocking decision is optimal, what is the implied range of excess cost per machine?

b. Your answer from part has been presented to Clyde, who protests that the amount is too low. Does this suggest an increase or a decrease in the number of rug machines he stocks? Explain.

c. Suppose now that the $10 mentioned as profit is instead the excess cost per day for each machine and that the shortage cost is unknown. Assuming that the optimal number of machines is four, what is the implied range of shortage cost per machine?

Reference no: EM13922281

Questions Cloud

Fundamental of bussiness system development class : This tutorial contains the Individual Assignment for week 2 of BSA/375 Fundamental of Bussiness System Development class.
Mean math scores for females : Question 1: At the PISA Web site (www.pisa.oecd.org), there are summary statistics for math scores of 15-year-old males and females for various countries separately. The mean math scores for males, the mean math scores for females, and also the di..
Information relates to a company : information relates to a company's accounts receivable: accounts receivable balance at the beginning of the year, $350,000; allowance for uncollectible accounts at the beginning of the year, $24,000 (credit balance); credit sales during the year, $1,..
What daily order quantity is optimal : Demand is normally distributed with a mean of 400 pounds per day and a standard deviation of 50 pounds per day. What daily order quantity is optimal?
What is the implied range of shortage cost per machine : Assuming that the optimal number of machines is four, what is the implied range of shortage cost per machine?
What quantity of spares should be ordered : If a part fails and a spare is not available, two days will be needed to obtain a replacement and install it. The cost for idle equipment is $500 per day. What quantity of spares should be ordered?
What firewall setup would provide the firm both flexibility : Which firewall technologies should be deployed to (a) secure the internet-facing web servers (b) to protect the link between the web servers and customer database (c) to protect the link between internal users and the customer database? Be sure to..
Components of management report on internal control : Section 404 of SOX requires a public company's annual report to include an internal control report. What are the two required components of management's report on internal control
Homeland security and emergency management practitioners : How valuable do you feel the use of social science research is to homeland security and emergency management practitioners? Explain -  Do you feel that the results of the research contain valuable data to the fields

Reviews

Write a Review

 

Operation Management Questions & Answers

  Expectations of new workforce entrants

Expectations of new workforce entrants has- Which of these motivation theories arranges employee needs in a hierarchy of importance?

  Shadow of irresponsibility and the shadow of privilege

What is the shadow of irresponsibility and the shadow of privilege? What are the basic characteristic traits of wisdom, diligence, humility etc. what is Moral compass and golden rule and how do they relate to emotional and ethical intelligence as dis..

  Analyze the relationship between analysis, planning

analyze the relationship between analysis,planning,implementation, and control. provide an example of a product or service that flows through this relationship. Break down the product or service through each sector.

  Decide what each partner''s managerial role in the restaurant

Decide what each partner's managerial role in the restaurant will be. For example, who will be responsible for the necessary departments and specific activities

  Agile project teams are typically co-located

Agile project teams are typically co-located. Why is this so important to an agile project and what does it facilitate on an agile project?

  What are the likely motivations of the first group

What are the likely motivations of the first group and what probably incites the nationalist groups to oppose headscarves?

  Compare the treatment of mental illness in the medical model

Compare the treatment of mental illness in the medical model, the public health model, and the human service model. Which model provides the best treatment or approach in your opinion? Why?

  Define grid computing as an organization standard

Discuss the various tradeoffs involved in using network computers (NCs) or grid computing as an organization standard. Describe how using your own computer at home or at work would be different if your computer was on a grid. Also, research distri..

  Write a one to two page-paper describing options for resolve

Write a one to two page-paper describing options for resolving this issue. Support your answer with evidence from references.

  Technology trends support the emergence of the cyber corp

Assume you have a choice to work for either a globally integrated enterprise, a met national a glorecalized MNE, a micro-multinational, or a cyber corp. Which would you choose? Why? Based on the material presented in the chapter, what sort of environ..

  What the company does to insure eeo

What the company does to insure EEO (Equal Employment Opportunity) compliance when hiring an employee

  For the upcoming weeks breakfast meeting you told your team

500 words all new content at least 2 references you plan to hold a weekly breakfast meeting with your team of

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