Operations Management Proposal Worksheet assignment help
Operations Management Proposal Worksheet assignment help
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Ybbx22 Subject
Business Finance
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Questions: 1. Evaluate Brown’s proposal that he should use the holding cost for one unit for the two-week period as the cost of overage in the newsvendor model. Calculate this overage cost for the Great White SKU. 2. Evaluate Brown’s proposal that he should use the margin on one unit (= retail price – wholesale price) as the cost of underage. • Calculate the critical fractile based on the underage and overage costs given (i) and (ii) above. This gives the optimal in-stock rate for those costs. The corresponding optimal order-up-to point is the smallest order-up-to point that has an in-stock rate equal to or higher than the critical fractile. Use your table of order-up-to points and in-stock rates to find the optimal order-up-to point based on your calculated critical fractile.
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Operations Management Proposal Worksheet assignment help
Content Type
User Generated User
Ybbx22 Subject
Business Finance
Description
1 attachmentsSlide 1 of 1
Unformatted Attachment Preview
Questions: 1. Evaluate Brown’s proposal that he should use the holding cost for one unit for the two-week period as the cost of overage in the newsvendor model. Calculate this overage cost for the Great White SKU. 2. Evaluate Brown’s proposal that he should use the margin on one unit (= retail price – wholesale price) as the cost of underage. • Calculate the critical fractile based on the underage and overage costs given (i) and (ii) above. This gives the optimal in-stock rate for those costs. The corresponding optimal order-up-to point is the smallest order-up-to point that has an in-stock rate equal to or higher than the critical fractile. Use your table of order-up-to points and in-stock rates to find the optimal order-up-to point based on your calculated critical fractile.
Purchase answer to see full attachment Explanation & Answer: 2 pages
User generated content is uploaded by users for the purposes of learning and should be used following Studypool’s honor code & terms of service.
Do you have a similar assignment and would want someone to complete it for you? Click on
the ORDER NOW option to get instant services at LindasHelp.com. We assure you of a well
written and plagiarism free papers delivered within your specified deadline.