1. A florist wants to expand its fleet of delivery buses. If your goal of ROLA is 30%, should they buy four more buses? > The additional income per bus is $ 5 / cwt. > The sales volume per bus is 12000 arrangements / month. Each weighs 5 lbs. > The cost of a bus is $ 25,000. > The operating cost is $ 29,000 / yr / guagua

2. A company has received an offer of distribution from an external warehouse. The Manager must decide if the new offer is more effective. On TVs currently the company moves 12,000 per month. The weight is 80lbs / TV. Currently Each truck moves 1000 tvs per month. The operational cost is $ 15000 / month per truck.The income is $ 75 / cwt. The new distribution chain uses buses move 450 televisions per month and operating cost of $ 6500 per bus per month. Which shows be the most economical alternative.

3. If a warehouse has the following products for sale, what should the investment be? of inventory to be able to maintain annual sales. The products A = 8 rota, B = 5 rota, and C = 3 rota. Product Annual Sales Cost / unit 1 1200 $ 34.00 2 3400 $ 15.34 3 2395 $ 43.00 4 125 $ 245.00 5 1356 $ 23.00 6 374 $ 45.00 7 957 $ 12.00 8 875 $ 8.00 9 1590 $ 13.00 10 3912 $ 2.50

4. If the income and cost curve are determined by the following equations: Income = (4 SL^3 )/6 Cost = (8 SL^4)/12 Determine the service level that maximizes profits.

5. Using the Exponential Smoothing method determine the projection for the seventh period of 2006 with an alpha of 25%. Current Sales 1 2200 2 1265 3 1489 4 2450 5 2004 6 1900 7 ?

6. With the following sales information determine if a linear function would be suitable for project sales of this product.

 Sales      Period

 1              200

 2              195

 3              125

 4              136

 5              123

 6              111

10.

Describe the responsibilities of a buyer and a supplier in the following terms: Term Pay Property Owner Claims FOB Origin Collect FOB Origin Prepaid FOB Destination Collect FOB Destination Delivered