1 suppose the holding cost for each maple desk is 5 per day, Ask an Expert

Management Studies

1. Suppose the holding cost for each maple desk is $5 per day. Also, every maple desk that is backordered cost Bomberland $20 per day. What is the approximate in-stock probability? (Hint: Treat this question as a newsvendor problem.) Given: Mean=100, Standard Dev=50, Lead time=3 weeks, Normal distribution

a. 70% b. 80% c. 88% d. 90% e. 99%

2. The Baldwin company will increase its automation for the Beetle product by 2.0. Assuming no further change in capacity, how much will this investment in automation cost? Relevant Information Material cost 14.04 Labor cost 7.69 Automation 7.0 Capacity 1250

Select: 1

$20,000,000

$10,000,000

$17,500,000

$8,750,000

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93125780

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