Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Operation Management Expert

Goop Inc needs to order a raw material to make a special polymer. The demand for the polymer is forecasted to be Normally distributed with a mean of 250 gallons and a standard deviation of 125 gallons. Goop sells the polymer for $25 per gallon. Goop's purchases raw material for $10 per gallon and Goop must spend $5 per gallon to dispose off all unused raw material due to government regulations. (One gallon of raw material yields one gallon of polymer.) If demand is more than Goop can make, then Goop sells only what they made and the rest of demand is lost.
Show your work for each answer.

a. Suppose Goop purchases 300 gallons of raw material. How many gallons of demand for polymer, in expectation, would remain unfulfilled?

b. Suppose Goop purchases 300 gallons of raw material. What is the probability that they will satisfy all demand for polymer?

c. Suppose Goop wants to ensure an in-stock probability of 92%. How many gallons of the raw material should they purchase?

d. How many gallons should Goop purchase to maximize its expected profit? Calculate the maximal expected profit.

 

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M9379926
  • Price:- $35

Guranteed 24 Hours Delivery, In Price:- $35

Have any Question?


Related Questions in Operation Management

Imagine that you are the chief hr officer for a company

Imagine that you are the Chief HR Officer for a company considering doing business in China. You have been informed that many of your competitors hae implemented programs to hire the sones and daughters of influential Ch ...

300 words minimumone of the major challenges companies face

300 words (minimum).... One of the major challenges companies face is providing customer service information via email. Think of companies you do business with. Do you email them? How long does it normally take for them ...

Business improvement and performance excellence

Business Improvement and Performance Excellence Profile Conduct a research activity on the following aspects of the key organizational characteristics of any ONE of the chosen Company or Organization that are serving the ...

Eoq safety stock lead time batch size and jitbateman

EOQ, Safety Stock, Lead Time, Batch Size, and JIT Bateman Company produces helmets for drivers of motorcycles. Helmets are produced in batches according to model and size. Although the setup and production time vary for ...

1 what do you think is the biggest barrier to

1. What do you think is the biggest barrier to organizational change in the typical organization? How would the manager go about overcoming resistance to change? 2. STEEP analysis of IKEA in India and give many business ...

Topic refugee crisis write this final paper an

Topic: Refugee Crisis Write: This Final Paper, an argumentative essay, will present research relating the critical thinker to the modern, globalized world. In this assignment, you need to address the items below in separ ...

Located 60 miles from chicago illinois the let there be

Located 60 miles from Chicago, Illinois, the let there be light lamp shade company, which designs and builds custom lamp shapes and lamp globes, historically derived all of its sales from customers in the United States a ...

The time study of a job operation of company a yielded an

The time study of a job operation of Company "A" yielded an average observed time of 5.0 minutes. The analyst rated the observed worker at 80%. This means the worker performed at 80% of the normal when the study was made ...

Write answers of between 350 and 700 words each for the

Write answers of between 350 and 700 words each for the following questions: As a rule of thumb, it is typically easier to purchase an existing commercial property than to construct a new property from the ground up or t ...

Which selection techniques would you feel most confident in

Which selection techniques would you feel most confident in using? Least confident in using? Why? With regard to the fair treatment of workers, the employment of prison inmates and illegal immigrants are two widely discu ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As