************************* MIDTERM I ***************************** 1. Operations Management is attracting increasing attention due to the recent trends in the industrial world. Which of the following statements correctly represents this recent change? a. The percentage of the world’s output produced by the U.S. has been steadily increasing since 1960. b. Compared to the other industrial countries such as Italy and France‚ the U.S. has a higher rate of productivity growth since 1960
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Kyoo il Kim Department of Economics University of Minnesota Introduction to Econometrics‚ Econ4261 Spring 2013 P ROBLEM S ET 1 (D UE F EBRUARY 7‚ T HURSDAY IN CLASS ) Answer the Followings 1. Calculate: a) E[X]‚ E[Y ] b) V ar[X]‚ V ar[Y ] c) Cov[X‚ Y ] d) ρ(X‚ Y ) from the distribution below Y =1 X = 5000 X = 10‚ 000 X = 15‚ 000 0 1/8 1/3 Y =0 1/4 1/8 1/6 (1) 2. Suppose E[X] = 1 and E[Y ] = 2 and suppose X and Y are independent. Evaluate: a) E[2X + 1] b) E[X + Y ] c) E[X − 2Y ] d) E[XY
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often have you heard that during shopping trips? In many of these cases‚ what you have encountered are stores that aren’t doing a very good job of managing their inventories (stocks of goods being held for future use or sale). They aren’t placing orders to replenish inventories soon enough to avoid shortages. These stores could benefit from the kinds of techniques of scientific inventory management that are described in this chapter. It isn’t just retail stores that must manage inventories. In
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1. The current order quantity for Paul’s Pasta Pinwheels is 200 boxes. The order cost is $4 per order‚ the holding cost is $.40 per box per year‚ and the annual demand is 500 boxes per year. Current order quantity 200 boxes Ordering cost $ 4.00 per order holding costs $ 0.40 per box Annual demand 500 boxes a. Calculate the annual holding cost plus the annual ordering cost to get the total costs when using an order quantity of 200 boxes. Order quantity 200 Boxes Annual ordering
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business of making and marketing premium apparel to the United States. One popular item sold each winter is a man’s ski jacket that Yankee sources from an Asian supplier‚ Red Star. Due to the long production and transportation lead-times‚ Yankee has to order from Red Star well in advance of the selling season. The unit price Yankee charges its customers (the retailers) is $300. The unit wholesale price charged by Red Star is $140 (including shipment cost). Any jackets leftover at the end of the season
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*Sport Obermeyer:* Case Analysis Pratyusha Lakshmi Puranam Executive Summary: Obermeyer offers a broad line of fashion ski apparel‚ including parkas‚ vests‚ ski suits‚ shells‚ ski pants‚ sweaters‚ turtlenecks‚ and accessories. Parkas are considered the most critical design component of a collection; the other garments were fashioned to match the parkas’ style and color. Their products were offered in five different genders: men’s‚ women’s‚ boys’‚ girls’‚ and preschoolers’. The company
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tailor the order quantity according to the minimum lot size of each locality‚ China and Hong Kong 1‚200 units‚ 600 units. The excess inventory of finished goods could be sold in new markets. And the demand uncertainty problem could be solved by increasing the response capacity of production. This will allow reducing mismatch costs and consolidating activities. In addition‚ problems with the production can be minimized by means of negotiations with suppliers‚ retailers and joint ventures in order to obtain
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ordering costs d. shortage costs 3. The level of inventory at which a new order should be placed is known as the a. lead time b. replenishment quantity *c. reorder point d. service level 4. A restaurant currently uses 62‚500 boxes of napkins each year at a constant daily rate. If the cost to order napkins is $200.00 per order and the annual carrying cost for one box of napkins is $1.00‚ then the optimal order quantity (EOQ) for napkins would be a. 62‚500 boxes b. 10‚000 boxes *c
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the Gladiators’ logo on it. The cap has an elastic headband inside it‚ which conforms to different head sizes. However‚ the store has had a difficult time keeping the cap in stock‚ especially during the time between the placement and receipt of an order. Often customers come to the store just for the hat; when it is not in stock‚ customers are upset‚ and the store management believes they tend to go to other competing stores to purchase their Gladiators’ clothing. To rectify this problem‚ the store
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quote using range quantities. 3. What quantity should Minnie order if she wants to receive the lowest incremental costs between quantities? Quantity Range Quoted Price Quantity Range Incremental Cost 1-999 $4.03 First 999 units $4.03 1000-1999 $4.00 next 999 units $3.97 2000-2999 $3.97 next 999 units $3.91 At least 3000 $3.94 $- Minnie should go with the range of ordering between 2000-2999 in order to achieve the lowest incremental cost. The range of incremental
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