Assume now that the WP decided to focus only on the producti…
Assume now that the WP decided to focus only on the production of papers. Another firm (let’s call that firm “Ralph”) will be responsible for selling the papers to the customers. If the production cost of each paper is $0.25, the wholesale price (i.e., the price that the WP charges Ralph for each paper) is $0.6 the retail price is $1 and the daily demand is normally distributed with mean 500 and standard deviation of 10 then: What is the optimal quantity of papers that Ralph should stock (here is the Normal distribution table)?
Read DetailsTarzan and Jane adopted a newborn monkey and called him Bong…
Tarzan and Jane adopted a newborn monkey and called him Bongo. Unlike other monkeys, Bongo likes dried strawberries and consumes 20 strawberries per week. The nearest strawberry producer to Tarzan and Jane’s house (tree in fact) is far away. Tarzan and Jane estimate that they’ll have to use a day of their neighbor’s elephant every time they shop from that farmer. The neighbor charges them $40 for each trip. One strawberry costs $4. Jane also calculates the holding cost of 1 strawberry as $1 per week, because strawberries occupy a lot of place in their tree. Assume that Tarzan and Jane will never let Bongo be hungry (i.e., no backorders). P.S. In Tarzan’s forest, each week has 5 days. When should Tarzan and Jane place an order (i.e., calculate the ROP)?
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