Caleb operates a small network of organic grocery stores that he services from a
ID: 339459 • Letter: C
Question
Caleb operates a small network of organic grocery stores that he services from a central warehouse. Caleb was contacted by his wholesaler who asked whether he would consider changing his order quantity on a line of packaged dinners. Citing high costs of servicing Caleb’s orders (mainly because the wholesaler paid the transportation), the wholesaler offered to negotiate with Caleb to change (increase) his order quantity. Caleb thought the wholesaler was making about 20% profit on the packaged dinners and he guessed that the wholesaler’s holding costs were about 22% of its unit costs. Caleb looked at his own records and compiled the following:
Warehouse
Annual Demand (D)
126,000
Order cost per lot (S)
$ 100
Unit cost (C)
$ 9.00
Holding cost factor (k)
31%
Distributer
Order cost per lot (S)
$ 400
Unit cost (C)
$ 7.50
Holding cost factor (k)
22%
Complete the tables below. Important: Round order quantity and number of orders to nearest whole number before calculating order cost. Round all other numbers to the nearest whole number and enter as #,###
Warehouse Orders Independently
Orders optimize joint costs
Economic Quantity Ordered by Warehouse
3,005
Quantity that minimizes total cost
Warehouse ordering cost
$
4,200
Warehouse ordering cost
$
Warehouse holding cost
4,192
Warehouse holding cost
Warehouse total cost
8,392
Warehouse total cost
9,831
Distributer order cost
16,800
Distributer order cost
Distributer holding cost
2,479
Distributer holding cost
Distributer total cost
19,279
Distributer total cost
13,995
Total cost across both parties
$
27,671
Total cost across both parties
$
What exactly are the supply chain dollar savings from ordering at a quantity that optimizes supply chain costs?
$
What is the minimum amount that Caleb could consider accepting to change his Order Quantity?
$
Warehouse
Annual Demand (D)
126,000
Order cost per lot (S)
$ 100
Unit cost (C)
$ 9.00
Holding cost factor (k)
31%
Distributer
Order cost per lot (S)
$ 400
Unit cost (C)
$ 7.50
Holding cost factor (k)
22%
Explanation / Answer
This is my answer
The Copy Shop runs 1000 copy jobs per week. The probability of their copy machine jamming on any one job is 0.002. What is the probability that The Copy Shop can get through a week with no jams?
this is a binomial distribution because we have "p" and "n" the parameters of a binomial distribtuon
Thank you...
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