The newsvendor model also called single-period model is nothing but the mathematical model which is used to determine the optimal quantity of perishable product that needs to maintained which is calculated based on fixed price and uncertain demand. Since the product is perishable and demand is uncertain the unsold items are worthless at the end of the day so newsvendor problem is solved to identify the optimal inventory level.
3. Ernie's Fish Market sells fresh trout. Trout are bought in Denver at $2.00 per fish (including...
(8 points) Piyadasa's Fish Market buys fresh tilapia daily for $5.85 per pound and sells it for $7.80 per pound. At the end of each business day, any remaining tilapia is sold to a producer of cat food for $3.50 per pound. Daily demand can be approximated by a normal distribution with a mean of 180 pounds and a standard deviation of 50 pounds. What is the optimal order quantity? 4.
plz, answer both question a) and b).
ABC's Fish Market buys fresh Boston bluefish daily for $4.20 per kilogram and sells it for $5.70 per kilogram. At the end of each business day, any remaining bluefish is sold to a producer of cat food for $2.4 per kilogram. Daily demand can be approximated by a normal distribution with a mean of 80 kilograms and a standard deviation of 10 kilograms. (a) What is the optimal stocking level? (b) What is...
Question 1 Not yet answered Marked out of Skinner's Fish Market buys fresh Boston bluefish daily for $4.20 per pound and sells it for $5.70 per pound. At the end of each business day, any remaining bluefish is sold to a producer of cat food for $2.40 per pound. Daily demand can be approximated by a normal distribution with a mean of 108 pounds and a standard deviation of 9 pounds. What is the optimal stocking level? Round your answer...
c) The demand function for books in Pick n Pay is given by P quantity demanded and P is the price per book. 50-0.3Q, where Q is the i. Find the number of books that will be bought when the price is K2. ii. iii. Find the price elasticity of the demand when the number of books bought is 30. ] Calculate the percentage change in quantity demanded when the price increases by 10% (use the coefficient price elasticity of...
Sam's Cat Hotel operates 52 weeks per year, 5 days per week, and uses a continuous review inventory system. It purchases kitty litter for $11.25 per bag. The following information is available about these bags. Refer to the for z-values. >Demand 96 bags/week > Order cost $58/order > Annual holding cost 28 percent of cost >Desired cycle-service level 90 percent > Lead time #2 week(s) (10 working days) >Standard deviation of weekly demand 10 bags >Current on-hand inventory is 300...
SYNOPSIS The product manager for coffee development at Kraft Canada must decide whether to introduce the company's new line of single-serve coffee pods or to await results from the product's launch in the United States. Key strategic decisions include choosing the target market to focus on and determining the value proposition to emphasize. Important questions are also raised in regard to how the new product should be branded, the flavors to offer, whether Kraft should use traditional distribution channels or...