Daily demand for a type of sandwich sold at DoorRed Cafe (DRC) is normally distributed with a mean of 65 and a standard deviation of 27. DRC orders the sandwiches from a wholesaler (everyday morning before 5:30 AM) at a wholesale price of $4 per sandwich and sells them at a retail price of $7 per sandwich. Pursuant to the contract between DRC and its wholesaler, the transportation cost is currently borne by the wholesaler. The wholesaler does not take back any unsold sandwiches. However, DRC can sell any unsold inventory at a discounted price of $3 after 5:00 PM every day. d) Now suppose that the contract between DRC and its wholesaler expires and pursuant to the new contract, if DRC orders more than 56 sandwiches (anything more than or equal to 57), the transportation cost is no longer borne by the wholesaler and DRC will have to pay $30 for transportation. If DRC orders less than or equal to 56, the transportation cost for DRC is still zero. What is DRC’s optimal order quantity for this type of sandwich now? (Hint: think about optimal order quantity and then the quantity limited by the transportation cost)
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Daily demand for a type of sandwich sold at DoorRed Cafe (DRC) is
d) Now suppose that the contract between DRC and its wholesaler expires and pursuant to the new contract, if DRC orders more than 56 sandwiches (anything more than or equal to 57), the transportation cost is no longer borne by the wholesaler and DRC will have to pay $30 for transportation. If DRC orders less than or equal to 56, the transportation cost for DRC is still zero. What is DRC’s optimal order quantity for this type of sandwich now? (Hint: think about optimal order quantity and then the quantity limited by the transportation cost)
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