You own a grocery store and need to manage the inventory of bananas. The bananas last 5 days before they go bad and must be removed from the shelf. You know a single- period inventory model is the right way to manage the inventory of bananas so you calculate the underage cost to be $2.20 per bunch and the overage cost to be $0.80 per bunch. If the average demand for bananas over a 5-day period (your "selling season") is 129 bunches with a standard deviation of 46 bunches, how many bunches of bananas should you purchase every 5 days to maximize your profit?

You own a grocery store and need to manage the inventory of bananas. The bananas last 5 days before they go bad and must be removed from the shelf. You know a single- period inventory model is the right way to manage the inventory of bananas so you calculate the underage cost to be $2.20 per bunch and the overage cost to be $0.80 per bunch. If the average demand for bananas over a 5-day period (your "selling season") is 129 bunches with a standard deviation of 46 bunches, how many bunches of bananas should you purchase every 5 days to maximize your profit?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A perishable dairy product is ordered daily at a particular supermarket. The product, which costs $1.23 per unit, sells for $1.74 per unit. If units are unsold at the end of the day, the supplier takes them back at a rebate of $1 per unit. Assume that daily demand is approximately normally distributed with µ = 145 and σ = 25.Note: Use Appendix B to identify the areas for the standard normal distribution. What is your recommended daily order quantity for the supermarket? Round your answer to the nearest whole number.Q* = fill in the blank 1 What is the probability that the supermarket will sell all the units it orders? Round your answer to three decimal places.P(Stockout) = fill in the blank 2 In problems such as these, why would the supplier offer a rebate as high as $1? For example, why not offer a nominal rebate of, say, 25¢ per unit? What happens to the supermarket order quantity as the rebate is reduced?The lower rebate the quantity that the supermarket should order.
In response to customer complaints about rising prices of food items, a supermarket responds by making the following offer: For every $10 of purchase, the customers will earn $1 worth of coupons and this way they will end up making twice as much as the supermarket. If the supermarket makes $500 worth of total sales to all customers taken together, how much will it need to restrict its costs to so as to honour the offer?
A grocery store orders frozen pies in batches from a bakery and sells them in the grocery store. Storing one frozen pie for a year costs $0.85. When the grocery store reorders pies, there is a fixed cost of $8.05 per order as well as $1.15 per pie. Each year, they sell 3500 frozen pies. What is the optimal number of pies to order in each order to minimize their total inventory costs.
Your store sells notebooks at P80.00. You make 7% profit on these items. The product has not been selling well and you are considering having a promo. If running a promo event costs you P800.00 to implement, and you'd like to offer the merchandise at P76.00, how much do you have to sell to break even?
Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 60,500 units per year, an ordering cost of $12 per order, and carrying costs of $1.20 per unit.a. What is the economic ordering quantity?___________Units b. How many orders will be placed during the year? __________Orders c. What will the average inventory be? ____________Units d. What is the total cost of ordering and carrying inventory? $____________
Homoward Hardware buys cat liter for $6 less 20% per bag. The store's overhead is 45% of cost and the owner requires a profit of 20% of cost (a) (b) (c) (d) (e) (7) For how much should the bags be sold? What is the amount of markup included in the selling price? What is the rate of markup based on selling price? What is the rate of markup based on cost? What is the break-even price? What operating profit or loss is made if a bag is sold for $7 509
Let's say a retail outlet sells a seasonal product for $10 per unit. The cost of the productis $8 per unit. All units not sold during the regular season are sold for half the retailprice in an end-of-season clearance sale. Assume that demand for the product isuniformly distributed between 200 and 800. (please answer a-c) thank you a. What is the recommended order quantity?b. What is the probability that at least some customers will ask to purchase the product after the outlet is sold out? That is, what is the probability of a stock-out using your order quantity in part (a)?c. To keep customers happy and returning to the store later, the owner feelsthat stock-outs should be avoided if at all possible. What is your recommended orderquantity if the owner is willing to tolerate a 0.15 probability of a stock-out?
The New York Times sells a weekly magazine which advertises local second-hand goods. The owner can buy the magazine for 15 cents each and sell them at the retail price of 25 cents. At the end of each week unsold magazines are obsolete and have no value.The owner estimates a probability distribution for weekly demand which looks like this:Weekly demand in units Probability10 0.2015 0.5520 0.25 1.00(i) What is the EV of demand? (ii) If the owner is to order a fixed quantity of magazines per week how many should that be? Assume no seasonal variations in demand.
A Store has annual demand of 29,000 units. The annual carrying cost for a unit is $15.5, and the ordering cost is $400. The supplier routinely charges the store $17 per unit. However, the supplier has offered a discount price of $15.5 per unit if the store will order 8,800 units. A How much should the store order? B.What will be the total annual inventory cost for that order quantity? DA The store should order 8,800 units. OB. The store should order 7,800 units. OC The total annual inventory cost for that order quantity is $420,175.12 DD. The total annual inventory cost for that order quantity is $511,963.12 OE. The total annual inventory cost for that order quantity is $519,018.18 DF. The store should order 1,223.4 units.
Mama Mia's Pizza purchases its creamy garlic dipping sauce from a supplier. Mama Mia's delivers on-average 225 pizzas each month. Typically, 86 of those orders also include a side order of creamy garlic dipping sauce. The sauces cost $0.35 each, and each order costs $5.50 to process. Because of limited storage space, the manager wants to charge inventory holding at 5 percent of the cost. Determine the economic order quantity. A) 805 B) 86 OC) 233 D) 806
As shown below, a shop purchases and sells a certain type of product. Purchasing price : $10 per unit Selling price : $15 per unit Fixed cost : $1,000 How many units are sold at a “break even” point, where there is neither a profit nor a loss?
You place and order for 100 units of inventory at a unit price of P 50.00. The supplier offers terms of 3/30, net 90. How long do you have to pay before the account is overdue? If you take the full period, how much should you remit? How much is the discount offered? How quickly must you pay to get the discount? If you take the discount, how much should you remit? If you don’t take the discount, how much interests are you paying implicitly? How many days’ credit are you receiving?

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