OPRS3113_ Test #1 Show Allthe Work Name. ie. a \le 26 1. An airline uses D talights per year. Each time an order for tallights is placed, an ordering cost of $K is incurred, and the holding cost is $h per light per year. Assume that demand occurs at a constant rate and shortages are not allowed. aise out the mathematica formula of the total annual cost TC(q). | (Spts) on sgt ‘ling coek | pardon, «ess Beem Meee bo Placed ch year? (3 pts) oles = NW ¢. How much time will elapse between thé placements of the.orders? (3 pts) one \ or 7b cache te th s if . S a v 2. acty month, a gas station sells 5000 gallons of gasoline. Each time the parent company refils the station's tank, it charges the station $50 plus $2.00 per gallon. The annual cost of holding a gallon of gasoline is $1 Nae a. How large should the “es pts) vey a fe) | eee \ Se ) Y = to ve /-b. ifthe lead time is two weeks, ind the reorder pont. (3 pts) Vero > Lbtat > (Gxec) = 20 .62 Lor cc. If the lead time is 10 weeks, find the re-order point. Assume one Wiese is equal to 52 weeks. sa BUD sa Men Ve-ockr pb ae Ob } & 590 EOC3.4 firm buys a product using the price schedule given in the following table. The firm estimates holding cost at 10% of the purchase price per year and ordering cost at $40 per order. The firm's annual demand is 460 units. 2, Determine the size of each order. (11 pts iin tet 2 UW © - g2s 4 rs GNSS »ywo.Aac \ apres S200 nik oleae sarah wb Aa (wou every ot Fo : 3139.17 wok denies lobe. = 4 aa =~ uPA)» IT A 4 Preece A oN \S7S1S 4. A bakery can produce 400 pies per day; the cost per praduction run is $180; and the holding cost is estimated to be $5 per pie per year. The bakery operates 250 days per year, and has an annual demand of 37500. The unsold pies are stored in a refrigerated warehouse with a current \\ maximum capacity of 2000 pies. worse D pres / dan x BO THWO pes! ray agate Ja. what production run size should be used? (4 ps) (yf EQS *s Fi oe tot Smal ent need n meeting the annual demand. (4 pts) « ve Teal lean "tor oF or jo “eojee2) eD16L9OTI So ese . How many days per year will the bakery be producing pies? (3 pts) “VL G24 ,O9N-\2 iS 21,00 '% Wen | Fae ey, ATE AN dows wie 1600. Consider a deterministic EOQ model with back orders allowed. Let q be the order quantity and g-M the maximum shortage that occurs under an ordering poliey. ‘a, Identify the lengths of 08, OA, and AB, (6 pts} b. The total annual cost TC{q, M) consists of Holding cost/year, shortage cost/year, and order cost/year. Mathematically express each of these costs, first during each cycle and then annually, (7 pts)6. A publisher plans to print the new edition of its bestselling OR textbook next year. The sales department believes that new edition’s demand is governed by the distribution in the table below, The publisher will sell each copy for $150, and the cost of production is estimated to be $65 per copy. Any copies left at the end of the next year can be sold for $40 each. In order to maximize the expected profit from the sale of the new edition, how = many copies should be printed? Answer the question by doing the following a. Write up the profit function P(d,q) for the case dq. (7 pts) * b, Find the optimal value of g. (6 pts) Ih 3 Nes pa + aq *Uolq-d) ha zq, = Wo pe A) | R= 10 Ponty 20 baten, 5,000.30 rece tee 7. The American Bar Asseiation (ABA) is holding its annual convention in Las Vegas. Six month before the start of the convention, the ABA must decide how many rooms should be reserved in the convention hotel. At this time, the ABA can reserve rooms at the cost of $150/room. While the ABA does not know with certainty how many people will attend the convention, it estimates that number of rooms required is normally distributed with a mean of 5000 and a standard deviation of 2000 rooms. If the number of rooms required exceeds the number of rooms reserved at the convention hotel, extra rooms will have to be found at nearby hotels at a cost of ‘$210/room. It is inconvenience for the participants to stay at neighboring hotels; the cost of this inconvenience is estimated at an additional cost of $40 for each room obtained in a neighboring hotel. If the goal is to minimize the expected cost to the ABA and its members, determine the number of rooms should the ABA reserve at the convention hotel. (13 pts) -\SD+ 26D jo 2 e es wre fz rfY¥o > feso ey apaeeo8. Each year, a store sells an average of 1000 TI-89 calculators. Annual demand for the calculators is normally distributed with a standard deviation of 41 calculators. The store orders the calculators from a regional distributor; each order is filled in two weeks, the cost of placing each order is $50, and the annual holding cost is $1 0/calculator. The per- unit stock-out cost (loss of goodwill and cost of placing a special order)is assumed to be $20. The store pays $40 for each calculator and sells it for $60. Assuming that all stock- out result in lost sales. a. Determine the EOQ in order to minimize the expected cost. (4 pts) b, Find the optimal re-order point. (5 pts) Find the expected annual holding cost. (4 pts) a o=4 \ = 2wedes | e-hso I= thofeclebaor \o ( \ve) | oles) +2009) PU) >> one