Business Decision Models ____________________________________________________________ ________________________ Question 1 (10 marks) Sandra Enright of Techtronics Inc., an electronics supply firm, has been examining the times required for stock pickers to fill orders requested from inventory. She has determined that individual order-filling times approximately follow a normal distribution with a mean value of 3.2 minutes and standard deviation of 68 seconds. a) What is the probability that a randomly selected order will require more than three minutes? b) What is the probability that a randomly selected order will require less than two minutes? c) What is the …show more content…
In answering the following questions, you may assume that these parameters are known exactly. a) What is the probability that a randomly selected order will require more than six days? b) What is the probability that a randomly selected order will require between three and six days? c) The company is considering a $50 cash-back guarantee on any orders that have delivery times longer than a specified maximum but are not sure what maximum time to guarantee. They would be willing to pay out the guarantee on no more than 3% of their deliveries. What time limit in whole days should they set for their guarantee? d) What is the probability that the mean time for a sample of fifteen randomly selected orders will be more than six days? Assignment One - Solutions Question 1 a) 1 – NORMDIST(3,3.2,1.133,1) = 0.57 b) NORMDIST(2,3.2,1.133,1) = 0.1448 c) NORMDIST(3,3.2,1.133,1) – NORMDIST(2,3.2,1.133,1) = 0.2851 d) =NORMINV(0.95,3.2,1.133) = 5.064 minutes Question 2 Part a Part b Daily profit is quite good at about $329, but note that the standard deviation is large by comparison at about $794. Gerald can thus expect to experience a lot of volatility in his profits. Question
Using the primary DEP suppliers (60 percent of business) the minimum performance cycle for the supply chain is eight days and the maximum is 25 days. This is based of size and scope of the order and delivery constrains.
We know that the order entry system is working poorly because the cycle time exceeds the customer timeline, but
Since production goes on for 8 hrs per day, manufacturing lead time = 5880 / (8 * 60)
Using Inventory Turnover to Calculate Average Days to Sell a Product. Once the inventory turn rate is calculated then calculating the number of days it takes for the power tool company to clear its inventory is 365 days divided by inventory turn rate of 5 times per year, take 365 ÷ 5. The answer 73 is the number of days it takes to go through its inventory. This method can also be used for benchmarking against companies in the same business. This will help compare the inventory turnover rates.
The process speed to sales rate is approximately 7 weeks to 1 X32 (7 weeks to 1 unit). This is based on the average identified by applying tap to the based of various X32 over a period of two weeks. However, the quantity requested by the customer can vary according to the month.
This document is to serve as a guideline on how DELAY times are to be administered for on-standard activities within all of our US and Canadian Distribution Centers. While it is intended to be a guideline, it is necessary that we maintain consistency across all of our operations.
If the company will take a full advantage of the trade discount, company’s number of days purchases is 10 days.
For this new product, each station represents about a 24 hour time window for cycle time. This is aligned with takt as customers are given the expectation that orders take 2 weeks on average to be installed. Customers are willing to wait the two weeks to ensure the install goes smooth. This way, the security of their business is not compromised. Expedites can be taken on a case to case basis, but none have been requested to this point.
First of all you can see, Mr. Dhawan have chance of occurring On- time delivery are 80 percent, in this case he has revenue is $493,400 exceed the qualifying minimum of 150,000 INR, the order qualified for Government incentives and Government incentives are: 57%*$493, 400 = $281,238. But in late delivery case, he has 3 situation:
The final ratio we will analyze is the average collection period which measures the time it takes a firm to receive payments after a sale has been made. The average collection period was 55 days for 2001 and 42 days for 2000. While these numbers seem to be very high the reader needs to remember that they are dealing with a large ticket item and financing is usually arranged and payments from the finance company could take more time than cash payments that are normal in the traditional retail marketplace.
3. The balance due hereunder shall be mailed within ten working days following the performance.
C: Take Order – Cart – Deliver – Bill → 4 + 10 + 12 + 2 = 28 mins
The probability here suggests the demand that is less than or equal to the recommended order quantity, and C1 is the cost of stock out loss per unit, and C2 is the cost of unsold inventory per unit. According to the background information, Specialty will sell Weather Teddy for $24 per unit and the cost is $16 per unit. So, we can see that C1= $24 - $16 = $8. If inventory remains after the holiday season, Specialty will sell all surplus inventory for $5 a unit. So, C2 = $16 - $5 = $11. Therefore, we get P(Demand <=Q) = 8/(8+11) = 0.4211. And the sketch
Submit your order in a few minutes and get the job done in hours. Authors have to deliver their work within tight deadlines - less than an hour for 100 words. For urgent needs, you can choose the Priority Order option.
3.4.1. The average response time should be less than 4 seconds 80% of the time, and less than 8 seconds 99% of the time for clients that are connected to the server directly.