A jewelry shop procures a ring at $20 each and sells it at $80 each. Weekly demands for the ring over the past 20 weeks are as follows. Demand 51 52 53 54 55 | 56 57 58 59 60 Frequency 0 1 2 3 4 3 2 | 2 | 2| 1 What are the under-stocking and over-stocking costs for the shop? What is the newsvendor critical ratio? How many rings per week should the shop order? Suppose that the weekly demand is uniformly distributed between 40 and 80. How many rings per week should the shop order?
A jewelry shop procures a ring at $20 each and sells it at $80 each. Weekly demands for the ring over the past 20 weeks are as follows. Demand 51 52 53 54 55 | 56 57 58 59 60 Frequency 0 1 2 3 4 3 2 | 2 | 2| 1 What are the under-stocking and over-stocking costs for the shop? What is the newsvendor critical ratio? How many rings per week should the shop order? Suppose that the weekly demand is uniformly distributed between 40 and 80. How many rings per week should the shop order?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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