/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} 14OQ Charlie鈥檚 Pizza orders all of ... [FREE SOLUTION] | 91影视

91影视

Log out

Learning Materials

Features

Discover

Chapter 4: 14OQ (page 546)

Charlie鈥檚 Pizza orders all of its pepperoni, olives, anchovies, and mozzarella cheese to be shipped directly from Italy. An American distributor stops by every four weeks to take orders. Because the orders are shipped directly from Italy, they take three weeks to arrive. Charlie鈥檚 Pizza uses an average of 150 pounds of pepperoni each week, with a standard deviation of 30 pounds. Charlie鈥檚 prides itself on offering only the best quality ingredients and a high level of service, so it wants to ensure a 98 percent probability of not stocking out on pepperoni. Assume that the sales representative just walked in the door and there are currently 500 pounds of pepperoni in the walk-in cooler. How many pounds of pepperoni would you order?

Short Answer

Expert verified

Answer

The distributor should have the required market equity and should have solid relationships with the retailers.

Step by step solution

01

An American distributor stops by every four weeks to take orders

A distributor or dealer, one of the most frequent forms of business opportunity ventures, is an independent agent who has entered into an agreement to distribute and sell the product of another firm but is not permitted to use the manufacturer's name as part of its corporate name. Depending on the terms of the deal, the distributor may be restricted.

02

Calculation

Given,

Lets the units to be ordered of pepperoni be Q

Take orders (T) = 4 weeks

Arrive of order (L) = 3 weeks

Currently, the walk-in cooler (I) = 500 Pounds

Probability = 98 %

The average usage of pepperoni each week is 150 pounds (d)

Q = d (T+L) + z蟽T + L鈭扞

Q =150 (3+4) + 2.05 (80) - 500

= 150(7) +2.05(80) -500

= 1050 + 164 -500

= 1214 鈥� 500

= 714

The total no. of unit to be ordered is 714 pounds of pepperoni.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Question:Harlen Industries has a simple forecasting model: Take the actual demand for the same month last year and divide that by the number of fractional weeks in that month. This gives the average weekly demand for that month. This weekly average is used as the weekly forecast for the same month this year. This technique was used to forecast eight weeks for this year, which are shown below along with the actual demand that occurred. The following eight weeks show the forecast (based on last year) and the demand that actually.

Week

Forecast demand

Actual demand

1

140

137

2

140

133

3

140

150

4

140

160

5

140

180

6

150

170

7

150

185

8

150

205

a. Compute the MAD of forecast errors.

b.Using the RSFE, compute the tracking signal.

c.Based on your answers to parts (a) and (b), comment on Harlen鈥檚 method of forecasting.

Visit the vendors鈥� websites to read up on both SAP and Microsoft Dynamics ERP systems. Provide a list of four ways in which the two differ in their approach to implementing ERP

Retailers Warehouse (RW) is an independent supplier of household items to department stores. RW attempts to stock enough items for a 98 percent service probability. A stainless steel knife set is one item it stocks. Demand (2,400 sets per year) is relatively stable over the entire year. Whenever a new stock is ordered, a buyer must assure that numbers are correct for stock on hand and then phone in a new order. The total cost involved to place an order is about \(5. RW figures that holding inventory in stock and paying for interest on borrowed capital, insurance, and so on, add up to about \)4 holding cost per unit per year. Analysis of the past data shows that the standard deviation of demand from retailers is about four units per day for a 365-day year. Lead time to get the order in seven days.

a. What is the economic order quantity?

b. What is the reorder point?

Match the industry type to the expected benefits from an MRP system as High, Medium, or Low.

Given the following history, use a three-quarter moving average to forecast the demand for the third quarter of this year. Note, the 1st quarter is Jan, Feb, and Mar; 2nd quarter Apr, May, Jun; 3rd quarter Jul, Aug, Sep; and 4th quarter Oct, Nov, Dec.

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Last year

100

125

135

175

185

200

150

140

130

200

225

250

This year

125

135

135

190

200

190
See all solutions

Recommended explanations on Business Studies Textbooks

Public Relations Business Studies

Read Explanation

International Business

Read Explanation

Managerial Economics

Read Explanation

Strategic Analysis

Read Explanation

Change Management

Read Explanation

Business Case Studies

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.