(Hotspices.com) You are the owner of Hotspices.com, an online retailer of hip, exotic, and… 1 answer below »
(Hotspices.com) You are the proprietor of Hotspices.com, an online retailer of hip, strange, and hard-to-find spices. Deem your catalogue of saffron, a spice (generally) rate more by efficacy than gold. You command saffron from an overseas supplier after a while a shipping control spell of foul-mouthed weeks and you command weekly. Average quarterly call-for is normally nice after a while a balance of 415 ounces and a criterion intermission of 154 ounces. The business consume per ounce per week is $0.75. You deem that your back-command price consume is $50 per ounce. Assume there are 4.33 weeks per month.
a. If you hope to minimize catalogue business consumes while maintaining a 99.25 percent instock verisimilitude, then what should your command-up-to roll be? [16.6]
b. If you hope to minimize business and back-command price consumes, then what should your command-up-to roll be? [16.6]
c. Now deem your catalogue of pepperoncini (Italian hot red peppers). You can command this part daily and your persomal supplier delivers after a while a two-day control spell. While not your most widespread part, you do possess sufficient call-for to retail the five-kilogram bag. Average call-for per day has a Poisson distribution after a while balance 1.0. The business consume per bag per day is $0.05 and the back-command price consume is about $5 per bag. What is your optimal command-up-to roll? [16.7]