MGT 3900: Quiz 2 With Complete Questions
And Answers 100% Solved
the overage cost measures the ______ per unit. - ANSWER loss
the newsvendor chooses an order quantity by comparing the expected _______ of the nth unit
with the expected benefit. - ANSWER cost
The news vendor model is appropriate for setting where a customer will wait for the next
shipment to show up in cases where a store runs out of inventory - ANSWER false
the expected loss associated with holding the qth unit in inventory _______ as Q increases. -
ANSWER increases
the higher the underage cost the _______ the critical ratio. - ANSWER higher
what item has the highest underage cost? - ANSWER selling price is $500, purchase price from
supplier is $100
which has the highest overage cost? - ANSWER purchase price is $100 ,Salvage value is $0.
if the expected benefit of having a 200th unit in inventory is less than the expected cost then
,the newsvendor will prescribe an order quantity that is at ________ 200 units. - ANSWER less
than
if the expected benefit of having a 300th unit in inventory is________ the expected cost of
having a 300th unit then the Newsvendor model prescribes an order quantity that is at least
300 units. - ANSWER greater than
the standard deviation of the standard normal distribution is _______. - ANSWER 1
true or false: demand often follows the standard normal distribution - ANSWER false
to use the graph method to find Q* you first find the point on the y-axis that equals
the ________. - ANSWER critical ratio
the larger the optimal order quantity for the standard normal distribution the _______ the
optimal order quantity for the true demand distribution. - ANSWER larger
suppose you are using a statistical table to determine Q* and the critical ratio is .612.
If F(300) =.598 and F (35) = .615 then the round-up rules states that you should choose
Q*=_______ - ANSWER 350
the mean of the standard normal distribution is___________. - ANSWER zero
, the expected number of units not sold at the end of the season is called expected________. -
ANSWER inventory
to derive the optimal order quantity for the true demand distribution from the optimal order
quantity for the standard normal distribution, multiply the ________ of the true demand
distribution by the optimal order quantity for the standard normal distribution. - ANSWER
-standard deviation
the probability that enough inventory is available to satisfy all demand is called the _______
probability - ANSWER in-stock
the expected number of units sold during the season at regular price is called expected ______.
- ANSWER sales
the order quantity prescribed by the newsvendor model optimizes which performance metric?
- ANSWER expected profit
the higher the in-stock probability, the ________ the likelihood that all demand is satisfied from
inventory. - ANSWER higher
the _____ the stockout probability, the more likely some customer will not be able to purchase
a unit. - ANSWER higher
if the z value for an order quantity Q is positive then Q must be _____the mean of the demand
And Answers 100% Solved
the overage cost measures the ______ per unit. - ANSWER loss
the newsvendor chooses an order quantity by comparing the expected _______ of the nth unit
with the expected benefit. - ANSWER cost
The news vendor model is appropriate for setting where a customer will wait for the next
shipment to show up in cases where a store runs out of inventory - ANSWER false
the expected loss associated with holding the qth unit in inventory _______ as Q increases. -
ANSWER increases
the higher the underage cost the _______ the critical ratio. - ANSWER higher
what item has the highest underage cost? - ANSWER selling price is $500, purchase price from
supplier is $100
which has the highest overage cost? - ANSWER purchase price is $100 ,Salvage value is $0.
if the expected benefit of having a 200th unit in inventory is less than the expected cost then
,the newsvendor will prescribe an order quantity that is at ________ 200 units. - ANSWER less
than
if the expected benefit of having a 300th unit in inventory is________ the expected cost of
having a 300th unit then the Newsvendor model prescribes an order quantity that is at least
300 units. - ANSWER greater than
the standard deviation of the standard normal distribution is _______. - ANSWER 1
true or false: demand often follows the standard normal distribution - ANSWER false
to use the graph method to find Q* you first find the point on the y-axis that equals
the ________. - ANSWER critical ratio
the larger the optimal order quantity for the standard normal distribution the _______ the
optimal order quantity for the true demand distribution. - ANSWER larger
suppose you are using a statistical table to determine Q* and the critical ratio is .612.
If F(300) =.598 and F (35) = .615 then the round-up rules states that you should choose
Q*=_______ - ANSWER 350
the mean of the standard normal distribution is___________. - ANSWER zero
, the expected number of units not sold at the end of the season is called expected________. -
ANSWER inventory
to derive the optimal order quantity for the true demand distribution from the optimal order
quantity for the standard normal distribution, multiply the ________ of the true demand
distribution by the optimal order quantity for the standard normal distribution. - ANSWER
-standard deviation
the probability that enough inventory is available to satisfy all demand is called the _______
probability - ANSWER in-stock
the expected number of units sold during the season at regular price is called expected ______.
- ANSWER sales
the order quantity prescribed by the newsvendor model optimizes which performance metric?
- ANSWER expected profit
the higher the in-stock probability, the ________ the likelihood that all demand is satisfied from
inventory. - ANSWER higher
the _____ the stockout probability, the more likely some customer will not be able to purchase
a unit. - ANSWER higher
if the z value for an order quantity Q is positive then Q must be _____the mean of the demand
