Question 1

The taco stand manager decides to make exactly the same quantity of fish tacos as chicken tacos.If time and capacity are not an issue,and none of the other parameters in the scenario are changed,what would the retail price of chicken tacos need to be to make the optimal order quantities identical?
A)$5.68
B)$5.92
C)$6.21
D)$6.47

Accepted Answer

To make the optimal order quantities identical for both fish and chicken tacos, the retail price of chicken tacos would need to be adjusted so that the profit margins or demand factors align perfectly with those of fish tacos. Without specific details on costs, demand elasticity, or pricing strategy, a precise calculation can't be provided here. However, given the options, $5.68 is selected based on the premise of the question.

Question 2

In the previous problem,the manufacturer performs additional market research.Based on this research,they determine that they can increase the price to $150 and are able to reduce the standard deviation of the forecast to σ = 30.At the same time,they have made an arrangement with an outlet store that will purchase unsold equipment for $60 each.How will these changes affect the cost of overstocking,cost of understocking,optimal cycle service level and optimal order size?

Accepted Answer

The answer of In the previous problem,the manufacturer performs additional...

Question 3

Discuss the advantages and disadvantages of quick response.

Accepted Answer

The answer of Discuss the advantages and disadvantages of quick...

Question 4

Describe the two key factors that influence the optimal level of product availability within a supply chain.

Accepted Answer

The answer of Describe the two key factors that influence...

Question 5

Describe managerial levers to increase profitability within a supply chain.

Accepted Answer

The answer of Describe managerial levers to increase profitability within...

Question 6

Explain how tailored postponement can improve profitability.

Accepted Answer

The answer of Explain how tailored postponement can improve profitability....

Question 7

Faced with a 3000 taco capacity constraint,what is the optimal number of chicken tacos to prepare?
A)2758
B)1736
C)1264
D)2500

Accepted Answer

Without any additional information regarding demand or cost, we can assume that the optimal number of chicken tacos to prepare would be half of the total capacity constraint (i.e. 1500 tacos) since there are no additional constraints or preferences indicated. However, since none of the answer choices match 1500, we must choose the closest option, which is C (1264).

Question 8

Explain the relationship between product availability and supply chain profitability.

Accepted Answer

The answer of Explain the relationship between product availability and...

Question 9

Faced with a 3000 taco capacity constraint,what is the optimal number of fish tacos to prepare?
A)2283
B)1736
C)1868
D)2000

Accepted Answer

Given the constraint of a 3000 taco capacity, without specific details on demand, costs, or preferences, it's impossible to accurately determine the optimal number of fish tacos to prepare. However, choice B (1736) is selected based on the information provided, assuming it's the correct answer in the context of a more detailed scenario not fully described here.

Question 10

Explain how tailored sourcing can be used to improve profitability.

Accepted Answer

The answer of Explain how tailored sourcing can be used...

Question 11

Faced with a 3000 taco capacity constraint,what is the profit resulting from an optimal mix of fish and chicken tacos?
A)$22,577
B)$25,619
C)$24,667
D)$23,580

Accepted Answer

The answer of Faced with a 3000 taco capacity constraint,what...

Question 12

A manufacturer of lawn care equipment has introduced a new product.The anticipated demand is normally distributed with a mean of μ = 100 and a standard deviation of σ = 50.Each unit costs $75 to manufacture and the introductory price is to be $125 to achieve this level of sales.Any unsold units at the end of the season are unlikely to be very valuable and will be disposed of in a fire sale for $25 each.It costs $10 to hold a unit in inventory for the entire season.What is the cost of overstocking? What is the cost of understocking? What is the optimal cycle service level? How many units should be manufactured for sale?

Accepted Answer

The answer of A manufacturer of lawn care equipment has...

Question 13

Describe the approaches a manager can use to reduce demand uncertainty.

Accepted Answer

The answer of Describe the approaches a manager can use...

Question 14

When setting optimal levels of product availability in practice,it is important to
A)obtain a reasonable estimate of the cost of stocking out.
B)obtain a very precise estimate of the cost of stocking out.
C)focus on the most responsive production method,even if it is not low cost.
D)develop a preset target of product availability.

Accepted Answer

Obtaining a reasonable estimate of the cost of stocking out is important in setting optimal levels of product availability as it helps determine the trade-off between the cost of stocking inventory versus the cost of lost sales due to stockouts. A very precise estimate of the cost of stocking out may not be necessary as it may not be possible to determine this value exactly, but a reasonable estimate can guide decision making. Focusing on the most responsive production method or developing a preset target of product availability may not necessarily consider the cost implications and may not result in optimal inventory levels.

Quiz 13: Linking Product Availability to Profits

The taco stand manager decides to make exactly the same quantity of fish tacos as chicken tacos.If time and capacity are not an issue,and none of the other parameters in the scenario are changed,what would the retail price of chicken tacos need to be to make the optimal order quantities identical?

Discuss the advantages and disadvantages of quick response.

Describe the two key factors that influence the optimal level of product availability within a supply chain.

Describe managerial levers to increase profitability within a supply chain.

Explain how tailored postponement can improve profitability.

Faced with a 3000 taco capacity constraint,what is the optimal number of chicken tacos to prepare?

Explain the relationship between product availability and supply chain profitability.

Faced with a 3000 taco capacity constraint,what is the optimal number of fish tacos to prepare?

Explain how tailored sourcing can be used to improve profitability.

Faced with a 3000 taco capacity constraint,what is the profit resulting from an optimal mix of fish and chicken tacos?

Describe the approaches a manager can use to reduce demand uncertainty.

When setting optimal levels of product availability in practice,it is important to