Operation management Discussion Essay Assignment
Order ID: 89JHGSJE83839 Style: APA/MLA/Harvard/Chicago Pages: 5-10 Instructions:
two questions in files!!!!!
The EagleEye is a small firm that manufactures special ski goggles. The company has the opportunity to sell a particular model to The Outdoor Store, a well-known retailer of sports and outdoor gear. The EagleEye is considering signing a business contract with The Outdoor Store. Here is how the contract works.
Contract-1. The Outdoor Store will order the goods from EagleEye three months before the winter season. EagleEye will produce the exact quantity that The Outdoor Store orders. All units produced will be shipped to the store at the beginning of the winter season. EagleEye will sell the product to The Outdoor Store for $125 per unit and agrees to credit the The Outdoor Store $53 for each unit returned to EagleEye at the end of the winter (because those units did not sell).
The seasons demand for this model at The Outdoor Store will be normally distributed with mean of 500 units and standard deviation of 100 units. The Outdoor Store will sell the ski goggles for $200 per unit. EagleEye produces each google at a cost of $95. Since styles change from year to year, there is essentially no value of returned merchandise to EagleEye.
Answer the following questions based on the information provided. Use the Excel spreadsheet for the Newsvendor Problem in your answers. Each question is 1 point.
a)The Outdoor Store will use the newsvendor model. What is unit cost of overage for The Outdoor Store? What is the unit cost of underage for The Outdoor Store?
b)What is the critical fractile value if The Outdoor Store decides to use the optimal newsvendor quantity in Contract-1?
c)What is the optimal order quantity of The Outdoor Store if Contract-1 is used?
d)What is the expected lost sales for The Outdoor Store if the optimal order newsvendor quantity is used under Contract-1?
e)What is the expected amount of leftover inventory for The Outdoor Store if the optimal order newsvendor quantity is used under Contract-1?
f)What is the expected number of units that The Outdoor Store can sell if the optimal order newsvendor quantity is used under Contract-1?
g)What is the expected fill rate of The Outdoor Store if the optimal order newsvendor quantity is used under Contract-1?
h)What is the expected profit of The Outdoor Store if The Outdoor Store orders the sunglasses from the manufacturer using the optimal newsvendor quantity in Contract 1?
i)What is the expected profit for EagleEye (the manufacturer) in Contract 1 when The Outdoor Store uses the optimal newsvendor quantity? Assume EagleEye produces only as much as the quantity ordered by The Outdoor Store.
j)What are the pros and cons of Contract-1 to The Outdoor Store?
k)What are the pros and cons of Contract-1 to The EagleEye?
RUBRIC
Excellent Quality
95-100%
Introduction 45-41 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Literature Support
91-84 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Methodology
58-53 points
Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met.
Average Score
50-85%
40-38 points
More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided.
83-76 points
Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration.
52-49 points
Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met.
Poor Quality
0-45%
37-1 points
The background and/or significance are missing. No search history information is provided.
75-1 points
Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration.
48-1 points
There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met
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