Pointe Au Chien Containers, Inc

question 131

Essay

Pointe au Chien Containers, Inc., manufactures in batches; the manufactured items are placed in stock. Specifically, the firm is questioning how best to manage a specific wooden crate for shipping live seafood, which is sold primarily by the mail/phone order marketing division of the firm. The firm has estimated that carrying cost is $4 per unit per year. Other data for the crate are: annual demand 60,000 units; setup cost $300. The firm currently plans to satisfy all customer demand from stock on hand. Demand is known and constant.
a. What is the cost minimizing size of the manufacturing batch?
b. What is the total cost of this solution?

Use normal distribution concepts to approximate binomial distributions in real-world scenarios.

Understand the process of standardizing a normal random variable.

Apply the formulas for expected value, standard deviation, and probability in binomial and normal distributions.

Understand the importance of sample size in approximating binomial distributions with normal distributions.

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Definitions:

Disturbance

An interruption of peace, order, or normal functioning; often referring to an environmental or ecological disruption.

Vulnerable to Stress

Describes individuals or organisms that are more likely to experience negative outcomes or harm as a result of stressful situations or environments.

Stress

The physiological and psychological response to a condition that threatens or challenges a person and requires some form of adaptation or adjustment.

Schizophrenia

Schizophrenia is a chronic brain disorder characterized by delusions, hallucinations, disorganized speech and behavior, and impaired cognitive ability.