The Rose Warehouse Buys Roses Each Week from Panama

question 1

Essay

The Rose Warehouse buys roses each week from Panama.A toll?free long distance call is made on Saturday night, and early Monday morning roses arrive at the airport in a box refrigerated with dry ice.The roses cost $8 a dozen and are sold on a cash-and-carry basis for $28 a dozen.Roses left over at the end of the week are put in a trash collector in an alley behind the store.Past sales (rounded to the nearest ten dozen) are as follows:
The owner of the Rose Warehouse wants to compare two ordering rules for ordering roses: (1) order last week's demand plus 10 dozen extra (as safety stock), (2) order 130 dozen every week.He wants to run an eight-week simulation to compare the average weekly profit for the two rules.Last week's demand was for 110 dozen.He generated the following random numbers for weeks 1-8, respectively: 63, 13, 67, 50, 71, 25, 44, and 00.
a.What is the random number range corresponding to 130 dozen roses demanded?
b.Using ordering rule 1, what is the profit for week 3?
c.Using ordering rule 2, what is the profit for week 6?
d.What is the average profit over all eight weeks for ordering rule 1?

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Definitions:

Asset Accounts

Representations on a balance sheet of value held, including cash, property, and equipment owned by the entity.

Regular Earnings

The standard amount of income received by an employee before any deductions or overtime.

Form 941

A quarterly federal tax form filed by employers to report income taxes, Social Security tax, or Medicare tax withheld from employees' paychecks, and to pay the employer's portion of Social Security or Medicare tax.

Employee Deductions

Amounts withheld from an employee's paycheck, often for taxes, insurance premiums, retirement contributions, and other benefits.