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Le Meridien in San Francisco has 160 rooms. The hotel has an ample low fare demand at the room rate of $200 per night, but the demand from the high fare class which pays $450 per night on average, is uncertain. The high fare demand is normally distributed with mean 60 and standard deviation 42. (The Normal distribution table is attached below.)  How many rooms should Le Meridien protect for high fare customers to maximize expected revenue?

One warehouse supplies 50 dealers with parts used by the dealers to repair their customers’ heavy equipment. Dealers currently place orders about once a week, because the ordering process is somewhat cumbersome – it is a paper process that must be filled out manually and faxed to the warehouse. The firm will implement a new system that will allow dealers to submit orders electronically. Because this process should be less cumbersome, it is expected that the dealers will submit orders more frequently, maybe some of them even daily. The new system is not expected to change customer demands for parts (i.e., the dealers’ demand processes will be unaffected). What change is this likely to have on the characteristics of the warehouse’s total daily demand (i.e., the total of the dealers’ orders on any given day)?

If the standard deviation of demand increases, what would happen to the optimal order quantity?

A manufacturer of exquisite clocks faces uncertain demands for two of its high-end models. Model “A” faces an uncertain daily demand that is Normally distributed with mean 80 and standard deviation 30. Model “B” also faces an uncertain daily demand that is Normally distributed with mean 120 and standard deviation 60. The most expensive components in these clocks are their respective main gears MA and MB which are outsourced. The lead times for shipment of these gears to the manufacturer are 8 days and 10 days, respectively. How much safety stock of MA would be needed to meet the service level of 90% for model A? (The Normal distribution table is attached below.) 

Consider the Sunny Airline example above. What is the cost of under-estimation?

Weekly demand for bottles of blood type O- at a hospital is distributed with mean 5 and standard deviation 2. The lead time to obtain bottles of this rare blood type is 3 weeks. The hospital, which employs a continuous review system, is weighing whether to decrease the service level for blood type O-, from 99.7% to 97.5%. What will be the direction of change in the optimal order quantity with the decrease in service level?

What was a common legal status of enslaved people in the Revolutionary era?

(02.03 MC)Read Saladin’s response to a statement from Richard the Lionheart to answer the question that follows:To us, Jerusalem is as precious, aye and more precious, than it is to you, in that it was the place whence our prophet made his journey by night to heaven and is destined to be the gathering place of our nation at the last day. Do not dream that we shall give it up to you or that we can be so obliging in this manner. As to the land—it belonged to us originally, and it is you who are the real aggressors.Which statement best captures Saladin’s position on Jerusalem?

(02.04 LC)Which statement describes Petrarch?

Barnes and Nobles (at Georgia Tech) purchases the “Wonder” book from the publisher Random House Children’s Books. The forecast for the next year’s demand is 1000 units. It costs $5 every time an order is placed and the storage cost is $4 per unit per year. What is the economic order quantity?