Inventory Management Homework Problems About Probability

Course Number:BUSADMIN 7110
Course Name:Management Decision Analysis
Course Description:    Management decision analysis encompasses a number of quantitative tools and a logical methodology for applying these techniques to decision making. The purpose of this course is to provide you with a fundamental understanding of the techniques that comprise management decision analysis. This course presents a theory and applications of quantitative decision methods used in the business setting. Topics include decision theory, linear programming, CPM/PERT, forecasting, and inventory control. Additionally, this course will demonstrate how to use these tools and describe a variety of their applications. Many of the assigned homework problems will be completed using Excel's Solver feature.
Prerequisites:    A statistics course or consent of the instructor.
Level: Graduate
Credits: 3
Program:Master of Science in Project Management
Master of Science in Integrated Supply Chain Management

Registration Instructions

NOTE: The information below is representative of the course and is subject to change.  The specific details of the course will be available in the Desire2Learn course instance for the course in which a student registers.

Additional Information

Learning Outcomes
This course is designed to

  • Introduce you to the common quantitative decision-making tools used in business.
  • Provide you with an opportunity to develop the skills necessary to use the quantitative models of management decision analysis.
  • Expose you to current literature and research in the field of management decision analysis.

Unit Descriptions
Course Organization and Assignment Descriptions

Unit 1
Upon completion of this unit, you should be able to

  • Construct a model that can be used in a business decision.
  • Know and use the basic principles of probability theory.
  • Examine how decisions are made under conditions of certainty, uncertainty, and risk.

Unit 2
Upon completion of this unit, you should be able to

  • Formulate, solve, and interpret linear programming problems to achieve an optimal solution to a business problem.
  • Evaluate typical problems in your own business setting using linear programming techniques.
  • Formulate and solve linear programming problems using spreadsheets (i.e. - MS Excel).
  • Apply linear programming techniques to specialized applications.

Unit 3
Upon completion of this unit, you should be able to

  • Demonstrate how cost reduction and efficiencies can be gained using network flow diagrams.
  • Determine critical activities and costs in a project using CPM /PERT techniques.
  • Decide how many waiting lines are appropriate while considering the cost of each additional waiting line using queuing theory.
  • Select the appropriate forecasting technique for various business situations.
  • Select the appropriate inventory control models for dependent and independent demand.

Grading Criteria for Activities

AssignmentPossible Points
Class Icebreaker 10 points
Homework Problems (50 @ 2 pts. each) 100 points
Article Reviews (3 @ 15 pts. each) 45 points
Collaborative Activities (3 @ 15 pts. each) 45 points
Exams (3 @ 100 pts. each) 300 points
Term Project 100 points
Total:600 points
A 91% - 100%
A- 89% - 90%
B+ 87% - 88%
B 81% - 86%
B- 79% - 80%
C+ 77% - 78%
C 71% - 76%
C- 69% - 70%
D+ 67% - 68%
D 60% - 66%
F 0% - 59%

Page: 601 1. What are the primary reason for holding inventory? 9. What is safety stock, and what is its purpose? Extra inventory carried to reduce the probability of a stockout due to demand and/ or lead time variability. 12. Describe briefly the A-B-C approach to inventory control. Classifying inventory according to some measure of importance, and allocating control efforts accordingly. A (very important), B (moderately important), and C (least important). Page: 602 2a. develop an A-B-C classification for these items. Item Annual demand Unit cost Annual dollar value A-B-C K34 200 10 $2,000.00 C K35 600 25 $15,000.00 A K36 150 36 $5,400.00 B M10 25 16 $400.00 C M20 80 20 $1,600.00 C Z45 200 80 $16,000.00 A F14 300 20 $6,000.00 B F95 800 30 $24,000.00 A F99 60 20 $1,200.00 C D45 550 10 $5,500.00 B D48 90 12 $1,080.00 C D52 110 15 $1,650.00 C D57 120 40 $4,800.00 B N08 40 30 $1,200.00 C P05 500 16 $8,000.00 B P09 30 10 $300.00 C 3. large bakery…. D


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