TheGoGo Bunny is a hot toy this Christmas, and the manufacturer has decided to ration supply to
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TheGoGo Bunny is a hot toy this Christmas, and the manufacturer has decided to ration supply to all retailers. A large retail chain owns two channels—a discount channel and a high-service channel. The retailer plans to sell the toy at a margin of $4 in the discount channel and a margin of $8 in the high-service channel. Any units sent to the discount channel are likely to sell out. The manufacturer sends 100,000 GoGo Bunnies to the retailer. The retailer has forecast that the demand for the toy at the high-service channel is normally distributed, with a mean of 400,000 and a standard deviation of 150,000. How many toys should the retailer send to the high-service channel?
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Related Book For
Supply Chain Management Strategy Planning And Operation
ISBN: 9781292257891
7th Global Edition
Authors: Sunil Chopra
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