Question: A consultant with an MBA from DESB advises Woot! that fill-rate targets are more suited for their business. How many adapters should Woot! order from

A consultant with an MBA from DESB advises Woot!A consultant with an MBA from DESB advises Woot!

A consultant with an MBA from DESB advises Woot! that fill-rate targets are more suited for their business. How many adapters should Woot! order from its supplier in order to achieve a fill-rate target of 98%?

[Q 11-14] Woot! specializes in one day - one deal selling. Every day they sell a product that is not available the next day. If the item sells out, all the excess demand is lost and if items are left over, they are salvaged and not sold again on a future day. On a particular Monday, Woot! sells Creative Labs blue-tooth adapter for only $15, buying them at $9 each. All unsold adapters are bought back by the supplier for $7 each. If Woot! estimates demand to be normally distributed with a mean 500 and a standard deviation of 70 units, then: [Q 11-14] Woot! specializes in one day - one deal selling. Every day they sell a product that is not available the next day. If the item sells out, all the excess demand is lost and if items are left over, they are salvaged and not sold again on a future day. On a particular Monday, Woot! sells Creative Labs blue-tooth adapter for only $15, buying them at $9 each. All unsold adapters are bought back by the supplier for $7 each. If Woot! estimates demand to be normally distributed with a mean 500 and a standard deviation of 70 units, then

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