Case Study #1 Calculating the standard deviation for TVs at ABC Electronics The planner at ABC Electronics is trying to optimize stocking and ordering for a popular 50- inch plasma TV it stocks. The first step is to look at the pattern of demand to calculate the rate of sales. After looking back over the past 10 weeks of sales, the planner has determined the actual sales on the TV and has placed the values in the table below. The average of number of TVs sold during that period was 125. Sales Forecast Actual Sales Absolute Deviation Deviation^2 125 Week 1 84 2 125 78 3 125 155 4 125 155 5 125 170 6 125 72 7 125 75 8 125 172 9 125 67 10 125 166 1. Using the above table, calculate the squared deviation for Week 1. 2. What would be the squared deviation for the 10 weeks? 3. What would be the standard deviation o for the item? Case Study #3 Calculating Stock for TVs at ABC Electronics The planner at ABC Electronics is trying to calculate the optimal order quantity for the 50- inch plasma TV it stocks. The following data has been determined: Weekly sales have been averaging 125 TVs a week, the ordering costs including freight come to US$2,500, the unit cost is US$435, and the cost of carrying inventory at ABC Electronics is 15%. How would the planner determine the following answers? 1. What is the optimal order quantity the planner should use to buy the 50-inch TVs? 2. What would be the cycle inventory created by this order quantity? 3. How many orders would be placed per year? 4. What would be the total cost of an order