Question: ( Flextrola ) Flextrola, Inc., an electronics systems integrator, is planning to design a key component for their next - generation product with Solectrics. Flextrola
Flextrola Flextrola, Inc., an electronics systems integrator, is planning to design a key component for their nextgeneration product with Solectrics. Flextrola will integrate the component with some software and then sell it to consumers. Given the short life cycles of such products and the long lead times quoted by Solectrics prior to the beginning of its selling season. Flextrolas demand during the season is normally distributed with a mean of and standard deviation of Solectrics production cost for the component is $ per units, and it plans to sell the component for $ per unit to Flextrola. Flextrola incurs essentially no cost associated with the software integration and handling of each unit. Flextrola sells these units to consumers for $ each. Flextrola can sell unsold inventory at the end of the season in a secondary electronics market for $ each. The existing contract specifies that once Flextrola places the order, no changes are allowed to it Also, Solectrics does not accept any returns of unsold inventory, so Flextrola must dispose of excess inventory in the secondary market. a What is the probability that Flextrolas demand will be within percent of its forecast?b What is the probability that Flextrolas demand will be more than percent greater than its forecast? c Under this contract, how many units should Flextrola order to maximize its expected profit? For parts d through I, assume Flextrola orders units. d What is Flextrolas expected sales? e How many units of inventory can Flextrola expect to sell in the secondary electronics market? f What is Flextrolas expected gross margin percentage, which is RevenueCostRevenue g What is Flextrolas expected profit? h What is Solectrics expected profit? i What is the probability that Flextrola has lost sales of units or more?
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
