Question: Flextrola, Incorporated, an electronics systems integrator, is planning to design a key component for its next - generation product with Solectrics. Flextrola will integrate the

Flextrola, Incorporated, an electronics systems integrator, is planning to design a key component for its next-generation 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, Flextrola only has one opportunity to place an order with Solectrics prior to the
beginning of its selling season. Flextrola's demand during the season is normally distributed with a mean of 1,000 and a standard
deviation of 600. Use Table 13.4.
Solectrics' production cost for the component is $52 per unit, and it plans to sell the component for $72 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 $121 each. Flextrola can sell unsold inventory at the end of the season in a secondary electronics market for $50 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.
Note: If a part of the question specifies whether to use Table 13.4, or to use Excel, then credit for a correct answer will depend on
using the specified method.
a. What is the probability that Flextrola's demand will be within 25% of its forecast? Use Excel.
Note: Round your answer to 4 decimal places.
Probability
b. What is the probability that Flextrola's demand will be more than 40% greater than Flextrola's forecast? Use Excel.
Note: Round your answer to 4 decimal places.
Probability
c. Under this contract, how many units should Flextrola order to maximize its expected profit? Use Table 13.4.
Expected profit
d. If Flextrola orders 1,200 units, how many units of inventory can Flextrola's expect to sell in the secondary elFlextrola, Incorporated, an electronics systems integrator, is planning to design a key component for its next-generation product with Solectrics. Flextrola will integrate the component with some software and then sell itto consumers. Given the short life cycles of such products and the long lead times quoted by Solectrics, Flextrola only has one opportunity to place an order with Solectrics prior to the beginning of its selling season. Flextrolas demand during the season is normally distributed with a mean of1,000 and a standard deviation of600. Use Table 13.4.
Solectrics production cost for the component is $52 per unit, and it plans to sell the component for $72 per unit to Flextrola. Flextrola incurs essentially nocost associated with the software integration and handling of each unit. Flextrola sells these units to consumers for $121 each. Flextrola can sell unsold inventory at the end of the season in a secondary electronics market for $50 each. The existing contract specifies that once Flextrola places the order, no changes are allowed toit. Also, Solectrics does not accept any returns of unsold inventory, so Flextrola must dispose of excess inventory in the secondary market.
Note: If a part of the question specifies whether to use Table 13.4,orto use Excel, then credit for a correct answer will depend on using the specified method.
What is the probability that Flextrolas demand will be within 25%of its forecast? Use Excel.
Note: Round your answer to4 decimal places.
What is the probability that Flextrolas demand will be more than 40% greater than Flextrolas forecast? Use Excel.
Note: Round your answer to4 decimal places.
Under this contract, how many units should Flextrola order to maximize its expected profit? Use Table 13.4.
If Flextrola orders 1,200 units, how many units of inventory can Flextrolas expect to sell in the secondary electronics market? Use Table 13.4.
Note: Round your answer to2 decimal places.
If Flextrola orders 1,200 units, what are expected sales?
Note: Round your answer to2 decimal places.
If Flextrola orders 1,200 units, what is expected profit?
Note: Round your answer to2 decimal places.

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