Question: FTX Inc, an electronics system integrator, is developing a new product as part of their year-to-year generational upgrades. Due to their long business history, Setronics

FTX Inc, an electronics system integrator, is developing a new product as part of their year-to-year generational upgrades. Due to their long business history, Setronics is being considered as the producer of a key component for this product. Setronics sells this component for $55 per unit with a 2-month lead time including production and transportation. Assume Setronicss gross margin is 25% of its selling price for units produced in these early orders.FTXs demand forecast for the upcoming selling season (12 months) is a normal distribution with mean 8845 and standard deviation 25. FTX sells each unit, after integrating some software, for $135. Leftover units at the end of the season are sold for $30. FTX uses a holding cost rate of 25 %.

a)How many of these components should FTX order to maximize their annual expected profits? Calculate expected profits for FTX and Setronics.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

FTX Inc, an electronics system integrator, is developing a new product as part of their year-to-year generational upgrades. Due to their long business history, Setronics is being considered as the...

V=5153 Vs = 14 FTX Inc, an electronics system integrator, is developing a new product as part of their annual generational upgrades. Owing to their long business history, they are considering...

V=4155 Vs=15 Q 115% V = LAST 4 DIGITS OF YOUR STUDENT NUMBER (e.g., S043210 3210; S090807 0807) Vs=SUM OF DIGITS OF V (e.g., 32106; 080715) FTX Inc, an electronics system integrator, is developing a...

FTX Inc, an electronics system integrator, is developing a new product as part of their annual generational upgrades. Owing to their long business history, they are considering Setronics as the...

V= 5153Vs= 14 V = LAST 4 DIGITS OF YOUR STUDENT NUMBER (e.g., S043210 3210; S090807 0807) Vs= SUM OF DIGITS OF V (e.g., 3210 6; 0807 15) FTX Inc, an electronics system integrator, is developing a new...

a) Suppose FTX plans to use both suppliers: A single pre-season order from Setronics, and then supply from ATEC as needed. How many units should FTX order from these suppliers? Calculate resulting...

= LAST 4 DIGITS OF YOUR STUDENT NUMBER (e.g., S0432103210; S0908070807) = SUM OF DIGITS OF V (e.g., 32106; 080715) FTX Inc, an electronics system integrator, is developing a new product as part of...

FTX Inc, an electronics system integrator, is developing a new product as part of their annual generational upgrades. Owing to their long business history, they are considering Setronics as the...

*can you please show all your work including explanations* thank you instead* FTX Inc, an electronics system integrator, is developing a new product as part of their annual generational upgrades....

V= 4656 Vs=21 FTX Inc, an electronics system integrator, is developing a new product as part of their annual generational upgrades. Owing to their long business history, they are considering...

This Figure is a portion of a business process diagram for a procurement business process. Required Match the following list of six items to the labels A through F that appear in the figure. 1....

1.Explain EACH of the 5 ways your company may want to enter a foreign country. Apply these methods based on the text to entering one of the following companies: Brazil, Russia India, or China (one of...

Oriole Inc. was organized in late 2 0 2 3 to manufacture and sell hosiery. At the end of its fourth year of operation, the company has been fairly successful, as indicated by the following reported...

Formulas R 3 R R DAR p p - 3vp(1 -p) p + 3vp(1 -p) x (with s) X - A35 * + A35 S B35 S BAS X x - 3R/d2 * + 3R/d2 no np - 3vnp(1 -p) np + 3vnp(1 -p) C 2 - 3VC 2+ 3 VC Cengage Learning U U - 3vu u +3vui...