Question: Getting the part C wrong. Need help! PA 13-4 Fashionables is a franchisee of The Unlimited, the... Use Table 13.4 Fashionables is a franchisee of

Getting the part C wrong. Need help! PA 13-4

Getting the part C wrong. Need help! PA 13-4

Getting the part C wrong. Need help!

PA 13-4 Fashionables is a franchisee of The Unlimited, the... Use Table 13.4 Fashionables is a franchisee of The UnLimited, the well-known retailer of fashionable clothing. Prior to the winter season, The UnLimited offers Fashionables the choice of five different colors of a particular sweater design. The sweaters are knit overseas by hand, and because of the lead times involved, Fashionables will need to order its assortment in advance of the selling season. As per the contracting terms offered by The UnLimited, Fashionables will also not be able to cancel, modify or reorder sweaters during the selling season. Demand for each color during the season is normally distributed with a mean of 600 and a standard deviation of 175. Further, you may assume that the demand for each sweater is independent of the demand for any other color. The Unlimited offers the sweaters to Fashionables at the wholesale price of $44 per sweater, and Fashionables plans to sell each sweater at the retail price of $74 per unit. The Unlimited does not accept any returns of unsold inventory. However, Fashionables can sell all of the unsold sweaters at the end of the season at the fire-sale price of $18 each. 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. How many units of each sweater-type should Fashionables order to maximize its expected profit? Use Table 13.4 and round to nearest integer. 618 If Fashionables wishes to ensure a 97.5% in-stock probability, what should its b. order quantity be for each type of sweater? Use Table 13.4 and round to nearest integer. 950 Say Fashionables orders 750 of each sweater. What is Fashionables' expected profit? Use Table 13.4. 12,696 0.1957 Say Fashionables orders 750 of each sweater. What is the stockout probability for each sweater? Use Excel. (Round your answer to 4 decimal places.) TABLE 13.4 The Distribution, F(Q), and Expected Inventory, I(Q), Functions for the Standard Normal Distribution Function F(z) Hz) F(z) I(z) F(z) I(z) -4.0 .0000 .0000 -1.3 .0968 .0455 1.4 .9192 1.4367 .0000 -1.2 1.5293 .0000 .0001 . 1151 .1357 .0561 .0686 .0000 -1.1 .9332 .9452 .9554 1.6232 .0001 .0000 -1.0 .1587 .0833 1.7183 -3.6 .0002 .0000 .1004 .9641 1.8143 -0.9 -0.8 -3.5 .0001 1.8 1.9 2.0 .0001 .0001 -3.4 -3.3 -3.2 -3.1 2.1 .0002 .0003 .0005 .0007 .0010 .0013 .1841 .2119 .2420 .2743 .3085 3446 .3821 .1202 1429 1687 .1978 .2304 .2668 -0.7 -0.6 -0.5 -0.4 -0.3 -0.2 -0.1 .0002 22 2.3 .9713 1.9111 .9772 2.0085 .98212.1065 .9861 2.2049 .9893 2.3037 .9918 2.4027 .9938 2.5020 .9953 2.6015 .0003 -3.0 .0004 2.4 -2.9 .0019 .0005 4207 .3069 2.5 -2.8 .0026 .0008 4602 .3509 2.6 -2.7 .0035 .0011 .0 .3989 2.7 2.8 -2.6 .0047 .0015 -2.5 .0062 .0020 .5000 .5398 .5793 6179 6554 .4509 5069 5668 .6304 2 . 3 4 .9965 .9974 .9981 9987 .9990 .9993 -2.4 2.7011 2.8008 2.9005 3.0004 3.1003 3.2002 .0082 2.9 3.0 3.1 .0027 -2.3 .0037 -22 .0107 0139 .0179 5 .6915 .6978 3.2 3.3 .9995 .0049 .0065 .0085 .0111 3.3001 3.4001 -2.1 -2.0 -1.9 -1.8 .9997 0228 .0287 .9998 3.5001 .0143 .8 9 1.0 .9998 3.6000 .7257 .7580 7881 .8159 .8413 .8643 .8849 .9032 .7687 .8429 9202 1.0004 1.0833 1.1686 1.2561 1.3455 -1.7 .0183 3.4 3.5 3.6 3.7 3.8 3.9 4.0 .0359 .0446 .0548 .0668 .0808 9999 3.7000 -1.6 -1.5 -1.4 .0232 0293 1.1 1.2 1.3 .9999 1.0000 1.0000 3.8000 3.9000 4.0000 .0367

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