Question: Goop Inc. needs to order a raw material to make a special polymer. The demand for the polymer is forecasted to be normally distributed with

Goop Inc. needs to order a raw material to make aGoop Inc. needs to order a raw material to make a

Goop Inc. needs to order a raw material to make a special polymer. The demand for the polymer is forecasted to be normally distributed with a mean of 200 gallons and a standard deviation of 100 gallons. Goop sells the polymer for $28 per gallon. Goop purchases raw material for $9 per gallon and must spend $10 per gallon to dispose of all unused raw material due to government regulations. (One gallon of raw material yields one gallon of polymer.) If demand is more than Goop can make, then Goop sells only what it has made and the rest of the demand is lost. Use Table 13.4. 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. How many gallons should Goop purchase to maximize its expected profit? Use Table 13.4. (Round your answer to 4 decimal places. Enter your answer as a whole number.) b. Suppose Goop purchases 120 gallons of raw material. What is the probability that it will run out of raw material? (Round your answer to 2 decimal places.) C. Suppose Goop purchases 300 gallons of raw material. What are the expected sales (in gallons)? Use Table 13.4 and the round-up rule. (Round your answer to 2 decimal places.) Suppose Goop purchases 375 gallons of raw material. How much should it expect to spend on disposal costs d. (in dollars)? Use Table 13.4 and the round-up rule. (Round your answer to 2 decimal places.) Suppose Goop wants to ensure that there is a 93 percent probability that it will be able to satisfy its customers' e. entire demand. How many gallons of the raw material should it purchase? Use Table 13.4 and the round-up rule. (Enter your answer as a whole number.) THOLE24 The Dibution ACL and Ecated inversary of Pasodo for the Standard Norral on Po RA 1020 will INDIEN tan -30 Down 3000 208 25 DA CO 72 31 -RA -/4 -X -20 26 2.5 -24 -22: -22 .7 20 15 TA 17 gr >> TH 14 12 ED 427 4: C1 41 4 10 2 # A D 7 A 8 10 11 ** +3 18 14 D 18 1.5 20 21 23 25 24 27 =7 20 DY. 41 PF 24 25 16 20 AL AP 10 POWE 000 abor 0007 0402 COMB CIPA 1812 ANAS 30/04/ 3802 18/ 100107 31173 ww Col 9200 CONT care 2446 STAR WIED +1+100 +48 151 By: 2420 2002 SACE 2442 201 4207 1700 WIE **** Short 212) ara 2350 22 7991 $478 2148 XX*** -X81 2009 70 MA AND 502 2421 201 CRAS FAR -M 2016 1976 2006/ CHARD Fider Siffi www 2004 2009 po PARA ACOUS 10000 14 1402 (40) DANC COM CO COM 2005 0007 BOOK! -1461 -14 ACH JARAC noore 1500 0349 9900 9900 CAU VIKO MAY 4312 8 Pe IPAT Wees 50430 J06M 1310 7449 bub ACER 3206 3000 3724 ...E MC www 2104 2108 2012 3122 $300 20001 0833 1900- DAR X 26251 11242 FAIL 20065 230/9 37007 52007 25:00 1802 80-7 2005 3000

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!