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Bakery A sells bread for $2 per loaf that costs $0.80 per loaf to make. Bakery A gives a 75% discount for its bread at the end of the day. Demand for the bread is normally distributed with a mean of 300 and a standard deviation of 30. What order quantity maximizes expected profit for Bakery A? O 327 O 306 O 301 324 Store A uses the newsvendor model to manage its inventory. Demand for its product is normally distributed with a mean of 500 and a standard deviation of 300. How many units should be ordered to achieve a 99.7% in-stock probability? O 1340 1650 O 1695 1310 Century Plus is a wholesaler of organic nuts. Their most popular product is the sweet hazelnut which is shipped directly from South Carolina. Weekly demand is for 45 cases. Century Plus purchases each case for $120, there is a $300 fixed cost for each order (independent of the quantity ordered) and their annual holding cost is 25 percent. Assume the company operates 52 weeks per year. If Millennium chooses to order 250 cases each time, what is the sum of their annual ordering and holding costs? The following five questions are based on the same content. Teddy Bower is an outdoor clothing and accessories chain that purchases a line of parkas at $10 each from its Asian supplier, TeddySports. Unfortunately, at the time of order placement, demand is still uncertain: Teddy Bower forecasts that its demand is normally distributed with mean 2,100 and standard deviation 1,200. Teddy Bower sells these parkas at $22 each. Unsold parkas have little salvage value; Teddy Bower simply gives them away to a charity (and also doesn't collect a tax benefit for the donation). How many parkas should Teddy Bower buy from TeddySports to maximize expected profit? Use Table 13.4. 2,232 e Fla) 112) Fiz) cs 992 4367 6455 056 OO o ooo 35 933? .593 .9452 6232 95573 57 0933 96141 zo oo? bo 24 49 971 41202 429 2420 97? 2085 9822165 74 8 o07 o! ooo? 97 3446 38! 359 s ooo0 ** 207 4p? 028 03 3 0 39g 449) 5 ) 58 == | ,9B622649 989323037 904824927 ,993 25020 99536055 2B0% 2008 304 1103 (1493 3203 5793 27 ? 55 COBS 0/ So@ 0548 3:09) 365 QO9