Question: I NEED AN ANSWER QUICK! I WILL THUMPS UP/LIKE! 1. Bower is an outdoor clothing accessories chain that produces a line of hats for $10
I NEED AN ANSWER QUICK! I WILL THUMPS UP/LIKE!
1. Bower is an outdoor clothing accessories chain that produces a line of hats for $10 from its Asian supplier, BowerSports. Unfortunately at the time of order placement, demand is uncertain. Bower forecasts that its demand is normally distributed with a mean of 2,100 and standard deviation of 1,200. The hats are sold for $22. Unsold hats have little salvage value: Bower simply donates them to charity.
a) Bower will consider this hat to be a big success if it sells more than 4,000. What is the probability it will be a big success? Probability = ________________
b) The hat will be considered a dud if it sells less than 40 percent of the mean forecast. What is the probability the hat is a dud? Probability = ________________
c) What order quantity, Q, maximizes Bowers expected profit? Q = ________________
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