Question: I need help making an excel model, please explain and show me how this is done Henry Edsel is the owner of Honest Henry's, the

I need help making an excel model, please explain

I need help making an excel model, please explain and show me how this is done

Henry Edsel is the owner of Honest Henry's, the largest car dealership in Indiana. Henry's most popular car model this year is the Triton. In fact, the Tritons are selling so well that Henry now realizes that he probably will run out before the end of the model year. Fortunately, he still has time to place one more order to replenish his inventory of Tritons with the manufacturer. Each Triton costs him $12,000. He then is able to sell them at an average price of $30,000, provided they are sold before the end of the model year. However, any of these Tritons left at the end of the model year would then need to be sold at a special sale price of $11,000. Furthermore, Henry estimates that the extra cost of the capital tied up by holding these cars such an unusually long time would be $4000 per car, so his net revenue would be only $14,000. Since he would lose $5,000 on each of these cars left at the end of the model year, Henry concludes that he needs to be cautious to avoid ordering too many cars, but he also wants to avoid running out of cars to sell before the end of the model year if possible. Therefore, he asks his general manager, Ruby Willis, to examine past sales data and then develop a careful estimate of how many Tritons being ordered now could be sold before the end of the model year. Ruby has graduated from business school and so realizes that this demand has a probability distribution. She decides that the bell-shaped curve of the normal distribution should have the right shape to fit this distribution. Based on past data, she then estimates that the mean of this distribution is 360 and the standard deviation is 50. What you are asked right now is to confirm Ruby the unit under-stocking (cu) and the unit over- stocking (co) costs she should report to Henry. Show all your work, as you come up with the cu and co assessment. To be able to answer this question, first compute what cu and co are and then assess Q*

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