Question: If Teddy Bower orders 2 , 5 0 0 parkas, what is expected leftover inventory? Use Table 1 3 . 4 and the round -

If Teddy Bower orders 2,500 parkas, what is expected leftover inventory? Use Table 13.4 and the round-up rule. Teddy Bower is an outdoor clothing and accessories chain that purchases a line of parkas at $12 each from its Asian supplier, TeddySports. Unfortunately, at the time of the order placement, demand is still uncertain: Teddy Bower forecasts that its demand is normally distributed with a mean of 2,000 and a standard deviation of 1,000. Teddy Bower sells these parkas at $20 each. Unsold parkas have little salvage value; Teddy Bower simply gives them away to a charity (and also doesnt collect a tax benefit for the donation). Use Table 13.4.

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