Question: PA 1 3 - 5 ( Algo ) Teddy Bower is an outdoor clothing and accessories chain... Teddy Bower is an outdoor clothing and accessories

PA 13-5(Algo) Teddy Bower is an outdoor clothing and accessories chain...
Teddy Bower is an outdoor clothing and accessories chain that purchases a line of parkas at $8 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 1,900 and a standard deviation of 1,500. Teddy Bower sells these parkas at $23 each. Unsold
barkas have little salvage value; Teddy Bower simply gives them away to a charity (and also doesn't collect a tax benefit for the
donation). Use Table 13.4.
Note: Do not round intermediate calculations. If a part of the question specifies whether to use Table 13.4, or to use Excel, then
Eredit for a correct answer will depend on using the specified method.
a. How many parkas should Teddy Bower buy from TeddySports to maximize expected profit? Use Table 13.4 and the round-up rule.
Note: Enter your answer as a whole number.
Order quantity
2,478
b. If Teddy Bower orders 3,500 parkas, what is expected leftover inventory? Use Table 13.4 and the round-up rule.
Note: Round your answer to 2 decimal places.
Expected leftover inventory
c. If Teddy Bower orders 3,500 parkas, what is expected sales? Use your result from Part b.Teddy Bower is an outdoor clothing and accessories chain that purchases a line of parkas at $8 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 1,900 and a standard deviation of 1,500. Teddy Bower sells these parkas at $23 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.
Note: Do not round intermediate calculations. 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.
 PA 13-5(Algo) Teddy Bower is an outdoor clothing and accessories chain...

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