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

PA 13-5(Algo) Teddy Bower is an outdoor clothing and accessorles chaln...
Teddy Bower is an outdoor clothing and accessorles chain that purchases a line of parkas at $12 each from its Aslan suppller,
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 2,200 and a standard deviation of 1,500. Teddy Bower sells these parkas at $18 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). 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.
a. What is the probability this parka turns out to be a "dog", defined as a product that sells less than half of the forecast? Use Excel.
Note: Round your answer to 4 decimal places.
b. 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.
c. If Teddy Bower orders 2,500 parkas, what is the In-stock probability? Use Excel.
Note: Round your answer to 4 decimal places.
d. If Teddy Bower orders 2,500 parkas, what is expected leftover Inventory? Use Table 13.4 and the round-up rule.
Note: Round your answer to 2 decimal places.
e. If Teddy Bower orders 2,500 parkas, what is expected sales? Use your result from Part d.
Note: Round your answer to 2 decimal places.
f. If Teddy Bower orders 2,500 parkas, what is expected profit? Use your results from Part d and Part e.
TABLE 13.4 The Distribution, )
 PA 13-5(Algo) Teddy Bower is an outdoor clothing and accessorles chaln...

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