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

PA 13-5(Algo) Teddy Bower is an outdoor clothing and accessories chain...
Teddy Bower is an outdoor clothing and accessorles chain that purchases a line of parkas at $10 each from its Asian supplier. TeddySports. Unfortunately, at the time of the order placement, demand is still uncertaln: Teddy Bower forecasts that its demand is normally distributed with a mean of 2,200 and a standard deviation of 1,000. Teddy Bower sells these parkas at $24 each. Unsold parkas have little salvage value; Teddy Bower simply gives them away to a charlty (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. 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.
b. If Teddy Bower orders 2,750 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 2,750 parkas, what is expected sales? Use your result from Part d.
Note: Round your answer to 2 decimal places.
Expected sales
d. If Teddy Bower orders 2,750 parkas, what is expected profit? Use your results from Part d and Part e.
Note: Round your answer to 2 decimal places.
PA 1 3 - 5 ( Algo ) Teddy Bower is an outdoor

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!