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

PA 13-5(Static) 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 \(\$ 10\) 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 2100 and a standard deviation of 1200. Teddy Bower sells these parkas at \(\$ 22\) 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.
Answer is complete and correct.
Probabilty
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.
Answer is complete but not entirely correct.
Order quantity
c. If Teddy Bower orders 3,000 parkas, what is the in-stock probability? Use Excel.
Note: Round your answer to 4 decimal places.
Answer is complete and correct.
\begin{tabular}{|l|l|}
\hline In-stock probability & \(0.7734\odot \)\\
\hline
\end{tabular}
d. If Teddy Bower orders 3,000 parkas, what is expected leftover inventory? Use Table 13.4 and the round-up rule.
Note: Round your answer to \(\mathbf{2}\) decimal places.
Answer is complete but not entirely correct.
Expected leftover inventory
e. If Teddy Bower orders 3,000 parkas, what is expected sales? Use your result from Part d.
Note: Round your answer to \(\mathbf{2}\) decimal places.
Answer is complete but not entirely correct.
Expected sales
f. If Teddy Bower orders 3,000 parkas, what is expected profit? Use your results from Part d and Part e.
Note: Round your answer to \(\mathbf{2}\) decimal places.
Answer is complete but not entirely correct.
Expected profit
g. If Teddy Bower wishes to ensure a 98.5 percent in-stock probability, how many parkas should Teddy Bower order? Use Table 13.4.
Answer is complete but not entirely correct.
PA 1 3 - 5 ( Static ) Teddy Bower is an outdoor

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