Question: PA 1 3 - 5 ( Static ) Teddy Bower is an outdoor clothing and accessories chain... Teddy Bower is an outdoor clothing and accessories
PA 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 $ 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 and a standard deviation of Teddy Bower sells these parkas at $ 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
Note: Do not round intermediate calculations. If a part of the question specifies whether to use Table 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 decimal places.
Answer is complete and correct.
Probabilty
b How many parkas should Teddy Bower buy from TeddySports to maximize expected profit? Use Table and the roundup rule. Note: Enter your answer as a whole number.
Answer is complete but not entirely correct.
Order quantity
c If Teddy Bower orders parkas, what is the instock probability? Use Excel.
Note: Round your answer to decimal places.
Answer is complete and correct.
begintabularll
hline Instock probability & odot
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endtabular
d If Teddy Bower orders parkas, what is expected leftover inventory? Use Table and the roundup rule.
Note: Round your answer to mathbf decimal places.
Answer is complete but not entirely correct.
Expected leftover inventory
e If Teddy Bower orders parkas, what is expected sales? Use your result from Part d
Note: Round your answer to mathbf decimal places.
Answer is complete but not entirely correct.
Expected sales
f If Teddy Bower orders parkas, what is expected profit? Use your results from Part d and Part e
Note: Round your answer to mathbf decimal places.
Answer is complete but not entirely correct.
Expected profit
g If Teddy Bower wishes to ensure a percent instock probability, how many parkas should Teddy Bower order? Use Table
Answer is complete but not entirely correct.
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