Please use the excel format below to work the problem

SCM 366 Determining Optimal Product Availability Victory Fleece Problem Victory manufactures winter fleece jackets for sale in the United States. Demand for jackets during the season is normally distributed with a mean of 20,000 and a standard deviation of 10,000. Each jacket sells for $60 and costs $30 to produce. Any leftover jackets at the end of the season are sold for $25 at a year-end clearance sale. Holding jackets until the year-end sale adds another $5 to their cost. A recently hired Boise State SCM graduate has suggested shipping leftover jackets to South America for sale in the winter there rather than running a clearance in the United States. Each jacket will sell for $35 in South America, and all jackets sent there will sell. Shipping costs add $5 to the cost of any jacket sold in South America. a. Evaluate the current policy for the United States. Compute the optimal Q for this policy using expected profit as the objective. (That is, find the expected profit maximizing Q for the U.S. option only) b. Would you recommend the South American option? Support your decision with calculations. To evaluate the decision compute the optimal Q given the South American option. Then compute the expected profit for this Q. C. How will the South American option affect production and profitability at Victory? d. On average, how many jackets will Victory ship to South America each season? (Note: you have already calculated this value in order to get the expected profit for the South American option). Current Policy South American Option Inputs Expected Demand Standard Deviation Inputs Expected Demand Standard Deviation Unit Costs Unit Costs Sales Price Salvage Value Inventory Holding Costs Sales Price Salvage Value Inventory Holding Costs South American Sales Price Shipping Costs South American Sales Price Shipping Costs Cu Co CRITICAL RATIO CRITICAL RATIO Optimal Quantity, Q Expected Lost Sales Expected Sales Expected Leftover Inventory Expected Profit Optimal Quantity, Q Expected Lost Sales Expected Sales Expected Leftover Inventory Expected Profit SCM 366 Determining Optimal Product Availability Victory Fleece Problem Victory manufactures winter fleece jackets for sale in the United States. Demand for jackets during the season is normally distributed with a mean of 20,000 and a standard deviation of 10,000. Each jacket sells for $60 and costs $30 to produce. Any leftover jackets at the end of the season are sold for $25 at a year-end clearance sale. Holding jackets until the year-end sale adds another $5 to their cost. A recently hired Boise State SCM graduate has suggested shipping leftover jackets to South America for sale in the winter there rather than running a clearance in the United States. Each jacket will sell for $35 in South America, and all jackets sent there will sell. Shipping costs add $5 to the cost of any jacket sold in South America. a. Evaluate the current policy for the United States. Compute the optimal Q for this policy using expected profit as the objective. (That is, find the expected profit maximizing Q for the U.S. option only) b. Would you recommend the South American option? Support your decision with calculations. To evaluate the decision compute the optimal Q given the South American option. Then compute the expected profit for this Q. C. How will the South American option affect production and profitability at Victory? d. On average, how many jackets will Victory ship to South America each season? (Note: you have already calculated this value in order to get the expected profit for the South American option). Current Policy South American Option Inputs Expected Demand Standard Deviation Inputs Expected Demand Standard Deviation Unit Costs Unit Costs Sales Price Salvage Value Inventory Holding Costs Sales Price Salvage Value Inventory Holding Costs South American Sales Price Shipping Costs South American Sales Price Shipping Costs Cu Co CRITICAL RATIO CRITICAL RATIO Optimal Quantity, Q Expected Lost Sales Expected Sales Expected Leftover Inventory Expected Profit Optimal Quantity, Q Expected Lost Sales Expected Sales Expected Leftover Inventory Expected Profit