Question: ( Q 1 1 - Q 1 5 ) Nordic Inc. has designed four ski boot styles it plans to sell in the 2 0
QQ Nordic Inc. has designed four ski boot styles it plans to sell in the winter season: Terrain, Blizzard, IceFix, and Freezdom. Nordic can produce some ski boot styles well in advance of the selling season and produce the remaining styles after the Ski Elite Athletes Trade SEAT show that occurs just before the selling season. At the time it makes its initial production decision, Nordics forecast for each boots demand is normally distributed with means and standard deviations listed in the table below. The table also lists Cu Co the optimal Newsvendor quantity Q and the expected Newsvendor profits from producing Q
Boot
Price
Mean
Std Dev
Cu
Co
Q
Expected Newsvendor Profit
Terrain
$
Blizzard
$
IceFix
$
Freezdom
$
After the trade show, and before it makes its final production decision, Nordic will know the exact demand for each boot.
Q Suppose Nordic chooses to produce optimal quantities of the IceFix style before the SEAT show. What is the probability that Nordic will have less than units of IceFix inventory left at the end of the season?
Note: The probability can be expressed as a fraction or a percentage. For example, if your answer is you may enter the answer as either or
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