Question: Q 1 5 . 1 * ( Teddy Bower ) Teddy Bower sources a parka from an Asian supplier for $ 1 0 each andsells
QTeddy Bower Teddy Bower sources a parka from an Asian supplier for $ each andsells them to customers for $ each.Leftover parkas at the end of the season have nosalvage value. The demand forecast is normally distributed with mean and standard deviation Now suppose Teddy Bower found a reliable vendor in the UnitedStates that can produce parkas very quickly but at a higher price than Teddy Bower'sAsian supplier. Hence, in addition to parkas from Asia, Teddy Bower can buy an unlimited quantity of additional parkas from this American vendor at $ each after demandis known.
a Suppose Teddy Bower orders parkas from the Asian supplier. What is the probability that Teddy Bower will order from the American supplier once demand is known?
b Again assume that Teddy Bower orders parkas from the Asian supplier.Whatis the American supplier's expected demand; that is how many parkas should theAmerican supplier expect that Teddy Bower will order?
c Given the opportunity to order from the American supplier at $ per parka, whatorder quantity from its Asian supplier now maximizes Teddy Bower's expectedprofit?
d Given the order quantity evaluated in part c what is Teddy Bower's expected profit?
e If Teddy Bower didn't order any parkas from the Asian supplier, then what wouldTeddy Bower's expected profit be
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