Question: Q 1 5 . 1 * ( Teddy Bower ) Teddy Bower sources a parka from an Asian supplier for $ 1 0 each andsells

Q15.1*(Teddy Bower) Teddy Bower sources a parka from an Asian supplier for $10 each andsells them to customers for $22 each.Leftover parkas at the end of the season have nosalvage value. The demand forecast is normally distributed with mean 2,100 and stan-dard deviation 1,200. 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 unlim-ited quantity of additional parkas from this American vendor at $15 each after demandis known.
a. Suppose Teddy Bower orders 1,500 parkas from the Asian supplier. What is the proba-bility that Teddy Bower will order from the American supplier once demand is known?[15.4]
b. Again assume that Teddy Bower orders 1,500 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?[15.4]
c. Given the opportunity to order from the American supplier at $15 per parka, whatorder quantity from its Asian supplier now maximizes Teddy Bower's expectedprofit?[15.4]
d. Given the order quantity evaluated in part c, what is Teddy Bower's expected profit?[15.4]
e. If Teddy Bower didn't order any parkas from the Asian supplier, then what wouldTeddy Bower's expected profit be?[15.4]

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