Quiz 9 a Saved Help Save & Exit Submit PA 13-2 (Algo) Flextrola, Inc., an electronics systems integrator, is... 1 Flextrola, Inc., an electronics systems integrator, is planning to design a key component for its next-generation product with Solectrics. Flextrola will integrate the component with some software and then sell it to consumers. Given the short life cycles of such products and the long lead times quoted by Solectrics, Flextrola only has one opportunity to place an order with Solectrics prior to the beginning of its selling season. Flextrola's demand during the season is normally distributed with a mean of 900 and a standard deviation of 600. Use Table 13.4, Figure 13.15.jpg, Figure 13.16.jpg Solectrics' production cost for the component is $55 per unit, and it plans to sell the component for $71 per unit to Flextrola. Flextrola incurs essentially no cost associated with the software integration and handling of each unit. Flextrola sells these units to consumers for $125 each. Flextrola can sell unsold inventory at the end of the season in a secondary electronics market for $51 each. The existing contract specifies that once Flextrola places the order, no changes are allowed to it. Also, Solectrics does not accept any returns of unsold inventory, so Flextrola must dispose of excess inventory in the secondary market. points Skipped eBook If a part of the question specifies whether to use Table 13.4, or to use Excel, then credit for a correct answer will depend on using the specified method. What is the probability that Flextrola's demand will be within 25% of its forecast? a. Use Excel (Round your answer to 4 decimal places.) b. What is the probability that Flextrola's demand will be more than 40% greater than Flextrola's forecast? Use Excel. (Round your answer to 4 decimal places.) C. Under this contract, how many units should Flextrola order to maximize its expected profit? Use Table 13.4. d. If Flextrola orders 1200 units, how many units of inventory can Flextrola's expect to sell in the secondary electronics market? Use Table 13.4. (Round your answer to 2 decimal places.) e. If Flextrola orders 1200 units, what are expected sales? (Round your answer to 2 decimal places.) f. If Flextrola orders 1200 units, what is expected profit? (Round your answer to 2 decimal places.) Mc Graw HHI Prey 1 of 1 Next Distribution Function 1.00 .90 + Log normal distribution .80 .70 .60 Probability .50 .40 + Normal distribution .30 + .20+ .10 .00 0 250 500 750 1000 1250 1500 1750 2000 2250 2500 Demand Figure 13.15 The density functions for a log normal and a normal distribution with mean 1000 and standard deviation 600 Density Function .0012 T .0011 + .0010 Log normal distribution .0009 .0008 .0007 Probability .0006 Normal distribution .0005 .0004 .0003 .0002 .0001 .0000 0 250 500 750 1000 1250 1500 1750 2000 2250 2500 Demand