Question: Show all work. 1 . You are the procurement manager of Tacy s . The supplier offers a new style of classical bomber jacket for
Show all work.
You are the procurement manager of Tacys The supplier offers a new style of classical bomber jacket for the winter season. The purchase cost is $ and the selling price is $ You consider offering a discount for unsold jackets at the end of the season. The discounted price is $ The forecasted demand, D is normally distributed with a mean of units mu and a standard deviation of units sigma Assume that the AF ration is
a You will get a promotion if the total sold jackets is above units. What is the probability that the actual demand will be units or more?
b Selling less than of the average forecast may result in the placement of your position in a lower pay grade. What is the probability of selling more than
c What is the probability that the actual demand is within of the average forecast?
d Whatistheexpectedprofitmaximizingorderquantity,Q
e Assuming Tacys Manger enforces and orders quantity of Q What are the expected lost sales?
f AtQwhataretheexpectedsales?
g At Q what is the expected leftover inventory?
h At Q what is the expected profit?
i AtQwhatistheexpectedfillrate?
j AtQwhatisthestockoutprobability?
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