Question: Show all work and equations used. 4. A large toy company Miittel currently allows toy retailers to place orders with delivery in 3 weeks. The

Show all work and equations used.

Show all work and equations used. 4. A large toy company Miittel

4. A large toy company Miittel currently allows toy retailers to place orders with delivery in 3 weeks. The Gigantic Pocket Monster (Gipokmon) is a new toy that Miittel has introduced. TOYS-are-MINE plans to uses the order-up-to model (with a ll-rate target of 9?%) to plan orders and deliveries to their retailers. Given that this is a new toy, sales estimates are somewhat uncertain. The market research team is fairly condent that weekly demand would be normally distributed with a mean of 100 units. However, since this is a new product, demand uncertainty, as characterized by the standard deviation, is harder to estimate and could be either: i. standard deviation of 30; or ii. standard deviation of 25 units; or iii. standard deviation of 20 units. In order to budget working capital investment in inventories, you are required to provide an estimate of expected on-hand inventories for each level of uncertainty

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