Question: TABLE 1 3 . 4 The Distribution, F ( Q ) , and Expected Inventory, / ( Q ) , Functions for a Normal Distribution

TABLE 13.4 The Distribution, F(Q), and Expected Inventory, /(Q), Functions for a Normal Distribution with Mean 3000 and Standard Deviation 1000
\table[[z,F(z),I(z),z,F(z),I(z),z,F(z),I(z) Teddy Bower is an outdoor clothing and accessorles chain that purchases a line of parkas at $8 each from Its Aslan supplier,
TeddySports. Unfortunately, at the time of the order placement, demand is still uncertain: Teddy Bower forecasts that Its demand is
normally distributed with a mean of 1,800 and a standard devlation of 1,300. Teddy Bower sells these parkas at $23 each. Unsold
parkas have little salvage value; Teddy Bower simply glves them away to a charity (and also doesn't collect a tax benefit for the
donation). Use Table 13.4.
Note: Do not round Intermedlate calculatlons. If a part of the questlon speclfles whether to use Table 13.4, or to use Excel, then
credit for a correct answer will depend on using the specifled method.
a. How many parkas should Teddy Bower buy from TeddySports to maximize expected profit? Use Table 13.4 and the round-up rule.
Note: Enter your answer as a whole number.
Order quantity
b. If Teddy Bower orders 3,250 parkas, what is expected leftover Inventory? Use Table 13.4 and the round-up rule.
Note: Round your answer to 2 decimal places.
Expected leftover inventory
c. If Teddy Bower orders 3,250 parkas, what is expected sales? Use your result from Part b.
Note: Round your answer to 2 decimal places.
Expected sales
d. If Teddy Bower orders 3,250 parkas, what is expected profit? Use your results from Part b and Part c.
Note: Round your answer to 2 decimal places.
Expected profit
e. How many parkas should Teddy Bower order to ensure a 98.5% In-stock probability? How many parkas should Teddy Bower's
order? Use Table 13.4.
Order quantity
 TABLE 13.4 The Distribution, F(Q), and Expected Inventory, /(Q), Functions for

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