TABLE 13.4 The Distribution, F(Q), and Expected Inventory, I(Q), Functions for the Standard Normal Distribution Function -4.0 () 1.4367 1 1 F) 0968 1.1151 0455 -1.3 -1.2 141 F(z) 9192 9332 -3.9 0561 15 1.5293 1 1.1357 0686 19452 | 1,6232 0833 | | 1.7183 1587 1.1841 -09 1004 9554 9641 9713 | 1,8143 | 111111112 0 ..1202) 2119 2420 -3.4 0 1.1429 9772 206 2743 1.1687 -3.2 -0.5) 3085 1978 -3.11 3446 2304 0 9 1.9111 2.0085 2.1065 22049 | 2.3037 | 2.4027 2,5020 | 2,6015 2.7011 13821 2668 | 2 F(z) (2) 0000 0000 0000 10000) ,0001 0000 ,0001 1 ,0000 0002 0000 0002 0001 0003) 0001 0005 0001 0007 0002 0010 1,0003 0013 0004 0019 0005 0026) 1,0008 0035 -0011 10047 0015 0062 0020 0082) 0027 0107 0037 0139 0049 0179 0065 0228 10085 0287 -0111 0359) 0143) 10446 | 0183 0548 0232 ,0668 10293 | | 0808 .0367 9821 19861 9893 9918 9938 9953 9965 -3.0 -2.9 -2.8 1 9 3069 3509 3989 2.7 2.7 14509 9974 | 2,8008 4207 4602 5000 5398 5793 1.6179 6554 6915 5069 9981 | 2.9005 | -2.5 -2.4 -2.3 | 3 | 3 | -22 5668 6304 -6978 7687 3 | | 7257 -2.1 -2.01 -1.9 3 | 3 | 3,0004 3.1003) 3.2002 3,3001 3.4001 3.5001 3,6000 3,7000 7580 118429 | | 7881 9987 9990 9993 9995 9997 9998 9998 19999 19999 1,0000 1,0000 9202 3 | 8159 1.0004 3 | -1.7 8413 1,0833 3 | -1.6) 8643 | 3 | | 3,8000 -1.5 | - 1.4 1.1686 1,2561 1.3455 391 3.9000 8849) | 9032 | | 1.3 4.0 4,0000 PA 13-4 (Algo) Fashionables is a franchisee of The Unlimited, the... 16 Fashionables is a franchisee of The UnLimited, the well-known retailer of fashionable clothing. Prior to the winter season, The Unlimited offers Fashionables the choice of five different colors of a particular sweater design. The sweaters are knit overseas by hand; because of the lead times involved, Fashionables will need to order its assortment in advance of the selling season. As per the contracting terms offered by The Unlimited, Fashionables will also not be able to cancel, modify, or reorder sweaters during the selling season. Demand for each color during the season is normally distributed with a mean of 450 and a standard deviation of 150. Further, you may assume that the demands for each sweater are independent of those for a different color. Use Table 13.4 points Skipped The Unlimited offers the sweaters to Fashionables at the wholesale price of $43 per sweater, and Fashionables plans to sell each sweater at the retail price of $65 per unit. The Unlimited does not accept any returns of unsold inventory. However, Fashionables can sell all of the unsold sweaters at the end of the season at the fire-sale price of $23 each. 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. How many units of each sweater type should Fashionables order to maximize its expected profit? Use Table 13.4. Print a. If Fashionables wishes to ensure a 97.5 percent in-stock probability, what should its order quantity be for each type of sweater? Use Table 13.4. Say Fashionables orders 675 of each sweater. What is Fashionables' expected profit? Use Table 13.4. Say Fashionables orders 675 of each sweater. What is the stockout probability for each sweater? Use Excel. (Round your answer to 4 decimal places.)
