Question: This is my third time posting this question. Please only do it if you know how. Thank you! Dan McClure owns a thriving independent bookstore

This is my third time posting this question. Please only do it if you know how. Thank you!This is my third time posting this question.This is my third time posting this question.

Dan McClure owns a thriving independent bookstore in artsy New Hope, Pennsylvania. He must decide how many copies to order of a new book, Power and Self-Destruction, an expos on a famous politician's lurid affairs. Interest in the book will be intense at first and then fizzle quickly as attention turns to other celebrities. The book's retail price is $20, and the wholesale price is $11. The publisher will buy back the retailer's leftover copies at a full refund, but McClure Books incurs $2 in shipping and handling costs for each book returned to the publisher. Dan believes his demand forecast can be represented by a normal distribution with a mean of 200 and a standard deviation of 70. Use Table 13.4. 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. Dan will consider this book to be a blockbuster for him if it sells more than 385 units. Using Table 13.4 and the round-up rule, what is the probability that 0.9965 Power and Self-Destruction will be a blockbuster? (Round your answer to 4 decimal places.) a. b. 0.0035 Dan considers a book a "dog" if it sells less than 50 percent of his mean forecast. What is the probability this expose is a "dog"? Use Excel. (Round your answer to 4 decimal places.) c. 0.4172 Use Table 13.4 and the round-up rule to determine the probability that demand for this book will be within 20 percent of the mean forecast. (Round your answer to 4 decimal places.) d. Using Table 13.4 and the round-up rule, calculate the order quantity that maximizes Dan's expected profit. Do not round intermediate calculations. 258 X d. 258 X Using Table 13.4 and the round-up rule, calculate the order quantity that maximizes Dan's expected profit. Do not round intermediate calculations. (Round to the nearest whole number.) e 9 % If Dan orders the quantity needed to achieve a 91% in-stock probability, then what is the probability that some customer won't be able to purchase a copy of the book? (Enter your answer as a percentage rounded to the nearest whole number.) f. 2,700 Suppose Dan orders 300 copies of the book. Using Table 13.4 and the round- up method, calculate Dan's expected left-over inventory to a whole unit. Do not round intermediate calculations. (Round to the nearest whole number.) g. 5,100 Suppose Dan orders 300 copies ofthe book. What is Dan's expected sales? Do not round intermediate calculations. (Round to the nearest whole number.) h. $ 2,100 Suppose Dan orders 300 copies of the book. What is Dan's expected profit? Use your rounded Part f and g answers. (Round to the nearest whole number.) i. 298 Use Table 13.4 and the round-up function to determine how many books Dan should order if he wants to achieve a 91% in-stock probability. Do not round intermediate calculations. (Round to the nearest whole number.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!