1. You are the procurement manager of Tacy’s. The supplier offers a new style of classical bomber jacket for the winter season. The purchase cost is $200, and the selling price is $500. You consider offering a discount for unsold jackets at the end of the season. The discounted price is $150. The forecasted demand, D, is normally distributed with a mean of 3,000 units (μ) and a standard deviation of 700 units (σ). Assume that the A/F ration is 1. (a) You will get a promotion if the total sold jackets is above 4,000 units. What is the probability that the actual demand will be 4,000 units or more? (b) Selling less than 80% 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 80%? (c) What is the probability that the actual demand is within 25% of the average forecast? (d) What is the expected profit maximizing order quantity, Q? (e) Assuming Tacy’s Manger enforces and orders quantity of Q=4,500. What are the expected lost sales?
1. You are the procurement manager of Tacy’s. The supplier offers a new style of classical bomber jacket for the winter season. The purchase cost is $200, and the selling price is $500. You consider offering a discount for unsold jackets at the end of the season. The discounted price is $150. The forecasted demand, D, is normally distributed with a mean of 3,000 units (μ) and a standard deviation of 700 units (σ). Assume that the A/F ration is 1. (a) You will get a promotion if the total sold jackets is above 4,000 units. What is the probability that the actual demand will be 4,000 units or more? (b) Selling less than 80% 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 80%? (c) What is the probability that the actual demand is within 25% of the average forecast? (d) What is the expected profit maximizing order quantity, Q? (e) Assuming Tacy’s Manger enforces and orders quantity of Q=4,500. What are the expected lost sales?
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.5: Correlation And Causation
Problem 21PFA
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1. You are the procurement manager of Tacy’s. The supplier offers a new style of classical bomber
jacket for the winter season. The purchase cost is $200, and the selling price is $500. You
consider offering a discount for unsold jackets at the end of the season. The discounted price is
$150. The forecasted demand, D, isnormally distributed with a mean of 3,000 units (μ) and a
standard deviation of 700 units (σ). Assume that the A/F ration is 1.
(a) You will get a promotion if the total sold jackets is above 4,000 units. What is theprobability
that the actual demand will be 4,000 units or more?
(b) Selling less than 80% 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 80%?
(c) What is the probability that the actual demand is within 25% of the average forecast?
(d) What is the expected profit maximizing order quantity, Q?
(e) Assuming Tacy’s Manger enforces and orders quantity of Q=4,500. What are the expected
lost sales?
jacket for the winter season. The purchase cost is $200, and the selling price is $500. You
consider offering a discount for unsold jackets at the end of the season. The discounted price is
$150. The forecasted demand, D, is
standard deviation of 700 units (σ). Assume that the A/F ration is 1.
(a) You will get a promotion if the total sold jackets is above 4,000 units. What is the
that the actual demand will be 4,000 units or more?
(b) Selling less than 80% 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 80%?
(c) What is the probability that the actual demand is within 25% of the average forecast?
(d) What is the expected profit maximizing order quantity, Q?
(e) Assuming Tacy’s Manger enforces and orders quantity of Q=4,500. What are the expected
lost sales?
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