All Calculation has been done oner sweater Color as the demands are not dependen

Question

All Calculation has been done oner sweater Color as the demands are not dependent on each other Demand () 500 SD () 225 Cost Price $         45.00 Selling Price $         74.00 Salvage Value $         25.00 Co = Cost – Salvage value $         20.00 Cu = Price – Cost $         29.00 Cu / (Co + Cu ) 0.59 L(z ) 0.169 Q* = + NORM.S.INV(P*) x 552 Expected lost sales= L(z )x 38 Expected sales = - Expected lost sales 462 Expected Leftover Inventory = Q - Expected Sales 90 Expected Profit=expected Sales-Leftover Inventory Sales $ 11,598.00 In- Stock Probability 97.50 Q* = + NORM.S.INV(P*) x 941 Q 650 Expected lost sales= L(z )x 38 Expected sales = - Expected lost sales 462 Expected Leftover Inventory = Q - Expected Sales 188 Expected Profit=expected Sales-Leftover Inventory Sales $   9,638.00 Q 650 Instock = Normdist(Q, , ,1) 0.74750746 Outstock Probability (1- Instock Probability) 0.25249254

Explanation / Answer

afari File Edit View HistoryBookmarks Window Help ezto.mheducation.com gnment #4 PA 13-4 Fashionables is a franchisee of The UnLimited, the... Use Table 13.4 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, and 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 500 and a standard deviation of 225. Further, you may assume that the demand for each sweater is independent of the demand for any other color The UnLimited offers the sweaters to Fashionables at the whole ale price of $45 per sweater, and Fashionables plans to sell each sweater at the retail price of $74 per unit. The UnLimited Coes 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 $25 each. 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 and round to nearest integer. If Fashionables wishes to ensure a 97.5% in-stock probability, what should its integer Say Fashionables orders 650 of each sweater. What is Fashionables expected b. order quantity be for each type of sweater? Use Table 13.4 and round to nearest C. profit? Use Table 13.4. . Say Fashionables orders 650 of each sweater, what is the stockout probability for each sweater? Use Excel. d. (Round your answer to 4 decimal places.) kir 48,656

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