(Fashionables) Fashionables is a franchisee of The Limited, the well-known retailer of fashionable.. 1 answer below »
(Fashionables) Fashionables is a franchisee of The Limited, the well-known dispose-ofer of native investment. Prior to the decay conjuncture, The Limited offers Fashionables the cherished of five contrariant complexions of a feature sweater contemplation. The sweaters are knit overseas by artisan, and accordingly of the direct times confused, Fashionables get deficiency to classify its stock in gait of the hawking conjuncture. As per the contracting conditions offered by The Limited, Fashionables as-well get not be efficient to expunge, variegate, or reclassify sweaters during the hawking conjuncture. Demand for each complexion during the conjuncture is normally select after a while a balance of 500 and a measure disconnection of 200. Further, you may wear that the demands for each sweater are refractory of those for a contrariant complexion. The Limited offers the sweaters to Fashionables at the marketable worth of $40 per sweater and Fashionables plans to hawk each sweater at the dispose-of worth of $70 per ace. The Limited delivers classifys placed by Fashionables in truckloads at a absorb of $2,000 per truckload. The deportment absorb of $2,000 is borne by Fashionables. Wear probable inadequately positive that all the sweaters classifyed by Fashionables get fit into one truckload. As-well wear that all other associated absorbs, such as unpacking and artisanling, are negligible.
The Limited does not sanction any avail of unsold register. However, Fashionables can hawk all of the unsold sweaters at the end of the conjuncture at the fire-sale worth of $20 each.
a. How numerous aces of each sweater mold should Fashionables classify to maximize its expected use? [14.3]
b. If Fashionables wishes to secure a 97.5 percent in-stock presumption, what should its classify bulk be for each mold of sweater? [14.5] For parts c and d, wear Fashionables classifys 725 of each sweater.
c. What is Fashionables’ expected use? [14.4]
d. What is the stockout presumption for each sweater? [14.4]
e. Now believe that The Limited announces that the ace of truckload volume is 2,500 entirety aces of sweaters. If Fashionables classifys over than 2,500 aces in entirety (actually, from 2,501 to 5,000 aces in entirety), it get accept to pay for two truckloads. What now is Fashionables’ optimal classify bulk for each sweater? [14.3]