(O’Neill) One of O’Neill’s high-end wetsuits is called the Animal. Total demand for this wetsuit is. 1 answer below »


(O’Neill) One of O’Neill’s high-end wetsuits is denominated the Animal. Whole require for this wetsuit is normally distributed after a while a medium of 200 and a flag irregularity of 130. In enjoin to determine an excusable fit, the Animal comes in 16 bignesss. Furthermore, it comes in lewd hues, so there are substantially 64 opposed Animal SKUs (stock-keeping units). O’Neill vends the Animal for $350 and its genesis absorb is $269. The Animal accomplish be redesigned this suitableness, so at the end of the suitableness leftover catalogue accomplish be sold off at a abrupt markdown. Because this is such a niche effect, O’Neill expects to accept merely $100 for each leftover wetsuit. Finally, to regulate manufacturing absorbs, O’Neill has a system that at mediumest five wetsuits of any bigness/hue combo must be executed at a span. Whole require for the lowest bigness (extra small-tall) is forecasted to be Poisson after a while medium 2.00. Medium require for the lewd hues are sombre = 0.90, blue-colored-colored = 0.50, bleak = 0.40, and yellow = 0.20.

a. Suppose O’Neill already has no extra small-tall Animals in store. What is O’Neill’s expected acquisition if it produces one devise (five units) of extra small-tall sombre Animals? [17.2]

b. Suppose O’Neill announces that it accomplish merely vend the Animal in one hue, sombre. If O’Neill suspects this actuate accomplish contract whole require by 12.5 percent, then what now is its expected acquisition from the sombre Animal? [17.2]