(Pony Express Creations) Pony Express Creations Inc. (www.pony-ex.com) is a manufacturer of party… 1 answer below »


(Pony Express Creations) Pony Express Creations Inc. (www.pony-ex.com) is a creator of party hats, principally for the Halloween while. (80 percent of their every-year sales happen balance a six-week time.) One of their common products is the Elvis wig, unimpaired delay sideburns and shrill glasses. The Elvis wig is done in China, so Pony Express must gain a uncombined adjust well-mannered-mannered in track of the upcoming while. Ryan, the possessor of Pony Express, anticipates ask-for to be 25,000 and the aftercited is his unimpaired ask-for forecast:

Prob(D = Q) = Appearance ask-for D equals Q

F(Q) = Appearance ask-for is Q or lower

L(Q) = Expected obsolete sales if Q units are adjusted

The Elvis wig retails for $25, but Pony Express’s interchangeable consume is $12. Their formation consume is $6. Leftbalance register can be sold to discounters for $2.50.

a. Suppose Pony Express adjusts 40,000 Elvis wigs. What is the random they bear to disburse 10,000 or over wigs delay a discounter? [14.2]

b. What adjust share maximizes Pony Express’s anticipateed gain? [14.3]

c. If Pony Express wants to bear a 90 percent in-stock appearance, then how numerous Elvis wigs should be adjusted? [14.5]

d. If Pony Express adjusts 50,000 units, then how numerous wigs can they anticipate to bear to disburse delay discounters? [14.4]

e. If Pony Express insists on a 100 percent in-stock appearance for its customers, then what is its anticipateed gain? [14.4]