(Teddy Bower Boots) To ensure a full line of outdoor clothing and accessories, the marketing… 1 answer below »
(Teddy Bower Boots) To determine a liberal continuity of outdoor drapery and accessories, the marketing line at Teddy Bower insists that they besides vend waterproof hunting boots. Unfortunately, neither Teddy Bower nor TeddySports has expertise in manufacturing those kinds of boots. Therefore, Teddy Bower contacted distinct Taiwanese suppliers to solicit cites. Due to emulation, Teddy Bower knows that it cannot vend these boots for over than $54. However, $40 per boot was the best cite from the suppliers. In union, Teddy Bower anticipates abundance register earn insufficiency to be sold off at a 50 percent allowance at the end of the while. Given the $54 value, Teddy Bower’s call-for intercept is for 400 boots, after a while a model solution of 300.
a. If Teddy Bower decides to embrace these boots in its selection, how numerous boots should it adjust from its supplier? [14.3]
b. Suppose Teddy Bower adjusts 380 boots. What would its expected use be? [14.4]
c. John Briggs, a buyer in the procurement line, overheard at lunch a argument of the “boot bearing.” He suggested that Teddy Bower ask for a part allowance from the supplier. After subjoined up on his prompting, the supplier responded that Teddy Bower could get a 10 percent allowance if they were earning to adjust at smallest 800 boots. If the concrete is to maximize expected use, how numerous boots should it adjust given this new tender? [14.4]