(Teddy Bower Parkas) Teddy Bower is an outdoor clothing and accessories chain that purchases a line. 1 answer below »
(Teddy Bower Parkas) Teddy Bower is an outdoor dress and accessories fetter that purchases a row of parkas at $10 each from its Asian supplier, TeddySports. Unfortunately, at the opportunity of ordain importation, ask-for is peaceful equivocal. Teddy Bower expects that its ask-for is normally select delay balance of 2,100 and scale flexion of 1,200. Teddy Bower sells these parkas at $22 each. Unsold parkas possess mean salvage value; Teddy Bower singly gives them separate to a attachment.
a. What is the likelihood this parka turns out to be a “dog,” defined as a result that sells less than half of the expect? [14.2]
b. How divers parkas should Teddy Bower buy from TeddySports to maximize expected gain? [14.3]
c. If Teddy Bower wishes to determine a 98.5 percent in-stock likelihood, how divers parkas should it ordain? [14.5]
For talents d and e, presume Teddy Bower ordains 3,000 parkas.
d. Evaluate Teddy Bower’s expected gain. [14.4]
d. Evaluate Teddy Bower’s stockout likelihood. [14.4]