Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 6. (10 points) Swell Productions is sponsoring an outdoor conclave, a one-day event, for owners of collectable Fords. The concession stand in the

image text in transcribed

1 6. (10 points) Swell Productions is sponsoring an outdoor conclave, a one-day event, for owners of collectable Fords. The concession stand in the T-Bird area will sell T-shirts, poodle skirts, and other souvenirs of the 1950s. Poodle skirts are purchased before the event from Peachy Keen, Inc., for $40 each and are sold during the event for $75 each. If any skirts are left over, they can be returned to Peachy for a refund of $33 each. The forecasted demand for skirts has Normal distribution with a mean value of 400 units and standard deviation of 100 units. The question is how many units of the skirts should be purchased before the event. a). Assume that all unsatisfied demand during the event will be lost, how many Poodle skirts should Swell order from Peachy Keen for this one-time event? b). Now, assume that all the unsatisfied customers during the event are willing to be backlogged. At the end of the event, Swell will then put a rush order just enough to satisfy all those backlogged customers. But, for this rush order, Peachy Keen will charge $56 per unit, instead the $40 per unit. How many Poodle skirts should Swell order before the event? (Note Swell will sell to the backlogged customers for the same price of $75.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Project management the managerial process

Authors: Eric W Larson, Clifford F. Gray

5th edition

73403342, 978-0073403342

More Books

Students also viewed these General Management questions

Question

Explain the regulation of the secretions of the small intestine.

Answered: 1 week ago