1 of 2

Assignment 01

Supply Chain Management

1. 1. A toy making company is trying to plan their year-end sales in October 2022. Each toy they make costs them 50 and they sell each toy at 90. After considering multiple factors, the company estimates demand during year-end sales may follow the following distribution: (a) Discrete distribution:
2. (b) Normal distribution: N(50, 20)

Demand (in hundred)	Probability
20	0.20
25	0.25
45	0.30
55	0.20
60	0.05

Answer the following questions:

1. (i) Build a simulation model to estimate how many toys the company should make.
2. (ii) Explain the units of toys to be made.
3. (iii) Find the expected profit and its standard deviation at optimal quantity.
4. (iv) Determine 95% confidence interval for the expected profit. What do you observe?
5. (v) Find expected profit and its standard deviation for each demand quantity that the company may order.

2 of 2

1. (vi) What do you understand from probability density of the expected profits?

2. How would you characterize competitive strategy of Amazon, department store, auto manufacturer, and D-Mart?

3. What do you understand by demand uncertainty? Why does it make managing supply chain so difficult?

4. List those supply chain attributes that you as a consumer would like to have.

5. If a company developed COVID-19 vaccine, describe its demand and supply characteristics at the beginning of the product life cycle.

6. What differences in the retail environment may justify the fact that the fast-moving consumer goods supply chain in India has far more distributors than in the United States