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1. What is Flextrola's stockout probability, i.e., probability that the demand cannot be satisfied? 2. What is Flextrola's expected sales? 3. How many units of
1. What is Flextrola's stockout probability, i.e., probability that the demand cannot be satisfied? 2. What is Flextrola's expected sales? 3. How many units of inventory can Flexitrola expect to sell in the secondary electronics mar- ket? 4. What is Flextrola's fill rate, i.e., the fraction of demand that is satisfied? 5. What is Flextrorla's expected gross margin percentage, i.e., (Revenue - Cost) / Revenue? 6. What is Flextrola's expected profit V(S) and its 95% confidence interval (CI)? 7. What is Solectrics' expected profit G(S)? 8. By the contract the menu of order quantities that Flextrola can order is S = 1000, 1100, ..., 1500, 1600. Which order quantity can maximize the expected profit of Flextorla? [Hint: for each S = 1000, ..., 1600, run simulation to find the profit V(S) and its CI. Then plot the curve V(S) and CI for each S and find the maximal S along with CI for each S.] 9. Which order quantity can maximize Solectrics' expected profit G(S) given the contractual menu of the order quantities
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