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23. 4.00 points value: PA 13-3 Montanso sells genetically modified seed to farmers. It... Use Table 13.4 Montanso sells genetically modified seed to farmers. It
23. 4.00 points value: PA 13-3 Montanso sells genetically modified seed to farmers. It... Use Table 13.4 Montanso sells genetically modified seed to farmers. It needs to decide how much seed to put into a warehouse to serve demand for the next growing season. It will make one quantity decision. It costs Montanso $7 to make each kilogram (kg) of seed. It sells each kg for $46. If Montanso has more seed than demanded by the local farmers, the remaining seed is sent overseas. Unfortunately, only $2 per kg is earned from the overseas market (but this is better than destroying the seed because it cannot be stored until next year). If demand exceeds its quantity, then the sales are lost - the farmers go to another supplier. As a forecast for demand, Montanso will use a normal distribution with a mean of 325000 and a standard deviation of 125000 If a part of the question specifies whether to use Table 13.4, or to use Excel, then credit for a correct answer will depend on using the specified method How many kilograms should Montanso place in the warehouse before the growing season? Use Table 13.4 and round-up rule If Montanso put 425000 kgs in the warehouse, what is its expected b. revenue (include both domestic revenue and overseas revenue)? Use Table 13.4 and round-up rule How many kilograms should Montanso place in the warehouse to C. minimize inventory while ensuring that the stockout probability is no greater than 1%? Use Table 13.4 and round-up rule d. What is maximum profit for this seed
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