8) Outdoor Equipment will be introducing a new design of the Elevate Daypack 2.0 (2 liter) for the upcoming summer hiking season. The marketing department has forecasted a demand of 350 units. The purchasing cost of the Elevate Daypack is $25 and Outdoor Equipment can sell it for $35. Packs that are not sold at the end of the season will sell at a discounted price of $20. Using the Empirical distribution above, what is the optimum order quantity?

9) Now assume the demand is normally distributed. Using the A/F ratios to derive a Normally distributed demand model, what is the quantity of Elevation Daypack 2.0 that Outdoor Equipment should order?

300 [Q. 8-9] Outdoor Equipment's marketing department has kept record of their forecasts for various products. They also have a record of the actual demands for those products during the previous selling season as shown in the table below. Actual A/F Product Forecast Demand Ratio Rank Percentile GoLight Daypack (2 liter) thin strap 150 0.50 1 10% GoLight Daypack (2 liter) thick strap 500 350 0.70 2 20% Burkin Daypack (2 liter) 250 210 0.84 3 30% Burkin Daypack (3 liter) 65 60 0.92 4 40% Burkin Daypack (1 liter) 100 95 0.955 50% GoLight Daypack (1 liter) 405 1.01 60% Manix Daypack (2 liter) 310 1.037 70% Elevate Daypack (2 liter) 75 80 1.07 8 80% Manix Daypack (1 liter) 350 375 1.07 2 90% Elevate Daypack (1 liter) 50 60 1.20 10 100% Average 0.93 400 300 Standard deviation 0.20 300 [Q. 8-9] Outdoor Equipment's marketing department has kept record of their forecasts for various products. They also have a record of the actual demands for those products during the previous selling season as shown in the table below. Actual A/F Product Forecast Demand Ratio Rank Percentile GoLight Daypack (2 liter) thin strap 150 0.50 1 10% GoLight Daypack (2 liter) thick strap 500 350 0.70 2 20% Burkin Daypack (2 liter) 250 210 0.84 3 30% Burkin Daypack (3 liter) 65 60 0.92 4 40% Burkin Daypack (1 liter) 100 95 0.955 50% GoLight Daypack (1 liter) 405 1.01 60% Manix Daypack (2 liter) 310 1.037 70% Elevate Daypack (2 liter) 75 80 1.07 8 80% Manix Daypack (1 liter) 350 375 1.07 2 90% Elevate Daypack (1 liter) 50 60 1.20 10 100% Average 0.93 400 300 Standard deviation 0.20