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A large toy company M ttel currently allows toy retailers to place orders with delivery in 2 weeks. The Gigantic Pocket Monster ( Gipokmon )
A large toy company Mttel currently allows toy retailers to place orders with delivery in weeks. The Gigantic Pocket Monster Gipokmon is a new toy that Mttel has introduced. Mttel charges a wholesale price of $ for the Gipokmon. The manager of a small boutique toy retail company, TOYSareMINE, plans to sell the toy for $ and incurs a holding cost of $ per toy per week. At this price, demand per week for the toy at one of their stores is estimated to be Poisson distributed with a mean of units. Assume that the backorder cost is equal to the products retail margin. Assume TOYSareMINE uses the orderupto model to plan orders and deliveries to this store.
Suppose an orderupto level of is established. What would be the expected endofperiod onhand inventory of Gipokmons? Answer to decimal places
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