Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answer all questions pls Flextrola, Incorporated, an electronics systems integrator, is planning to design a key component for its next-generation product with Solectrics. Flextrola will

answer all questions pls
image text in transcribed
image text in transcribed
image text in transcribed
Flextrola, Incorporated, an electronics systems integrator, is planning to design a key component for its next-generation product with Solectrics. Flextrola will integrate the component with some software and then sell it to consumers. Given the short life cycles of such products and the long lead times quoted by Solectrics. Flextrola only has one opportunity to place an order with Solectrics prior to the beginning of its selling season. Flextrola's demand during the season is normally distributed with a mean of 1,300 and a standard deviation of 800 . Use Table 13.4. Solectrics' production cost for the component is $54 per unit, and it plans to sell the component for $72 per unit to Flextrola. Flextrola incurs essentially no cost associated with the software integration and handing of each unit. Flextrola sells these units to consumers for \$122 each. Flextrola can sell unsold inventory ot the end of the season in a secondary electronics market for $45 each. The existing contract specifies that once Flextrola places the order, no changes are allowed to it. Also, Solectrics does not accept ary returns of unsold inventory, so Flextrola must dispose of excess inventory in the secondary market. Note: 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. a. What is the probability that Flextrola's demand will be within 25% of its forecast? Use Excel. Note: Round your answer to 4 decimal places. b. What is the probability that Flextrola's demand will be more than 40% greater than Flextrola's forecast? Use Excel. Note: Round your answer to 4 decimal places. c. Under this contract, how many units should Flextrola order to maximize its expected profit? Use Table 13.4. d. If Flextrola orders 1,200 units, how many units of inventory can Flextrola's expect to sell in the secondary electronics market? Use Table 13.4 . Note: Round your answer to 2 decimal places. e. If Flextrola orders 1,200 units, what are expected sales? Note: Round your answer to 2 decimal places. f. If Flextrola orders 1,200 units, what is expected profit? Note: Round your answer to 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Successful Time Management

Authors: Patrick Forsyth

1st Edition

0749486198, 978-0749486198

More Books

Students also viewed these General Management questions