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Dan McClure owns a thriving independent bookstore in artsy New Hope, Pennsylvania. He must decide how many copies to order of a new book, Power

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Dan McClure owns a thriving independent bookstore in artsy New Hope, Pennsylvania. He must decide how many copies to order of a new book, Power and Self-Destruction, an expose on a famous politician's lurid affairs. Interest in the book will be intense at first and then fizzle quickly as attention turns to other celebrities. The book's retail price is $23, and the wholesale price is $14. The publisher will buy back the retailer's leftover coples at a full refund, but McClure Books incurs $5 in shipping and handling costs for each book returned to the publisher. Dan believes his demand forecast can be represented by a normal distribution with a mean of 175 and a standard deviation of 100 , Use Table 13.4 . 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. Dan will consider this book to be a blockbuster for him if it sells more than 400 units. Using Table 13.4 and the round-up rule, what is the probability that Power and Self-Destruction will be a blockbuster? Note: Round your answer to 4 decimal places. b. Dan considers a book a "dog" if it sells less than 50 percent of his mean forecast. What is the probability this expose is a "dog"? Use Excel. Note: Round your answer to 4 decimal places. Use Table 13.4 and the round-up rule to determine the probability that demand for this book will be within 20 percent of the mean forecast. Note: Round your answer to 4 decimal places. d. Using Table 13.4 and the round-up rule, calculate the order quantity that maximizes Dan's expected profit. Note: Do not round intermediate calculations. Round to the nearest whole number. e. If Dan orders the quantity needed to achieve a 95% in-stock probability, then whot is the probability that some customer won't be able to purchase a copy of the book? Note: Enter your answer as a percentage rounded to the nearest whole number. f. Suppose Dan orders 300 copies of the book. Using Table 13.4 and the round-up method, calculate Dan's expected leftover inventory to a whole unit. Note: Do not round intermediate calculations. Round to the nearest whole number. 9. Suppose Dan orders 300 copies ofthe book. What is Dan's expected sales? Note: Do not round intermediate calculations. Round to the nearest whole number. h. Suppose Dan orders 300 copies of the book. What is Dan's expected profit? Note: Use your rounded Part f and g answers. Round to the nearest whole number. 1. Use Table 13.4 and the round-up function to determine how many books Dan should order if he wants to achieve a 95% in-stock probability. Note: Do not round intermediate calculations. Round to the nearest whole number. The Distribution , F(Q), and Expected Inventory, I(Q), Functions for the Standard Normal Distribution Function \begin{tabular}{|c|c|c|} \hline-1.5 & 0.0668 & 0.0293 \\ \hline-1.4 & 0.0808 & 0.0367 \\ \hline-1.3 & 0.0968 & 0.0455 \\ \hline-1.2 & 0.1151 & 0.0561 \\ \hline-1.1 & 0.1357 & 0.0686 \\ \hline-1.0 & 0.1587 & 0.0833 \\ \hline-0.9 & 0.1841 & 0.1004 \\ \hline-0.8 & 0.2119 & 0.1202 \\ \hline-0.7 & 0.2420 & 0.1429 \\ \hline-0.6 & 0.2743 & 0.1687 \\ \hline-0.5 & 0.3085 & 0.1978 \\ \hline-0.4 & 0.3446 & 0.2304 \\ \hline-0.3 & 0.3821 & 0.2668 \\ \hline 0.2 & 0.4207 & 0.3069 \\ \hline-0.1 & 0.4602 & 0.3509 \\ \hline 0.0 & 0.5000 & 0.3989 \\ \hline 0.1 & 0.5398 & 0.4509 \\ \hline 0.2 & 0.5793 & 0.5069 \\ \hline 0.3 & 0.6179 & 0.5668 \\ \hline 0.4 & 0.6554 & 0.6304 \\ \hline 0.5 & 0.6915 & 0.6978 \\ \hline 0.6 & 0.7257 & 0.7687 \\ \hline 0.7 & 0.7580 & 0.8429 \\ \hline 0.8 & 0.7881 & 0.9202 \\ \hline 0.9 & 0.8159 & 1.0004 \\ \hline 1.0 & 0.8413 & 1.0833 \\ \hline 1.1 & 0.8643 & 1.1686 \\ \hline 1.2 & 0.8849 & 1.2561 \\ \hline 1.3 & 0.9032 & 1.3455 \\ \hline 1.4 & 0.9192 & 1.4367 \\ \hline 1.5 & 0.9332 & 1.5293 \\ \hline 1.6 & 0.9452 & 1.6232 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline 1.1 & 0.8643 & 1.1686 \\ \hline 1.2 & 0.8849 & 1.2561 \\ \hline 1.3 & 0.9032 & 1.3455 \\ \hline 1.4 & 0.9192 & 1.4367 \\ \hline 1.5 & 0.9332 & 1.5293 \\ \hline 1.6 & 0.9452 & 1.6232 \\ \hline 1.7 & 0.9554 & 1.7183 \\ \hline 1.8 & 0.9641 & 1.8143 \\ \hline 1.9 & 0.9713 & 1.9111 \\ \hline 2.0 & 0.9772 & 2.0085 \\ \hline 2.1 & 0.9821 & 2.1065 \\ \hline 2.2 & 0.9861 & 2.2049 \\ \hline 2.3 & 0.9893 & 2.3037 \\ \hline 2.4 & 0.9918 & 2.4027 \\ \hline 2.5 & 0.9938 & 2.5020 \\ \hline 2.6 & 0.9953 & 2.6015 \\ \hline 2.7 & 0.9965 & 2.7011 \\ \hline 2.8 & 0.9974 & 2.8008 \\ \hline 2.9 & 0.9981 & 2.9005 \\ \hline 3.0 & 0.9987 & 3.0004 \\ \hline 3.1 & 0.9990 & 3.1003 \\ \hline 3.2 & 0.9993 & 3.2002 \\ \hline 3.3 & 0.9995 & 3.3001 \\ \hline 3.4 & 0.9997 & 3.4001 \\ \hline 3.5 & 0.9998 & 3.5001 \\ \hline 3.6 & 0.9998 & 3.6000 \\ \hline 3.7 & 0.9999 & 3.7000 \\ \hline 3.8 & 0.9999 & 3.8000 \\ \hline 3.9 & 1.0000 & 3.9000 \\ \hline 4.0 & 1.0000 & 4.0000 \\ \hline \end{tabular}

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