Question
Fast's data and marketing teams now believe the Demand for the part will increase to a normally distributed mean of 10,000 units with a standard
Fast's data and marketing teams now believe the Demand for the part will increase to a normally distributed mean of 10,000 units with a standard deviation of 1000 units. Incorporate a normal distribution random variable for Demand in your decision model.
b. Fast's data team has discovered that the cost to manufacture the part internally actually varies. Their analysis shows the UVC follows a continuous uniform distribution with a worstcase cost of $150 and a best-case cost of $100. Incorporate a continuous uniform distribution random variable for UVC in your decision model.
Fast's supplier has also had a data team working on their bid price (OUC). They have determined their cost to produce the part depends upon their volume of work (they sell the part to others besides Fast) and have provided the following discrete probability table of the price they would like to charge: OUC Price Probability $ 105.00 0.1 $ 115.00 0.15 $ 125.00 0.18 $ 135.00 0.29 $ 150.00 0.18 $ 165.00 0.1 The supplier asks Fast to consider paying for the part based on these data. Being generous because of their long-term relationship to the supplier, Fast agrees to buy the part at the price indicated by use of the supplier table. Incorporate a discrete probability random variable for Demand in your decision model
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