Question
In responding to your peers, select responses that use a normal distribution in a scenario that is different from your own. Do you agree with
In responding to your peers, select responses that use a normal distribution in a scenario that is different from your own. Do you agree with the use of a normal distribution in those examples? Support your claim.
Every year, our small horticultural business experiences spikes during certain months of sales in products that help fight against powdery mildew. Typically, our sales for powdery mildew is highest during the Q3 Fall season (this may be due to the outside temperature drops). Considering most of the biological fungicides we recommend to our customers with powdery mildew is supplied out of New York, it is essential for us to forecast such inventory to avoid unnecessary freight costs. Not only that, but a product that can be so demanding for such a common disease found in crops, it's important that we are constantly on top of our supply and striving to meet our customer's demands in a timely manner.
Using past sales, we will run a sales report for the previous year and use the sales of each month to determine the mean amount in gallons of the biofungicides sold (month vs gallons sold). Calculating the standard deviation, this will tell us how each month fluctuates around the mean. With this, we can largely estimate how many gallons we want to bring in for the month and understand our probability of falling to a loss/restock or ending up with excess stock .As I mentioned before, we have to be careful making sure our demand is met during the Fall when we usually see a rise in sales of products withBacillus subtilisstrains and Potassium bicarbonate as the active ingredient that combats plant diseases.
Why is this important for us? Using the standard deviations under the "normal distribution" will help us determine how we can avoid a loss in sales or overstock. While our products are fairly shelf stable, sometimes we do receive products from our supplier that is close to the "use by" date. Additionally, we are quite a small business, with limited stock space.
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