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math normal distribution One of Zara's clothing stores seeks to determine how many pairs of newly designed pants should it order for the new semon.
math normal distribution
One of Zara's clothing stores seeks to determine how many pairs of newly designed pants should it order for the new semon. From historical data, the
seasonal sales figures for a similar, yet older, model of pants can be approximated with a normal distribution having a mean of 1400 and standard
deviation of 280. Each pair of pants costs Zara AED 140 to make and is sold for AED 250, Any leftover amount by the end of the season will be sent to
Zara's branch in Dubai Outlet Mall where the original price will be marked down by 60% Assuming the demand of the newer model will be the same as the older model.
a) How many pairs of pants should Zara be ordering at the beginning of the season?
b) Determine the number of pairs in excess at the end of the season.
c) What is the expected total cost for the replenishment strategy found in part (a)?
d. It turned out that this specific store has a limited storage capacity that can be dedicated to this pair of pants, which is 1300 pairs for the whole season.
For value of the selling price would this storage capacity be optimal? (assuming all other parameters remain unchanged and this storage capacity is fully utillized
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