Monsanto sells genetically modified seed to farmers. It needs to decide how much seed to put into a warehouse to serve demand for the next growing season. It will make one quantity decision. It costs Montanso $6 to make each kilogram (kg) of seed. It sells each kg for $43. If it has more seed than demanded by the local farmers, the remaining seed is sent overseas. Unfortunately, it only earns $3 per kg from the overseas market (but this is better than destroying the seed because it cannot be stored until next year). If demand exceeds its quantity, then the sales are lost-the farmers go to another supplier. As a forecast for demand, it will use a normal distribution with a mean of 350,000 and a standard deviation of 150,000. Use Table 13.4 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. How many kilograms should Montanso place in the warehouse before the growing season? Use Table 13.4 and round-up rule. If Montanso put 400000 kgs in the warehouse, what is its expected b. revenue include both domestic revenue and overseas revenue)? Use Table 13.4 and round-up rule. How many kilograms should Montanso place in the warehouse to c. minimize inventory while ensuring that the stockout probability is no greater than 10% Use Table 13.4 and round-up rule. d. What is maximum profit for this seed? -4.0 0000 .0000 0000 -3.9 0000 ? .0000 -3.8 -3.7 0001 .0000 -3.6 0002 .0000 -3.5 0002 .0001 -3.4 0003 0001 -33 0005 0001 -3.2 0007 0002 -31 0010 0003 -3.0 0013 0004 -29 0019 0005 -28 0026 0008 -27 0035 0011 -26 0047 005 25 0062 0020 24 0082 0027 -23 0107 0037 -22 0139 0049 -21 0179 0065 -20 10228 20085 -19 0287 011 -18 0359 2013 -17 0446 0183 -16 0548 02.2 -15 06 0293 -14 0808 0367 -13 0958 05 -12 151 056 -11 18 05 -1.0 .1587 .0833 -0.9 .1841 .1004 -0.8 2119 .1202 -0.7 2420 1429 -0.6 2743 11687 -0.5 3085 1978 -0.4 3446 2304 -0.3 13821 2668 -0.2 4207 13069 -01 4602 3509 . 5000 3989 1 5398 4509 2 5793 15069 16179 5668 .4 16554 16304 5 6915 6978 5 69 6978 6 7257 1688/ 7 580 8429 8 7881 19202 18159 1,0004 10 841 1.0833 11 19643 1.1686 12 8849 12561 9032 1.3455 14 002 1.42367 15 19.22 15293 16 9452 16232 17 -- 17183 18 0541 18143 199 THE 1911 21) 97 20085 20 19T2 20085 21 19821 21065 2.2 19861 22049 23 19893 23037 2.4 9918 2.4027 25 19938 25020 26 19953 2.606 27 19965 2011 28 19974 28008 29 9981 20005 30 9987 3000 31 900 3.1003 3 9999 3.2002 3. 09-05 3.3001 3. 997 3. D0 | 5 ||||| 15001 2.8 29 19981 2.9005 3.0 19987 3.0004 31 19990 3.1003 32 19993 3.2002 3.3 19995 3.3001 3.4 19997 3.4001 3.5 19998 3.5001 3.6 g 19998 3.6000 3.7 19999 3.7000 8 19999 3.8000 39 1.0000 3.9000 4.0 1.0000 4.0000
