PA 13-2 (Algo) Flextrola, Inc., an electronics systems integrator, is... Flextrola, Inc., an electronics systems integrator, is planning to design a key component for its next-generation product with Solectrics. Flextrola will integrate the component with some software and then sell it to consumers. Given the short life cycles of such products and the long lead times quoted by Solectrics, Flextrola only has one opportunity to place an order with Solectrics prior to the beginning of its selling season. Flextrola's demand during the season is normally distributed with a mean of 800 and a standard deviation of 800. Use Table 13.4., Figure 13.15.jpg, Figure 13.16.jpg Solectrics' production cost for the component is $51 per unit, and it plans to sell the component for $74 per unit to Flextrola. Flextrola incurs essentially no cost associated with the software integration and handling of each unit. Flextrola sells these units to consumers for $124 each. Flextrola can sell unsold inventory at the end of the season in a secondary electronics market for $54 each. The existing contract specifies that once Flextrola places the order, no changes are allowed to it. Also, Solectrics does not accept any returns of unsold inventory, so Flextrola must dispose of excess inventory in the secondary market. 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. (Round your answer to 2 decimal places.) e. If Flextrola orders 1400 units, what are expected sales? (Round your answer to 2 decimal places.) f. If Flextrola orders 1400 units, what is expected profit? (Round your answer to 2 decimal places.) TABLE 13.4 The Distribution, FC), and Expected InventoryQ). Functions for the Standard Normal Distribution Function FA -40 0000 0000 -3.9 .0000 0000 DOXY 0000 -32 00X1 0000 -35 0002 0000 -3.5 0002 0001 -34 0003 0001 -3.3 0005 0001 -3.2 0007 0002 -31 .0010 .0003 -30 0013 0004 -29 .0019 0005 .0026 0008 -22 0035 0011 -25 0047 0015 -2.5 0062 0020 -2.4 0082 0027 -2.3 0102 .0037 -22 0139 0049 -21 0179 0065 -2.0 0085 -1.9 0287 .0111 -1.8 0359 0143 -17 0446 0183 -16 0232 -1.5 0668 0293 0367 .0968 .0455 -1.2 1150 0561 -1.1 .1357 .0686 -10 -0.9 1841 1004 -0.8 2119 1202 -02 2020 1429 -0.5 2743 30RS 1978 -04 3445 2304 3821 2568 -02 4207 3069 -01 4502 3509 .0 5000 3989 1 5398 4509 2 5793 5069 3 6179 566R 4 6554 6304 5 6915 .6978 7257 7587 7 7580 .8429 8 .7881 9202 10004 9 8159 10 8413 10833 11 Rd 11686 1.2 8849 12561 1.3 13455 1.4 9192 14367 1.5 15293 9452 16232 16 12 9554 17183 1.8 9541 18143 19 9713 19111 20 9772 2008 21 R21 2.1065 2.2 22049 23 9893 2.3037 24 991H 24027 2.5 993 2.5020 2.6 9953 26015 27 9965 2.7011 28 9974 2.8008 2.9 SOR 2.9005 3.0 9987 3.0004 31 3.1003 32 9993 3.2002 33 9995 3.3001 34 9997 3.4001 3.5 9998 3.5001 36 9998 36000 3.7 9999 3.7000 38 9999 38000 3.9 10000 39000 40 10000 40000 Figure 13.15 The density functions for a log normal and a normal distribution with mean 1000 and standard deviation 600 Density Function .0012 .0011 + .0010 Log normal distribution .0009 .0008 .0007 Probability .0006 + Normal distribution .0005 .0004 + .0003 .0002 .0001 .0000 0 250 500 750 1000 1250 1500 1750 2000 2250 2500 Demand Distribution Function 1.00 90 Log normal distribution 1.80 70 .60 Probability 1.50 .40 Normal distribution 30 20 10 .00 |||||||| HHHH HHHHHHHHHHH 750 1000 1250 1500 750 2000 2250 2500 0 250 500 Demand PA 13-2 (Algo) Flextrola, Inc., an electronics systems integrator, is... Flextrola, Inc., an electronics systems integrator, is planning to design a key component for its next-generation product with Solectrics. Flextrola will integrate the component with some software and then sell it to consumers. Given the short life cycles of such products and the long lead times quoted by Solectrics, Flextrola only has one opportunity to place an order with Solectrics prior to the beginning of its selling season. Flextrola's demand during the season is normally distributed with a mean of 800 and a standard deviation of 800. Use Table 13.4., Figure 13.15.jpg, Figure 13.16.jpg Solectrics' production cost for the component is $51 per unit, and it plans to sell the component for $74 per unit to Flextrola. Flextrola incurs essentially no cost associated with the software integration and handling of each unit. Flextrola sells these units to consumers for $124 each. Flextrola can sell unsold inventory at the end of the season in a secondary electronics market for $54 each. The existing contract specifies that once Flextrola places the order, no changes are allowed to it. Also, Solectrics does not accept any returns of unsold inventory, so Flextrola must dispose of excess inventory in the secondary market. 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. (Round your answer to 2 decimal places.) e. If Flextrola orders 1400 units, what are expected sales? (Round your answer to 2 decimal places.) f. If Flextrola orders 1400 units, what is expected profit? (Round your answer to 2 decimal places.) TABLE 13.4 The Distribution, FC), and Expected InventoryQ). Functions for the Standard Normal Distribution Function FA -40 0000 0000 -3.9 .0000 0000 DOXY 0000 -32 00X1 0000 -35 0002 0000 -3.5 0002 0001 -34 0003 0001 -3.3 0005 0001 -3.2 0007 0002 -31 .0010 .0003 -30 0013 0004 -29 .0019 0005 .0026 0008 -22 0035 0011 -25 0047 0015 -2.5 0062 0020 -2.4 0082 0027 -2.3 0102 .0037 -22 0139 0049 -21 0179 0065 -2.0 0085 -1.9 0287 .0111 -1.8 0359 0143 -17 0446 0183 -16 0232 -1.5 0668 0293 0367 .0968 .0455 -1.2 1150 0561 -1.1 .1357 .0686 -10 -0.9 1841 1004 -0.8 2119 1202 -02 2020 1429 -0.5 2743 30RS 1978 -04 3445 2304 3821 2568 -02 4207 3069 -01 4502 3509 .0 5000 3989 1 5398 4509 2 5793 5069 3 6179 566R 4 6554 6304 5 6915 .6978 7257 7587 7 7580 .8429 8 .7881 9202 10004 9 8159 10 8413 10833 11 Rd 11686 1.2 8849 12561 1.3 13455 1.4 9192 14367 1.5 15293 9452 16232 16 12 9554 17183 1.8 9541 18143 19 9713 19111 20 9772 2008 21 R21 2.1065 2.2 22049 23 9893 2.3037 24 991H 24027 2.5 993 2.5020 2.6 9953 26015 27 9965 2.7011 28 9974 2.8008 2.9 SOR 2.9005 3.0 9987 3.0004 31 3.1003 32 9993 3.2002 33 9995 3.3001 34 9997 3.4001 3.5 9998 3.5001 36 9998 36000 3.7 9999 3.7000 38 9999 38000 3.9 10000 39000 40 10000 40000 Figure 13.15 The density functions for a log normal and a normal distribution with mean 1000 and standard deviation 600 Density Function .0012 .0011 + .0010 Log normal distribution .0009 .0008 .0007 Probability .0006 + Normal distribution .0005 .0004 + .0003 .0002 .0001 .0000 0 250 500 750 1000 1250 1500 1750 2000 2250 2500 Demand Distribution Function 1.00 90 Log normal distribution 1.80 70 .60 Probability 1.50 .40 Normal distribution 30 20 10 .00 |||||||| HHHH HHHHHHHHHHH 750 1000 1250 1500 750 2000 2250 2500 0 250 500 Demand