PA 13-3 (Algo) Montanso sells genetically modified seed to farmers. It... 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 (kilogram) of seed. It sells each kilogram for $46. If it has more seed than demanded by the local farmers, the remaining seed is sent overseas. Unfortunately, it only earns $3 per kilogram 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 325,000 and a standard deviation of 150,000. Use Table 13.4. Note: 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. a. How many kilograms should Montanso place in the warehouse before the growing season? Use Table 13.4 and round-up rule. Number of kilograms b. If Montanso put 375,000 kilograms in the warehouse, what is its expected revenue (include both domestic revenue and overseas revenue)? Use Table 13.4 and round-up rule. Expected revenue c. How many kilograms should Montanso place in the warehouse to minimize inventory while ensuring that the stockout probability is Book Print erences c. How many kilograms should Montanso place in the warehouse to minimize inventory while ensuring that the stockout probability is no greater than 1%? Use Table 13.4 and round-up rule. Number of kilograms d. What is maximum profit for this seed? Maximum profit TABLE 13.4 The Distribution, F(Q), and Expected Inventory, I(Q), Functions for the Standard Normal Distribution Function Z F(z) I(z) -4.0 0.0000 0.0000 -3.9 0.0000 0.0000 -3.8 0.0001 0.0000 -3.7 0.0001 0.0000 -3.6 0.0002 0.0000 -3.5 0.0002 0.0001 -34 0.0003 0.0001 -3.3 0.0005 0.0001 -3.2 0.0007 0.0002 -3.1 0.0010 0.0003 -3.0 0.0013 0.0004 -2.9 0.0019 0.0005 -2.8 0.0026 0.0008 -2.7 0.0035 0.0011 -2.6 0.0047 0.0015 -2.5 0.0062 0.0020 -24 0.0082 0.0027 -2.3 0.0107 0.0037 -2.2 0.0139 0.0049 -2.1 0.0179 0.0065 -2.0 0.0228 0.0085 -1.9 0.0287 0.0111 -1.8 0.0359 0.0143 -1.7 0.0446 0.0183 -1.6 0.0548 0.0232 -15 0.0668 0.0293 -15 0.0668 0.0293 -1.4 0.0808 0.0367 -13 0.0968 0.0455 -1.2 0.1151 0.0561 4.1 0.1357 0.0686 -1.0 0.1587 0.0833 -0.9 0.1841 0.1004 -0.8 0.2119 0.1202 -0.7 0.2420 0.1429 -0.6 0.2743 0.1687 05 0.3085 0.1978 04 0.3446 0.2304 -0.3 0.3821 0.2668 -0.2 0.4207 0.3069 -0.1 0.4602 0.3509 0.0 0.5000 0.3989 0.1 0.5398 0.4509 02 0.5793 0.5069 03 0.6179 0.5668 04 0.6554 0.6304 0.5 0.6915 0.6978 0.6 0.7257 0.7687 0.7 0.7580 0.8429 0.8 0.7881 0.9202 0.9 0.8159 1.0004 1.0 0.8413 1.0833 1.1 0.8643 1.1686 12 0.8849 1.2561 1.3 0.9032 1.3455 14 0.9192 1.4367 15 0.9332 15293 16 0.9452 1.6232 1.0 0.8413 1.0833 1.1 0.8643 1.1686. 12 0.8849 1.2561 13 0.9032 1.3455 14 0.9192 14367 15 0.9332 1.5293 1.6 0.9452 1.6232 1.7 0.95541 1.7183 1.8 0.9641 1.8143 19 0.9713 1.9111 2.0 0.9772 2.0085 2.1 0.9821 2.1065 22 0.9861 2.2049 2.3 0.9893 23037 24 0.9918 2.4027 2.5 0.9938 2.5020 26 0.9953 2.6015 2.7 0.9965 2.7011 2.8 0.9974 2.8008 2.9 0.9981 2.9005 3.0 0.9987 3.0004 3.1 0.9990 3.1003 3.2 0.9993 3.2002 3.3 0.9995 3.3001 34 0.9997 3.4001 3.5 0.9998 3.5001 36 0.9998 3.6000 3.7 0.9999 3.7000 3.8 0.9999 3,8000 3.9 1.0000 3.9000 4.0 1.0000 4.0000