Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please do a b c and d To ensure a full line of outdoor clothing and accessories, the marketing department at Teddy Bower insists that
Please do a b c and d
To ensure a full line of outdoor clothing and accessories, the marketing department at Teddy Bower insists that it also sell waterproof hunting boots. Unfortunately. Teddy Bower does not have expertise in manufacturing those kinds of boots. Hence, Teddy Bower contacted several Talwanese suppliers to request quotes. Due to competition, Teddy Bower knows that it cannot sell these boots for more than $64. However, $40 per boot was the best quote from the suppliers. In addition. Teddy Bower anticipates excess inventory will need to be sold off at a 35 percent discount at the end of the season. Given the $64 price, Teddy Bower's demand forecast is for 450 boots, with a standard deviation of 290 . 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. a. If Teddy Bower decides to include these boots in its assortment, how many boots should Teddy Bower order from the supplier? Use Table 13.4. b. Suppose Teddy Bower orders 390 boots. What is Teddy Bower's expected profit? Use Table 13.4. (Round your answer to 2 decimal places.) c. The marketing department insists that its in-stock probability be at least 98 percent. Given this mandate, how many boots does it need to order? Use Table 13.4. John Briggs, a buyer in the procurement department, overheard at lunch a discussion of the "boot problem". He suggested that Teddy Bower ask for a quantity discount from the supplier. After following up on his suggestion, the supplier d. responded that Teddy Bower could get a 10 percent discount if it were willing to order at least 800 boots. Compared to the optimal quantity in Part a, how many boots should Teddy Bower order given this new offer if the objective is to maximize expected profit? To ensure a full line of outdoor clothing and accessories, the marketing department at Teddy Bower insists that it also sell waterproof hunting boots. Unfortunately. Teddy Bower does not have expertise in manufacturing those kinds of boots. Hence, Teddy Bower contacted several Talwanese suppliers to request quotes. Due to competition, Teddy Bower knows that it cannot sell these boots for more than $64. However, $40 per boot was the best quote from the suppliers. In addition. Teddy Bower anticipates excess inventory will need to be sold off at a 35 percent discount at the end of the season. Given the $64 price, Teddy Bower's demand forecast is for 450 boots, with a standard deviation of 290 . 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. a. If Teddy Bower decides to include these boots in its assortment, how many boots should Teddy Bower order from the supplier? Use Table 13.4. b. Suppose Teddy Bower orders 390 boots. What is Teddy Bower's expected profit? Use Table 13.4. (Round your answer to 2 decimal places.) c. The marketing department insists that its in-stock probability be at least 98 percent. Given this mandate, how many boots does it need to order? Use Table 13.4. John Briggs, a buyer in the procurement department, overheard at lunch a discussion of the "boot problem". He suggested that Teddy Bower ask for a quantity discount from the supplier. After following up on his suggestion, the supplier d. responded that Teddy Bower could get a 10 percent discount if it were willing to order at least 800 boots. Compared to the optimal quantity in Part a, how many boots should Teddy Bower order given this new offer if the objective is to maximize expected profit Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started