Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[Q 11-14] Woot! specializes in one day - one deal selling. Every day they sell a product that is not available the next day. If

image text in transcribed
[Q 11-14] Woot! specializes in "one day - one deal" selling. Every day they sell a product that is not available the next day. If the item sells out, all the excess demand is lost and if items are left over, they are salvaged and not sold again on a future day. On a particular Monday. Woot! sells Creative Labs blue-tooth adapter for only $15, buying them at $9 each. All unsold adapters are bought back by the supplier for $7 each. If Woot! estimates demand to be normally distributed with a mean 500 and a standard deviation of 70 units, then: Question 11 1 pts How many adapters should Woot? order from its supplier in order to achieve an in-stock probability of 95% ? Question 12 1 pts Now, suppose instead that Woot!'s managers decide to submit an order of 550 adapters to its supplier. What is the Stock-Out probability for this order quantity? (Note: The probability can be expressed as a fraction or a percentage. For example, if your answer is 0.70(=70%), you may enter the answer as either 0.70 or 70.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting For Decision Making

Authors: Seohee Park

1st Edition

B08HCQCN2G

More Books

Students also viewed these Accounting questions