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1. You are the procurement manager of Tacy's. The supplier offers a new style of classical bomber jacket for the winter season. The purchase cost is $200, and the selling price is $500. You consider offering a discount for unsold jackets at the end of the season. The discounted price is $150. The forecasted demand, D, is normally distributed with a mean of 3,000 units () and a standard deviation of 700 units (). Assume that the A/F ration is 1.

(a) You will get a promotion if the total sold jackets is above 4,000 units. What is the probability that the actual demand will be 4,000 units or more?

(b) Selling less than 90% of the average forecast may result in the placement of your position in a lower pay grade. What is the probability of selling more than 90%?

(c) What is the probability that the actual demand is within 25% of the average forecast?

(d) Whatistheexpectedprofitmaximizingorderquantity,Q?

(e) Assuming Tacy's Manger enforces and orders quantity of Q=4,500. What are the expected lost sales?

(f) AtQ=4,500,whataretheexpectedsales?

(g) At Q=4,500, what is the expected leftover inventory?

(h) At Q=4,500, what is the expected profit?

(i) AtQ=4,500, what is the expected fill rate?

(j) AtQ=4,500, what is the stock-out probability?