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Teddy Bower is an outdoor clothing and accessories chain that purchases a line of parkas at $ 1 2 each from its Asian supplier, TeddySports.
Teddy Bower is an outdoor clothing and accessories chain that purchases a line of parkas at $ each from its Asian supplier,
TeddySports. Unfortunately, at the time of the order placement, demand is still uncertain: Teddy Bower forecasts that its demand is
normally distributed with a mean of and a standard deviation of Teddy Bower sells these parkas at $ each. Unsold
parkas have little salvage value; Teddy Bower simply gives them away to a charity and also doesn't collect a tax benefit for the
donation Use Table
Note: Do not round intermediate calculations. If a part of the question specifies whether to use Table or to use Excel, then
credit for a correct answer will depend on using the specified method.
a How many parkas should Teddy Bower buy from TeddySports to maximize expected profit? Use Table and the roundup rule.
b If Teddy Bower orders parkas, what is expected leftover inventory? Use Table and the roundup rule.
c If Teddy Bower orders parkas, what is expected sales? Use your result from Part b
d If Teddy Bower orders parkas, what is expected profit? Use your results from Part b and Part c
e How many parkas should Teddy Bower order to ensure a instock probability? How many parkas should Teddy Bower's order? Use
Table
Please show steps and show what is the answer clearlly.
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