The purpose of this assignment is to know how to apply normal probability distribution concepts to a real business case. Read the case of specialty toys at the end of Chapter 6 in its entirety. Describe a normal probability distribution that can be used to approximate the demand distribution. Sketch the distribution and show its mean and standard deviation. Compute the probability of a stock-out for the order quantities suggested by members of management team. Compute the projected profit for the order quantities suggested by the management team under three scenarios: worst case in which sales = 10,000 units, most likely case in which sales = 20,000 units, and best case in which sales = 30,000 units. The order quantity should have a 70% chance of meeting demand and only a 30% chance of stock-outs. What quantity would be ordered under this policy, and what is the projected profit under the three sales scenarios?
The purpose of this assignment is to know how to apply normal probability distribution concepts to a real business case. Read the case of specialty toys at the end of Chapter 6 in its entirety. Describe a normal probability distribution that can be used to approximate the demand distribution. Sketch the distribution and show its mean and standard deviation. Compute the probability of a stock-out for the order quantities suggested by members of management team. Compute the projected profit for the order quantities suggested by the management team under three scenarios: worst case in which sales = 10,000 units, most likely case in which sales = 20,000 units, and best case in which sales = 30,000 units. The order quantity should have a 70% chance of meeting demand and only a 30% chance of stock-outs. What quantity would be ordered under this policy, and what is the projected profit under the three sales scenarios?
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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The purpose of this assignment is to know how to apply
- Read the case of specialty toys at the end of Chapter 6 in its entirety.
- Describe a normal probability distribution that can be used to approximate the demand distribution. Sketch the distribution and show its mean and standard deviation.
- Compute the probability of a stock-out for the order quantities suggested by members of management team.
- Compute the projected profit for the order quantities suggested by the management team under three scenarios: worst case in which sales = 10,000 units, most likely case in which sales = 20,000 units, and best case in which sales = 30,000 units.
- The order quantity should have a 70% chance of meeting demand and only a 30% chance of stock-outs. What quantity would be ordered under this policy, and what is the projected profit under the three sales scenarios?
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