A tire store orders its stock for a popular winter tire once every year. The cost of a tire for the store is $120. The store sells a tire for $140 at the regular price. The regular demand per year is 1,000 tires, which is normally distributed with a standard deviation of 70 tires. Customers do not prefer to buy from an older stock; hence the store does not keep the tires for the next year. The store is able to sell the excess stock at a reduced price of $80 per tire.How many tires the store should order each year? Task 7: A tire store orders its stock for a popular winter tire once every year. The cost of a tire for the store is $120.The store sells a tire for $140 at the regular price. The regular demand per year is 1,000 tires, which is normallydistributed with a standard deviation of 70 tires. Customers do not prefer to buy from an older stock; hence the storedoes not keep the tires for the next year. The store is able to sell the excess stock at a reduced price of $80 per tire.How many tires the store should order each year?

Answered: Image /qna-images/answer/4a75d7f9-7a6b-46e6-a3c5-f5bc3be7c475.jpg

Answered: A tire store orders its stock for a…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Related questions

Question

100%

A tire store orders its stock for a popular winter tire once every year. The cost of a tire for the store is $120. The store sells a tire for $140 at the regular price. The regular demand per year is 1,000 tires, which is normally distributed with a standard deviation of 70 tires. Customers do not prefer to buy from an older stock; hence the store does not keep the tires for the next year. The store is able to sell the excess stock at a reduced price of $80 per tire.

How many tires the store should order each year?

Task 7: A tire store orders its stock for a popular winter tire once every year. The cost of a tire for the store is $120.
The store sells a tire for $140 at the regular price. The regular demand per year is 1,000 tires, which is normally
distributed with a standard deviation of 70 tires. Customers do not prefer to buy from an older stock; hence the store
does not keep the tires for the next year. The store is able to sell the excess stock at a reduced price of $80 per tire.
How many tires the store should order each year?

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

Expert Solution