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Carlos's Custom Coats makes super-trendy coats that are uniquely created for special winter events. He is trying to decide how many to produce for an upcoming event. During the event, Carlos can sell the coats for $56 each (what a deal). When the event ends, any of the unsold coats from that event are sold for $12 each. It costs Carlos $25 to make each coat. Demand is estimated as: DEMAND PROBABILITY 375 0.36 450 0.16 555 0.04 580 0.04 615 0.12 680 0.28 a. How many coats should Carlos produce for the upcoming event? Number of coats b. What did you identify as the optimal service level? Hint: I'm not asking you to identify the service level for your answer for part a (.e., I am not asking for the cumulative probability for your answer in part a). I am asking you for the service level that you calculated to find the answer for part a. Enter your answer AS A DECIMAL PROBABILITY rounded to two digits (eg, if the service level is 34.6%, enter 35, not 35 or 35%). Service level (AS A DECIMAL PROBABILITY)

Carlos's Custom Coats makes super-trendy coats that are uniquely created for special winter events. He is trying to decide how many to produce for an upcoming event. During the event, Carlos can sell the coats for $56 each (what a deal). When the event ends, any of the unsold coats from that event are sold for $12 each. It costs Carlos $25 to make each coat. Demand is estimated as: DEMAND PROBABILITY 375 0.36 450 0.16 555 0.04 580 0.04 615 0.12 680 0.28 a. How many coats should Carlos produce for the upcoming event? Number of coats b. What did you identify as the optimal service level? Hint: I'm not asking you to identify the service level for your answer for part a (.e., I am not asking for the cumulative probability for your answer in part a). I am asking you for the service level that you calculated to find the answer for part a. Enter your answer AS A DECIMAL PROBABILITY rounded to two digits (eg, if the service level is 34.6%, enter 35, not 35 or 35%). Service level (AS A DECIMAL PROBABILITY)

Practical Management Science
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...
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Carlos's Custom Coats makes super-trendy coats that are uniquely created for special winter events. He is trying to decide how many to produce for an upcoming event. During the event, Carlos can sell the coats for $56 each (what a deal!). When the event ends, any of the unsold coats from that event are sold for $12 each. It costs Carlos $25 to make each coat. Demand is estimated as: PROBABILITY DEMAND 375 0.36 450 0.16 555 0.04 580 0.04 615 0.12 680 0.28 a. How many coats should Carlos produce for the upcoming event? Number of coats b. What did you identify as the optimal service level? Hint: I'm not asking you to identify the service level for your answer for part a (i.e.. I am not asking for the cumulative probability for your answer in part a), I am asking you for the service level that you calculated to find the answer for part a. Enter your answer AS A DECIMAL PROBABILITY rounded to two digits (eg, if the service level is 34.6%, enter 35, not 35 or 35%). Service level (AS A DECIMAL PROBABILITY)
Transcribed Image Text:Carlos's Custom Coats makes super-trendy coats that are uniquely created for special winter events. He is trying to decide how many to produce for an upcoming event. During the event, Carlos can sell the coats for $56 each (what a deal!). When the event ends, any of the unsold coats from that event are sold for $12 each. It costs Carlos $25 to make each coat. Demand is estimated as: PROBABILITY DEMAND 375 0.36 450 0.16 555 0.04 580 0.04 615 0.12 680 0.28 a. How many coats should Carlos produce for the upcoming event? Number of coats b. What did you identify as the optimal service level? Hint: I'm not asking you to identify the service level for your answer for part a (i.e.. I am not asking for the cumulative probability for your answer in part a), I am asking you for the service level that you calculated to find the answer for part a. Enter your answer AS A DECIMAL PROBABILITY rounded to two digits (eg, if the service level is 34.6%, enter 35, not 35 or 35%). Service level (AS A DECIMAL PROBABILITY)
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