Irwin’s sells a particular model of fan, with most of the sales being made in thesummer months. Irwin’s makes a one-time purchase of the fans prior to eachsummer season at a cost of $40 each and sells each fan for $60. Any fans unsoldat the end of the summer season are marked down to $29 and sold in a special fallsale. Virtually all marked-down fans are sold. The following is the number of salesof fans during the past 10 summers: 30, 50, 30, 60, 10, 40, 30, 30, 20, 40.a. Estimate the mean and the variance of the demand for fans each summer.b. Assume that the demand for fans each summer follows a normal distribution,with mean and variance given by what you obtained in part (a). Determine theoptimal number of fans for Irwin’s to buy prior to each summer season.c. Based on the observed 10 values of the prior demand, construct an empiricalprobability distribution of summer demand and determine the optimal numberof fans for Irwin’s to buy based on the empirical distribution.d. Based on your results for parts (b) and (c), would you say that the normaldistribution provides an adequate approximation?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Irwin’s sells a particular model of fan, with most of the sales being made in the
summer months. Irwin’s makes a one-time purchase of the fans prior to each
summer season at a cost of $40 each and sells each fan for $60. Any fans unsold
at the end of the summer season are marked down to $29 and sold in a special fall
sale. Virtually all marked-down fans are sold. The following is the number of sales
of fans during the past 10 summers: 30, 50, 30, 60, 10, 40, 30, 30, 20, 40.
a. Estimate the mean and the variance of the demand for fans each summer.
b. Assume that the demand for fans each summer follows a
with mean and variance given by what you obtained in part (a). Determine the
optimal number of fans for Irwin’s to buy prior to each summer season.
c. Based on the observed 10 values of the prior demand, construct an empirical
probability distribution of summer demand and determine the optimal number
of fans for Irwin’s to buy based on the empirical distribution.
d. Based on your results for parts (b) and (c), would you say that the normal
distribution provides an adequate approximation?
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