Teddy Bower is an outdoor clothing and accessories chain that purchases a line of parkas at $10 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 2100 and a standard deviation of 1200. Teddy Bower sells these parkas at $22 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). Round your answer to 2 digits after the decimal point if it is not an integer. Do NOT use comma in your numeric answers. Use excel for accuarate numbers. Dont round until the end. The probability that this parka turns out to be a “dog” is [xa]%, which is defined as a product that sells less than half of the forecast (use the standard normal table below). The underage cost is $[xb]. The overage cost is $[xc]. The critical ratio is [xd]. Teddy Bower should buy [xe] parkas from TeddySports in order to maximize its expected profit (use the standard normal table below). The maximum profit for the parka is $[xf]. If Teddy Bower orders 3000 parkas, the in-stock probability will be [xg]%, the expected leftover inventory will be [xh] parkas, the expected sales will be [xi] parkas, the expected profit will be $[xj], and the mismatch cost will be $[xk] (use the standard normal table below).

Database System Concepts

7th Edition

ISBN:9780078022159

Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan

Publisher:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan

Chapter1: Introduction

Section: Chapter Questions

Problem 1PE

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Teddy Bower is an outdoor clothing and accessories chain that purchases a line of parkas at $10 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 2100 and a standard deviation of 1200. Teddy Bower sells these parkas at $22 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).

Round your answer to 2 digits after the decimal point if it is not an integer. Do NOT use comma in your numeric answers. Use excel for accuarate numbers. Dont round until the end.

The probability that this parka turns out to be a “dog” is [xa]%, which is defined as a product that sells less than half of the forecast (use the standard normal table below).

The underage cost is $[xb]. The overage cost is $[xc]. The critical ratio is [xd]. Teddy Bower should buy [xe] parkas from TeddySports in order to maximize its expected profit (use the standard normal table below).

The maximum profit for the parka is $[xf].

If Teddy Bower orders 3000 parkas, the in-stock probability will be [xg]%, the expected leftover inventory will be [xh] parkas, the expected sales will be [xi] parkas, the expected profit will be $[xj], and the mismatch cost will be $[xk] (use the standard normal table below).

F(z)
(z)
F(z)
I(z)
F(z)
I(z)
-4.0
.0000
.0000
-1.3
.0968
.0455
1.4
.9192
1.4367
-3.9
.0000
.0000
-1.2
.1151
.0561
1.5
.9332
1.5293
-3.8
.0001
.0000
-1.1
.1357
.0686
1.6
.9452
1.6232
-3.7
.0001
.0000
-1.0
.1587
.0833
1.7
.9554
1.7183
-3.6
.0002
.0000
-0.9
.1841
.1004
1.8
.9641
1.8143
-3.5
.0002
.0001
-0.8
2119
.1202
1.9
.9713
1.9111
-3.4
.0003
.0001
-0.7
2420
.1429
2.0
.9772
2.0085
-3.3
.0005
.0001
--0.6
2743
.1687
2.1
.9821
2.1065
-3.2
.0007
.0002
--0.5
.3085
.1978
2.2
.9861
2.2049
-3.1
.0010
.0003
-0.4
.3446
.2304
2.3
.9893
2.3037
-3.0
.0013
.0004
-0.3
.3821
.2668
2.4
.9918
2.4027
-2.9
.0019
.0005
-0.2
.4207
.3069
2.5
.9938
2.5020
-2.8
.0026
.0008
-0.1
4602
.3509
2.6
.9953
2.6015

-2.8
.0026
.0008
-0.1
.4602
.3509
2.6
.9953
2.6015
-2.7
.0035
.0011
.0
.5000
.3989
2.7
.9965
2.7011
-2.6
.0047
.0015
.1
.5398
.4509
2.8
.9974
2.8008
-2.5
.0062
.0020
.2
.5793
.5069
2.9
.9981
2.9005
-2.4
.0082
.0027
.3
.6179
.5668
3.0
.9987
3.0004
-2.3
.0107
.0037
.4
.6554
.6304
3.1
.9990
3.1003
-2.2
.0139
.0049
.5
.6915
.6978
3.2
.9993
3.2002
-2.1
.0 179
.0065
.6
.7257
.7687
3.3
.9995
3.3001
-2.0
.0228
.0085
.7
.7580
.8429
3.4
.9997
3.4001
-1.9
.0287
.0111
.8
7881
.9202
3.5
.9998
3.5001
-1.8
.0359
.0143
.9
.8159
1.0004
3.6
.9998
3.6000
-1.7
.0446
.0183
1.0
.8413
1.0833
3.7
.9999
3.7000
-1.6
.0548
.0232
1.1
.8643
1.1686
3.8
.9999
3.8000
-1.5
.0668
.0293
1.2
.8849
1.2561
3.9
1.0000
3.9000
-1.4
.0808
.0367
1.3
.9032
1.3455
4.0
1.0000
4.0000

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ISBN:

9780078022159

Author:

Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan

Publisher:

McGraw-Hill Education