Using the sample data given in Table 2-20, it is assumed that all the 10 styles are made in Hong Kong and that Wally’s initial production commitment must be at least 10,000 units. A recommendation is made about how many units to produce each style given in the initial production. Style Price Laura Carolyn Greg Wendy Tom Wally Average forcast Standard Deiation 2x standard deviation First-period production 1 µ σ MAX (0, µ - kσ) Gail $110.00 900 1000 900 1300 800 1200 1017 194 388 605 Isis $99.00 800 700 1000 1600 950 1200 1042 323 646 357 Entice $80.00 1200 1600 1500 1550 950 1350 1358 248 496 832 Assult $90.00 2500 1900 2700 2450 2800 2800 2525 340 680 1804 Teri $123.00 800 900 1000 1100 950 1850 1100 381 762 292 Electra $173.00 2500 1900 1900 2800 1800 2000 2150 404 807 1294 Stephanie $133.00 600 900 1000 1100 950 2125 1113 524 1048 1 Seduced $73.00 4600 4300 3900 4000 4300 3000 4017 556 1113 2836 Anita $93.00 4400 3300 3500 1500 4200 2875 3296 1047 2094 1075 Daphne $148.00 1700 3500 2600 2600 2300 1600 2383 697 1349 904 Totals 2000 20000 20000 20000 20000 20000 20000 1000 Value of K=0

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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Using the sample data given in Table 2-20, it is assumed that all the 10 styles are made in Hong Kong and that Wally’s initial production commitment must be at least 10,000 units. A recommendation is made about how many units to produce each style given in the initial production.

Style	Price	Laura	Carolyn	Greg	Wendy	Tom	Wally	Average forcast	Standard Deiation	2x standard deviation	First-period production
						1		µ		σ	MAX (0, µ - kσ)
Gail	$110.00	900	1000	900	1300	800	1200	1017	194	388	605
Isis	$99.00	800	700	1000	1600	950	1200	1042	323	646	357
Entice	$80.00	1200	1600	1500	1550	950	1350	1358	248	496	832
Assult	$90.00	2500	1900	2700	2450	2800	2800	2525	340	680	1804
Teri	$123.00	800	900	1000	1100	950	1850	1100	381	762	292
Electra	$173.00	2500	1900	1900	2800	1800	2000	2150	404	807	1294
Stephanie	$133.00	600	900	1000	1100	950	2125	1113	524	1048	1
Seduced	$73.00	4600	4300	3900	4000	4300	3000	4017	556	1113	2836
Anita	$93.00	4400	3300	3500	1500	4200	2875	3296	1047	2094	1075
Daphne	$148.00	1700	3500	2600	2600	2300	1600	2383	697	1349	904
Totals		2000	20000	20000	20000	20000	20000	20000			1000


					Value of K=0

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