Teddy bower parkas teddy bower is an outdoor clothing and, Ask an Expert

Management Studies

(Teddy Bower Parkas ) 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 order placement, demand is still uncertain. Teddy Bower forecasts that its demand is normally distributed with mean of 2,100 and standard deviation of 1,200. Teddy Bower sells these parkas at $22 each. Unsold parkas have little salvage value; Teddy Bower simply gives them away to a charity.

a. What is the probability this parka turns out to be a “dog,” defined as a product that sells less than half of the forecast?

b. How many parkas should Teddy Bower buy from TeddySports to maximize expected profit?

c. If Teddy Bower wishes to ensure a 98.5 percent in-stock probability, how many parkas should it order?

For parts d and e, assume Teddy Bower orders 3,000 parkas.

d. Evaluate Teddy Bower’s expected profit.

e. Evaluate Teddy Bower’s stockout probability

Cachon, Gerard; Terwiesch, Christian. Matching Supply with Demand: An Introduction to Operations Management (Page 267). McGraw-Hill Education. Kindle Edition.

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91904891

Have any Question?Write your Review or question?

Related Questions in Operation Management

You work for a us-based company in the soft drink industry

You work for a U.S.-based company in the soft drink industry (think Coke or Pepsi with a healthy, organic spin). Your company is considering expansion into parts of the European Union and you've been tasked with gatherin ...

You should answer these 4 questions from the article and

You should answer these 4 questions from the article. AND support your answer from other articles but you should be listed as references 1- What is the business model to be disrupted , and List options for business model ...

How will you apply activities contributing to effective

How will you apply "Activities Contributing to effective Change Management' to a realword situation, below with 4500 word summary with an introduction, body, subtitle with examples on and 3-4 references please 1. Why is ...

1 what is a pugh matrix how are the results used what are

1. What is a Pugh Matrix? How are the results used? What are the resource requirements? 2. Briefly describe the purpose of an Independent Technical Assessment and an Independent Cost Estimate. 3. Is it reasonable to assu ...

Two alternative are being considered for a customers order

Two alternative are being considered for a customer's order whose anticipated volume is not yet known. if the firm produces in-house, the fixed cost is $340,000 and variable cost is $2.90 per unit. if the firm chooses to ...

1 the parol evidence rule prohibits the introduction of

1. The parol evidence rule prohibits the introduction of oral evidence into a lawsuit where the evidence presented is contrary to the terms of a written contract. Parol evidence may be introduced except when: a. it will ...

Imagine yourself as a virtual team member working with

Imagine yourself as a virtual team member, working with teammates gwplographically dispersed who you have never met in person. 1. Explain whether you would feel like you were really working on a team? Discuss your teamwo ...

1 in your own words do you believe that more companies

1. In your own words, do you believe that more companies today should enforce and invest more in a social media care team? Why do you think more companies today are utilizing a social media care team? 2. My professor say ...

One could reasonably argue that formal leadership in an

One could reasonably argue that formal leadership in an organization does little, if anything, in terms of improving organizational outcomes. What are the two major arguments that you could use to promote the above menti ...

Case study rambo goes violentthe facts of the case are

Case study : Rambo Goes Violent The facts of the case are straighforward. A shop floor dispute at an automobile parts manufacturing plant in Hamilton, Iowa, ended with one worker killing another. At about 2:00 p.m, polic ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert