question archive A furniture store chain with 25 stores is stocking a fashionable chair in each of their stores with a normal demand distribution with a mean of 250 and a standard deviation of 125
A furniture store chain with 25 stores is stocking a fashionable chair in each of their stores with a normal demand distribution with a mean of 250 and a standard deviation of 125
Subject:AccountingPrice: Bought3
A furniture store chain with 25 stores is stocking a fashionable chair
in each of their stores with a normal demand distribution with a mean of 250 and a standard deviation of 125. The cost of the chair is $750, and it is sold for $1,500. Chairs that are not sold by the end of the season are sold for $250 per chair. If you would like partial credit, please show your work and the assumptions you made.
-What are the values of cu and co? (2 points))
-What is the optimal service level for an individual store? (2 points)
-What is the Z value? (2 points)
-What is the optimal purchasing quantity for an individual store? (3 points)
-What is the probability of having some shortage at an individual store? (4 points)
-If the chain is purchasing and keeping the chairs centrally (for all 25 stores), what is the demand distribution at the center? (5 points)
-If the chain is purchasing and keeping the chairs centrally (for all 25 stores), what is the optimal order quantity? (3 points)
-What is the probability of having some shortage at the center??
