Specialty Toys Case Study

Specialty Toys Case Study 1. The think of is 20,000 units and there is a 95% probability that demand leave behind be mingled with 10, 000 and 30,000 units. This meaning there is a .025% chance that the demand will be outside of 10,000 and 30,000. using the chart, we find that z=-1.96. Using the interest calculation, we find: z= x- ? ? -1.96 = 10,000 20,000 ? ?=5102 Standard deviation ? = 5,102 ? = 20,000 mean 2. Stock outs were reckon by the four commission numbers. equation is: z = (x ?)/ ? 15,000: Z = (15,000-20,000)/5102 z = -0.98 Then, reference the cumulative probabilities for normal deviation tabular array in the beginning of the intensity to identify what -0.98 represents, which is .1635. Since stock outs are any quantity g reater than what management suggested, they need to be subtracted from 1. 1 - .1635 = .8365 which = 83.65% Same logic/steps for the rest of the determine: 18,000 24,000 28,000 Z = (18,000-20,000)/5102 z=(24,000-20,000)/5102 z=(28,000-20,000)/5102 z = -.39 z=.78 z= 1.57 1 - .3483 = .6517 1 - .7823 = .2177 1 .9418 = .0582 which = 65.17% which = 21.77% which = 5.82% 3. Projected Profit for management under 3 scenarios which are 10,000 20,000 and 30,0! 00 units Order| 10,000 units| 20,000 units| 30,000 units| 15000| 8*10000-11*5000 =$25000| 8*15000=$120000| 8*15000 = $120000| 18000| 8*10000-11*8000= $-8000| 8*18000 = $144000| 8*18000 = $144000| 24000| 8*10000-11*14000= -74000|...If you involve to get a full essay, order it on our website: BestEssayCheap.com

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