What quantity would be order under this policy, and what is the projected profit under the three sales scenarios? Recommendation The order quantity that the company should maintain should range between and Although the product is designed in an innovative manner in order to cater to the needs of the children in an informative as well as innovative manner.
Our assignment help services include thesis helpcase study helphomework helpcoursework helpMBA help and Programming help. Prepare a managerial Report that addresses the following issues and recommends an order quantity for the Weather Teddy product.
The probability of stock out for the company under the option of most likely range of ordering quantity is also low that is.
The wide range of order quantities suggested indicates considerable disagreement concerning the market potential.
Combined with our meticulous work ethics and extensive domain experience, MyAssignmenthelp. Probability, random processes, and statistical analysis. Hence keeping the order quantity between the range of and will neither put the company at risk of stock out nor keep excess amount of stock for the company.
However since the product is a toy hence it is not possible to measure the demand graph of the product and it is not possible to judge the amount of ordering quantity in order to balance the situations of stock out.
Members of the management team suggested order quantities of 15, 18, 24, 28, units. The Specialty Toys Company faces a challenge of deciding how many units of a new toy should be purchased to meet anticipated sales demand. Here, I will help to analyze an appropriate order quantity for the company.
Statistical Analy Data Mining, p. The projected profits under the three sales scenarios are below: Get your work done at the best price in industry. The sketch of distribution is above. Statistical analysis of profile monitoring. Statistical Analy Data Mining, 6 4pp. Thus, the quantity would be ordered under this policy is 22, From the information we get above, I would recommend an order quantity that can maximize the expected profit, and it can be calculated by the formula below: Sketch the distribution and show its means and standard deviation.
We will send you answer file on this email address Email: If too few are purchased, sales will be lost; if too many are purchased, profits will be reduced because of low prices realized in clearance sales.
As with other products, Specialty faces the decision of how may Weather Teddy units to order for coming holiday season. The probability here suggests the demand that is less than or equal to the recommended order quantity, and C1 is the cost of stock out loss per unit, and C2 is the cost of unsold inventory per unit.
As with other produc Applied multivariate statistical analysis. Provide a rationale for you recommendation Best answer.In the case of Specialty Inc the management depending upon the various suggested quantities tried to calculate the stock out probabilities for each quantity.
The variation in the order quantities shows that being a retail company Specialty Inc has formulated the various ranges of order quantity so that the stock out risks can be managed/5(14K). Introduction to Statistics and. Econometrics Case Problem SPECIALTY TOYS Specialty Toys Specialty faces the decision of how many Weather Teddy units to order for the coming5/5(1).
Specialty will sell Weather Teddy for $24 per unit. If inventory remains after the holiday season. co = $16 - $5 = $ − Q* z = We outline that solution below. = −0. Specialty Toys, Inc., sells a variety of new and innovative children's toys.
As with other products, Specialty faces the decision of how may Weather Teddy units to order for coming holiday season. Members of the management team suggested order quantities of 15, 18, 24, 28, units%(7).
Case Problem: Specialty Toys Specialty Toys, Inc., sells a variety of new and innovative children’s toys. Management learned that the preholiday season is the best time to introduce a new toy, because many families use this time to look for new ideas for December holiday gifts.
Solution to Case Problem Specialty Toys 10/24/ I. Introduction: The Specialty Toys Company faces a challenge of deciding how many units of a new toy should be purchased to .Download