Flextrola, Inc. , an electronics systems integrator, is planning to sell its next generation product using components sourced from its supplier. Flextrola will integrate the component with some software and then sell it to consumers. Given the short life cycles of such products and the long lead times quoted by its supplier, Flextrola only has one opportunity to place an order prior to the beginning of its "selling season. " Assume that Flextrola’s demand during the season is normally distributed with a mean of 1000 and a standard deviation of 600. (A normal table is provided at the end of this exam for your convenience. )


Solectrics’ production cost for the component is $52 per unit and it plans to sell the component for $72 per unit to Flextrola. Flextrola incurs essentially no cost associated with the software integration and handling of each unit. Flextrola sells these units to consumers for $121 each. Flextrola can sell unsold inventory at the end of the season in a secondary electronics market for $50 each. The existing contract specifies that once Flextrola places the order, no changes are allowed to it. Also, Solectrics does not accept any returns of unsold inventory, so Flextrola must dispose of excess inventory in the secondary market.


Required:

a. What is the probability that Flextrola’s demand will be within 25 percent of its forecast?

b. What is the probability that Flextrola’s demand will be more than 40 percent greater than its forecast?

c. Under this contract, how many units should Flextrola order to maximize its expected profit?

d. What are Flextrola’s expected sales?

e. How many units of inventory can Flextrola expect to sell in the secondary electronics market?

Answers

Answer 1

With a mean of 1000 and a standard deviation of 600, the probability that the demand is going to be withing 25 percent of its forecast is 0.3230.

a. Mean = 1000

sd = 600

p(1000x 1-25%) - p(1000x 1+25%)

using the z test

d-μ/σ

[tex]p(z < \frac{1250-1000}{600} )-p(z < \frac{-1000}{600} )\\\\(z < 0.4167)-(z < -0.4167)[/tex]

find values using excel sheet formula

NORMSDIST(0.4167) - NORMSDIST(-0.4167)

=m0.6615 - 0.3385

= 0.3230

b. The probability that the forecast would be more than 40 percent

1000x 1+40%

= p(D>1400)

= 1- NormDist(0.667)

= 0.225

c. Cu = 121-72 = 49

Co = 72.50 = 22

The critical ratio calculation

49/22 +49 = 0.6901

Normsinv(0.6901) = 0.496

1000+0.496x600

= 1297

The units that Flextrola has to order is 1297.

d. The expected sales of Flextrola

1200-1000/600

= 0.3333

loss function from z = 0.333 is 0.254

600x0.254 = 152. 4

1000-152.4 = 847.6

the expected sales are 847.6

e 1200- 847.6

= 352. 4

The units of inventory that can be sold is 352.4

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Related Questions

Cerina likes to make products while ensuring that accidents are kept to a minimum. Which career pathway would be the best fit for Cerina? Maintenance, Installation, and Repair Quality Assurance Logistics and Inventory Control Health, Safety, and Environmental Assurance.

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Cerina enjoys creating items while keeping accidents to a minimum. Cerina's work path would be most suited to health, safety, and environmental assurance.

What do the health, safety, and environmental career fetch?

Employees in the Health, Safety, and Environmental (HSE) Assurance department make certain that:

In the workplace, the equipment is used safely.

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Conduct incident and hazard inspections for health, safety, and/or the environment.

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Therefore, option (d) is the correct answer.

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Answer: Healthy,D-safety and Environmental assistance

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A demand curve displaying the relationship between the price of cars and the quantity demanded of cars should have a slope that is Group of answer choices less than 0. between zero and 1. between one and infinity. undefined.

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Answer:

A demand curve displaying the relationship between the price of cars and the quantity demanded of cars should have a slope that is a. less than 0.

Explanation:

A demand curve displaying the relationship between the price of cars and the quantity demanded of cars should have a slope that is a. less than 0.

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The digital era has simplified life in every aspect—from keeping people connected, to storing data, making information available, and enhancing security of data to end-end encryption. Technology has made this all possible, and its value and reach expand with each passing day.

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Why are employment and age certificates typically required?.

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Answer:

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Explanation:

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After submitting a résumé by mail, how long should you wait before following up with an employer?.

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Answer: one to two weeks

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Answers

The best way people can use their Personal loans is to buy or pay for groceries. As there are other separate loans for the things like car, home and pay for college.  

what is a personal loan?

A loan is issued for non-essential purposes, usually to a person with a good credit score who is not required to submit collateral to back up the loan.

A personal loan can be utilized for practically any reason, including settling credit card debt, home upgrades, and large purchases.

Thus option D is correct.

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Answer:

to pay for groceries

Explanation:

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A New Social Contract is emphasized by Roberro when he explained that he will help the company to adapt to meet challenges.

What is a New social contract?

These are social contracts that helps to bring about equitable prosperity for a firm.

They are usually based on principles that includes:

stakeholder capitalismskill developmenteconomic security etc

In conclusion, the New Social Contract is emphasized by Roberro when he explained that he will help the company to adapt to meet challenges.

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Answer:

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To establish and maintain the store’s brand image in the customer’s mind. It provides support for the rest of the retailer’s selling efforts through display.

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What is a BCG Matrix?

The BCG matrix or BCG growth-share Matrix is a strategic tool developed by the Boston Consulting Group.

It is primarily used to categorize an investment based on its future outlook. The four key categories on the BCG Matrix are:

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It is a true statement that the working class tends to identify with manual workers and their long history of involvement in the labor movement.

Who are the working class?

These class are dominated by persons whose jobs provides a low pay, require limited skill or physical labor.

Some of the other imporant fact about the working class includes:

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In conclusion, the statement that working class tends to identify with manual workers and their long history of involvement in the labor movement is true.

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Explanation:

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Answers

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What is the expected population size after one year?

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Solving gives:

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= 417 fishes

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Answers

Answer:

The state in the country has the highest percent of their credit economy with subprime credit scores is Mississippi.

Explanation:

hope this helps

The state in the country that has the highest percentage of credit economy with subprime credit scores is Mississippi.  

What is a credit score?

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The downsloping aggregate demand curve can be explained by interest-rate effect

What is aggregate demand curve?

Aggregate demand curve is a demand curve that shows or indicate all the money spent on the purchase of goods and services.

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Therefore, The downsloping aggregate demand curve can be explained by interest-rate effect.

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The federal reserve use open-market operations tool to control monetary policy through bank borrowing.

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Answer:

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Explanation:

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A great way to make an impression after an interview is to send a handwritten thank-you note to your interviewer within ________ after your interview.

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The best way to make an impression on your interviewer is to send a handwritten thank-you note within 48 hours after your interview.

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which line represents the flow of final goods and services?

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The Household line represent the flow of final goods and services and consumer spending while the Business line represent the flow of rent, wages, interest, and profits.

What is the circular flow diagram?

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What remarketing audiences cannot be defined by default?.

Answers

Answer:

When a report is based on data from a large number of sessions, you may see the following notice at the top of the report This report is based on  sessions.You can adjust the sampling.

Explanation:

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Answers

Answer:

The ITA believes that fair-trade policies allow countries to import and export freely, allowing consumers to save money. It will also create economic opportunities that will help to improve economies in other countries, which could contribute to solving global issues like poverty. To meet these goals, the ITA believes that trade barriers need to be eliminated.

Explanation:

The ITA believes that fair-trade is important to us for the business because that policies allow countries to transport freely and to remove or the various economic problems.

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This type of support could modify to understanding global contents or issues like poverty.

To encounter these destinations or goals, the ITA accepts that trade barriers need to be destructed with the intention of creating the fair trade.

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Answers

At a long run in a competitive market, price will fall if demand decreases and all, some, or no firms will shut down while some of them will exit the industry.

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These are markets where no consumer or producer has the major power to influence the market.

This means that there are high mumber of producers that are competing  with one another in hopes to provide goods and services for the consumers.

However, price will fall if demand decreases and all, some, or no firms will shut down while some of them will exit the industry.

Therefore, the Option D is correct.

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Perry Mazza wants to borrow $40,000 from the bank. The interest rate is 7% and the term is for 5 years.


What is the yearly payment amount?


$1,800

$3,600

$10,800

$18,000

Answers

The yearly payment amount for a loan of $40,000 at 7% interest and for 5 years that Perry Mazza borrowed is $9,755.63.

How to calculate the annual payments?

The annual payments can be computed using an online finance calculator as below.

The results show that a total interest of $8,778.15 will be paid by Perry Mazza.

Data and Calculations:

N (# of periods) = 5 years

I/Y (Interest per year) = 7%

PV (Present Value) = $40,000

FV (Future Value) = $0

Results:

PMT = $9,755.63

Sum of all periodic payments = $48,778.15 ($9,755.63 x 5)

Total Interest $8,778.15

Thus, the yearly payment amount for a loan of $40,000 at 7% interest and for 5 years that Perry Mazza borrowed is $9,755.63.

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Through which tool does the federal reserve affect money available for banks to loan? discount rate money multiplier open-market operations reserve requirement

Answers

The federal reserve affects money available for banks to loan by using the reserve requirement tool.

What is the reserve requirement in monetary policy?

Reserve requirement is said as the set-aside funds by the commercial banks that they utilize for meeting their liabilities and instant withdrawal from customers.

Therefore, when Fed increases the rate of reserve requirement then banks need to hold the large amount which reduces their ability to loan more funds. It ultimately reduces the money supply and vice-versa.

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Answer:

d or Reserve requirement

Explanation:

flex point 2023

What criteria cannot be used to create a custom segment?.

Answers

Answer:

When a report is based on data from a large number of sessions you may see the following notice at the top of the report This report is based on  sessions.You can adjust the sampling.

Explanation:

hope this helps

Helena has always loved children and worked hard to become an elementary school teacher. Her family does not like this career because it traditionally does not pay a lot of money. Helena is determined to stay on her career path. What could Helena do to make sure she is secure financially?

Answers

Answer:

listen to her family and choose another career

Explanation:

Hope this helps! Please let me know if you need more help or think my answer is incorrect. Brainliest would be MUCH appreciated. Have a wonderful day!

Answer:

She could invest the spare money she has, and minimize her cost of living to save as much money as possible.

She could also try to do tutoring on the weekends to make sure extra money.

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