Your Perfect Assignment is Just a Click Away

We Write Custom Academic Papers

100% Original, Plagiarism Free, Customized to your instructions!

glass
pen
clip
papers
heaphones

SU Champion And Teddy Bower Financial Case Studies

SU Champion And Teddy Bower Financial Case Studies

Description

Champion Case

Champion Current Plan: Champion manufactures winter fleece jackets for sale in the United States. Demand for jackets during the season is normally distributed, with a mean of 20,000 and a standard deviation of 10,000. Each jacket sells for $60 and costs $30 to produce. Any leftover jackets at the end of the season are sold for $25 at the year-end clearance sale. Holding a jacket until the year-end sale adds another $5 to the jacket’s cost.

a) What is the optimal cycle service level?

b) What is the optimal order size?

c) What is Champion’s expected profit?

New Plan: A recent recruit has suggested shipping leftover jackets to South America for sale in the winter there rather than running a clearance. Each jacket will fetch a price of $35 in South America, and all jackets sent there are likely to sell. Shipping costs add $5 to the cost of any jacket sold in South America. Again, Holding a jacket until the year-end sale adds another $5 to the jacket’s cost.

d) What is the optimal cycle service level?

e) What is the optimal order size?

f) What is Champion’s expected profit?

Teddy Bower

Teddy Bower is an outdoor clothing and accessories chain that purchases a line of parkas at $10 each from its Asian supplier, Teddy Sports. Unfortunately, at the time of order placement, demand is still uncertain. Teddy Bower forecasts that its demand is normally distributed with a mean of 2,100 and a 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 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?
Hint: Find the probability that demand < 1050 using NORM.DIST with a mean = 2100 and standard deviation = 1200.

(b) How many parkas should Teddy Bower buy from Teddy Sports to maximize expected profit?

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

(d) Assume Teddy Bower orders 3000 units. Evaluate its expected profit.

Order Solution Now

Our Service Charter

1. Professional & Expert Writers: Writers Hero only hires the best. Our writers are specially selected and recruited, after which they undergo further training to perfect their skills for specialization purposes. Moreover, our writers are holders of masters and Ph.D. degrees. They have impressive academic records, besides being native English speakers.

2. Top Quality Papers: Our customers are always guaranteed papers that exceed their expectations. All our writers have +5 years of experience. This implies that all papers are written by individuals who are experts in their fields. In addition, the quality team reviews all the papers before sending them to the customers.

3. Plagiarism-Free Papers: All papers provided by Writers Hero are written from scratch. Appropriate referencing and citation of key information are followed. Plagiarism checkers are used by the Quality assurance team and our editors just to double-check that there are no instances of plagiarism.

4. Timely Delivery: Time wasted is equivalent to a failed dedication and commitment. Writers Hero is known for timely delivery of any pending customer orders. Customers are well informed of the progress of their papers to ensure they keep track of what the writer is providing before the final draft is sent for grading.

5. Affordable Prices: Our prices are fairly structured to fit all groups. Any customer willing to place their assignments with us can do so at very affordable prices. In addition, our customers enjoy regular discounts and bonuses.

6. 24/7 Customer Support: At Writers Hero, we have put in place a team of experts who answer all customer inquiries promptly. The best part is the ever-availability of the team. Customers can make inquiries anytime.