How many jackets should skiforever order

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Reference no: EM133985860

Assignment:

SkiForever is planning orders for its 2022 winter catalog. One order will be placed at their supplier nine months ahead of the selling season. The demand forecast for one of the jackets is normally distributed with mean 4000 and standard deviation 1200. The company plans to sell the jackets at a price of $300. SkiForever pays their supplier $150 per jacket and unsold jackets will be moved to the outlet store at the end of the selling season and will be priced at $100. It is assumed that at that price all remaining jackets will sell. It costs $20 to hold a jacket in inventory until the end of the season and move it to the outlet store.

1. How many jackets should SkiForever order?

2. The supplier offers SkiForever the following deal: If SkiForever agrees to share 10% of the sales revenue on each jacket, the supplier will price the jackets at $120 per unit. If SkiForever agrees to this deal, how many jackets should they order? Assume that leftover jackets will still be sold at $100 at the outlet store and it costs $20 to hold a jacket in inventory until the end of the season and move it to the outlet store.

Reference no: EM133985860

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