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Business, 10.12.2019 19:31 HerecomesDATBOI09

For our online store for gadgets from session 8 hw, and we know that one new product’s demand is normally distributed with an expected mean demand for the season of 300 and a standard deviation of 300. the product sells for $100, the cost of the product is $50, and the salvage is $20. we have now, however, a second supplier, which is more expensive, but which is very close and can provide a second order with a short lead time after the beginning of the season (reactive capacity). the cost of the product for this supplier is $60. 2a. what is the cost of underage and the cost of overage for the gadget store with this second supplier? cu = c1 – c2 (this is the "premium" the online store pays for the second order vs. the first order) co = c1 – v (no change) select one: a) cu = $50, co = $30 b) cu = $10, co = $20 c) cu = $10, co = $30 2b. what is now the optimal order quantity for the gadget store with the second supplier? 2/4 hint: critical ratio = cu/(cu + co). in this case the critical ration = 0.2500. then look up the corresponding z value and convert to q *= μ + zσ select one: a) 99 b) 150 c) 396 d) 410

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