Can you please help me with all parts. Thank You. The 13.4 table is at this goog
ID: 375226 • Letter: C
Question
Can you please help me with all parts. Thank You.
The 13.4 table is at this google drive link below...
https://drive.google.com/file/d/1DS3Xts6mOt5yAKKm6w7JVi2CLqPql7J_/view?usp=sharing
Goop Inc needs to order a raw material to make a special polymer. The demand for the polymer is forecasted to be normally distributed with a mean of 225 gallons and a standard deviation of 125 gallons Goop sells the polymer for $26 per gallon. Goop purchases raw material for $10 per gallon and Goop must spend $6 per gallon to dispose of all unused raw material due to government regulations. (One gallon of raw material yields one gallon of polymer.) If demand is more than Goop can make, then only what has been made can be sold, and the remaining demand is lost. If a part of the question specifies whether to use Table 13.4, or to use Excel, then credit for a correct answer will depend on using the specified method a. How many gallons should Goop purchase to maximize its expected profit? Suppose Goop purchases 150 gallons of raw material. What is the probability that it will run out of raw material? Use Table 13.4 (Round your answer to 4 decimal places.) Suppose Goop purchases 275 gallons of raw material. What is the expected sales (in gallons)? Use Table 13.4 (Round your answer to 2 decimal places.) dSuppose Goop purchases 450 gallons of raw material. How much should it expect to spend on disposal costs (in Ss)? Use Table 13.4 (Round your answer to 2 decimal places.) Suppose Goop wants to ensure that there is a 95% probability that it will be able to satisfy Use Table 13.4 e. the customer's entire demand. How many gallons of the raw material should it purchase?Explanation / Answer
m mean 225 s Std Dev 125 C Cost 10 P Price 26 V Salvage -6 April to july Formula used Cu Cost of under order 16 (P-C) Co Cost of over order 16 (C-V) CR Critical ratio 0.50 (Cu/(Cu+Co) So actual order m+Z*s 225 NORMINV(CR,m,s) Ans A If Order is 150 So x value 150 Probability 0.2743 Probability mismatch 0.7257 Ans B If Order is 275 So x value 275 Probability 0.6554 so sale 225.00 Ans C If Order is 450 So x value 450 Probability 0.9641 so sale 225.00 Disposed 225.00 Disposing cost 1350.00 Ans D SL Service level 0.95 (Cu/(Cu+Co) So actual order m+Z*s 431 NORMINV(SL,m,s) Ans E