# dolution

dolution.

Benetton has entered a contract with a retailer for a seasonal product. The retailerĂ˘â‚¬â„˘s sales price is \$50 per unit of product. BenettonĂ˘â‚¬â„˘s sales price to the retailers is \$34 per unit. Any unsold units can be sold by the retailer to a third party at a salvage value of \$25 per unit. The retailer forecasts demand to be normally distributed, with a mean of 8500 and a standard deviation of 1500 units. The retailer has ordered 9040 units. The expected under-stock (sales lost) for this order is 368 units. BenettonĂ˘â‚¬â„˘s production cost is \$23 per unit. Hint: You do not need to use any formula to compute the expected under-stock. It has already been computed and provided to you.

1. Compute the expected number of units sold by the retailer.

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A: 5060 units. B: 8511 units. C: 7356 units. D: 8132 units. E: 8469 units.

2. Compute the expected fill rate.

A: 92%. B: 94.6%. C: 98.1%. D: 89.7%. E: 95.7%.

3. Compute the expected over-stock (leftover).

A: 1300 units. B: 1759 units. C: 908 units. D: 1596 units. E: 1661 units.

4. Compute the expected profit for the retailer.

A: \$105840. B: \$262989. C: \$198372. D: \$127418. E: \$121940.

5. Compute the expected profit for Benetton.

A: \$102640. B: \$199555. C: \$99440. D: \$162384. E: \$211725.

dolution