SuperFun Toys Case Study
The purpose of this assignment is
for students to learn how to make managerial decisions using a case study on
Normal Distribution. This case uses concepts from Weeks 1 and 2. It provides
students an opportunity to perform sensitivity analysis and make a decision
while providing their own rationale. This assignment also shows students that
statistics is rarely used by itself. It shows tight integration of statistics
with product management.
Resources: Microsoft Excel®,
SuperFun Toys Case Study, SuperFun Toys Case Study Data Set
Review the SuperFun Toys Case Study
and Data Set.
Develop a 1,050-word case study
analysis including the following:
- Use the sales forecaster’s prediction to
describe a normal probability distribution that can be used to approximate
the demand distribution.
- Sketch the distribution and show its mean
and standard deviation. Hint: To find the standard deviation, think Empirical
Rule covered in Week 1.
- Compute the probability of a stock-out for
the order quantities suggested by members of the management team (i.e.
15,000; 18,000; 24,000; 28,000).
- Compute the projected profit for the order
quantities suggested by the management team under three scenarios:
pessimistic in which sales are 10,000 units, most likely case in which
sales are 20,000 units, and optimistic in which sales are 30,000 units.
- One of SuperFun’s managers felt the profit
potential was so great the order quantity should have a 70% chance of
meeting demand and only a 30% chance of any stock- outs. What quantity
would be ordered under this policy, and what is the projected profit under
the three sales scenarios?
Format your assignment consistent
with APA format.
Click the Assignment Files tab to submit your