Calculate the expected demand and the standard deviation of

Question

1. Average and standard deviations of A/F ratios from exhibit 1. (NB. you only get one A/F and one standard deviation from the whole table)

2. Use exhibit 2 to calculate, the expected demand and the standard deviation of the demand for each wine. (Note: individual wine must have individual demands)

3. In order to get the order quantity, you have to calculate following
ii) Calculate Co (overage cost for each of the wine)
iii) Calculate Cu (underage cost depends upon the discount price, and holding costs (including interest and the cost of storage). And, these rates for red and white wines are different.)
iv) Use these information to calculate order quantity for each wine.

4. Calculate the expected profit for each wine.

Attachment:- Vin.pdf

Answer 1

By using the exhibits illustrated in the problem; write a response paper in which you have to provide answer to all questions illustrated below: Q1. Average and standard deviations of A/F ratios from the exhibit 1. (That is, NB. you only get one A/F and one standard deviation from the entire table) Q2. Make use of exhibit 2 to compute, the expected demand and the standard deviation of the demand for each and every wine. Q3. In order to obtain the order quantity, you have to compute following: a) Compute Co (average cost for each and every wine) b) Compute Cu (underage cost based on the discount price, and holding costs (comprising interest and cost of storage). And, such rates for red and white wines are dissimilar.) c) Make use of such information to compute order quantity for each and every wine. Q4. Compute the expected profit for each and every wine.