IND ENG 153 Midterm: ieor153-sp2013-mt1-Leachman-soln
8 Jan 2019
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Print your name and student id number on your test and also on any separate pages that you turn in: circle t for true or f for false or do not circle. The total budgeted production for next season is 20,000 parkas. Orders for 10,000 must be placed now, and orders for the remaining 10,000 may be placed next march after improved forecasts are available. Forecasts available now for next season"s sales in the various parka styles are as follows: It is best to equalize risk of overstocks. So we should scale the standard deviations by a factor of 10,000/4,714 = 2. 1213, i. e. , we can subtract a bit more than two standard deviations of forecast error from the forecasts to obtain initial order quantities: Total = 10,000. (b) (20 points) suppose production can be sourced from hong kong at per parka and from inland china at per parka.
