Standard deviation is a more difficult concept than the others we've covered. And unless you are writing for a specialized, professional audience, you'll probably never use the words "standard deviation" in a story. But that doesn't mean you should ignore this concept. The standard deviation is kind of the "mean of the mean," and often can help you find the story behind the data.
Recommendation The order quantity that the company should maintain should range between and Moreover the most likely scenario considered by the company management is Hence keeping the order quantity between the range of and will neither put the company at risk of stock out nor keep excess amount of stock for the company.
Moreover the company will also be able to maintain a steady amount of profit in this range of stock. The probability of stock out for the company under the option of most likely range of ordering quantity is also low that is.
Although the product is designed in an innovative manner in order to cater to the needs of the children in an informative as well as innovative manner. However since the product is a toy hence it is not possible to measure the demand graph of the product and it is not possible to judge the amount of ordering quantity in order to balance the situations of stock out.
If the company adopts the best possible scenario and orders products ranging between and then if the product flops in the market then the company may get stuck with the high levels of inventory in the warehouse along with high levels of cost of production and inability to recover the variable costs.
In that situation the company would have to sell the goods at reduced prices. Hence it is advisable to maintain a lower level of ordering quantity initially and after judging the demand level the company can effectively increase the amount of ordering quantity.
Conclusion The report shows the overall findings in terms of profitability, mean, standard deviation, probability of stock out and also the ordering quantity and the expected profit at the different given scenarios.
Hence from the report it can be ascertained that stock out is not a favorable situation for the company and hence it should be avoided. Statistical analysis in microbiology.
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We will send you answer file on this email address Email:Case Problem: Specialty Toys Specialty Toys, Inc., sells a variety of new and innovative children’s toys. Management learned that the preholiday season is the best time to introduce a new toy, because many families use this time to look for new ideas for December holiday gifts.
Standard deviation can be difficult to interpret as a single number on its own. Basically, a small standard deviation means that the values in a statistical data set are close to the mean of the data set, on average, and a large standard deviation means that the values in .
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Only at yunusemremert.com". Specialty Toys Case Study 1. The mean is 20, units and there is a 95% probability that demand will be between 10, and 30, units.
This means there is a% chance that the demand will be outside of 10, and 30, Using the 72%(18). In the case of Specialty Inc the management depending upon the various suggested quantities tried to calculate the stock out probabilities for each quantity.
The variation in the order quantities shows that being a retail company Specialty Inc has formulated the various ranges of order quantity so that the stock out risks can be managed/5(14K).
Specialty Toys- Specialty Toys, Inc. sells a variety of new and innovative children’s toys. Management learned that the preholiday season is the best XXXX XX introduce a new toy, because many families use this time to look for new ideas for December holiday gifts.