SuperFun Toys Case Study statistics

Purpose of Assignment

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.

Assignment Steps

Resources: Microsoft Excel®, SuperFun Toys Case Study, SuperFun Toys Case Study Data Set

Review the SuperFun Toys Case Study and Data Set.

Develop a ~750-word case study analysis including the following:

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 a managerial report.

Note: pay special attention to your reporting, even of an excel sheet. Treat it as a report you are submitting to a coleague or supervisor who is infinitely ignorant and infinitly intelligent. Do not let the reader “pick and choose” the relevant parts. Include only what is relevant, in a crystal clear fashion.

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Solution Preview

In the first instance where order is 15,000, the purchase cost in total is $240,000, in the first category which is pessimistic, the sales are at 10,000 in quantity leading to a revenue of $240,000 when the selling price is at $24 per unit and leading to a revenue of $50,000 when the selling price is at $5 per unit, here there is a gain of $190000 in terms of profit.

(751 words)