Question

6. AnyLogo supplies firms with apparel containing their logo to be used for promotional purposes. AnyLogo has four major customers-IBM, AT&T, HP, and Cisco. During the holiday season, the logos are adorned with a Christmas motif. Demand from each firm for apparel with the Christmas motit is normally distributed, as shown in Table 13-6.

Please solve it in Excel with showing the calculation

Answer 1

5 Unit Cost 6 Sellin Price 7 Holding for donated 8 Tax savings for donated 10 Cost of overage (Co) 11 Cost of underage (Cu) 12 13 Critical value (Cu/(Cu+Co)) 14 Z value 15 16 17 Order for each company 18 19 20 Total order 21 expected sales 22 Donation expectation 23 Profit 12 B5+B7-B8 B6-B5 35 B11/(B11+B10) from standard normal distribution tables 0.7447 0.66 IBM AT&T HP Cisco 6320 8650 5320 5452 B2+B3*$B$14 C2+C3* $B$14 D2+D3 $B$14 E2+E3 $B$14 25742 16990 8752 489612.84 SUM(B17:E17) B20 B14 B20-B21 B21 B6-B20 B5-B22 B7+B22 B8

all the excel formulas are given in yellow boxes.

we 1st calculate the cost of underage and overage. With that we calculate the ideal probability or critical value. USing that probability we find the z score using standard normal distribution tables.

Then we calculate the order for each company, and add them to find the total order.

rest formulas are given in excel sheet above.