**IKEA’s Poäng Chairs (for Q4-5)**

Poäng chair is one of IKEA’s most popular products. Average weekly sales of this chair in each store is Normal with mean 20 units and standard deviation of 10 units. Each chair costs IKEA $10 to produce and is sold at a price $60.  You are managing the inventory of Poäng chairs at two locations: Mega Bang Na and EmSphere stores.

**Q4.**  If you order the inventory independently for each store, what is the total number of chairs to order each week across the two stores? Round up to the next integer.

1 point

Your answer




To find the total number of Poäng chairs to order each week across both stores, we start by calculating the expected demand for each store individually and then combining them.

### Step-by-Step Solution

1. **Demand per Store**:
   - Each store has a demand for Poäng chairs that follows a normal distribution with a mean of 20 units per week and a standard deviation of 10 units per week.

2. **Combined Demand Across Both Stores**:
   - Since the demand for each store is independent, we can calculate the total demand by summing the means of each store.

   \[
   \text{Total Expected Demand} = 20 + 20 = 40 \text{ chairs}
   \]

3. **Rounding**:
   - We are instructed to round up to the next integer, so the final answer remains 40 chairs.

### Answer:
The total number of chairs to order each week across the two stores is **40 chairs**.

Would you like a more detailed explanation, or do you have any questions?

### Related Questions:
1. What would the total weekly demand be if a third store was added with the same average demand and standard deviation?
2. How would the total demand change if the standard deviation of each store’s demand increased?
3. What would happen to the order quantity if the mean demand per store dropped to 15 units?
4. How would inventory planning change if demand were not normally distributed?
5. If one store’s demand is dependent on the other, how would that affect total inventory orders?

### Tip:
When dealing with independent demands, remember that the mean of the combined distribution is simply the sum of the individual means.

IKEA’s Poäng Chairs (for Q4-5)

Poäng chair is one of IKEA’s most popular products. Average weekly sales of this chair in each store is Normal with mean 20 units and standard deviation of 10 units. Each chair costs IKEA $10 to produce and is sold at a price $60. You are managing the inventory of Poäng chairs at two locations: Mega Bang Na and EmSphere stores.

Q4. If you order the inventory independently for each store, what is the total number of chairs to order each week across the two stores? Round up to the next integer.

Find the optimal weekly inventory order for IKEA’s Poäng chairs across two independent stores with a mean demand of 20 chairs per store and a standard deviation of 10. This solution includes calculations based on probability, normal distribution, and rounding up for total inventory needs. Ideal for students in Grades 11-12.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation