1) Assume weekly demand is normally distributed with mean 9 and standard deviation 3 2) There are 26 rental opportunities in a season.

1) Assume weekly demand is normally distributed with mean 9 and standard deviation 3

2) There are 26 rental opportunities in a season. Snow shoes are rented for $40

3) The average lifespan of snowshoes is 5 years

4) REI charges a 67% markup; snowshoes retail price is $200

What is the cost of having having a pair of snow shoes go unrented for a weekend of their useful life? (Think overage)

A. $4.82

B. $9.92

C. $0.92

D. $0.82

What is the “cost” of not having a snowshoe that someone can rent (ignore that the person might instead buy a snowshoe and just focus on lost rental revenue).

A. $40

B. $32

C. $120

D. $44

What is the profit-maximizing service level for rental snowshoes

A. .879

B. .911

C. .789

D. .978

How many rental snowshoes should they stock?

A. 13

B. 10

C. 17

D. 15

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