Write a 1,050-word report based on the Bell Computer Company Forecast Homework Help

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Case Study – Bell Computer Company
The Bell Computer Company is considering a plant expansion enabling the company to begin
production of a new computer product. You have obtained your MBA from the University of
Phoenix and, as a vice-president, you must determine whether to make the expansion a
medium- or large- scale project. The demand for the new product involves an uncertainty, which
for planning purposes may be low demand, medium demand, or high demand. The probability
estimates for the demands are 0.20, 0.50, and 0.30, respectively.
Case Study – Kyle Bits and Bytes
Kyle Bits and Bytes, a retailer of computing products sells a variety of computer-related products.
One of Kyle’s most popular products is an HP laser printer. The average weekly demand is 200
units. Lead time (lead time is defined as the amount of time between when the order is placed
and when it is delivered) for a new order from the manufacturer to arrive is one week.
If the demand for printers were constant, the retailer would re-order when there were exactly 200
printers in inventory. However, Kyle learned demand is a random variable in his Operations
Management class. An analysis of previous weeks reveals the weekly demand standard
deviation is 30. Kyle knows if a customer wants to buy an HP laser printer but he has none
available, he will lose that sale, plus possibly additional sales. He wants the probability of running
short (stock-out) in any week to be no more than 6%.