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Specialty Toy, Inc.

In: Business and Management

Submitted By specialk5025
Words 2326
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MBA: 633 sTATISTICS FOR BUSINESS DECISION MAKING | Specialty Toys, Inc. | Case Problem: Group Assignment No. 1 | | March 4, 2010 | |

[Managerial Report prepared to address issues and recommend and order quantity for the Weather Teddy product for Specialty Toys, Inc.] |

Executive Summary
Specialty Toys, Inc. is a manufacturer of new and innovative children’s toys which includes the Weather Teddy. The Weather Teddy has a built-in barometer that provides one of five standard responses about the weather when a child presses the teddy bear’s hand. The company recently reached out to our team to prepare a managerial report addressing, but not limited to, the following issues: normal probability distribution in relation to demand approximation, the probability of stock-outs for certain quantities and the projected profits associated with certain order quantities. The purpose of this managerial report is to address the concerns of the management team at Specialty Toys, Inc. and also to provide a recommended order quantity for the Weather Teddy, the probability of stock-outs related to specific order quantities, and the potential profits associated with certain order quantities.
Specialty Toys Business Cycle
The company sells a variety of toys throughout the year. However, Specialty Toys plans to release the Weather Teddy in October, before the holiday season is officially underway. Management has determined that this is the best time to release a holiday gift because many families have already begun shopping for holiday gifts at this time. In order to have the Weather Teddy on the shelf by October, the company must place a one-time order with its manufacturer in either June or July. Due to the large gap between when orders are placed and actual products are produced, the most important question the company faces is determining the correct number of…...

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