Party Animals sells stuffed tigers. Products, Inc. manufactures all sorts of stuffed animals. Party Animals orders 10,400 tigers per year, 200 per week at $10 per tiger. The manufacturer covers all shipping costs. Party Animals earns 12% on its cash investments. The purchase order lead time is 3 weeks. Party Animals sells 210 tigers per week. The following data are available (based on management's estimates): What is the cost of the prediction error?

Question

Party Animals sells stuffed tigers. Products, Inc. manufactures all sorts of stuffed animals. Party Animals orders 10,400 tigers per year, 200 per week at $10 per tiger. The manufacturer covers all shipping costs. Party Animals earns 12% on its cash investments. The purchase order lead time is 3 weeks. Party Animals sells 210 tigers per week. The following data are available (based on management's estimates):  What is the cost of the prediction error?

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The Answer of Party Animals sells stuffed tigers. Products, Inc. manufactures all sorts of stuffed animals. Party Animals orders 10,400 tigers per year, 200 per week at $10 per tiger. The manufacturer covers all shipping costs. Party Animals earns 12% on its cash investments. The purchase order lead time is 3 weeks. Party Animals sells 210 tigers per week. The following data are available (based on management's estimates):  What is the cost of the prediction error?

Party Animals Sells Stuffed Tigers