Continuing Problem 5, create a two-way data table for expected profit with order quantity along the side
Question:
Continuing Problem 5, create a two-way data table for expected profit with order quantity along the side and unit expediting cost along the top. Allow the order quantity to vary from 500 to 4500 in increments of 500, and allow the unit expediting cost to vary from
$36 to $45 in increments of $1. Each column of this table will allow you to choose an optimal order quantity for a given unit expediting cost. How does this best order quantity change as the unit expediting cost increases? Write up your results in a concise memo to management. (Hint: You will have to modify the existing spreadsheet model so that there is a cell for expected profit that changes automatically when you change either the order quantity or the unit expediting cost. See Problem 8 for guidelines.)
Step by Step Answer:
Practical Management Science
ISBN: 9781111531317
4th Edition
Authors: Wayne L. Winston, S. Christian Albright