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As the decision maker of your supply chain production plan, you need to decide on over/under producing of models A, B and C. The liquidation
As the decision maker of your supply chain production plan, you need to decide on over/under producing of models A, B and C. The liquidation value for model A, B and C are 100, 75 and 113 respectively. There are 45 units monthly expected demand for model A, 25 for model B and 60 for C. Please Solve in excel
Cost structure | A | B | C |
Selling price | 400 | 350 | 520 |
Cost | 370 | 140 | 200 |
-Use the newsvendor analysis to verify your answers (assume there is no chance to replenish and there are no inventory costs).
Monthly demand forecast | A | B | C |
Mean | 85 | 70 | 87 |
Standard deviation | 5 | 9 | 6 |
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