Question
Assume demand distribution for a seasonal product at a retail store is as follows Demand Outcome (d) 10 20 30 40 50 Prob (demand =
Assume demand distribution for a seasonal product at a retail store is as follows
| Demand Outcome (d) | 10 | 20 | 30 | 40 | 50 |
| Prob (demand = d) | 15% | 20% | 30% | 20% | 15% |
| Probability (demand d) | 15% | 35% | 65% | 85% | 100% |
Please answer and help me understand answers to below Questions based on above table:
1. Determine the optimal quantity if the retail price, purchasing cost, and salvage value of this product are $99, $69, and $15, respectively.
2. What is the expected lost sale if the order quantity is assumed to be equal to 20?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Hydrology and Floodplain Analysis
Authors: Philip B. Bedient, Wayne C. Huber, Baxter E. Vieux
5th edition
132567962, 978-0132567961
