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Because Profit includes an extra cost. expected Profit is less than expected Prot. Also, the order quantity that maximizes expected Prot* is larger than the

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Because Profit\" includes an extra cost. expected Profit\" is less than expected Prot. Also, the order quantity that maximizes expected Prot* is larger than the order quantity that maximized expected Profit. The results of running 9 simulations at 10.000 iterations are given below. The largest two EMVs are highlighted showing that ordering 710 calendars maximizes expected Prot*. Order Quantities Expected Prot* Expected Prot 550 $5,553.21 $5353.23 550 $5,512.55 $5,303.95 570 $5,753.32 $5,333.53 630 55751.4? $5,353.05 690 $5,313.22 $5,353.25 700 $5,324.35 $5,355.20 r10 $532155 $5,359.51? 520 $5,322.33 $5,343.55 530 $5,311.53 $5,331.35 The graph below shows the expected Profit and expected Profit\" for the different order quantities. We see that for order quantities less than 710, expected Profit* drops more quickly than does expected Prot. This tells us that Profit* is more affected by running out of stock than is Profit. For

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