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Each selling season the item is ordered. Orders are placed only once a season. No reordering happens during the season. Suppose the selling price of
Each selling season the item is ordered. Orders are placed only once a season. No reordering happens during the season. Suppose the selling price of $25 and the item has no markdown value. If the cost of the item was $20, what order quantity should the store consider for the next time the item is ordered?
Also, I want to know salvage, mu, sigma, Cu, Co, critical ratio, z service factor, and Q
(Suppose an item has this demand history shown)
cost | 20 | ||||
retail | 25 | Demand History | |||
salvage | 36 | ||||
41 | |||||
mu | 32 | ||||
sigma | 60 | ||||
49 | |||||
52 | |||||
Cu (retail-cost) (gain if have enough stock) | 36 | ||||
Co (cost-salvage) (loss if overstocked) | 31 | ||||
critical ratio (service level)(Cu/(Cu + Co)) | 47 | ||||
66 | |||||
z service factor | 24 | ||||
68 | |||||
Q(optimal) | 42 |
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