I DSCI 300 Final Project Team Successful Unsuccessful E+B 25 23 21 19 P+B Table 3: Productivity Under Strategic Alliance AE also faces challenges in its store. First, AE produces at its maximum productivity in every month and uses the produced product to meet demand only in that month. For simplicity, assume that all the product will be produced and available for sale at the beginning of each month. Any unsold inventory in that month will be discarded so that inventory does not carry over to next month. For example, if AE's monthly productivity (as a result of the decision on team formation) is 100 units, then 100 units are available at the beginning of each month at its store to meet the demand in that month and any unsold inventory at the end of month will be discarded. The net profit per unit is $10. Based on historical data, the number of customers per month is a normal distribution (u=60, o=20). The number of products purchased by each customer follows a triangular distribution with a minimum of zero, maximum of 30, and most likely purchase of 20 units. When AE cannot satisfy a customer's demand, there is a 60% chance that the customer will file a complaint. In that case, AE will pay the customer a penalty (i.e., store credit or coupon) of $5 per unsatisfied demand. For example, suppose a customer demands 10 units and AE has only 4 units of inventory available, then this customer has 6 units of unsatisfied demand. In this case AE will earn $10*4=$40 from this customer. If the customer files a complaint (60% likely), then AE will incur a penalty cost of $5*6=$30 for this customer, meaning that AE's revenue from this customer will be $40-$30-$10. AE's sale of the portable is on the rise. As mentioned earlier, it faces an average demand of 60 customers per month. A recent market research finds that its average number of customers per month will increase over time, as shown in Table 4. Assume that Year 1 is the current year and that all other parameters remain constant.

DSCI 300 Final Project AE also faces challenges in its store. First, AE produces at its maximum productivity in every month and uses the produced product to meet demand only in that month. For simplicity, assume that all the product will be produced and available for sale at the beginning of each month. Any unsold inventory in that month will be discarded so that inventory does not carry over to next month. For example, if AE's monthly productivity (as a result of the decision on team formation) is 100 units, then 100 units are available at the beginning of each month at its store to meet the demand in that month and any unsold inventory at the end of month will be discarded. The net profit per unit is $10. Based on historical data, the number of customers per month is a normal distribution (=60,=20 ). The number of products purchased by each customer follows a triangular distribution with a minimum of zero, maximum of 30 , and most likely purchase of 20 units. When AE cannot satisfy a customer's demand, there is a 60% chance that the customer will file a complaint. In that case, AE will pay the customer a penalty (i.e., store credit or coupon) of $5 per unsatisfied demand. For example, suppose a customer demands 10 units and AE has only 4 units of inventory available, then this customer has 6 units of unsatisfied demand. In this case AE will earn $104=$40 from this customer. If the customer files a complaint ( 60% likely), then AE will incur a penalty cost of $56=$30 for this customer, meaning that AE's revenue from this customer will be $40$30=$10. AE's sale of the portable is on the rise. As mentioned earlier, it faces an average demand of 60 customers per month. A recent market research finds that its average number of customers per month will increase over time, as shown in Table 4. Assume that Year 1 is the current year and that all other parameters remain constant