Question
please use EXCEL!!!!! A local retailer plans to sell cashmere sweaters in its regular catalog for $150 each. The manager estimates that the demand can
please use EXCEL!!!!!
A local retailer plans to sell cashmere sweaters in its regular catalog for $150 each. The manager estimates that the demand can be characterized by a triangular distribution with a minimum, most likely, and maximum sales of 2000, 3000, and 5,000 units, respectively. Toward the end of the season, the retailer sends out a clearance catalog with discounted prices on unsold items. Understandably, the discounted price determines the demand in response to the clearance catalog. The manager has decided to charge a discount price of p = max ($25, $150-n/20), where n is the number of sweaters left over after the regular catalog. At this clearance price p, the manager believes that the demand for cashmere sweaters follows a normal distribution with a mean of 1000-5p and a standard deviation of (1000-5p)/3. If there are still any leftover sweaters after clearance catalog, they will be donated to a local charity. Each sweater costs the retailer $50. As such, the donation to charity will generate $20 in tax benefits. The manager would like to identify the optimal number of sweaters to order at the beginning of the winter season. Please run a simulation for 1000 times with order quantities from 2000 to 5000 with increment of 500. Can you give the manager a suggestion on how many sweaters to order based on the criterion of maximizing the average (expected) profit?
please provide a detailed step-by-step answer including the column headers and row numbers and the formula and simulation used in the process. thx
Discount price =max(25,150-/20) Clearance demand (normal) Mean =1000-5p Standard deviation =(1000-P5)/3 Triangular distribution Minimum 2000 Most likely 3000 Maximum 5000 Range 3000 Ratio 0.333333 Rand # 0.479642 Excel formula to generate a triangular input if range names are properly defined. =IF(RandStep by Step Solution
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