Question
Ski Wear is deciding how many snow boots to order. The snow boots have a retail price of $185 , with a wholesale order cost
Ski Wear is deciding how many snow boots to order. The snow boots have a retail price of $185, with a wholesale order cost of $120. Remaining boots are discounted by 45 percent and will all be sold. Ski Wear estimates sales of about 850 snow boots with a Poisson distribution. If demand exceeds the order quantity, then the wholesaler will place a rush order. The rush order costs are $75 for each pair of boots.
Ski Wear first wants to examine the impact of ordering exactly 850 snow boots. Then, they will want to examine the impact of ordering between 800 and 1,000 snow boots in batch sizes of 50.
- The Number Ordered in cell B5 would be =RiskPoisson(850)
- true
- false
- Which of the following is the correct combination for the per snow boot revenue/cost (in $) for cells C5, C6, and C7?
- -120, 185, -101.75
- -120, 185, 101.75
- 120, 185, 83.25
- -120, 185, -83.25
- For the Ski Wear company, the Per Snowboot: Revenue/Cost value for cell C8 (Unsatisfied Demand) if they place the rush order is:
- 10
- -10
- 65
- -65
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