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SoulLessCycle decided to start selling its bikes for home usage and needs to order new bikes from its vendors. The firm has three main vendors:
SoulLessCycle decided to start selling its bikes for home usage and needs to order new bikes from its vendors. The firm has three main vendors: one for bikes, one for its touch screens, and one for assembling them. The cost of each bike is $1000, each screen costs $500, and assembling them costs $300. The firm plans to sell two types of bikes: those without a screen (and thus, do not need assembly) for $2500 and those with a screen (and thus need assembly) for $4800. The firm built a forecast: (with screen, no screen) With probably 33%: (2500, 2500) With probably 33%: (4500, 1500) With probably 33%: (1000, 3500) Note that the firm needs to determine how many bikes to order since the lead time to ship these is long. Note that the assembly is done only if there is demand for the product
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