Question
Use this information for the News Vendor Problem. x is a product, like calendars we covered in class. The probability of each discrete demand is
Use this information for the News Vendor Problem. x is a product, like calendars we covered in class. The probability of each discrete demand is shown in the table below. The sales price per unit is $2,500. The cost per unit is $1,800. The return price is $1,700. Thus the understock cost per unit (co) equals $2,550 - $1,800 = $750, and the overstock cost per unit (cu) is $1,800 - $1,600 = $200.
x | P(x) |
100 | 0.02 |
110 | 0.05 |
120 | 0.08 |
130 | 0.09 |
140 | 0.11 |
150 | 0.16 |
160 | 0.20 |
170 | 0.15 |
180 | 0.08 |
190 | 0.05 |
200 | 0.01 |
What is the expected number of calendars sold, expected understock cost and expected overstock cost and the expected total cost if 160 calendars are ordered?
Expected sales
Expected understock cost =
Expected overstock cost =
Expected total cost =
What is the expected number of calendars sold, expected understock cost and expected overstock cost and the expected total cost if 170 calendars are ordered?
Expected sales =
Expected understock cost =
Expected overstock cost =
Expected total cost =
What is the expected number of calendars sold, expected understock cost and expected overstock cost and the expected total cost if 180 calendars are ordered?
Expected sales =
Expected understock cost =
Expected overstock cost =
Expected total cost =
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