Question
Valentines day is approaching fast and you have to decide how many roses to order from your supplier. The unit cost of each rose is
Valentines day is approaching fast and you have to decide how many roses to order from your supplier. The unit cost of each rose is 5 TL and you plan to sell them for 10 TL. Any rose that is not sold on Valentines day can be salvaged at 3 TL. Assume that demand for roses on Valentines day is normal with a mean of 200 and standard deviation of 50.
Please write down a quantity of roses you would like to order (you will use this quantity for all 10 realizations that we will consider, ie. do not change this later.)
For each simulated demand realization, indicate how many roses you were able to sell (Sales) and the number of left over roses in the Table below. Please fill out the demand number that was simulated.
Realization | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
Demand |
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Sales |
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Left Over |
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How many roses were you able to sell in these 10 realizations?
How many roses did you have left over for the 10 realizations?
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