Modify the decision-tree model in Figure 11.13 to use the extended Swanson-Megill (ES-M) approximation for demand instead
Question:
Modify the decision-tree model in Figure 11.13 to use the extended Swanson-Megill (ES-M) approximation for demand instead of the EPT approximation.
Use your ES-M model to calculate expected profit for Order-Quantity values 600, 650, 700, 750, and 800. How do your results compare to those in Figure 11.14?
Figure 11.13
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We now need the 10th and 90thpercentiles of the demand distribution As we did in Chapter 9 we can us...View the full answer
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Related Book For 
Making Hard Decisions with decision tools
ISBN: 978-0538797573
3rd edition
Authors: Robert Clemen, Terence Reilly
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