1. Consider the following demand scenario:QuantityProbability2,0003%2,1008%2,2002,30015%30%2,40017%2,50012%2,60010%2,7005%Suppose the manufacturer produces at a cost of $20/unit and sells to the distributor at $40/unit. Thedistributor sells to end customers for $50/unit during season; unsold units are sold for $10/unit afterseason.1. Assume the manufacturer will buy any unsold items at price $32/unit. What is the optimal orderquantity?2. What is the expected number of unsold items?3. What is the profit for the distributor?4. What is the profit for the supplier?

Given data, Quantity Probability 2000 3% 2100…

Answered: 1. Consider the following demand…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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