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Based upon the reference chapter and člass disc The probabilistic forecast for a textile retail product is given in Table 1.

Based upon the reference chapter and člass disc The probabilistic forecast for a textile retail product is given in Table 1.

Practical Management Science
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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Reference: Chapter 2 Inventory management & Risk Pooling gge an ol Based upon the reference chapter and class discussions, solve the following problem The probabilistic forecast for a textile retail product is given in Table 1. ing Prob (demand) 10 % demand 6.000 15% 8.000 30 % 10.000 12.000 14.000 16.000 25% 15 % 5 % The costs associated with the product are - Fixed order cost is - Unit purchasing cost is $ 50.000 $ 80 The revenues associated with the product are Sales price during season - Discount price after season is $33 $ 120 Questions. 1. Calculate and plot the average profit against purchase quantities (with purchase lot size of 1,000 units) 2. What is the optimal purchasing quantity that maximizes expected profit ? 3. What is the profit value for optimum purchasing quantity ?
Transcribed Image Text:Reference: Chapter 2 Inventory management & Risk Pooling gge an ol Based upon the reference chapter and class discussions, solve the following problem The probabilistic forecast for a textile retail product is given in Table 1. ing Prob (demand) 10 % demand 6.000 15% 8.000 30 % 10.000 12.000 14.000 16.000 25% 15 % 5 % The costs associated with the product are - Fixed order cost is - Unit purchasing cost is $ 50.000 $ 80 The revenues associated with the product are Sales price during season - Discount price after season is $33 $ 120 Questions. 1. Calculate and plot the average profit against purchase quantities (with purchase lot size of 1,000 units) 2. What is the optimal purchasing quantity that maximizes expected profit ? 3. What is the profit value for optimum purchasing quantity ?
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