What is the maximum Flora Co would be willing to pay for accurate information predicting marketconditions in Quarter 1?O $750O $1,167O $2,695O $1,000 Flora Co sells bunches of fresh flowers which have a limited shelf life so forecasting sales demand isextremely important for maximising profits.Quarter 1Quarter 1 contains a national holiday and as a result sales of a particular red flower are usually very high.Sales of the red flower will depend on market conditions. After the national holiday there will be no demandfor the red flowers and they will be thrown away. Flora Co must decide whether to purchase 250 bunches,400 bunches or 500 bunches of the red flowers from its supplier for re-sale to its customers.The following payoff table has been produced:Market conditionsPoorGoodExcellentExpected valueProbability0.200.250.55Number of bunches to be bought from supplier400$900$3,900$3,900250$2,400$2,400$2,400$2,400$3,300500($100)$2,900$4,900$3,400

Find the given details below: Given details:Number of BunchesMarket ConditionsPoorGoodExcellent250…

Answered: Flora Co sells bunches of fresh flowers…

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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Flora Co sells bunches of fresh flowers which have a limited shelf life so forecasting sales demand is extremely important for maximising profits. Quarter 1 Quarter 1 contains a national holiday and as a result sales of a particular red flower are usually very high. Sales of the red flower will depend on market conditions. After the national holiday there will be no demand for the red flowers and they will be thrown away. Flora Co must decide whether to purchase 250 bunches, 400 bunches or 500 bunches of the red flowers from its supplier for re-sale to its customers. The following payoff table has been produced: Market conditions Poor Good Excellent Expected value Probability 0.20 0.25 0.55 Number of bunches to be bought from supplier 400 $900 $3,900 $3,900 250 $2,400 $2,400 $2,400 $2,400 $3,300 500 ($100) $2,900 $4,900 $3,400
A company wants to develop a level production plan for a family of products. Theopening inventory is 100 units, and an increase to 130 units is expected by the endof the plan. The demand for each month is given in what follows. Calculate the totalproduction, daily production, and production and ending inventory for each month.
A shop is planning an order for a popular Christmas festive season product. Demand for the product usually starts from first week of December till first week of January and reduces sharply thereafter. For this reason, and to stimulate sales for leftovers, the product is sold at a significantly reduced price from the second week of January to the fourth week of January. Any leftover after the fourth week of January goes waste. The table below gives past data on total demand for the period from first week of December to first week of January, and from second week of January to fourth week of January, together with their respective chances of occurrence. The product can be purchased at a wholesale price of GHS60 per unit for a pack containing 600 products, GHS57 per unit for a pack containing 800 products, and GHS52 per unit for a pack containing 1000 products. The shop plans to sell the product for GHS80 per unit from first week of December to first week of January, and at a reduced…
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I came up with a different answer. I cannot see where we have differences except I don't understand why you have T1's which are different.

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