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Janet's Bouquets stocks fresh-cut flower bouquets on a weekly basis that sell for $60 each and have a purchase cost of $30 per dozen. Unsold week-old bouquets are reduced in price to $20 each and are always completely sold without affecting the current week's demand for fresh-cut bouquets. Janet, the owner of the flower shop, estimates weekly demand characteristics for fresh-cut bouquets as follows: Demand (bouquets) 75 80 85 90 95 Demand Probability 0.1 0.2 0.3 0.3 0.1 Required: How many bouquets should Janet's Bouquets order each week to maximize net income? Support your decision by preparing an appropriate payoff table. Janet's Bouquets should purchase bouqets

Janet's Bouquets stocks fresh-cut flower bouquets on a weekly basis that sell for $60 each and have a purchase cost of $30 per dozen. Unsold week-old bouquets are reduced in price to $20 each and are always completely sold without affecting the current week's demand for fresh-cut bouquets. Janet, the owner of the flower shop, estimates weekly demand characteristics for fresh-cut bouquets as follows: Demand (bouquets) 75 80 85 90 95 Demand Probability 0.1 0.2 0.3 0.3 0.1 Required: How many bouquets should Janet's Bouquets order each week to maximize net income? Support your decision by preparing an appropriate payoff table. Janet's Bouquets should purchase bouqets

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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Janet's Bouquets stocks fresh-cut flower bouquets on a weekly basis that sell for $60 each and have a purchase cost of $30 per dozen. Unsold week-old bouquets are reduced in price to $20 each and are always completely sold without affecting the current week's demand for fresh-cut bouquets. Janet, the owner of the flower shop, estimates weekly demand characteristics for fresh-cut bouquets as follows: Demand (bouquets) 75 80 85 90 95 Demand Probability 0.1 0.2 0.3 0.3 0.1 Required: How many bouquets should Janet's Bouquets order each week to maximize net income? Support your decision by preparing an appropriate payoff table. Janet's Bouquets should purchase bouqets
Transcribed Image Text:Janet's Bouquets stocks fresh-cut flower bouquets on a weekly basis that sell for $60 each and have a purchase cost of $30 per dozen. Unsold week-old bouquets are reduced in price to $20 each and are always completely sold without affecting the current week's demand for fresh-cut bouquets. Janet, the owner of the flower shop, estimates weekly demand characteristics for fresh-cut bouquets as follows: Demand (bouquets) 75 80 85 90 95 Demand Probability 0.1 0.2 0.3 0.3 0.1 Required: How many bouquets should Janet's Bouquets order each week to maximize net income? Support your decision by preparing an appropriate payoff table. Janet's Bouquets should purchase bouqets
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