Answered: PROBABILITY 0.24 0.08 0.21…

PROBABILITY 0.24 0.08 0.21 0.16 0.08 0.23 VALUE 1 2 3 4 5 6 PURCASE COST C = 12 SELLING PRICE P = 28 SALVAGE VALUE V = 4 What is the optimal order quantity?

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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Question

SOLVE THE NEWSPERSON PROBLEM.

PROBABILITY 0.24 0.08 0.21 0.16 0.08 0.23

VALUE 1 2 3 4 5 6

PURCASE COST C = 12

SELLING PRICE P = 28

SALVAGE VALUE V = 4

What is the optimal order quantity?

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